Assignment task: East African Crude Oil Pipeline (EACOP) Project has established a commercial and legal framework including:- (a) An Intergovernmental Agreement between the Governments of Uganda and Tanzania setting out common principles and signed on 26th May 2017 (b) Two Host Governments Agreements (HGAs) between EACOP and the Governments of Uganda and Tanzania, signed on 11th April 2021 and 20th May 2021 respectively. These HGAs cover matters such as Land, HSE standards, fiscal regime, Authorizations, Decommissioning and recourse to dispute mechanisms. Where required, the HGAs are supported by legislation in both Uganda and Tanzania (c) The EACOP Shareholders Agreement which became effective the 15th February 2022 between the four Shareholders setting out the governance of the EACOP Company. EACOP Co is a UK registered entity, fiscally resident in Uganda. It will pay its taxes and duties in Uganda and Tanzania. (d) The Transport and Tariff Agreement setting out the terms and conditions for EACOP to transport oil. Under the TTA, EACOP will receive an income in the form of a tariff charged for each barrel of oil transported. EACOP takes custody of the oil at the flange immediately after the upstream fiscal metering until the loading flange on the marine jetty in Tanga bay. The ownership of the oil remains with the Upstream Shippers (Government of Uganda, Total Energies E&P Uganda, CNOOC Uganda and UNOC)
Using the EACOP project as an example elucidate the intricacies of development project funding.
1. Examine the importance of stakeholder engagements in the EACOP project.
2. As a project team member assigned with project work plans, demonstrate the key elements of work plans you would consider in developing a work plan for EACOP project.
3. Discuss the importance of carrying out an Environmental Impact Assessment for such a project