Uganda: Eacop faces fresh hurdles as insurance firms stay away over significant pollution and human rights risks

A total of 28 insurers have so far declared they will not insure Eacop following pressure from climate activists.

The 1,443-kilometre pipeline from Hoima in western Uganda to the Tanzanian Indian Ocean port of Tanga, is majority-owned (62 percent) by French oil giant TotalEnergies and state oil companies of China, Uganda and Tanzania.

Eacop is planned to pass through areas of sensitive ecological importance, including national parks and wildlife reserves. There has been criticism from international environmentalists.

According to Dickens Kamugisha, executive director of the Kampala-based Africa Institute for Energy Governance (Afiego), the Ugandan government is likely to lower its standards and offer attractive terms because it’s heavily indebted.

“The government currently has over $25 billion in debts, 80 percent of which has been accumulated during the time when it’s been pursuing these oil projects. The government is now desperate that it is likely that it will lower its expectations to attract investors,” Mr Kamugisha said.