REPORT: EACOP Project has Impoverished the Affected People

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Research released by Africa Institute for Energy Governance (AFIEGO) today has showed that the East African Crude Oil Pipeline (EACOP) project has, to a great extent, impoverished the EACOP-affected people in Uganda.

When completed, the East African Crude Oil Pipeline will carry oil from Uganda to a port in Tanzania.

The research, which was conducted between April and November 2023, assessed the impact that the EACOP project had had on the affected people’s access to land, the productivity of the replacement land that the affected people acquired after being displaced for the EACOP and the changes in income the affected people experienced after being displaced for the EACOP.

The research also assessed whether the EACOP had enhanced the affected people’s access to social services such as schools, health centres and clean water among others. The EACOP-affected people’s access to employment opportunities in the oil and gas sector was also assessed among others.

Two hundred and thirty-seven (237) respondents from 31 villages, 16 sub-counties and six of the ten EACOP-affected districts in Uganda participated in the research. The research participants, who were drawn from districts that include Hoima, Kikuube, Kakumiro, Mubende, Lwengo and Kyotera, included EACOP project-affected persons, local council leaders, women, the elderly and cultural as well as opinion leaders.

The research found the following:

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  • That 96.6% of the EACOP-affected people who received cash compensation and bought replacement land between 2022 and June 2023 did not get land equivalent to that taken for the EACOP project.
  • The above failure arose from the fact that the affected people received delayed, inadequate and unfair compensation. 78.1% of the respondents that participated in the study indicated that the EACOP compensation they received was delayed, unfair and inadequate.
  • In addition, the people indicated that the value of land in their local areas appreciated in value. For instance, 7% more affected persons indicated that an acre of land in their local areas cost between UGX 11 to 20 million after their displacement while 13.1% more people indicated that an acre of land cost more than UGX 21 million after their displacement. This made buying equivalent replacement land difficult.
  • The research also found that the majority of the affected people’s replacement land was less productive than that that they owned before the EACOP. For instance, 41.4% indicated that their replacement land was of low productivity while 33.3% indicated that it was of medium productivity. Only 11.4% noted that their replacement land was productive while 3.3% indicated that their land is very productive. Changing seasons, contributed to by the fossil fuel industry, were also cited as a barrier to good crop productivity.

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In relation to crop productivity, the research found that the affected people experienced changes in crop harvests after their displacement for the pipeline. The most notable change was seen in the affected persons who used to harvest over 51kg of crops per year. A decline of 14.8% was see in the above persons.

The research assessed the changes in income experienced by the affected people. The study established that there was a reduction in the PAPs’ income after their displacement. For instance, the number of affected persons earning an average annual income of over UGX 300,000 per year declined by 20.8% after the people’s displacement.

The study also established that 49% of the EACOP-affected people that participated in the study obtained loans. When asked what the loans were acquired for, 65.8% of the respondents indicated that they wanted to feed their families, 28.7% indicated that they wanted to enhance their businesses and 5.4% indicated that they wanted to buy replacement land or complete their resettlement houses. Among others, access to food was difficult for the affected households due to land use restrictions placed on the affected people’s property due to the EACOP project.

In relation to social services, the study found that 37% children of school-going age from the households that participated in the study were out of school. 21% of these were girls while 16% were boys. In addition, only 15% of the affected people that participated in the study had access to safe water.

Further, none of the research’s respondents, majority of whom were of working age, were employed in the oil and gas sector. Mr. Dickens Kamugisha, AFIEGO’s CEO, says;  “The Ugandan government and other promoters of the oil and gas industry in Africa have made arguments that the industry is needed to promote socio-economic growth. However, our research shows that instead of improving the socio- economic conditions of the affected people, the EACOP led to a regression in the affected people’s lives. We hope that the Ugandan government and other stakeholders will use this study, and others that highlight the impact of the oil and gas sector on the affected people, to promote better investment choices. It is best to invest in sectors that have a positive socio-economic impact on Ugandans.”

Ms. Amina Acola, a lawyer, says, “The study showed that the EACOP project developers have contravened various rights that the affected people should have enjoyed as guaranteed under Uganda’s Constitution. Among others, the affected people’s property rights and their right to make a living were negatively impacted by the project. CSOs can support the affected people to seek justice through litigation among others.”

AFIEGO’s Ms. Comfert Aganyira says, “The study also demonstrated a failure by the EACOP project proponents to comply with key provisions under the International Finance Corporation (IFC) standards, especially standard 5 which provides for restoration of project-affected people to the same or a better position after their displacement. We hope that financial institutions will take note of this while deciding whether to participate in the EACOP project or not.”

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