China doubles down on controversial African pipeline as Western lenders walk away
- US$5 billion project strongly opposed by environmental and human rights groups is now highly dependent on Beijing
- China is an ‘indispensable actor’ in East Africa amid continued Western criticism of its role there, analyst says
Chinese lenders are among a group of banks coming to the rescue of a US$5 billion oil pipeline after Western-backed financiers walked away amid strong opposition from environmental groups.
“Part of the money is going to come from Exim Bank of China” and “two companies from two African countries are offering funding”, Ugandan Energy Minister Ruth Nankabirwa said last weekend.
The announcement ended speculation that the project would stall after dozens of lenders and insurance companies refused to take part in financing.
Uganda and Tanzania plan to build the 1,445km (900-mile) conduit to transport crude oil from two oilfields at Lake Albert in northwestern Uganda to the port of Tanga in Tanzania on the Indian Ocean. It is expected to transport 216,000 barrels of oil per day destined for international markets.
