Opinion: Now that the World Bank has new priorities, they will most likely not loan to the pipelines in East Africa!

 

There is certain movements that will strike as more expensive for the East African Community (EAC). This being for the Government of Uganda (GoU) and the Government of Kenya (GoK), who has big plans of petroleum pipelines from their oil-fields and to the coast. That being from Turkana to Lamu Port. While the Ugandan oil goes from Hoima to Tanga Port in Tanzania. Both development and industrial projects will have issues with the funding. The World Bank has supported massive infrastructure projects in both countries.

Therefore, for the two counties big development and oil industry, this is giant set-back, since they have to find funding and loans for the pipelines on the open market. Even with higher interests and making the profits of it lesser, than it would have been with a World Bank loan. It would not hurt the pocket as much as it does on the open market. The banks wants more profits themselves and also make sure they are paid-in-full.

With all this in mind. There are speculations, but first. Parts of the self-answering service. Before we look at the reactions in Kenya and Uganda. All of are important, as the state is involved in the licensing and building the pipelines. They are directly into the development and procurement of the pipelines. That is why this is big blow for the administrations and their possible tax-profits on it.

Word Bank Q&A:

“Q. How is “upstream” oil and gas defined?

Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas” (World Bank, 2017).

“Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision” (World Bank, 2017).

Kenya Pipeline:

“The announcement by the bank, which has significant interests in Kenya’s oil prospecting sector, does not bode well for the country’s anticipated entry into the club of oil producing nations beginning next year. Analysts said they do not expect an immediate reaction to the announcement even as they acknowledged that it takes the shine from oil in the long term” (…) “Locally, the World Bank is offering technical support to the Kenyan government, through the Kenya Petroleum Technical Assistance Project, to prime all stakeholders for commercial oil production and sale. The six-year programme is scheduled to run until February 2021 and involves the World Bank managing a Sh5.2 billion fund set up by investors from Germany, Norway and Britain. The World Bank’s private lending arm, International Finance Corporation, is however directly involved in Kenya’s oil fields, having a 6.83 per cent stake in Africa Oil, the Canadian exploration firm with interests in northern Kenya oil blocks” (Mutegi, 2017)

Uganda Pipeline:

“The pipeline, is expected to be completed by the year 2020, when the country is scheduled to start oil production. In fact, Uganda’s President, Yoweri Museveni and his Tanzanian counterpart recently commissioned the construction of the East African Crude Oil Pipeline. The two leaders laid mark stones for the crude oil pipeline in Mutukula, Kyotera district and Kabaale in Hoima district. Total E&P Uganda, a subsidiary of French oil giant, Total S.A, is spearheading the construction of the crude oil pipeline on behalf of the joint venture partners. Adewale Fayemi, the general manager, Total E&P Uganda says discussions are ongoing to discuss on the formalities of how the pipeline will be run. Already, an agreement has been reached that the East African Crude Oil Pipeline (EACOP) will be run and managed by a Special Purpose Vehicle (SPV) – private pipeline company. This means that a private company will be incorporated with joint venture partners – Tullow Uganda, Cnooc Uganda Ltd and Total E&P Uganda, and the governments of Uganda and Tanzania as shareholders in the company” (Ssekika, 2017)

Certainly, this will put a strain on the projects. They have to deliver another type of arrangement to make sure they get funding and have the funds to pay the added interests the banks wants. The added points on the dollar and the interest-rates will hit state-owned firms and the state itself. Since the pipelines most likely becomes more expensive and will be less profitable.

That the World Bank is pulling out of these projects is all within line of the Paris Accord, as they have professed is the reason. Still, this will make these projects more expensive and make sure they are earning less on it. Unless, the crude-oil prices are going up to a level that makes these investments even more profitable. That is only for time to tell. Since it is costly projects and also sophisticated to build. There is needed lots of expertise combined state planning to achieve the development plans.

This is just the beginning, but the pipelines and these investments are vital for both Kenya and Uganda. As the governments are already borrowing state funds on the possible earnings from the oil reserves in their basins. Therefore, they need to drill and need the petrodollar as quickly as possible. Peace.

Reference:

Mutegi, Mugambi – ‘World Bank dims Turkana oil hopes’ (14.12.2017) link: http://www.nation.co.ke/business/World-Bank-dims-Turkana-oil-hopes/996-4227848-u02v8n/index.html

Ssekika, Edward – ‘East African Crude Oil Pipeline: The Inside Story’ (11.12.2017) link: http://www.oilinuganda.org/features/economy/east-african-crude-oil-pipeline-the-inside-story-details-emerge-of-how-the-crude-oil-pipeline-will-be-financed-managed.html

World Bank – ‘Q&A: The World Bank Group and Upstream Oil and Gas’ (12.12.2017) link: http://www.worldbank.org/en/topic/climatechange/brief/qa-the-world-bank-group-and-upstream-oil-and-gas

Joint Communique between the United Republic of Tanzania and the Republic of Uganda issued at the Conclusion of the State visit to the United Republic of Tanzania by His Excellency Yoweri Kaguta Museveni President of the Republic of Uganda (26.02.2017)

U.S. Department of the Army Corps 24 hour notification letter to continue building the Dakota Access Pipeline (07.02.2017)

Jay Smooth: “Thoughts On The Women’s March That Already Feels Like So Long Ago Because These Are The End Times” (Youtube-Clip)

Trump, the Great Dictator has entered the building!

Congratulation Mr. Donald J. Trump you act like Dictator and behave like a tyrant. Your legacy is built over and days. You complained and whine like a bitch that Barrack Obama as President made lots of Presidential Orders, but the first thing you do is to make a dozen’s of them yourself.

Like this one:

“The Secretary of Commerce shall conduct outreach to stakeholders concerning the impact of Federal regulations on domestic manufacturing and shall solicit comments from the public for a period not to exceed 60 days concerning Federal actions to streamline permitting and reduce regulatory burdens for domestic manufacturers. As part of this process, the Secretary of Commerce shall coordinate with the Secretaries of Agriculture and Energy, the Administrator of the Environmental Protection Agency, the Director of the Office of Management and Budget, the Administrator of the Small Business Administration, and such other agency heads as may be appropriate” (MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES, 24.01.2017, Donald J. Trump).

What a noble gentleman you are that you’re gaging the United States Department of Agriculture (USDA) and the Environmental Protection Agency (EPA), they are not allowed for staff on Social Media and talk to the Media. So your making blackouts of government institutions before you have been in power a month. Even Gadaffi your friend who rented your land in New York back in the day would be proud, Vladimir Putin must see the vision in your ears and the glowing ignorance in your eyes.

You have already tried to subdue the media with false tragedies and stupid made of stories, while the worst is happening inside your coming cabinet, your hiring of men and woman who is billionaires that couldn’t be more far from the voters who elected you into office. You’re a billionaire who apparently doesn’t care much about acts as long it gives you and your men profits.

Trump MoU on DALP: “The Dakota Access Pipeline (DAPL) under development by Dakota Access, LLC, represents a substantial, multi-billion-dollar private investment in our Nation’s energy infrastructure. This approximately 1,100-mile pipeline is designed to carry approximately 500,000 barrels per day of crude oil from the Bakken and Three Forks oil production areas in North Dakota to oil markets in the United States. At this time, the DAPL is more than 90 percent complete across its entire route. Only a limited portion remains to be constructed. I believe that construction and operation of lawfully permitted pipeline infrastructure serve the national interest” (SUBJECT: Construction of the Dakota Access Pipeline, 24.01.2017, Donald J. Trump).

You speak of being environmental, but open up the petroleum pipelines of Dakota Access Pipeline and Keystone XL. You are such an ass, at the same time deletes the reality of water-quality and other truthful information on your government web-pages. You are gagging the EPA and USDA that looks into the reasonable environment hazards the pipelines would do in dozens of states. But you only see the cash monies and even some of the businesses your sons are running might benefit. You couldn’t care-less.

“In accordance with Executive Order 11423 of August 16, 1968, as amended, and Executive Order 13337 of April 30, 2004, the Secretary of State has delegated authority to receive applications for Presidential permits for the construction, connection, operation, or maintenance, at the borders of the United States, of facilities for the exportation or importation of petroleum, petroleum products, coal, or other fuels to or from a foreign country, and to issue or deny such Presidential permits. As set forth in those Executive Orders, the Secretary of State should issue a Presidential permit for any cross-border pipeline project that “would serve the national interest.” (SUBJECT: Construction of the Keystone XL Pipeline, 24.01.2017, Donald J. Trump).

EPA on DALP Pipeline Route before Pre-Trump Era!

Trump, your acts now are peril with the ways of democratic behavior, you are silencing your own government institutions, not giving to craps about the honest truth. Not that truth ever matters to you as long as you are winning!

That your Presidential Spokesman Sean Spicer and Presidential Advisor Kellyanne Conway feel your coverage is biased and wrong, well, you are the one acting and doing executive orders. You are the one behind the madness called the Trump Era and the Trump administration. I am sure you will soon blackout more institutions, silence the Congress and Senate. As your sinister plans get into effect, because you cannot handle the truth or facts; facts are lies and deceptions to you, they are not useful, because they damage you. Facts are the thing that you hate more than anything else. Therefore you cannot handle that the EPA or USDA are telling the truth about the pipelines and their possible environmental damage.

Trump cannot handle his own government agencies and doesn’t know how they operate, doesn’t know the laws, therefore he orders things he like and been told by his donors like a drone. Being a dictator and dictating the state to be silenced for 60 days. Trump has so little courage and bravery that he doesn’t believe that he can work the system. He has to rig it and make order it to command, because he is the Executive. Surely he will drop more orders daily  than at a busy Chinese takeaway restaurant in Manhattan, New York.

Donald Trump you’re the coming GRAND Dictator, I am sure you haven’t seen the movie or understand the play, but you’re the next up! You don’t care about the implications on the Presidential Orders or Memorandums of Understanding that you’re signing these days. You only see your vision and stature. The only thing mattering is that you’re the man.

Donald Trump, dictating son-of-bitch from Queens, who doesn’t care about the rules or regulations, not even who will become in the people’s eyes; he attacks the media, but he has created the monster and that is himself. Himself is the man who silence EPA and USDA so he can push through environmental dangerous industrial building that has been demonstrated against through the United States Presidential Election 2016. That apparently by default you won, President Trump!

The Executive, the President, the almighty bastard that silence environmental institutions so they doesn’t say the truth about the massive disturbance and possible damage to rivers and destroy the environment… but does the new American President care about that. He only cares about himself.

You are a son-of-a-bitch! Future tyrant and so-far from democratic value Executive the United States has ever had. You as a man cannot even handle staff and institutions to speak their mind while the pipeline constructions are happening. Trump cannot handle that, Trump is little muffled dog under pressure from donors to do this and not caring about the effects it will have. He is 70 years old, so not that his life will be long enough to see the damage or feel it. Not that he is ever travelling in North Dakota near the towns that are affected; neither is he visiting Keystone XL. Trump doesn’t have the heart.

Welcome world, Trump the Great Dictator has entered the building! Peace.

Statement Regarding Revocation of Relief to Wells Fargo Bank, N.A. from Certain Regulatory Consequence of Enforcement Actions (18.11.2016)

DAPL: Energy Transfer Parterners and Sunoco Logistics Partners Denounce Today’s Announcement by the Army Corps of Engineers (14.11.2016)

Dakota Access Statement on the U.S. Army Corps of Engineers (08.11.2016)

Kingdom of Hawaii asks Wells Fargo to Cease and Desist Energy Trading Partners L.P. conserning Dakota Access Pipeline (29.10.2016)

Standing Rock Sioux Tribal Chair: DOJ Must Investigate Use of Force Against #DAPL Resistance (Youtube-Clip)

” “I knew North Dakota state was planning something,” says Standing Rock Sioux Tribal Chair Dave Archambault II of the raid on a resistance camp Thursday by militarized police. “They set up a pre-hospital tent near the camp. … That was sending me signals this was going to get out of hand.” Archambault says he asked the Department of Justice to step in and ask the state not to proceed with the raid, and now calls on the Justice Department to launch an investigation into the use of force against those resisting the Dakota Access pipeline” (Democracy Now, 2016)