Industry & Economy
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Petroleum
IOC pre-qualifies to bid for Kenya-Uganda pipeline
Ambrish Jha
Mumbai
,
Oct. 20
INDIAN Oil Corporation (IOC) has pre-qualified along with 11 other firms and consortia to bid for building the 320-km Kenya-Uganda oil pipeline.
The pipeline is being considered as an extension of the existing Mombasa-Eldoret line in Kenya and will be laid between the Kenyan city of Eldoret and Kampala in Uganda. This will be a build-own-operate-transfer project.
The others pre-qualified for the bidding process include China Petroleum Corporation, Petronet East Africa Consortium, Tamoil East Africa, ARV-Zakhem Consortium, Stone & Webster Management Consultants and Asia Petroleum.
The last date for submitting the bid is October 31. An IOC official said that the bid would be submitted before the due date.
Meanwhile, IOC is studying retail markets both in Kenya and Uganda for tying up with local retailers, which in fact is a pre-requisite for the bidders. The tie-up at the retail end was vital as it would impact efforts to recoup investment, he said.
The project involves development and operation of an eight-inch diameter multi-product pipeline from Eldoret to Kampala via Malaba and Jinja, a distance of approximately 320 km. There will be a common user depot at the pipeline terminal at Kampala.
In the initial years, the capacity of the line in terms of throughput is expected to be around 1.2 million cubic metres.
Two independent studies undertaken on the project found the project to be technically feasible and financially viable. International consultant Penspen did the first study, funded by the European Investment Bank. It submitted its feasibility report way back in May 1999. Later a complementary study was undertaken in 2001 to update the earlier study.
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