Kenya and Uganda have published a joint call for private investors to build and operate a petroleum pipeline between the two countries, as increasing oil finds occur in the East Africa region.

The new pipeline will span 352 kilometres from Eldoret in Kenya to the Ugandan capital Kampala, reports Reuters, and is expected to cost in the region of $300 million.

The governments of the two countries jointly invited bids from private companies to become the investment partner for the project, via Kenyan newspapers today.

“The pipeline will interconnect with the existing 14-inch diameter pipeline running from Nairobi to Eldoret and should be able to transport products to and from Kampala, Uganda and Eldoret, Kenya including spur line in Jinja,” read the statement.

“The project will also include a common user depot at the pipeline terminal in Kampala,” the governments added.

Uganda currently transports all petroleum products over-land, with shipping taking place via the Kenyan port of Mombasa – meaning that all products must travel approximately 1,200 kilometres over rough roads before reaching their destination.

It is intended that the new pipeline will ensure a more stable, safe and efficient method of transporting fuel, while also cutting the significant transport costs involved in over-land delivery.

Increasing attention has been paid to East Africa on the international arena in recent months, as a string of oil deposits have been discovered in Ethiopia, Kenya and Uganda.  Industry players are now vying for positions in the development of the new finds – as testing of reserves is ongoing, although production has not yet commenced.

The latest call for bids comes after plans for the construction of the pipeline have already seen significant delays, having been granted to Libyan company Tamoil in 2007, but revoked again in September 2012 due to lack of progress and substantial delays.