Evaluating the Benefits and Costs of the East African Crude Oil Pipeline (EACOP) Project

It is important to note that in this discussion, all participants followed facts, science, and diplomacy; therefore, extreme and unfound claims had no room in the debate.  Below are the key points noted during the deliberations:

In Uganda and the world over, climate change has been recognized as a crisis with multiple impacts such as drought, floods, loss of lives, famine, conflicts, poverty, and diseases, driven by extreme weather variations that have been anticipated to increase by the recent AR6 report (IPCC, 2022). The Regional Director of Earth Day Africa Derrick Mugisha noted that, “even though the project is expected to generate billions of dollars for the country, the country is very vulnerable to climate impacts and environmental degradation which makes even the future of the infrastructure and biodiversity into jeopardy.” He added that, “Uganda’s involvement in the EACOP project sets an example in the region that will encourage other countries to engage in fossil fuel exploitation instead of fighting climate change, combating desertification, and preserving biodiversity for sustainable development.”

Regarding the Environmental and Social Impact Assessment (ESIA), EACOP’s Consultant Alex Robert Lwanga noted that, “it took three years to complete the assessment, which is the longest in Uganda, and the international companies engaged are aware of the project’s environmental sensitivity, and they will ensure compliance with the environmental guidelines set forth… the pipeline is 6 kilometers from the lake, which is not close to the water bodies; and local communities are well compensated for their natural resources even more than existing standards, and those who are unhappy are still trying to negotiate inclusive compensations with them.” He also noted that, “the pipeline will pass underground, and the top surface will be restored with vegetation.”

NEMA should ensure that stakeholders’ comments are addressed by developers during the Environmental and Social Impact Assessment public hearing process, with consideration of the marginalized groups such as indigenous peoples and local communities, and their representatives or civil societies. Considering the environmental sensitivity of the project, its ESIA should be continuously monitored and updated to ensure that it is compliant with the set guidelines, but also to offer an opportunity to add additional environmental and social impact mitigation and prevention measures during the project life cycle.

The government should strongly abide by its local policies and laws, inclusive of environmental policies and all related environmental charges related to projects undertaken within the country. A Natural Resource Economist Christopher Tusiime stressed that, ”Uganda has well-drafted policies and documents on environmental management, climate change, human rights, and environmental and social impact assessment, but the country has fallen short in its implementations.” He also noted, that “even if the implementing partners are international corporations, the government should be keen and strict to ensure that they comply with their environmental and social obligations.” In addition, environmental-related taxes should be clearly stated, accounted for, and directly allocated to the preservation and protection of the environment and natural resources within the country.

EACOP should publicize the project’s activities, benefits, and costs so that all affected stakeholders have an opportunity to understand existing opportunities and how to utilize them, and also understand the costs that result from the project so that when it comes to dialogues and compensations, they can make informed decisions and deliberations. It is imperative to provide this kind of information in the local languages through local media outlets in the regions.

EACOP should promote transparency when conducting its business. For example, preventing observers, researchers, organizations, and journalists from accessing the working sites increases distrust. It is necessary to strengthen human rights respect and observance to enhance the rule of law not only during the execution of this project but also in treating those who oppose it. Respectful and inclusive dialogue and engagement should be promoted and supported by EACOP among the various stakeholders including local communities which are affected by the project, associations, activists, researchers, and local and international organizations that have concerns or interests in the project. 

Clean energy costs were cited as being extremely high and inaccessible for Ugandans. The reason for this was the sophisticated and limited technologies used to extract the various resources and the prohibitive cost of clean energy products such as electric cars. Therefore, if theirs is no action to address these challenges,  the green transition will result in widening income gaps and limiting access to services for several people, resulting in overreliance on countries from which these products are produced. For this reason, Uganda and the rest of the world must invest in innovation and production of clean energy and products that are affordable, accessible, and producible by developing countries.

The US$100 billion (Kate, 2022) financial target should be met and increased by developed countries to address the climate crisis in developing countries. The failure to respect and meet these commitments leaves developing countries in a state of despair. The climate crisis disproportionately affects developing countries compared to developed countries, ranging from the unprecedented long severe drought periods in Kenya and Somalia to the recent floods in Pakistan. These extreme weather events affect millions of people and claim thousands of lives. In the face of these impacts, developing countries are left at the mercy of extremely limited and competitive donations and grants, even though they contribute less to the problem. In times such as these, developing nations are left feeling helpless, overwhelmed, and hopeless, which tempts them to pursue projects that might not be in their best interests, if at all they can provide them with incomes to build their resilience and independence.

All nations and civil societies should condemn and act against the use and exploitation of fossil fuels equally so that no nation sees itself as a target for impeded development or condemned because of unfounded accusations. Several examples were given of how developed countries are still negotiating and signing deals to buy fossil fuels in countries in the Middle East, specifically during the current deterioration in relations with Russia. Therefore, developed countries should dissociate themselves from such transactions, which is not only an exemplary act but also narrows and devalues the market for these fuels.  

Developing countries should abide by and act toward the achievement of the targets set by the international agreements they are signatories to. Both developed and developing countries have vested enormous amount of time, experience, and resources to develop and improve international agreements for a better world, and it’s unequivocal that these agreements have enabled a realization of the global village for humans, the environment, and trade everywhere, whereby injustice anywhere, is injustice everywhere, and whereby, pollution anywhere, is pollution everywhere. This gives a right to countries to speak up or even act in case a nation diverts from what it agreed to abide by in an international declaration it ratified.

Developing nations should invest in renewable energies and infrastructure. Though it is acknowledged that developing countries are hardly hit by the climate crisis and are constrained by limited budgets, they should invest and have clear paths to transition to greener economies. Through approaches that have proven to be effective and efficient in a setting of rapidly increasing population, rapid urbanization, and limited incomes. Government should invest in electric trains, hydropower generation, and its wide transmission, buses, and promotion of more sharing of transport, machinery, spaces, and equipment. This does not only minimize emissions but also saves financial resources and time which are key for economic and sustainable development.  In support, developed countries and international financial institutions should avail funds either as grants or loans at attractively low or zero interest rates to support a green transition in developing countries.

Last but not least, it was noted that oil and gas production is not a precondition for economic development. Though there are countries in the past that have become rich through the production of oil and gas, the sector has been noted to be faced with a ‘resource curse’ in Africa which has been associated with weak institutions which are prone to corruption, resulting to more inequalities, compromised institutions, instabilities and locking the country into polluting energy systems. The government should enhance transparency, equity, and accountability in registering and allocating benefits accruing from the project; avail long-term plans of how revenue from the project is to benefit people; strengthen institutions; enhance response to oil price fluctuations; and refrain from unsustainable debts which put the country’s resources in jeopardy.