OVER 15 BILLION DOLLARS TO BE INVESTED IN UGANDA'S OIL AND GAS SECTOR BEFORE 2020

Opposition members of  parliament have stopped the government from accessing this money, are they doing it in the interest of the nation or other selfish reasons?
   Economic experts revealed that, the excitement of  anticipating to directly touch the oil money will not be realised. They stated that, the only opportunity for Ugandans to benefit their oil resource is if they utilise the opportunities available to them in the preparation stages.

Between  US$15 Billion and US$20 Billion  is projected as investments required for the full development of Uganda’s Oil and Gas industry which is expected to peak in 2030 with 300,000 barrels being produced on a daily basis.

Tullow’s  Mugerwa said that there are about 25 opportunities in oil and gas sector exist in catering, waste management, construction, clearing and forwarding and others services. He said the list of opportunities where Uganda can participate can be accessed via Uganda Petroleum Authority website and contacting oil companies already operating in the country.

 United Kingdom has announced signing a deal with the Uganda worth $287 millions  geared towards building of the country’s second international airport to service the oil industry.
Lord Dolar Popat  announced the signing of a £215 millions  deal in Uganda, supported by the largest ever loan to any African government by UK Export Finance , to build a second international airport in Uganda. He added that Her Majesty’s UK Government stands ready to assist any UK business that is ready to do business with Uganda.

The Ministry of Works and transport last year said they had already started talks with UK Export Finance, the UK government’s export credit agency, and Standard Chartered Bank for a loan of 325 million euros ($365 millions).

According to the ministry, the money was going towards the second international airport in Kabale district by June 2019. The airport would transport equipment and goods for the oil industry. 

As the Ugandan government embarks on accessing more loans and channeling them towards developing infrastructure, opposition legislators have been against the government securing more loans to invest in the infrastructure sector. The level of infrastructure development in the capital city has dropped drastically in the past 2 years compared to the momentum that had been maintained between 2015 and 2016. 

He however said “local companies have to accept the standards and this requires them to undergo further training.”

Elly Karuhanga, who has been involved in the oil and gas sector for many years, said that “many Ugandans aren’t sufficiently aware of the opportunities” that exist in the Oil and gas sector. “We haven’t reached the core SMEs (Small and Medium Enterprises),” he said, adding that politicians also need sensitization-for many aren’t aware about the opportunities that exist in the sector.

He noted that access to finance by SMEs remains a nightmare in Uganda.“Many banks have not yet woken up to these opportunities. Oil and Gas is a capital intensive business which needs participation of banks and on reasonable terms,” he said.

Rubondo revealed that 500 suppliers have been certified to participate in the sector so far.

He added that this number is going to increase in 2018, revealing that about 2,500 have expressed interest in joining the Oil and Gas sector as suppliers and service providers.