Features
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Why Opposition MPs Rejected the Oil Pipeline Bill
Monday, 13th December 2021 | Companies, InfrastructureOn Thursday parliament approved the East African Crude Oil Pipeline Project (EACOP) (Special Provisions) Bill 2021, amidst protests mainly opposition Members of Parliament who argued that the process leading to its enactment was rushed and irregular.
The opposition MPs who sit on the Environment and Natural Resources Committee of parliament authored a minority report outlining areas of disagreement with their mainly NRM colleagues in the majority report.
In the minority report presented to parliament by Kiboga Woman MP Kaaya Christine Nakimwero (NUP) on behalf of Asinansi Nyakato (FDC), the shadow minister of Energy and Minerals, the opposition MPs argued the Bill was not properly scrutinized.
“The Committee did not put this highly technical Bill to the standard of scrutiny required. The rules of procedure of parliament demand that the committee examines the Bill in detail and make all such inquiries in relation to it. Surprisingly, the EACOP Bill was a rushed through process that lacked the minimum tenets of scrutiny”. Opposition MPs noted in their minority report.
Pipeline project company
Among areas of disagreement and the domicile of the EACOP project company, and the tax holiday the it will enjoy. According to the Bill the pipeline project company has already been incorporated in England and Wales, and it has registered branches in Uganda and Tanzania for tax purposes. The opposition MPs argued this will cause Uganda to loose colossal sums of money in taxes.
The opposition MPs argued that Uganda signed a Double Taxation Agreement (DTA) with the United Kingdom in December 1992, and by virtual of that agreement, all cost of the EACOP project incurred in Uganda and Tanzania and collection of executive and administration costs incurred in the UK will be deducted for purposes of computing business profit for the pipeline project company.
This means that even after the expiry of the income tax holiday provided for in the Bill, Uganda may never possibly tax this company’s profits. Generally, DTAs reduce the withholding taxes paid by companies registered in countries that are parties to such DTAs as they move income from the source country like Uganda to the destination country like United Kingdom. In 2014, the International Monitory Fund (IMF) estimated that Uganda lost Shs 2.6 in withholding tax due to DTA with Mauritius because it restricted payment capital gains tax.
“This provides a significant window for the pipeline project company, and project participants to change ownership of the company without paying Capital Gains Tax,” MPs noted in the minority report reads. The report adds, “We disagree with our colleagues in the majority, because the opportunity to tie this loophole regarding a project with potential hundreds of millions of dollars in corporate income tax is here with us. We can close this gap by amending the schedule to demand EACOP company be incorporated in Uganda. lt would enable us to close this clearly observable tax escape route early enough,” the report reads.
The MPs in their minority report also rejected Clause 38 of the Bill that retrospectively provides for early project undertaken for and on behalf of the EACOP company to form part of the investment profile of the project company.
According to the minority report, the schedule supplied to the committee by the Ministry of Energy and Mineral Development for entire pipeline in Uganda and Tanzania reveals $ 428,190,000 United States dollars (approximately Ushs. 1.555 trillion) has so far been spent on different categories of early project activities. This means almost half a billion dollars has already been spent on the pipeline project that is estimated to cost 3.5 billion dollars. Opposition MPs noted that it is wrong for parliament to legitimize such costs without an audit.
“The details of costs of approximately Ushs. 256 billion spent on land and social services was never explained to the committee. We find, this sum is an exaggeration, and therefore this parliament should first be supplied with an audit of these activities before they are legally recognized,” the report reads in part.
Land acquisition
The report also noted land acquisition provisions in the Bill were not elaborate and unconstitutional. “Compensation rates of 2018 were applied on the value of land that is to be paid for, almost 4 years later. Families are currently meeting their own cost of reburial of their loved one in order to clear the pipeline corridor,” MPs noted in their minority report. The reports recommended that all project affected persons should be compensated according to the provisions of the Constitution of the Republic of Uganda. On national content, the minority report recommended that the Bill should introduce a clause that compels the Minister of Energy and Mineral Development to make guidelines that protect national companies from being out competed by foreign companies on given contracts.
By: Edward Ssekika
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CSOs punch holes in the Public Finance Management (Amendment) Bill 2021
Monday, 13th December 2021 | Civil Society, GovernanceCivil Society Organisations have punched holes in the Public Finance (Amendment) Bill, 2021 arguing once passed into law in its current form, it is likely to undermine the good strides already registered by the country in the management of public funds.
In their joint press statement, the CSOs under their umbrella bodies – Civil Society Coalition on Oil and Gas (CSCO) and Civil Society Budget Advocacy Group (CSBAG) implored Members of Parliament to reject the Bill noting that when passed is likely to undermine the original intention of passing the Public Finance Management Act, 2015
The Public Finance Management (Amendment) Bill, 2021 was laid before Parliament on 27th September 2021 by the Minister of Finance, Planning and Economic Development. The Bill contains 4 clauses, which among others seek to allow the Uganda National Oil Company (UNOC) to retain a portion of the proceeds from the sale of petroleum accruing from government’s state participating interest and UNOC’s financial obligations in the Tariff and Transportation Agreement, the PSAs and the Joint Operating Agreements.
Government in justification for the amendment argues that since all the petroleum revenues are deposited into the Petroleum Fund (PF), there are no mechanisms provided for UNOC to meet its financial obligations under difference contracts. Government further argues that the PFMA, 2015 in its current form does not provide payment of tariff obligations under the Host Government Agreement and Tariff and Transportation Agreement before net proceeds can be deposited into the Petroleum Fund. Allowing UNOC to spend at source, is a departure from the government practice where Ministries, Agencies and Departments collect revenues and remit it in the Consolidated Fund.
The Bill further proposes to amend Section 3 of the Public Finance Management Act (PFMA) 2015 to review the definition of petroleum revenue. “Considering that petroleum agreements are treated with utmost secrecy, we are concerned that it might be difficult for the Parliamentary Committees to ascertain the total amount that is arising from the state participating interests. Fellow Ugandans, if this amendment is passed into law, proceeds from the sale of petroleum (Crude Oil) will not form part of petroleum revenue, limiting Uganda’s prospects of maximizing revenues from,” the CSOs noted in a joint press statement.
Spending at source!
The Bill proposes to amend Section 57 of the PFMA 2015 by introducing a new Clause (5) (a), which bestows power on UNOC to collect revenue and spend it at source without approval or appropriation by Parliament. “We find this proposal irrational on grounds that Uganda’s annual budget process is sufficient to accommodate any emerging financial needs of all Government agencies and enterprises like UNOC,” he said.
CSOs in the statement argue that there are already existing agencies like the Uganda Revenue Authority (URA) who can spend at source, to enable them to meet their urgent expenditure obligations, but with clear guidelines. “We advise Members of Parliament (MPs) to consider Section 14 of the Uganda Revenue Authority Act, Cap196 (1991), which allows URA to spend at source on authorization of the Minister, an amount not exceeding that appropriated by Parliament in any financial year. If adopted, this can facilitate UNOC to meet its obligations without any interruptions,” the statement reads in part. If passed in its current form, the Bill shall give UNOC authority to deposit the balance of the proceeds retained after expending moneys for the purposes of subsection 5 (a) into the Petroleum Fund. Under the Bill UNOC shall submit a copy of the record to the Minister, the Secretary to the Treasury, Accountant General and the Auditor General.
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Government officially kick starts biometric registration of ASMs
Monday, 13th December 2021 | Mining, Social impactsGovernment of Uganda has officially kicked off the national wide biometric registration of Artisanal and Small Scale Miners (ASMs) in the country.
According to the Chairman, Uganda Association of Artisanal and Small Scale Miners (UGAASM) Mr. Bukya John Bosco, the biometric registration exercise will start on Thursday December 9, 2021 at Boma Hotel, Gulu city. “I am happy that today we are officially kick starting the biometric registration of Artisanal and Small Scale Miners in Uganda. This is a major step by the Ministry of Energy and Mineral Development,” Bukya said.
He was speaking at the 3rd ASM- Q Conference at Boma Hotel, Gulu city organized by Africa Centre for Energy and Mineral Policy (ACEMP) in conjunction with the Ministry of Energy and Mineral Development.
The biometric registration of ASMs was launched in March 2019, and the Ministry of Energy engaged ACEMP a civil society organisation that has been sensitizing the miners ahead of the registration. Bukya said the registration exercise will be conducted by the Ministry of Energy and Mineral Development in conjunction with UGAASM and ACEMP as a consulting institution among other crucial stakeholders.
“Biometric registration will today begin with the leaders of miners under UGAASM, and then the leaders will go to their respective areas and spread the good news of biometric registration of artisanal miners to ensure that no one is left behind,” Bukya said. The biometric register of ASMs, he argued will help stakeholders acquire segregated data on miners and aid planning and inclusiveness. The biometric registration exercise will capture finger prints and other identification of artisanal and small scale miners.
“I am happy that majority of the ASMs are at least registered at district level. Our aim is to make sure that what happened to Mubende does not happen to any other mine site in Uganda,” Bukya noted.
“We thank government for recognition and this partnership is a clear evidence that it is recognizing us. We appreciate the level of recognition in the Mining and Minerals bill 2021 that is currently before parliament, at least government is addressing our concerns,” Bukya said. Formalization, Bukya said, will be a continuous process, adding the UGAASM will continue organizing its members and recruiting new ones so that ASMs can do business formally and sustainably.
The executive director Africa Centre for Energy and Mineral Policy (ACEMP), Mr. Bwesigye Don Binyina described the biometric registration of ASMs as a commendable milestone. “Artisanal and Small Scale Mining and Quarrying in Uganda is a likelihood and key driver for growth and social economic development, therefore regulation and formalization of the sector is critical,” Don Binyina said.
Mineral export ban
Bukya expressed concern over the delayed lifting of the ban on the export of unprocessed minerals. In 2011 President Yoweri Museveni directed the Ministry of Energy and Mineral Development to ban the export of unprocessed mineral ore, which has negatively affected miners dealing is 3Ts (Tin, Tungsten, Tantalite), iron ore among others. To date, the ban remains in place. “The ban has over stayed and our colleagues are suffering, because they have stock piles of minerals but they cannot sell due to the ban. Interestingly, the Ministry continues to issues licences despite the ban,” Bukya said. He noted that recently, some members of Katonga Miners Association one of the newly licensed artisanal mining associations were arrested due to stock piling of the mineral ore in contravention of the ban. He implored the President to urgently lift the ban.
By: Edward Ssekika
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CSOs ask gov’t to make public all petroleum and mining agreements
More than 45 Civil Society Organizations (CSOs) under their umbrella Publish What You Pay Uganda (PWYP – Uganda) have asked government of Uganda to make public all petroleum and mining agreements the country has signed with Multi-National Corporations. During a press conference at Fairway Hotel in Kampala recently, representatives of different CSOs argued that contract disclosure is one of the safeguards of ensuring proper management of petroleum and mineral resources.
“Government must urgently disclose key agreements that Uganda has signed under the East African Crude Oil Pipeline Project (EACOP), including but not limited to the Host Government Agreement (HGA), the Transportation and Tariff Agreement (TTA) and the Shareholders Agreement (SHA) among others,” Gideon Nshambire Atukwatse, the Chairman Public What You Pay Uganda noted.
In October this year, government tabled before parliament the East African Crude Oil Pipeline (EACOP) (Special Provisions) Bill 2021 that is meant to operationalize the key agreements government has signed to facilitate the development of the EACOP project. However, all the agreements the EACOP bill seeks to ratify have not been made public.
“There is no way we can monitor as CSOs the management of petroleum and mining sector or contribute to the EACOP (Special Provisions) Bill 2021, yet they do not know the contents of the agreements that the is referring to,” Carolyne Nakajubi, the Programme Officer at Action Aid International Uganda said.
“Increasing disclosure of contracts promotes transparency, accountability and public participation in the management of petroleum and mineral revenues,” Paul Twebaze, the Executive Director of Pro-Biodiversity Conversationalists in Uganda.
The CSOs want government to delay the finanilisation of the EACOP (Special Provisions) Bill 2021 until government conducts adequate public consultations. The passing of the EACOP (Special Provisions) Bill must be subject to public scrutiny and participation. Last week, Members of Parliament on the Finance Committee ended its meeting with the Attorney General Kiryowa Kiwanuka and a team from Uganda National Oil Company Ltd (UNOC) prematurely after MPs demand to first be furnished with copies of the crucial oil agreements first.
“All these issues were discussing in the in these oil bills [EACOP (Special Provisions) Bill 2021 and the Public Finance Management (Amendment) Bill 2021, are paged on the oil agreements, we are therefore incapable of proceedings without these crucial agreements. The bills seek to ratify these oil agreements. We cannot ratify what we have not seen,” Muwanga Kivumbi, the Shadow Finance Minister said.
Mining contracts
The CSOs also want government to make public all the mineral licences. “Government must urgently publically disclose all mining licences it has issued so far and all mining revenues paid to government. This will make the government win trust of the mining communities and make it difficult for government officials or agencies to sign deals that don’t attract maximum revenues to the government,”. Atukwatse said. “If government doesn’t release and make public these agreements, there is an option of going to court to compel it to release and make public all the contracts and agreements so far signed,” Robert Tumwesigye Baganda, the Coordinator, Publish What You Pay Uganda said. The CSOs further want government should systematically disclose and explain to the public and mining communities in particular the revenues, volumes and other information on mineral production.
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Kyotera EACOP affected persons petition Total over unfair compensation
EACOP Project Affected Persons (PAPs) in Lwengo and Kyotera districts whose land and other property is being compulsorily acquired to pave way for the construction of the East African Crude Oil Pipeline (EACOP) project have petitioned TotalEnergies (U) B.V over intimidation and low compensation rates.
In a November 5, 2021 petition that was received by Jeremy Roeygens, the Land and Social Affairs Manager for the EACOP project, the EACOP PAPs called on TotalEnergies to pay for the loss in income occasioned to the them since 2018/2019 when a valuation exercise was conducted and a cut-off date was placed on their property.
Since the cut-off date, the PAPs were stopped from utilizing their land for key economic activities such as growing perennial crops and setting up new developments. The Project Affected Persons in their petition want their property re-evaluated and compensation should be based on the district compensation rates at the time of compensation.
Discrepancies in compensation rates
Robert Birimuye, one of the leaders of the EACOP affected persons Kyotera district said the values attached to their crops is too low compared to neighboring districts. “For years, the EACOPaffected people of Kyotera district have complained of the low compensation rates that we were offered. For example, a coffee plant was valued at 33,000 shillings and a banana plant at 25,000 shillings. In Lwengo, a coffee plant was valued at over 88,000 shillings and a banana plant at 50,000 shillings,” he said.
“The district officials told us that the district has put in place compensation rates for 2020/2021 which they have shared with TotalEnergies to compensate us based on those rates, if we are be compensated this year. We petitioned Total because we want fair compensation based on the most current rates at the time of compensation.” Herman Bbale, another community leader notes.
Due to the cut off dates announced years back, land owners could not utilize their land for agriculture because they expected to be compensated without delay. Today, these farmers compare their gardens to their neighbours’ whose land is not being acquired for the EACOP. Their neighbors have mature crops from which they are making money. The EACOP project affected persons who are missing out on making money, want to be paid for the income they have lost as they wait for compensation.
Dickens Kamugisha, the Chief Executive Officer (CEO) of Africa Institute for Energy Governance (AFIEGO) argues that concerns of EACOP project affected persons are legitimate “Per Article 26 of the 1995 Uganda Constitution, Project Affected Persons [PAPs] are supposed to be paid prompt, fair and adequate compensation,” he said.
In addition, Kamugisha notes the Guidelines for Compensation Assessment under Land Acquisition that were put in place by the Ministry of Lands recognise that income losses can and do accrue during compulsory land acquisitions. The guidelines provide for payment of compensation when income losses occur. The EACOP PAPs therefore ought to be paid their compensation and for the losses in income that they have suffered since 2018/2019 financial year.
Intimidation and arrests In their petition, PAPs also expressed concern over intimidation of community leaders. For instance, on October 22, 2021 Robert Birimuye, one of the community leaders was arrested and detained at Kyotera Police Station on allegations of inciting violence. He is currently out of police cells on bond
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ActionAid Uganda – Supporting the safety of Mining Communities in Uganda amidst the Covid-19 Pandemic.
Saturday, 24th July 2021 | Social impactsActionAid Uganda – Supporting the safety of Mining Communities in Uganda amidst the Covid-19 Pandemic.
District Leadership (Deputy RDC, Health Officer and SAS Sigulu S/county) of Namayingo district, together with ASM leaders receiving Covid-19 Responsive materials from Extractives Unit, AA-Uganda. Women in Mining from Kyoyima Omuto Women’s Group – Buhere Subcounty, Namayingo District, receiving Covid-19 Responsive materials from Action Aid International UgandaWomen in Mining from Kyoyima Omuto Women’s Group – Buhere Subcounty, Namayingo District, receiving Covid-19 Responsive materials from Action Aid International Uganda
The District CAO of Buliisa district demonstrating how Mega phone can be used to sensitize communities on Covid-19 Pandemic
Women in Mining in Busia receive Covid-19 Responsive Materials from Action Aid Int Uganda
LCIII Chairperson, Bukuya Sub county addresses Women in Mining from MUWOGOMA in Kassanda during the handover ceremony of Covid-19 Materials to the ASMs
The UGAASM chairperson receiving Covid-19 Responsive materials from ASMs from Action Aid Int. Uganda
A woman Miner from Kassanda District demonstrating how she will use the Mega phone to sensitize women in mining communities on Covid-19 Pandemic and its effects.
Women in Mining from Kassanda District, look on as Covid -19 Responsive materials are being handed over to their communities by Action Aid Int. Uganda.
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Government Approves Resettlement Action Plan for EACOP
Monday, 26th April 2021 | Civil Society, Companies, Global Oil Facts & FAQ's, Governance, Land, Uganda Oil Facts & FAQ'sFriday 23rd April, 2021
Government through the Ministry of Energy and Mineral Development has today, approved the Resettlement Action Plan for the East African Crude Oil Pipeline (EACOP) project.
This approval is specific to Uganda section of the project, and paves way for the implementation of the second phase of the land acquisition and resettlement process which involves completing the acquisition of land and securing the rights to the land, including payment of compensation and resettlement of affected households.
“The land acquisition process has been undertaken in compliance with Ugandan Law and International Finance Corporation (IFC) principles. Extensive work has gone into the preparation of the Resettlement Action Plan (RAP) to ensure an efficient implementation and that all affected persons are fairly compensated”, said Mr. Honey Malinga, the Director Petroleum at the Ministry of Energy and Mineral Development.
Mr. Martin Tiffen, the General Manager, EACOP Project said this was a significant milestone for the EACOP and as a result, several years of consultations, research and engagement with the different stakeholders and communities along the pipeline route.
EACOP is a 1,443km crude export pipeline system that will transport Uganda’s crude oil from Kabaale – Hoima District in Uganda to a maritime port facility on the Chongoleani peninsula Tanga in Tanzania. This export system, (296km in Uganda and 1,147km in Tanzania), comprises a 24inch insulated buried pipeline, six (6) pumping Stations (2 in Uganda and 4 in Tanzania) and a maritime export terminal.
The section in Uganda will traverse ten (10) districts; Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera; Twenty – seven (27) Sub-counties, three (3) Town Councils and one hundred seventy-one (171) villages.
The project’s permanent land requirements cover the crude oil pipeline corridor, Above Ground Installations (AGIs) such as pump stations, access roads and four construction camps and pipe yards. In Uganda, these land requirements total approximately 2,740 acres or approximately 1,109 hectares (ha). Most of this (over 90%) relates to the 30m wide construction corridor for the export pipeline and AGUs, with the remainder for temporary construction facilities and access roads.
Mr. Honey Malinga hands over the approved report to Mr Martin Tiffen, the General Manager EACOP project.Francis Mugerwa, oil in Uganda correspondent
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A glimpse of hope for the women in mining in Namayingo district.
Wednesday, 24th February 2021 | Social impacts, Women and OilAt the centre of the effects of COVID19 pandemic were/are the women and young girls in the mining communities of Namayingo district in eastern Uganda, whose social and economic activities were far adversely affected by the restrictions to prevent the spread of the pandemic compared to their male counterparts. These women and girls were initially involved in supply of food to the mines, gold panning, selling protective gear, managing lodges some of which were among the first activities to be restricted to limit congestion in the mines. From time to time, the women and girls also were involved in taking supplies to neighboring islands and at times across the borders. All such activities were affected by the closure of borders and limitations on transport options.
Along with the aforementioned challenges came the issue of teenage pregnancies among young girls of ages 14 years and below who were no longer attending school but living amidst idle men and young boys that resorted taking drugs, illegal and unsustainable fishing and other activities as a way of managing boredom and fending for their survival during the lockdown. As a result of these scenarios, the mining community witnessed increased cases of domestic violence especially that against women and children which community members linked closely linked with the idleness and increasing poverty among families due to the pandemic.
Amidst all the challenges, Kyoyima Muto Bukhana Artisanal Miners Women’s group centrally located in Buhere Village, adjacent to Buhere Mine, Bukhana Sub county, Namayingo district exhibited strong signs of resilience. The members lived on hope that coming together as women would help them support each other and access resources and utilise opportunities around them despite the fact they always suffer a at the hands of the community and their male counterparts. One member of the group expressed that they always believed they would overcome Covid-19 and effects if they stood together. Despite the restrictions, the group members were able to undertake some activities including planning and drawing their rules and guidelines, sensitization of fellow women on how manage and cope with the low incomes during the Covid-19 period, counselling members against domestic violence and how to manage young girls as well as discussing other alternatives of sources income during the tough times. Women further collectively gathered food merchandise, farm goods and lobbied the mine owners and transporters to transport their food to markets as a whole as opposed to individuals as was before. More to that, mine managers, transporters want to see us organized to allow us access to the mines and transport our farm products respectively. “Of course along came some challenges for instance we were used to village meetings which are now a bit hard and the use phone calls meant airtime and at times network was also not reliable for us to communicate easily, so we found ourselves doing door to door communications from time to time.
“We appreciate Action Aid-Uganda for facilitating the formation of this women group through which we can collectively advocate and we hope in future we access government programs such as the Women Empowerment Program (WEP) and EMYOOGA which was recently launched by the president among others”-Chairperson of the women group. We hope that through the group we shall be able to advocate for recognition, better working spaces in terms of pay, respect for our involvement in the mines and access to markets even when pandemics like these hits. One of the things the group hopes to strongly advocate for is the signing of work agreements by male bosses with women before they are given assignments to prevent unfair payments and at times sexual harassment among others.
Evidently, AAIU has largely contributed to change in these mining communities especially with regard to women social justice. Through this, AAIU facilitated platforms for discussions between the government entities and the miners especially women in mining to voice out their concerns, conducted sensitization meetings on group formation and dynamics, records management, financial literacy to adapt to unforeseen changes and build resilience. And as such women groups such as the Kyoyima Omuto Women’s Group and Nanjala Women’s Group have emerged and also formed – a VSLAs to save and access quick and cheap credit to create and boost their small businesses. Several women have testified to being able to meet household necessities, pay school fees, constructed houses and collectively accessed markets for their minerals and produce.
Undoubtedly, the women are proud of having formed women specific group to be able to advocate for rights respect, sustainable mining, inclusion of women in key mining activities, access development opportunities on women, being included on district and sub county Covid-19 task forces and joining up with the men in the struggle for formalization as evidenced by Namayingo District Artisanal and Small Scale (ASM) association and joining the UGAASM & Quarry. The groups also has plans of acquiring mineral rights and not just serving their male counterparts.
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Total hands over 29 resettlement houses to project affected persons
Total E&P Uganda on 1st February 2020 handed over resettlement houses and titles to 29 Project Affected Persons (PAPs) in Ngwedo Sub County in Buliisa District as part of the Tilenga Resettlement Action Plan (RAP) 1 implementation.
The resettlement housing project which cost over USD 1 Million is located on resettlement plots selected by the respective primary residents whose land was identified for the construction of the Tilenga Central Processing Facility and its associated infrastructure (Industrial Area) under RAP 1.
Speaking at the launch and handover of houses to the beneficiaries, Mr Pierre Jessua, General Manager, Total E&P Uganda said, “This resettlement housing project is an important symbol of our commitment to undertaking the Tilenga development project while observing the utmost human rights standards” he said.
He added that Total is therefore implementing all the necessary initiatives to ensure that it adequately restores and improves the living standards of the project affected persons.
“While conducting the Resettlement Action Plan for the Tilenga Industrial Area, the Company is continuously engaging with the project affected communities as well as established representatives from among them in order to ensure that their feedback is considered throughout the planning and implementation of the resettlement activities” he said.
Total said dialogue continues to be methodically undertaken with the Local & Government leaders as well as various Civil Society and Non-Government Organisations (NGOs) throughout the process.
Activities under RAP 1 are being executed in line with national and international laws as well as international guidelines stipulated in the International Finance Corporation Performance Standard 5 (IFC PS 5).
Accordingly, the primary residents are being provided with titles, relocation assistance as well as facilitated in the acclimatization process through livelihood restoration programmes, transitional and psycho-social support.
The launch ceremony was attended by Mr Longino Bahebwa, the Buliisa Resident District Commissioner who was the Chief Guest; Mr Simon Kinene, the Buliisa District chairman, officials from the Petroleum Authority of Uganda, Ministry of Energy and Mineral Development among others.
The leaders commended the company for fulfilling their obligations towards the Project Affected Persons and the continued support offered to them during the land acquisition process.
The construction of the houses was executed by Pearl Engineering Ltd, a Ugandan company.
By Francis Mugerwa
Oil in Uganda journalist
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Uganda to import coal, natural gas from Tanzania for steel production
Government plans to import coal from the neighbouring Tanzania to support local production of iron and steel. The plan is contained in the National Resistance Movement (NRM) five-year re-election manifesto for 2021 – 2026 launched by President Yoweri Museveni on November 3, 2020.
“In the short term, working with the private sector, Uganda Railways Corporation (URC) will provide a dedicated ship to transport coal from Tanzania to Uganda to support local production of liquid steel,” the Manifesto reads in part. In the manifesto Museveni also pledges to reduce transportation of the iron ore from Muko and other mines to factory for processing. Iron ore is a heavy mineral to transport and thus it has to be processed near the mines.
“In the medium term, government will develop the natural gas pipeline from Tanzania to Uganda to support local production of liquid steel,” the Manifesto reads. Natural gas and coal are crucial in the production of the iron and steel.
Though Uganda is endowed with high quality iron ore deposits mainly in south western region, it not yet to be fully exploited due to lack of raw materials such as coal or natural gas. For instance, a total of 318 million tonnes of iron ore has been discovered in Rutenga, Kabale and Muko in southwestern Uganda.
New discoveries have also been made in Kanungu, Buhara (Kabale district) and Mayuge districts an estimated total reserve of 200 million tonnes.
Iron ore is a crucial in making iron and steel products – which are majorly used in construction, electrical appliances and cars among others – and the back borne of industrialization. This perhaps explains why government is placing a lot of emphasis on iron ore value addition among others.
“A strong integrated iron and steel industry will not only facilitate industrial take-off in the country but also lead to saving of forex expenditure, increase employment opportunities and form a strong basis to support the growth of other sectors through forward-back ward linkages,” the President notes in the manifesto.
In addition to developing the iron and steel industry, Museveni makes a raft of promises geared towards “a mineral led industrialization”. For instance, the President proposes a two-pronged approach.
First, minerals whose quantities and values are known — and where studies and work towards their development have already commenced — will be fully developed using a science-led approach and an integrated industry will be built around them,” the manifesto reads in part.
The manifesto particularly notes that the iron ore industry will be prioritized and developed along the entire value chain.
The second approach that the President and the party intends to utilize is undertaking more feasibility studies to ascertain the quantity and quality of the minerals for development.
“We are going to increase value-addition in iron ore, gold, copper, phosphates, and development minerals [marble, silica sand, aggregate, and limestone]. Conduct bankable feasibility studies for strategic high-value minerals, namely iron ore, gold, rare earth elements, uranium and tin, tungsten and tantalite (3Ts), to attract investment,” Museveni notes in the manifesto.
The party once re-elected into power, also plans to explore the mineral potential in Busoga sub-region, especially in regards to rare earth elements among others.
“Using import substitution and export promotion strategies, NRM’s policy is to industrialize using Uganda’s mineral resources. This is why, amidst criticisms, we banned the export of raw/unprocessed minerals. Our policy is to use our scientists to develop integrated industries around every single mineral found in Uganda.”
Museveni also intends to prioritize mapping, registration and organisation of artisanal and small-scale miners countrywide in the next five years. He pledges, “The target is to zone areas for their operations and ensure that 40 location licenses are issued to them [artisanal and small-scale miners], establish and gazette mineral buying centers.”