Residents displaced by the construction of TotalEnergies SE’s $4-billion pipeline project in Uganda have been inadequately compensated and had their lives disrupted, according to a Human Rights Watch report.
(Bloomberg) — Residents displaced by the construction of TotalEnergies SE’s $4-billion pipeline project in Uganda have been inadequately compensated and had their lives disrupted, according to a Human Rights Watch report.
The 897-mile East African Crude Oil Pipeline planned to run from Uganda to the coast of Tanzania will be capable of pumping up to 246,000 barrels a day when complete — a potential level of output bigger than some African OPEC members. Uganda President Yoweri Museveni has backed the project, which has faced criticism from politicians in the European Union over human rights and environmental concerns.
Read more: A $4 Billion Oil Pipeline Creates a Climate Dilemma for Africa
Building the pipeline will displace more than 100,000 people and once completed would pose an ongoing environmental threat, New York-based Human Rights Watch, a non-governmental organization, said in a 47-page report released Monday. It found the process of making way for the pipeline had already devastated lives.
TotalEnergies in an emailed reply to questions said “EACOP alone won’t move 100,000 people” and that the figure relates to those who own an asset on the pipeline route.
“The land acquisition process has been marred by delays, poor communication, and inadequate compensation,” said HRW researchers who based their findings on 94 interviews conducted earlier this year. “Affected households are much worse off than before.”
IFC Standards
The shareholders of EACOP, which include Total as the operator, China’s Cnooc Ltd., the Uganda National Oil Company and Tanzania Petroleum Development Corporation, have pledged to comply with International Finance Corp. performance standards. They estimate almost 96% of those affected by the project have signed compensation agreements and over 93% have already been paid.
HRW said that some IFC standards haven’t been met. Researchers “found that there is a significant gap between TotalEnergies’ commitments to pay adequate compensation and restore or enhance livelihoods and the reality on the ground,” the group said.
The process put pressure on landowners who were reluctant to sell and felt threatened and in some cases rushed, HRW said. “The compensation process has left people with less land, and with replacement land that is usually smaller, less productive and farther away,” they wrote. “This has endangered household food security, while delays have led to increasing debt burdens, children dropping out of school, and considerable frustration over the compensation program.”
Total said the process abides by the laws and regulations of the host countries and is in compliance with IFC standards on land acquisition and involuntary resettlement.
Other issues raised by residents included underestimated costs for the relocation of graves and property that will become cut off by the pipeline corridor, according to the report.
Groups opposed to EACOP have asked banks to shun the project, arguing that it will harm wildlife habitats, impact communities and cause emissions to rise. While lenders including Sumitomo Mitsui Financial Group Inc. have ruled out participating, Exim Bank of China has committed to the project, Uganda Energy Minister Ruth Nankabirwa said in May.
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