EACOP closing first round of debt financing is a public stunt

EACOP Ltd announced that it had closed the first tranche of debt financing for the construction of the East African Crude Oil Pipeline (EACOP). This announcement appears to be an attempt to build investor confidence, given that the project has stalled for the past seven years.

Other than KCB, all the listed banks had already indicated they would support the controversial project, so there is no new information here. Furthermore, they did not disclose how much KCB had invested, which could have changed our understanding of the situation. The real news is that major and reputable financial institutions have refused to fund or insure this highly controversial project, which is plagued by human rights violations, environmental destruction, and threats to the climate.

Increasingly, financial institutions are distancing themselves from projects that are unsustainable or harmful to the climate and the environment, and EACOP exemplifies such projects that are not sustainable. Click here to read the complete statement from the StopEACOP coalition, showing that this announcement is nothing more than a desperate effort to win public and investor confidence.