In an attempt to ease the heavy reliance on petroleum tankers, Kenya and Uganda are looking for bidders to set up the pipeline that will transport refined petroleum products. The countries have announced that they plan to build a 350km oil pipeline from the Port of Mombasa to Uganda.

The call for fresh bids followed the termination of the agreement between Tamoil East Africa and the two governments over what officials from both sides termed as failure by the oil and gas company to implement the terms of the contract.

Tullow Oil discovered commercially viable oil in Uganda in 2006 and the deposits have been found to be in excess of three billion barrels. The pipeline is important for Uganda to provide an easy route for transporting the product once production commences.

According to Maria Kiwanuka, Uganda’s finance minister, the construction of the Kenya-Uganda and Uganda-Rwanda oil pipelines through a public private partnership (PPP) arrangement will be speeded up in 2014.