Uganda and Tanzania have reached the final stages of the modalities of the oil pipeline project. Officials at the Ministry of Energy say that the cost of the project will be dealt with after design studies of the pipeline are concluded and after the line ministers and presidents of either countries sign the deal.
Reports from the ministry say the negotiations centered on project financing, ownership, tariffs among others.
The two countries plan to construct a joint 144km pipeline that will run from Hoima to Tanga in northern Tanzania.
Experts say the pipeline will be ready by 2020 when the government starts producing oil. A team of oil specialists from the energy ministry will start on geotechnical and geophysical studies of the project in the affected areas.