Uganda Business, Economy and Infrastructure News

[keithbas]

SE welcomes Umeme listingPublish Date: Aug 14, 2012


Umeme general manager Sam Zimbe and managing director Charles Chapman addressing journalists recently
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By Stephen Ilungole

THE Uganda Securities Exchange (USE) has clarified that the expiry of power distributor Umeme’s concession in 2025 will not affect its listing on the local bourse.

Joseph Kitamirike, the USE chief executive, explained over the weekend that the remaining 13 years were many for the new investors to earn a return on their investment.

“You are buying into a company in performance for the next 13 years. A person buying shares today may not have them in 13 years,” Kitamirike pointed out.

“But what does the expiry of the concession mean? It means the life of the company is ending. You liquidate and divide assets. But it should not prevent it from being listed. That also assumes that the Government will not renew the concession,” Kitamirike said.

Kitamirike was also optimistic that the initial public offering (IPO) of Umeme will boost activity at the bourse.

Umeme, owned by Actis Capital, a UK-based emerging markets investment assets giant, with an asset base of over $4b, is looking to raise capital on the Uganda and Nairobi stock exchanges in October to finance the expansion of the country’s electricity distribution network.

Although the percentage of the shares to be listed is not known, Kitamirika said the law requires a minimum of 20%.

He also disclosed that Actis was using the IPO for its partial exit in Umeme, through reducing its shareholding in the company.

“But at the same time, it is good for Umeme to become a public company because the initial challenges it faced have reduced,” he explained, adding “because Umeme is the face of electricity sector, it is now good for the public to participate because where there was darkness, there is light.”

“We hope the arrival of Umeme will enable the market to rise. We also expect more activity from the listed banks, which are recapitalizing as required by law. There will definitely be more activity,” Kitamirike said in an interview.

He observed that Umeme’s arrival will change capitalisation and the volumes at the bourse, while banks will affect the traded volumes.

“We will have new investors and existing ones releasing some of their ownership to acquire new shares. That should help generate some level of activity,” Kitamirike noted.

He pointed out that the IPO would create up to 1,000 new small and big (institutional) shareholders. Kitamirike explained that their 2011/2016 strategy is focusing on attracting private listings.

“For us, Umeme has led the way. We have always complained that we do not have any local private company listed. I am happy Umeme is on board,” he said.

He noted that the regulator had already approved a new growth enterprise segment, which is designed to help companies that are not organised to the level of Umeme to list.

[erickimani]

Procurement for the contractor for second phase of the 21km Kampala Northern Bypass is set for December and the real construction works is to start early next year. The construction is funded by the European Investment bank, European Union and the Government of Uganda. Costs on this phase will be relatively lower as land had been procured and construction of bridges was finished during the first phase.
However, Dan Alinange, the Uganda National Roads Authority (UNRA) spokesperson said they are acquiring more land at some round-abouts that are to be widened and turned into flyovers.


http://constructionreviewonline.com/...rts-early-2013

[keithbas]

Electricity demand has increased sharply a month after the multi-million dollar Bujagali Hydropower Project delivered 250 Mega Watts (MW) to national grid.

Until late July this year, power demand during peak hours (7pm – midnight), was at 443 MW yet available electricity was about 330 MW which ensured the economy continued to suffer from power blackouts.

Electricity supply has now increased to 580 MW thanks to the timely completion of the Bujagali Hydropower Project.

“Power demand is growing at 10% per annum,” Dr Benon Mutambi, the Electricity Regulatory Authority chief said. “It means that every year we should be able to commission 50 MW project online if we are to avoid going back to the situation we were few month ago.”

The demand forecast was that the surplus energy would be consumed in the next 24 month before the undesired load-shedding returns. However, it has turned out that the excess electricity will be consumed faster than expected.

Statistics from Uganda Electricity Transmission Company (UETCL) indicate that peak demand has grown by 9% to 487 MW from previous 443 MW in just a month.

The increased demand is due to intensified investment in industries that heavily rely on electricity and heightened economic activities.

The uninterrupted power supply is expected to enhance economic activities and has reduced on the use of expensive standby diesel and petrol generators.

For instance, there have been factories that were under-producing due to unreliable power supply but now have resumed operation. For instance China’s group, Tiang Tang Steel factory, the biggest steel manufacturer in East Africa needed close to 35 MW for it to operate efficiently.

The National Water and Sewerage Corporation (NWSC) is embarking on construction of five water treatment plants, which will need about 25 MW of electricity to power all of them.

Uganda Investment Authority has indicated that there are more 62 projects especially in the manufacturing and agriculture sectors that are in the pipeline and expected to be commissioned early next year.

Already a joint venture between Uganda and South Korea has been entered to build $7.4m fruit factor in Teso region. Egyptian investors have shown intention to expand and equip the meat factory as well as build a pharmaceutical industry.

Such investment projects will need electricity to keep them operating. Likewise there is increased domestic and commercial connectivity as real estate businesses pick up. Agro processing is on the rise and they need electricity to add value to the produce.

Manufacturing and industrialization has lagged behind due to insufficient electricity supply and high energy costs.

“I wish to point out that adequate, affordable and reliable power supply is the engine for social and economic development,” Eng Irene Muloni the minister of energy and mineral development, said.

Given the undesired statistics, the current levels of electricity supply cannot support heavy industries like steel mills, textile mills and aluminum processing plants.

Therefore to create favourable environment for investment in such industries there is need for policy shift/reform to ensure that there is sufficient electricity generation capacity.

The National Development Plan (NDP) clearly identifies limited generation capacity and corresponding limited transmission and distribution network is among key constraints to the performance of the energy sector.

The NDP further set out increasing power generation capacity as the first objective to address this problem and construction of larger hydropower plants as the first intervention strategy.

The current situation of power demand and power supply option for Uganda therefore indicate the proposed Karuma Hydropower Project as a much needed development as it will add up to 600 MW to the national grid.

It will deliver electricity to consumers at a levelised price of sh300 per unit over a period of five decades. But Karuma project will take close to six years to commission if all things go the right way.

For now there is a need to tap in the small renewable energy projects that are cheaper and shorter to commission.

"The forms of renewable energy that we're keen to attract are those that are using mature technologies... so we're looking at solar, wind power, biomass, waste energy, geothermal," Mutambi said.

Muloni, however, explains that the immediate solution to the eminent power shortage is for consumers have to be efficient in their use of electricity to avoid wastage.

“Consumers should contribute to the reduction of power losses by paying their bills promptly and also providing information about those who steal electricity,” she said.

“Efforts are going to be made to ensure delivery of cheaper power supply solutions and ensuring reliable supply so that the country does not plunge into another power supply crisis.”

And hope it happens.

[keithbas]

Oil exploration: Govt releases Bunyoro mapPublish Date: Sep 05, 2012

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An aerial view of an oil exploration site in Bulisa district
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By Robert Atuhairwe

The Ministry of Energy and Mineral Development has released a draft map showing details of the population and properties of people who settled on the land earmarked for the construction of an oil refinery in Buseruka Sub-county in Hoima district.

Bashir Hangi, the refinery project's communications officer said the draft maps are on display for a week effective August 29.

He said the maps are on display at Hoima district headquarters in Kasingo Busiisi Division in Hoima town, Buseruka sub county offices, and in each of the 13 villages that are earmarked for the project.

He said the report names 13 villages of Kyapaloni, Nyamasoga, Bukona A, Bukona B, Kayeera, Nyahaira, Kitegegwa, Kigaaga B, Katooke, Kitemba, Kabaale A, Kabaale B and Nyakasinini, as the ones to be affected by the project.

He said the draft map has also confirmed that 8,000, people are to be evicted after compensation from the proposed land.

Hangi told New Vision on Wednesday that the draft copy was released on the ministry's orders to capture complaints of the affected people before the final one is released.

“We want to get people's complaints if there is any like spelling errors, and under or over valuation of properties on their lands to correct and include them in the final copy that will be released end this month to curb complaints during implementation,” Hangi argued.

“We are also moving village-to- village to receive peoples' complaints this is all aimed at having a transparent process with full involvement of the project affected families,” he said.


The Resettlement Action Plan (RAP) which was launched on May 17, by Peter Lokeris, state minister for mineral development at Kabaale Catholic Church, and ended late July was conducted by M/S Strategic Friends International limited a Ugandan firm.

Hangi said the socio economic survey chief aim is to establish land ownership, properties and loss of economic activities and livelihoods through compensation or resettlement from the refinery land of the local people.


Meanwhile, he added that, the demarcation of boundaries for the said land is complete with the size and configuration of the proposed land maintained at 29,000, hectares or 29 square kilometers.


The demarcation was carried out by experts from the department of surveying and mapping in the ministry of lands at Entebbe.


The government procured Foster Wheeler a United Kingdom firm to conduct a feasibility study whose report was released in September 2010 indicating that the multibillion project will encompass 29,000 hectares.


The refinery whose construction is said to begin late this year will come with attendant infrastructures like a modern airport, petrochemical industries, waste management plants and houses for the refinery workers.

The refinery will enable value addition to the crude oil, boost employment to the locals and give chance to service provision by local entrepreneurs.

[u.g boy]

Museveni commissions Nyagak hydropower plant
Publish Date: Sep 14, 2012

The 3.5MW Nyagak hydropower station in Paidha
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By Vision Reporter

President Yoweri Kaguta Museveni has commissioned the 3.5MW Nyagak hydropower station in Paidha, Zombo District. The occasion officially marks the onset of 24hour electricity supply to West Nile sub-region.

Developed by the West Nile Rural Electrification Company Ltd. (WENRECo) with the financial support from the World Bank and the German Government through its development bank, KfW, the Nyagak hydropower plant will be the principal source of power generation, substantially replacing thermal generation.

WENRECo, a subsidiary of Industrial Promotion Services (IPS), was awarded a 20 year licence to generate and provide electricity in the West Nile region in April 2003.

IPS is the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development, an agency of the Aga Khan Development Network (AKDN).

Mahmood Ahmed, the AKDN Resident Representative in Uganda observed, “This is the result of close collaboration of development partners to overcome the challenges of providing clean, reliable and affordable electricity to rural populations and look forward to more rural electrification.”

WENRECo will therefore now, and in the immediate future, focus on increasing and extending access while improving the reliability of the grid.

“We expect that increased access to electricity will not only accelerate the economic growth of the West Nile region, but will also improve the quality of life for the people in the region by providing light for students to study by; refrigeration for vaccinations, access to clean water and new prospects for businesses and job creation,” said Nizar Juma, the Chairman of IPS.

Duve, Director of KfW Development Bank, explained: “KfW will continue to promote the West Nile Energy Sector with funding from Germany and the EU. We will support the Government of Uganda in extending distribution to Maracha, Koboko, Oraba, Pakwach, Yumbe and beyond. We will enable WENRECo to connect up to 6000 households with prepaid metres. In addition, KfW on behalf of the German Government is supporting the Government of Uganda in developing a second hydro power plant on the Nyagak river (Nyagak III, 4.4 MW) to ensure that West Nile’s increasing demand for electricity will be supplied by reliable, clean energy.”

Observing that the German Government has committed overall funding of around US$40m for the West Nile energy sector, the Charge d’Affaires of the German Embassy in Uganda, Joachim Düster, further commented:

“Today, we can all be proud that thanks to the joint efforts by the Government of Uganda, the Government of Germany through KfW, and the Aga Khan Development Network through IPS and WENRECO, the people and businesses along the transmission lines in West Nile have electricity”.

The West Nile Rural Electrification project was the first African project to qualify for carbon financing under the World Bank’s Prototype Carbon Fund.

[keithbas]

Government to sort out KarumaPublish Date: Sep 17, 2012

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Lalani (left), guides Mbabazi during the tour of the Namanve plant
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By David Mugabe

The Government is determined to see the Karuma power plant through despite the procurement challenges the project is facing, a top official said over the weekend.

“Yes, Karuma is not on course; it is absolutely necessary that we do it right,” Amama Mbabazi, the Prime Minister, said during the tour of the Roofings Rolling Mills factory in the Namanve Industrial Park.

The Karuma project has been halted following a court injunction over alleged irregularities.

Mbabazi disclosed that the Government was looking at proposals to even upgrade the dam’s capacity to 1,200 megawatts from 600 megawatts, while other power sources like thermal and solar were being aggressively explored.

The premier lauded industrialists for venturing and investing into the manufacturing sector, saying their efforts will be supported for mutual gains.

Mbabazi called for more investors to explore iron ore mining, saying there is still a lot of mineral deposits spread across the country.

A recent aeronautical survey showed that the country is gifted with mineral deposits yet to be exploited.

Lalani Sekander, the Roofings chairman, said the Namanve plant will require about 42 megawatts of power at full capacity and 400 metric tonnes of LPG gas.

Lalani said the plant is set to be opened in December. The $120m investment will save the country foreign exchange used in importing some of the raw materials like galvanised wire that are now being made at Namanve for use in the Roofings Luboowa plant.

Olivier Lalani, a director, said at full capacity, the country will save $123m in high value steel raw materials.

“This is the import-substitution backward integration.

“We were previously importing galvanised wire coils,” he said.

[keithbas]

Uganda confirms more oil deposits

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By ISMAIL MUSA LADU (email the author)

Posted Tuesday, September 18 2012 at 01:00
In Summary
Proven deposits in western Uganda said to be 3.5 billion barrels, about 40 per cent higher than earlier believed, tests show.



KAMPALA



The country’s oil prospects are getting brighter after an additional one billion barrels of oil were recently announced as having been discovered, pushing the figures of commercially viable deposits to at least 3.5 billion barrels.

Energy ministry officials revealed the expanded find, which is a significant percentage increase in the proven deposits first announced in 2006. Mr Ernest Rubondo, the commissioner for Petroleum Exploration and Production, Ministry of Energy and Mineral resources, made the announcement last week at a conference organised by the Uganda National Chamber of Commerce.

“From about two or three wells we have increased our oil barrels to 3.5 billion,” Mr Rubondo said, answering a question on transparency. He further disclosed that out of 77 wells drilled so far, 70 have been proven to contain oil and gas. Uganda’s oil fields, he said, are showing a comparatively higher level of productivity when measured against the experience in other countries where the chances of oil discovery in an equal number of wells usually hovers at only 10 per cent.
“Thus far, $1.5 billion is the amount that has been spent in all the activities leading to the 3.5 billion barrels discovery,” Mr Rubondo said.

The even better news, according to the commissioner, is that exploration is still ongoing and more discoveries are expected along the way. Before the discovery of the additional one billion barrels, the country’s exploration efforts in the Albertine Graben shown estimated oil and gas reserves of 2.5b barrels. But, production has been delayed by contractual disagreements, tax disputes and infrastructural setbacks, according to the Energy ministry.

Parliament, which is investigating three ministers over allegations of accepting oil bribes, has also criticised the government for hiding information about the budding sector, amid suspicions of high level corruption.

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Now, the oil companies invested in the sector, particularly Tullow Oil, want commercial exploitation to start immediately, saying it is unfair for them to hold their capital idle. At the same conference, Tullow Oil president in Uganda, Elly Karuhganga, said with neighbouring countries discovering oil in the region, investor attention could turn to them.

Mr Karuhanga advised that before this happens Uganda should allow the companies that have invested to start commercial production as exploration continues elsewhere. Block 1, found on the northern tip of Lake Albert, is operated by a local unit of France’s Total SA, while block 2 is operated by, Tullow Oil.

Total entered Uganda’s oil industry early this year after it signed onto a joint venture with CNOOC and took up a third each of British explorer Tullow Oil’s exploration assets in the country worth $2.9 billion.

According to Reuters, Total expects to drill a total of eight exploration wells in Uganda by the end of 2013, spending about $650 million on exploration and appraisal activity and seismic data acquisition.

Uganda is expected to conduct a licensing round for hundreds of square kilometres of exploration acreage after Parliament passes new oil laws expected by the end of this year. The government says only about 40 per cent of the Albertine Graben has been explored to-date and has stated it will be demanding tougher terms in new oil deals.

[keithbas]

China Machine Building International Corporation (CMIC), a Chinese government company, has pledged to establish a US$100 million iron ore mining and integrated steel plant in Mbarara district. The plant is expected to be fully operational in 18 months.

This was disclosed by the General Manager of the Chinese company, Li Fengshan in a meeting with President Yoweri Museveni at his country home in Rwakitura, Kiruhuura district on Saturday.

Welcoming the Chinese delegation, Museveni emphasized the importance of the steel project and said it would go a long way in spurring the much needed development of the infrastructure in Uganda.

“We need a steel industry very badly because the government does a lot of construction works, especially the construction of dams that needs fresh steel,” he noted.

The President further told the Chinese guests that once the steel industry is established, transport costs for steel, would be reduced drastically.

Major problems facing the Ugandan steel industry are primarily low product quality and quantity and shortage of raw materials. Uganda is home to proven high quality iron ore resources in the Eastern and South Western Regions exceeding 100 million tons.

Uganda’s steel and iron industry has also been growing at unprecedented rates averaging over 30% and 40% per annum for imports and exports respectively mainly due to the booming housing and construction sector in the country itself and the region as a whole.
Steel demand in Uganda that is estimated at over 150,000 tons per annum is well above the actual steel production of over 60,000 tons per annum.

[Kenguy]

Thought such a plant would be best placed in Jinja, next to a ready power source and export/import routes. They already said the iron ore is present in both South Western and Eastern parts. If you bring all those factors together, the Eastern part far outweighs the south west as a prime location for a plant.

[ciceroji]

Originally Posted by Kenguy

Thought such a plant would be best placed in Jinja, next to a ready power source and export/import routes. They already said the iron ore is present in both South Western and Eastern parts. If you bring all those factors together, the Eastern part far outweighs the south west as a prime location for a plant.

Maybe they are considering DRC and Rwanda as export areas, less competition from Kenya. In addition the power source depends on the capacity of the main electric grid in Uganda. Even though yeah placing it close to Bujugali would make more sense from the point of view of transmission losses.

[u.g boy]

Total to spend $650m in Uganda
Publish Date: Sep 24, 2012

newvision
By Vision Reporter and Agencies

France’s Total expects to drill eight exploration wells in Uganda by the end of next year, and will spend about $650 million on its activities in the same period, a senior company official said.

The company had entered Uganda’s petroleum industry earlier this year when it and China’s CNOOC each took a third of Tullow Oil’s exploration assets in the country for a total of $2.9 billion.

"Total E&P Uganda is currently continuing the exploration, delineation and appraisal campaign initiated by the previous operators," Total E&P Uganda general manager Loic Laurandel told Reuters on Saturday according to upstream.com an international oil and gas news source.

"The first oil exploration well will be drilled by the end of 2012 and eight new exploration wells will be drilled by the end of 2013."

Uganda discovered oil in its west along the border with the Democratic Republic of Congo in 2006. Production had been expected to start early this year but wrangling over tax and other issues delayed development.

Tullow and the government are negotiating how to best settle tax issues, with a hearing scheduled for later this year if the company fails to reach a settlement with the revenue authority.

Laurandel said Total, which operates Block 1 on the northern tip of Lake Albert, would spend about $650 million on exploration and appraisal drilling and seismic data acquisition by the end of next year.

Uganda has said it was searching for an advisor to help it secure financing for a planned refinery to process its crude, Reuters stated.

Tullow said the refinery's capacity should not exceed 60,000 barrels per day to be attractive to investors but the government said a facility with a maximum output of 120,000 bpd was viable and could easily attract investors.

Total supports the project but Laurandel said the company could not comment on whether it will invest in it or state its preferred size of facility because disclosure of its positions was likely to undermine discussions with the government.

"Sufficient resources exist (1.8 billion to 2.2 billion barrels) to deliver a plateau production rate of 200,000 to 230,000 barrels per day in support of an appropriate sized refinery," Reuters quoted him as saying.

"We think that an international crude oil export pipeline, combined with an optimally sized refinery will provide the maximum benefit to the wider Ugandan economy."

Uganda is expected to conduct a licensing round for hundreds of square kilometres of exploration acreage after parliament passes new oil laws expected by the end of this year.

[u.g boy]

Egypt's Citadel Capital eyes Uganda's oil refinery project

Egypt investment bank Citadel Capital intends to inject $2.5 billion in a projected oil refinery in east Africa's third-largest economy Uganda
Reuters, Monday 1 Oct 2012

Egypt's largest dairy producer to boost capacity by third: Citadel Capital
Egypt's Citadel Capital could be an investor in Uganda's proposed $2.5 billion oil refinery project, the Egyptian private equity firm's managing director said.
Uganda, east Africa's third-largest economy, has said it intends to build a refinery once it starts producing crude oil, and it recently raised its estimated oil reserves to 3.5 billion barrels from 2.5 billion barrels.

Citadel secured $3.7 billion in financing for an Egyptian petroleum refinery project in June, and the firm's managing director Karim Sadek said the company is now looking at refining potential deals in sub-Saharan Africa, including Uganda.

"Yes, we would be interested," Sadek told Reuters in Nairobi, where he addressed a business club. "We know very well what's happening on the Ugandan oil side and we've had discussions before."

He said Citadel never invests in projects without a local partner, and he would not be drawn on the size of the investment the private equity group might make since the refinery plans are still in their infancy.

Uganda has outlined plans to build a refinery in Hoima, about 220 km west of its capital Kampala, and in July the government said it was aiming to take up to a 40 per cent stake in the plant with a private investor acquiring the remaining 60 per cent.

Uganda says it wants a facility with a maximum output of 120,000 barrels per day before production can commence, and that it intends to develop the project in phases, starting with a refining capacity of 20,000 barrels.

However, UK oil and gas explorer Tullow Oil, which operates in Uganda and would have its own output refined there, sees a plant with capacity of 60,000 as more viable to attract investors.

Sadek, who is confident the two sides will reach a compromise, said a major impetus behind Uganda's desire to develop its own refining capabilities is an inadequate transport infrastructure.

Uganda currently imports all its fuel, and its policy to become self sufficient was given added urgency by extreme shortages suffered when transport routes from the Indian Ocean were blocked during post-election violence in Kenya in 2008.

Citadel, which has $9.5 billion in investments across Middle East and Africa, is already present in Uganda as the majority owner of Rift Valley Railways (RVR), the track operator of the Kenya-Uganda railway line, which stretches 930km from the Indian Ocean port of Mombasa to Kampala.

Sadek said RVR hopes to start refurbishing a northern branch of Uganda's railways which has been derelict for more than 25 years and passes around 90km from the South Sudanese border, compared with currently useable lines nearly 500km from the main crossing into South Sudan.

"(The refurbishment is) a game changer for transport efficiencies for South Sudan because today South Sudan either trucks all the way from Mombasa or from the end of the rail, wherever that is," he said.

"It will have a huge impact on costs of everything."

[u.g boy]

China injects sh2.5 trillion in Uganda
Publish Date: Oct 02, 2012

Minister Kutesa and Chinese ambassador Zhao Yali. Photo by Francis Emorut
newvision
By Francis Emorut

Chinese investment in Uganda amounts to $596 (about sh1.5trillion), the Chinese ambassador Zhao Yali has said.

Yali said the investment is from 1993 up to last year. A total 256 Chinese firms have opened businesses in Uganda creating an employment of 28,000 jobs for Ugandans.

He pointed out that the amount in bilateral trade is $400m (about sh1 trillion)

Yali made the remarks during the celebrations to mark 63 years of china since its independence at the ambassador’s residence in Kololo, Kampala on Monday.

He said the construction of the Kampala Entebbe International Airport Highway commences at the end of this year.

The Chinese government has also given assistance in kind to the Government of Uganda by building Mandela National Stadium, ministry of foreign affairs building and the new Government House and the agricultural technology demonstration centre in Kajjansi, in Wakiso.

He pointed out the Chinese government has also played a tremendous role in supporting the health sector by donating a big quantity of anti-malaria drugs and built the China- Uganda Friendship Hospital in Naguru.

On education ambassador noted that his government grants 50 scholarship yearly to Ugandans and 300 quotas of short term training.

He pledged that relationship between the two countries will grow from strength to strength.

He commended Government for the remarkable achievement it has attained since its independence 50 years ago.

“After 50 years of struggle and hardworking Uganda people have obtained remarkable achievements in the economic development and social progress,” Yali said.

The minister of foreign affairs Sam Kutesa hailed the Chinese Government for its continued support.

The China 63th anniversary was attended by the diplomatic missions to Uganda and ministers.



Total eyes 2017 for Ugandan production
Publish Date: Oct 02, 2012

French oil company Total headquarters
newvision

French energy company Total said it expected to get Ugandan approval for commercial oil production in 2017, a full year later than originally expected.

Loic Laurandel, an exploration and production manager for Total, was quoted by The Wall Street Journal as saying commercial oil production was expected within five years.

"We are working closely with our partners and the Ugandan government to get the necessary approvals to enable us deliver first oil by late 2017," he said.

Total moved into Uganda following a deal this year with frontier development company Tullow Oil and China National Offshore Oil Corp.

Uganda is eager to exploit resources tied to the Lake Albert region, which is estimated to hold as much as 2.5 billion barrels of oil. Companies like Tullow aim to start developing Ugandan oil fields within three years.

The Journal reported that Total delayed commercial production because of disputes between foreign companies and the Ugandan government over development plans.

Total said it expected to produce as much as 230,000 barrels of oil production per day from the Lake Albert region by 2020.

An investment of as much as $650 million should target appraisals in the country by next year, said Laurandel. Source: UPI.com

[mwathani]

The controversial Bujagali hydropower station in Uganda has been commissioned and is now on the grid. It loads an additional 250 MW on the national grid effectively doubling the power generation capacity in the country.
This development is a sigh of relief for Ugandans in several ways: it eliminates expensive thermal power; It releases some US$9.5 million in electricity subsidies to the exchequer; it eliminates load shedding and brightens prospects for economic growth.
http://eaers.blogspot.com/2012/10/bu...s-ugandas.html

[xJamaax]

Uganda takes oil block back from Tullow, CNOOC, Total: govt

AMPALA (Reuters) - Uganda has taken back an exploration block jointly owned by Tullow Oil, CNOOC and Total SA after their licence expired, the government said, likely increasing the acreage up for auction in a new licensing round expected early next year.

The Ugandan Energy Ministry's Petroleum Exploration and Production Department (PEPD) said the Kanywataba block had reverted back to the east African government after a six-month long exploration license expired.

http://af.reuters.com/article/invest...=investingNews

[Geza Ulole]

Originally Posted by xJamaax

Uganda takes oil block back from Tullow, CNOOC, Total: govt



http://af.reuters.com/article/invest...=investingNews

It seems their pushing for a refinery outside Uganda is a reason for this take over by UG Govt! I personally congratulate Pres. Museveni no export of crude for the sake of Uganda prosperity!

[KaiserSoze]

Originally Posted by Geza Ulole

It seems their pushing for a refinery outside Uganda is a reason for this take over by UG Govt! I personally congratulate Pres. Museveni no export of crude for the sake of Uganda prosperity!

The license expired. What's with all the conspiracy theories?

[napoleon]

President of Uganda visits Thailand

BANGKOK, Nov 14 – Ugandan President Yoweri Kaguta Museveni will officially visit Thailand Thursday through Saturday to enhance the cordial relations already existing between the two nations.

A welcoming ceremony will be held at Government House Friday, when Mr Museveni is scheduled to meet with Thai Prime Minister Yingluck Shinawatra for bilateral talks.

Topics of discussion will include varied mutual and regional issues, especially trade, investment and technical cooperation. Ms Yingluck will host a welcoming dinner to honour the president and his delegation at the Santi Maitri Building. During his visit, Mr Museveni and a group of leading Ugandan businesspersons will meet potential Thai investors from various areas.

They will visit major Thai industry facilities to explore mutual trade and investment opportunities. Uganda's leader has visited Thailand twice before -- in 2003 on a private visit and in 2004 to attend the 15th World AIDS Conference. This is the first official visit of a head of state and head of the Government of Uganda since Thailand and Uganda established diplomatic relations in 1985.

The visit reflects the cordial ties existing between the two countries, as well as the importance that Thailand attaches to strengthening its relationship with African countries within the South-South cooperation framework.

It provides an excellent opportunity for Thailand and Uganda to expand cooperation in various areas, both at bilateral and multilateral levels, as well as to promote better understanding at the people-to-people level for the mutual benefit of the two countries. Mr Museveni has been president of Uganda since 1986, having won four elections -- in 1996, 2001, 2006 and 2011. (MCOT online news)

http://www.mcot.net/site/content?id=...0ba03b5600000f


with Uganda President (Yoweri Museveni)

source Thai Government

[keithbas]

Demand for electricity to grow to 15% next year



Demand for electricity shall increase from 10 to 15 per cent next year, according to Uganda Electricity Transmission Company Ltd (UETCL) projections.

UETCL attributes the expected increase to “load growth within the economy” in 2013 – 2014, explaining that as steel factories in Jinja and Mukono Districts increase production, they shall use more power.

But Energy Minister Irene Muloni yesterday said power demand averages eight per cent annually.

The factories contributing to the rise in demand are Steel Corporation, which will need 22 Mega Volt Ampere (MVA), MMI (5MVA), Steel Rolling Mills (5MVA), Pramukh ((15MVA), Nile Breweries (6MVA), Tembo Steel Factory-Lugazi (11MW), Roofings-Mukono (32MVA) and Tian Tang 20MVA.

When asked about the rate at which power generation is growing, Mr John Mugyenzi, the managing director, Uganda Electricity Generation Company Ltd (UEGCL), referred this reporter to the Energy Ministry.

UEGCL is the owner of the Kiira and Nalubaale hydropower stations which have a combined capacity of 380MW. The plants are, however, producing averagely 180MW.

Power generation, however, is growing at a slower pace, with many of the projects that should have been feeding the national power grid either still on the drawing boards or not yet complete.

This means the government might again have to rope in emergency independent thermal power producers as it did from 2005 to January 2012, lest electricity consumers start experiencing load shedding.
Presently, effective supply is 509MW even though installed capacity is 819MW.

Over the last six months, Kakira Sugar Works Limited has increased its power generation by 6MW whereas Electro-Maxx will feed an extra 32MW to the grid next year. Most power plants, however, cannot operate at full capacity due to either hydrological (water) constraints or smaller requests by UETCL.

According to the 2007 Renewable Energy Policy, Uganda has the potential to generate 450MW from geothermal in the southern shores of Lake Albert, 1,650MW from biomass, 200MW from mini-hydro dams, 2, 000MW from large hydro dams and 200MW from solar.

nwesonga@ug.nationmedia.com

[keithbas]

Govt to pay Shs54b extra for power

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By NELSON WESONGA

Posted Wednesday, December 12 2012 at 02:00
In Summary
The cost of purchasing power from the company shall increase from Shs408 billion (in 2012) to Sh462.6 billion.
KAMPALA


The government is to spend an extra Shs54.5 billion purchasing electricity from Bujagali Energy Ltd next year.

The cost of purchasing power from the company shall increase from Shs408 billion (in 2012) to Sh462.6 billion. This is a half of the Shs923.5 billion Uganda Electricity Transmission Company Ltd (UETCL) shall spend on purchasing power in 2013.
UETCL yesterday attributed the increase in cost of purchasing power from Bujagali to its efficiency.

Mr William Turyahika, the deputy chief executive officer of UETCL, said: “It so happens that Bujagali is more efficient. For the same water, it will be able to give you more electricity.”

At the same time, the government shall reduce by Shs14.3 billion its spending on electricity produced from Eskom Ltd, which manages the Kiira and Nalubaale hydropower plants. The reason for the reduction is yet to be known.

However, Eskom technical director Nicholas Wamaniala said Eskom had the capacity to produce more than 200MW. “That efficiency is a relative term. It is not that we are less efficient in that context. We have a combined installed capacity of 380 megawatts. But the transmission company thinks it can get more megawatts out of Bujagali,” said Mr Wamaniala.

“We are producing 138 megawatts because the Directorate of Water Resources Management allows us to discharge 800 cumecs of water to generate power,” added Mr Rogers Kayita, Eskom’s finance director.
UETCL is the bulk buyer of electricity from generation companies, which it sells to distribution companies such as Umeme, which controls 97 per cent of the distribution business.

The power transmission company has powers to adjust the price at which it sells electricity to the distributors to cover, among others, the transmission as well as operation and maintenance (O&M) costs.
“It is the final consumers who absorb whatever comes from generation to the distribution of power,” Mr Tuzinde Mbaga, the Electricity Regulatory Authority (ERA’s) economist told the Daily Monitor yesterday.

Power cost
Mr Farhan Nakhooda, the projects director of the Madhavani Group, said many people believe hydroelectricity is cheaper than other sources of power. “The price of Eskom’s power is a fraction of that picked from Bujagali. So if it is possible to continue to increase purchases from Eskom, why should the country pay more to buy from Bujagali?” asked Mr Nakhooda.

Bujagali power costs $12 cents per unit, while Eskom generation tariff stood at Shs24,333 ($10 cents) per unit in third quarter of the years. Thermal power costs $29 cents or more per unit, making it the most expensive power.

Uganda has an installed capacity of 819 megawatts, of which 250MW is produced by Bujagali.
Meanwhile, at least five towers transporting power from the Bujagali power plant in Buikwe/Jinja districts to Kampala have been vandalised, raising fears that the country could be plunged into darkness sooner.

Mr Turyahika attributed the vandalism to poverty. “Some of the tower parts end up being sold even outside the country. It does not matter that you have 400 towers. You only need to vandalise one and the entire line collapses,” he said.

Mr Turyahika added that there are about 400 pylons between Bujagali and Kawanda, each costing Sh70 million. He said people living along the line should report the vandals to police, adding that “big reward” awaited those who would report the culprits.

nwesonga@ug.nationmedia.com