Kampala — EXTENSION of the 360km oil pipeline from Eldoret to Kampala is about to start.

Tamoil East Africa, the Libyan oil company, won a bid to construct the $72m (sh144b) pipeline.

Engineer Ahmad Elgembri, the Tamoil East Africa's project manager, says preliminary stages have been completed.

Elgembri says what is keeping the pipeline construction from starting is government handover of a portion of land between Kampala and Jinja.

"If the government hands over that portion to us, ground work will commence on June 15," he says.

"We want to kick off simultaneously.

First with an opening of the right of way for the first 50km from Tororo to Jinja, then the construction of a terminal on a square mile span of land at Namwabula in Mpigi district, Mityana Road; where another team will lay the pipeline towards Jinja."

The terminal on Mityana Road is planned to have 24 reservoir tanks of 160 million litres. Tamoil also recently took control of the 60 million litre Jinja reservoirs, now undergoing upgrade.

"Within 15 months from the date of commencement, a portion of the pipeline from Eldoret to Jinja should be complete and pumping fuel to the Jinja terminal.

And in another five months, the whole pipeline should be operational," he said.

Uganda consumes 2.2 million litres daily and demand is growing by 4.5% annually.

With the more than 220 million litre capacity of the two terminals, Ugandan fuel users will in times of scarcity be sustained for at least 100 days.