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East African Pipeline Nearer to Reality

Ethiopia and South Sudan have reached an agreement to proceed to the next step of the three way deal between Juba and Djibouti through Ethiopia. The project is expected to cost 3 billion US dollars to completion. It is expected that the project will be initiated next year.

A Memorandum of Understanding was signed between the three countries last February to launch the construction of the pipeline and other infrastructural projects such as a railway and fiber optic cable.

A feasibility study commissioned at the time has given priority to the construction of the oil pipeline to facilitate the export of South Sudanese petroleum through Port Djibouti.

Sufian Ahmed (Ethiopian Minister of Finance and Economic Development), Stephen Dhieu Dau (South Sudan petroleum and Mines Minister) and Ilyas Moussa Dawaleh (Djiboutian Minister of Economy and Finance) met in Addis Ababa last week to initiate the next stage of the project according to sources.

The agreement establishes that the construction of the pipeline will begin in the second quarter of the next year noted the sources.  The tripartite agreement is a win-win collaboration for the three countries involved and in fostering regional economic cooperation said Dawaleh.

It is expected that the joint committee will complete a detailed feasibility study in the up-coming months in anticipation of commencing construction in six months. It is expected that financing for the endeavor will come from international financiers including China.

Source: Capital