AfDB Denies Involvement in East African Crude Oil Project
By Adedapo Adesanya
The African Development Bank (AfDB) has denied claims that it is involved in plans to provide financial support to the East African Crude Oil Pipeline Project (EACOP).
In a statement released over the weekend, the African lender refuted the claims which reference a letter by a group of civil society organisations and climate change advocates asking the institution to withdraw from the project due to its potential social and environmental damage.
A letter from various environmental groups was sent to the AfDB President, Mr Akinwumi Adesina, in mid-March asking the bank to reject a request for funding the EACOP plan.
There had been reports that Uganda and Tanzania plans to secure assistance from the AfDB on the pipeline plan.
However, AfDB said, “The NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) has not provided financing to any Private Sector Company for upstream oil or gas pipeline projects in East Africa.
“No commitment was, therefore, made to any party to fund the East African Crude Oil Pipeline Project. The project is not included in the Bank’s lending program and that the bank is strongly committed to renewable energies”.
“It is important to point out that the African Development Bank Group has for more than a decade played a leading role in crafting policies and delivering investments that promote sustainable development practices on the continent, including climate adaptation and resilience.
“The Bank is committed to facilitating the transition to low-carbon and climate-resilient development in African countries across all its operational priority areas.”
These commitments can be seen in the range of strategies, policies and action plans which are aligned to all Bank operations and are available to the public, the bank explained.
In 2019, approximately 36 percent of total financial approvals were directed to climate action, and the bank further committed to doubling its climate finance to $25 billion between 2020 and 2025.
Furthermore, the Bank noted that it was joining forces with the other Multilateral Development Banks to design a framework that ensures that all our investments align with the goals of the Paris Agreement.
The Bank there for stated that it would continue to work with its shareholders, its clients and civil society organisations, to ensure that it upholds the highest standards while it remained focused on its core mission to help lift millions out of poverty, by using the resources entrusted to it in a responsible and efficient manner.