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Bob Burdett +1 415 369 1114 |
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| Kenya-Uganda Oil Pipeline Extension: Complementary Study The Government of Kenya and the Government of Uganda have proposed the construction of a pipeline from Eldoret in Western Kenya to Kampala in Uganda to provide an efficient and safe mode of transport for white products to the Ugandan capital and beyond. Nexant was commissioned to review a previous feasibility study of the project; update the engineering and economic analysis; and determine the extent and degree of risks to the project. Nexant reviewed projections for future demand; carried out a technical hydraulic analysis of the proposed pipeline; performed an economic cost-benefit analysis of the project; and analyzed the cost-effectiveness of transporting projected future demand for oil products to Kampala by six alternative routes. Nexant also examined four options for the future legal structure of the pipeline network from Mombasa to Kampala, assessing and ranking them in order to determine the most appropriate option for Kenya and Uganda. Nexant's work has provided the two governments with an updated assessment of the project's viability, its risks, and the impact of those risks on viability. Nexant has also developed a structure for the project which takes account of the domestic economic, legal, and policy environment and the need to attract finance.
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