MEDIA FOR CHANGE NETWORK

European banks risk legal onslaught, reputational damage by backing controversial EACOP project

Published

8 months ago

October 1, 2024

StopEACOP protest outside the Chinese Embassy in Kampala, Uganda, on November 20th, 2023. Photo: Apass Marley

StopEACOP coalition warns of imminent litigation and formal complaints against seven unnamed European banks considering financing the destructive and controversial pipeline

The StopEACOP coalition warned today that seven European banks will be walking into a minefield of litigation, formal complaints, and severe reputational damage, if they go ahead with their reported promise to finance the East African Crude Oil Pipeline (EACOP) which to many is highly controversial.

Earlier this month, Ugandan media reported that two Chinese and seven European banks “have promised to finance” the damaging pipeline project, which has been seeking a US $3 billion project finance loan from commercial banks since as early as 2017. This followed a report the previous month claiming that nine European banks would finance the project. In that report, Uganda’s Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, was quoted as saying that finance from European banks “was a requirement from China that let this project not be seen as Chinese banks only.” The project has not yet reached financial close, meaning the loan has not yet been agreed, and insurance for the project is not yet in place.

Zaki Mamdoo, StopEACOP Campaign Coordinator, said: “If it is true that seven European banks have promised to finance the EACOP, they should know that we will use all avenues available, including all legal avenues, to hold them accountable. This project is already mired in well-documented human rights abuses, and any bank stepping in to support it at this stage will be complicit in these.”

Ryan Brightwell, Human Rights Campaign Lead at BankTrack said: “The largest banks in Europe can see EACOP poses immense risks, and have said they will steer clear. If seven European banks have really agreed to finance the project, they should know they will face a huge reputational hit, as well as likely official complaints and legal challenges. They should not allow themselves to be used to greenwash a project which Chinese financiers find too controversial to shoulder alone.”

Diana Nabiruma of Africa Institute for Energy Governance (AFIEGO) said, “News that any financial institution, European or Chinese, is interested in supporting the EACOP, is surprising. The project’s proponents have shown such a disregard for the wellbeing of the affected people so much so that in August, they sued 80 people including the terminally ill, the elderly and others, so that their land could be forcefully taken for the project. Reports on the impact that oil activities are having on Murchison Falls National Park also paint a dire picture. No responsible bank should finance the destruction of people and nature.”

The $5 billion EACOP project, spearheaded by TotalEnergies, aims to transport crude oil from Uganda’s oil fields to a terminal in Tanga, Tanzania. On September 6th, 2024, 20 anti-EACOP activists and some of the project-affected people were released after spending nearly a week in prison for protesting against the controversial pipeline. Just a month earlier, police had arrested 50 people, including 47 students, who were preparing to voice opposition to EACOP.

Environmental and human rights groups have persistently highlighted the potential hazards of the controversial EACOP, including severe impacts on wildlife habitats, the displacement of communities, and the exacerbation of climate change through increased greenhouse gas emissions. Many field investigation reports, including a recent Human Rights Watch report, have also documented and denounced the inadequate compensation and significant disruption experienced by residents displaced by the pipeline’s construction.

At least 27 banks have already refused to join the project finance loan for EACOP, including Japan’s SMBC, formerly an advisor on the loan, and the UK’s Standard Chartered, which spent over a year undertaking due diligence on supporting it. In addition, 29 major (re)insurers have ruled out support for the pipeline.

European banks that are not listed on the StopEACOP Bank Checklist as having ruled out support for the project are urged to make contact with the coalition to make their position clear.

Original Source: Banktrack

MEDIA FOR CHANGE NETWORK

EACOP project triggers floods in Kyotera District.

Published

1 week ago

May 9, 2025

witnessradio.org

By Witness Radio team.

As the detrimental effects of the East African Crude Oil Pipeline (EACOP) project intensify, hundreds of Ugandan communities are bearing the brunt of this colossal project. From forced evictions and displacements to the criminalization of project critics and now devastating flash floods, the urgency of addressing these issues is paramount. The suffering of local communities hosting the project has been exacerbated.

In Kyotera District, central Uganda, communities remain stranded as floodwaters rush into their homes and gardens, destroying their food stores and leaving families in despair. Residents attribute the cause of the floods to the ongoing construction activities related to the EACOP project.

Kyotera is one of the 10 districts that the project traverses to the port of Tanga in Tanzania; the others include Hoima, Kikuube, Kakumiro, Kyankwanzi, Gomba, Mubende, Lwengo, Sembabule, and Rakai.

The EACOP project, a 1,444km pipeline that will transport oil from Hoima in Uganda to the port of Tanga in Tanzania, has cast a wide net of impact. It has affected thousands of people, especially in local communities, leading to displacement, destruction of property and crops, and environmental hazards such as floods.

The development of oil activities in Uganda has led to several major projects supporting oil extraction, processing, and export. The proponents of these projects argue that they bring economic development and job opportunities to the region.

These include the EACOP project, the Tilenga Project operated mainly by Total Energies (with partners like CNOOC and UNOC), which covers oil fields located in Buliisa and Nwoya districts, and the Kingfisher Project, which is managed by the Chinese oil company CNOOC and is located on the southeastern shores of Lake Albert (mainly in Kikuube District). It focuses on drilling oil and setting up a central processing facility (CPF), and oil camps and access roads have been constructed to support these operations.

However, these developments have not left the communities the same. Instead of bringing only the promised prosperity, they have contributed to poverty, fear, and uncertainty among the local populations and have exacerbated the climate crisis.

It is also worth noting that activists who stand up to defend these communities face a different kind of suffering: harassment, surveillance, arrests, and even physical attacks. They have been criminalized under vague charges, often labeled as enemies of development for demanding transparency, fair compensation, and environmental protection.

For the communities in Kyotera, the construction of an access road leading to the EACOP camp in the Kyotera district, which serves as a base for project operations, blocked drainage channels, causing water to overflow into the neighboring villages.

The floods, which started last month in April, have now affected seven households in Kyakacwere village, Kakuto Subcounty, Kyotera district.

People’s houses and gardens are flooded, forcing them to look for alternative places to live, and several plantations, such as banana plantations, maize, and beans, among others, continue to be affected. The impacts have already caused dispossession to the affected communities and are likely to cause financial losses and food insecurity for smallholder farmers and their families.

Noeline Nambatya, a 47-year-old mother and a person with disability, shares her traumatic experience of waking up to a flooded house. “This has never happened to us. I found my house full of water in the morning, and several of my household items had already been destroyed. We want justice, we can’t stay in this situation. We were living peacefully, and now, because of the so-called investors, this is what we are reaping.” She revealed in an interview with the Witness Radio team.

The disaster left her home logged, her crops destroyed, and her livelihood distorted. Currently, the caretaker of eight faces immense challenges in providing for her family, including feeding and supporting them in school. The adverse situation forced her and the family to relocate to the nearby village of Muyenga.

Another affected person, Lukyamuze Paul, claims the floods have caused significant damage, including cracking houses and severely destroying crops. He holds the EACOP project responsible for the devastation, stating that when the access road leading to the EACOP camp was constructed, it blocked existing drainage channels, changing the natural water flow into people’s homes.

The environmental concerns arising from EACOP project activities, such as floods, continue to affect different project host communities. The problem was first experienced in Bulisa district in 2022 when Total Energies began the construction of the Tilenga feeder pipeline, resulting in floods that affected surrounding communities.

MEDIA FOR CHANGE NETWORK

Ugandan activist asks HSBC to put ‘lives before profit’ as campaigners target bank’s AGM

Published

1 week ago

May 9, 2025

witnessradio.org

Patience Nabukalu, who has experienced climate-related flooding, joins protestors from around the world to deliver a letter to CEO Georges Elhedery criticising the financing of oil, gas and coal projects.

At nine years old, Patience Nabukalu was devastated when her friend, Kevin, died in severe flooding that hit their Kampala suburb, Nateete, a former wetland. Witnessing deaths and the destruction of homes and livelihoods in floods made worse by extreme rainfall has had a profound impact on her.

She decided to try to bring about change – to do what she could to amplify the voices of those in the Ugandan communities worst affected by the climate crisis.

Now 27, Nabukalu is one of several young climate activists who travelled to London this week to attend what has been predicted to be the last in-person AGM held by HSBC. They will deliver a letter to the bank’s CEO, Georges Elhedery, urging him to stop financing the expansion of oil, gas and coal projects and harmful industrial agribusiness, and to stop providing money to companies that forcibly remove people from their homes to make way for such infrastructure.

“This is an opportunity to talk to real people, not just an HSBC office,” said Nabukalu, speaking before the meeting at the Intercontinental hotel. “I will be so happy to get the chance to hand over the letter and to ask: ‘Has HSBC measured the damage they have done by financing corporations that are driving the climate crisis?’”

A woman stands in front of a banner with the London financial district skyline behind her.

Nabukalu in London ahead of the protest. Photograph: Jess Midwinter/Action Aid

The letter refers to a 2023 Action Aid report, which identifies HSBC as “the largest European financier of fossil fuels in the global south”, channelling $63.5bn (£48bn) into fossil fuel activities between 2016 and 2022.

The letter to Elhedery, from young people all over the world, refers to HSBC’s plans, announced earlier this year, to review its commitment to scaling back its financing of fossil fuels.

“This has made something very clear: you value profit margins and boardroom agendas more than the lives of millions of people bearing the full brunt of your decisions,” the letter reads.

Environmentalists criticised HSBC after it delayed key parts of its climate goals by 20 years, and watered down environmental targets in a new long-term bonus plan for Elhedery that could be worth up to 600% of his salary. In February, the lender said it was reviewing its net zero emissions policies and targets – which are split between its own operations and those of the companies it finances – after realising its clients and suppliers had “seen more challenges” in cutting their carbon footprint than expected.

The activists’ letter asks “that you not only stand by your commitments to end your support for the fossil fuel industry in line with what the science requires, but also put an end to all lending and underwriting for corporations involved in fossil fuel expansion”.

Nabukalu will also urge the bank to stop funding corporations that are backing the east African crude oil pipeline from Uganda to Tanzania. Once constructed, the pipeline would produce an estimated 379m tonnes of CO₂ over 25 years. The main backers of the multimillion-dollar pipeline are the French oil company TotalEnergies and the state-owned China National Offshore Oil Corporation (CNOOC).

Nabukalu, who has visited people living along the proposed route, said: “This pipeline is already causing damage even before its construction. Thousands and thousands of people have been displaced. They were promised land titles, but have none. Their livelihoods have been sabotaged. They cannot build agriculture, the water table is low, so they have little access to water.

“These people should be at the centre of the bank’s decisions.”

“We will talk to HSBC and ask them to stop financing fossil fuels that are driving the climate crisis,” said Nabukalu. “By continuing to finance TotalEnergies they are destroying our future.”

A report published in April found that those displaced along the pipeline’s proposed route had reported being inadequately compensated and rehoused.

Some western banks have declined to fund it after pressure from a coalition of organisations and community groups.

A spokesperson for HSBC said: “We follow a clear set of sustainability risk policies which support our ambition to align the financed emissions in our portfolio to net zero by 2050. We do not comment on client relationships.”

Source: The Guardian.

MEDIA FOR CHANGE NETWORK

Over 1,000 residents in Uganda’s lost village at risk of extreme hunger

Published

2 weeks ago

May 2, 2025

witnessradio.org

What you need to know:

In January, a joint team of soldiers and police evicted more than 400 local people who had been occupying part of the 64 square kilometre Maruzi ranch in Apac District. The most affected were actually residents of Acam-cabu Village.

Acam-cabu Village is no longer a recognised administrative unit in northern Uganda’s Apac District after it was erased from the map of Uganda following a land dispute.

Since this area is now excluded from the list of existing villages in the country, a total of 1,040 people living in 180 households there cannot now benefit from any government programmes and projects.

Mr Bosco Wacha, the LCI chairman of Acam-cabu, said the village disappeared from the map of Uganda around 2018.
“Since 2018, I have not been getting my salary and the people who have been isolated because of this confusion are suffering,” Mr Wacha said on the phone on Thursday, May 1, 2025.

He also said all the households in the lost village are at risk of extreme hunger and starvation because the government has stopped them from engaging in any farming or economic activities.

“There is a severe shortage of food here because we have been stopped from farming. We are not able now to take our children to school and we lack access to healthcare,” said Mr Joe Olwock, the area chairman of the National Resistance Movement (NRM) party.

Mr Felix Odongo Ococ, Akokoro LC3 chairman, said that although the government doesn’t recognise Acam-cabu as a village in Uganda, during the National Population and Housing Census, 2024, enumerators went and counted people there.

Data obtained from the local leadership of this isolated administrative unit shows that there are 180 households in Acam-cabu. Of these, at least 14 households have one member each and eight households have eight members.

However, a household regarded as number eight in the document that was reportedly sent to the Office of the Prime Minister (OPM) has the highest membership, standing at 11 people. This household is followed by number 158, which has 10 members, and household number eight has a total of nine members.

Dr Kenneth Omona, the Minister of Northern Uganda, previously said he would meet the leadership of Apac to try to iron out all issues affecting the community in the district.
In January, a joint team of soldiers and police evicted more than 400 local people who had been occupying part of the 64 square kilometre Maruzi ranch in Apac District. The most affected were actually residents of Acam-cabu Village.

The squatters, numbering over 1,500 occupied the said land around 1995. They had repeatedly ignored various eviction notices, saying the land belongs to their fore grandfathers.

In September 2015, the High Court in Lira issued an interim order blocking Apac District leadership from evicting the affected residents. The district then resorted to using the army and police to evict the squatters.
The Uganda People’s Defence Forces (UPDF) has established a military detachment to man security of the area.

Source: Monitor.