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DAR ES SALAAM, May 26 (Xinhua) -- Tanzania and Uganda on Friday signed a 3.55-billion-U.S.-dollar agreement for the construction of a 1,443-km crude oil pipeline between the two countries, said a statement by Tanzania's Information Services.

The statement issued in Kampala after the signing of the deal said Tanzania was represented by Minister for Constitution and Legal Affairs Palamagamba Kabudi and Uganda represented by Minister of Energy Irene Muloni.

The statement said the signing followed discussions between Tanzanian President John Magufuli and his Ugandan counterpart Yoweri Museveni last week.

Speaking shortly after the signing of the agreement, Kabudi said Tanzania valued the multi-billion dollar project, adding: "We will ensure a 100 percent implementation of the project."

Ugandan Energy Minister Muloni also said Uganda has decided to transport its oil through Tanga port on economic grounds.

The construction of the pipeline from Hoima in Uganda to Tanga port in Tanzania is expected to employ about 10,000 people in Tanzania.

Last week, President Magufuli and President Museveni signed the East African Crude Oil Pipe Line Agreement (EACOP) as an expression of intent to go ahead with the construction of the pipeline.

Magufuli said the partnership will create employment for both Uganda and Tanzania and will be a good source of revenue.

He added that as a result of this project, the cost of oil in both countries would be drastically reduced.

Museveni, on his part, said that the project showed East Africa can do things if they want to.

The president said currently Uganda has 6.5 billion barrels of petroleum oil that can be used to economically transform the country and was happy that Tanzania had agreed to help out with the project. Enditem

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