Kenya and Ethiopia have agreed on a deal that will see them construct a joint crude oil pipeline linking the two countries, this is after Uganda chose to export her oil through Tanzania’s Tanga port. The oil pipeline will run from Kenya’s coastal town of Lamu to Ethiopia’s capital city, Addis Ababa.
The deal was signed following billateral talks between President Uhuru Kenyatta Ethiopia’s Prime Minister Hailemariam Desalegn during his three day state visit to Nairobi. The deal is part of a joint infrastructure project to incorporate the region under the Lamu Port- Southern Sudan -Ethiopia Transport corridor (Lapsset).
According to sources close to the discussions, the joint infrastructural project will also include construction of a 122km road that is part of the venture linking the two from Turbi to Moyale and a further 121km from Merille to Marsabit that will ultimately link Mombasa to Addis Ababa.
A statement from State House confirmed the reports and said that the two leaders witnessed the signing of the bilateral agreements which comprised of the oil pipeline deal.
“The two leaders witnessed the signing of bilateral agreements including a pact on the oil pipeline that will run from Lamu to Addis Ababa under the Lapsset project,” a statement from State House said.
The mega development project is approximated to cost US$ 2.1bn and its completion is anticipated to be in 2021; this is according to the Kenyan Ministry of Energy and Petroleum.
During the bilateral talks, Kenya and Ethiopia generally entered into five agreements, some of them include co-operation in sports, cross border co-operation in animal health and sanitary measure, health and education.
The duo also promised to support the position of Africa during the 14th United Nations Conference on Trade and Development (UNCTAD) in Nairobi that will run from 17 to 22 July 2016 and also during the Tokyo Conference on Africa’s Development VI Summit.
Ethiopia is also interested in gas production and exportation probably at the start of next year following immense discoveries.