The East African Crude Oil Pipeline (EACOP) project has once again found itself at the center of heated criticism. Despite the recent announcement that five financial institutions have committed to partially financing the project, the StopEACOP Coalition remains unmoved.
They argue that this partial financing is nothing more than a desperate attempt to salvage a failing project that has struggled for over seven years to achieve full financial closure.
The five banks named in the latest announcement include the African Export-Import Bank (Afreximbank), Standard Bank of South Africa, Stanbic Bank Uganda, KCB Bank Uganda, and the Islamic Corporation for the Development of the Private Sector (ICD).
Yet, in a move that has raised more questions than answers, EACOP Ltd. conveniently omitted the actual loan amount from its statement. This has only fueled speculation about the project’s financial viability.
“The announcement, which does not disclose the loan amount committed by the five banks, cannot conceal the project’s failure to reach full financial close after more than seven years of delay,” Zaki Mamdoo, StopEACOP Campaign Coordinator declared. “This is a smokescreen intended to inspire investor confidence where there is none.”
EACOP is no stranger to controversy. From environmental degradation to human rights violations, the project has been accused of causing more harm than good.
Tens of thousands of residents have been displaced with inadequate compensation facing worsening socio-economic conditions.
Environmentalists warn that the pipeline, running from Uganda to Tanzania poses catastrophic risks to ecosystems and will exacerbate the global climate crisis.
The partial financing announcement comes amid a growing global boycott. A staggering 43 banks and 29 (re)insurers have already ruled out support for EACOP.
Even major investors in TotalEnergies, the main player behind the project are distancing themselves. Notably, Nordea one of the largest Nordic banks, has not only banned project finance but has also ceased purchasing new shares or bonds in TotalEnergies due to its involvement in EACOP.
“The few entities now involved are neither capable of financing the entire project nor provide the legitimacy EACOP seeks. This is a house of cards waiting to collapse.”
The decision to withhold the exact loan amounts has added to the chorus of skepticism. Coalition argues that if the project’s financial health was stable, there would be no need for secrecy.
The StopEACOP Coalition has made its stance clear, the fight is far from over. They are calling on all remaining financial institutions to refuse funding this project and urging those who have already committed to reconsider.
“The world is watching. History will judge those who stood by and funded climate destruction in the face of overwhelming evidence. We call on these banks to do the right thing before it’s too late.”
“As the fight against EACOP continues, with impacted communities and ordinary people across the globe refusing to bow to those who seek to profit from our demise, we call on other potential lenders who have not already distanced themselves from this anti-developmental project to do so publicly, ensuring that our communities are protected, and the sustainability of our planet is upheld.”
