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
