Government has lashed out at activists opposed to the construction of crude oil refinery and other energy projects in the Albertine region as it seeks new investors to construct the refinery.
Authorities in Kampala are in a serious hunt for new investors to fund its planned crude oil refinery after the expiry of a deal which government had signed with Albertine Graben Consortium (AGC). Uganda’s Energy Ministry also accused the consortium of failure to mobilise financing on time.
The 60,000 barrels per day refinery would cost an estimated $3 billion to $4 billion and help the east African country process its crude reserves that it hopes to start producing in 2025.
In a statement released late Monday by the Minister of Energy and Mineral Development Hon. Ruth Nankabirwa, she said that government and the consortium had made progress on the project including concluding refinery configuration, front-end engineering design (FEED) which defines the technical design of the oil refinery, social and environmental impact assessment.
She however noted that funds to finance the project have not been mobilized, prompting government to issue desperate calls to interested investors, to take charge and fund the project.
“There are, however, a number of aspects, including mobilization of financing for the project and the government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,” Hon. Nankabirwa said in a statement.
Members of the Albertine Graben Energy Consortium (AGEC) include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd, both from Mauritius, and Saipem SpA, also from Italy.
“A lot has been achieved but at this time, we need urgent funds, we want an investor who is intentional, one willing to hastily inject money into the construction of the refinery, everything is set, we have the design, we secured land for the project, there is nothing to worry about,” added Nankabirwa.
“At this moment in time, our aim is to speed up the refinery construction process, and that is why we have opened up space to render an opportunity to any investor to execute the job in a short order”
In 2018, the government and consortium signed a project framework agreement by which the consortium committed to designing, financing and developing the refinery project.
Hon. Nankabirwa reiterated that much as the deal with AGC expired, government welcomes its efforts to try to get new investors who are willing to hastily finance the construction of the refinery.
“We are being alive to the timeline within which we need this project executed, we expected (the final investment decision) by end of June, which did not happen. That greatly hampers the timelines,” said Solomon Muyita, the Energy Ministry spokesperson in an interview with Reuters news agency.
“So far they’ve not confirmed that they have financing. So, for the consortium, when they get financing, they can still get back to us, but in the meantime we are open to any other developer,” Muyita added.
Hon. Nankabirwa also raised alarm, saying that efforts to develop and exploit Uganda’s energy reserves, including the construction of the crude oil pipeline and refinery have been hobbled by a handful of Ugandan activists, who have cast mud on these developments.
She warned these activists to stop meddling in state affairs, something which according to her leads to tepid economic growth, saying their efforts are being influenced by the western world adept at holding Africa backward, which has led to the withdrawal of funding for the projects by renown global financial institutions.
“These individuals, observe them keenly. They are just being used by malicious elements, and they act out of ignorance, but colonial masters still have intentions to use Africa, such that we remain slaves and continue importing finished products from their countries, such that they safeguard their monopoly over world energy resoures as it is now, in order to keep us in abject poverty,” charged Hon. Nankabirwa.
Responding to Nankabirwa’s assertions, Eron Kizza the legal representative for environmental activists in Uganda, who are opposed to the construction of the refinery and other oil exploitation projects in the Albertine region, in an interview with this publication said the Minister’s remarks are “false and absurd”.
“The Minister does not have a clear understanding of her remarks because we are experiencing a climate change crisis, air pollution and encroachment on nature. We are saying that efforts taken so far in regard to oil exploitation have exacerbated these crises,” Eron Kizza said.
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