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THE REPUBLIC OF U GANDA

STATUS OF IMPLEMENTATION OF THE 2016-2021 NRM


MANIFESTO COMMITMENTS; AND THE STRATEGIC
GUIDELINES AND DIRECTIVES IN THE ENERGY AND
MINERAL DEVELOPMENT SECTOR

Presented By

Hon. Eng. Irene Muloni (MP)


Minister of Energy and Mineral Development

May 2019

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THE REPUBLIC OF U GANDA
Table of Contents
A. INTRODUCTION
i. Mandate, Mission and Medium Term Sector Goals and Objectives
ii. Overview of the 2016-2021 NRM Manifesto Commitments; and
Strategic Guidelines and Directives
B. PROGRESS ON IMPLEMENTATION OF THE SECTOR
COMMITMENTS, GUIDELINES AND DIRECTIVES:
i. The Energy Sub-sector
ii. The Oil and Gas Sub-sector
iii. The Minerals Sub-sector
C. CHALLENGES IN THE ENERGY AND MINERAL
DEVELOPMENT SECTOR
D. PLANS FOR THE REMAINING PART OF THE NRM
MANIFESTO 2016-2021 AND NDP II CLOSURE
E. CONCLUSION
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A. INTRODUCTION
THE REPUBLIC OF U GANDA

Mandate:
The Mandate of the Ministry is to “Establish, Promote the
Development, Strategically Manage and Safeguard the
Rational and Sustainable Exploitation and Utilisation of
Energy and Mineral Resources for Social and Economic
Development”.
Mission:
The Mission of the Ministry of Energy and Mineral
Development is : “To ensure reliable, adequate and
sustainable exploitation, management and utilisation of
energy and mineral resources”.

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A. INTRODUCTION
THE REPUBLIC OF U GANDA

Medium Term Policy Goals:


In order to contribute effectively to the national objectives
as enshrined in the National Development Plan, the
Ministry’s policy goals are to;
i) Meet the energy needs of Uganda’s population for social and
economic development in an environmentally sustainable
manner.
ii) Use the county’s oil and gas resources to contribute to early
achievement of poverty eradication and create lasting value to
society.
iii) Develop the mineral sector for it to contribute significantly to
sustainable national economic and social growth.

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A. INTRODUCTION
THE REPUBLIC OF U GANDA

Medium Term Objectives:


i) To put in place enabling policies and legislation for
sustainable development and exploitation of the country’s
energy and mineral resources.
ii) To establish the country’s energy and mineral potential.
iii) To produce petroleum and mineral resources for local
consumption and export.
iv) To increase electricity production, rural electricity access,
and renewable energy installed capacity.
v) To increase competition in petroleum supply and
distribution to curb products’ adulteration and attain
reasonable pump prices.
vi) To reduce the impact of geo-tectonic disturbances and
radioactive emissions for disaster preparedness.
vii) To attain efficient utilization of energy resources. 5
II. AN OVERVIEW OF THE PRESENTATION
THE REPUBLIC OF U GANDA

• The presentation focuses on Sector Performance and


progress made in regard to the 2016-2021 NRM
Manifesto, Presidential Strategic Guidelines and
Directives and the NDP II. It covers:
– Power Sub-sector;
– Oil and Gas sub-sector; and
– Minerals sub-sector.

• In conclusion, I present the challenges we face during


implementation, and the Way forward for the sector
for the remaining part of period.

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SUMMARY OF 2016-2021 PRIORITY AREAS
THE REPUBLIC OF U GANDA

• Over the medium term, the Ministry has aligned its


priorities to the NDP II and in the NRM manifesto, 2016-
2021 as follows: -
– Increase affordable Power Generation and expand Power
Transmission and Distribution Infrastructure.
– Increase access to affordable modern energy services through
rural electrification and renewable energy development.
– Promote and monitor petroleum exploration and
development in order to increase the reserve base and
achieve local production.
– Develop petroleum refining, pipeline transportation, bulk
storage and transportation infrastructure.
– Streamline petroleum supply and distribution.
– Promote and regulate mineral exploration, development,
production and value addition.
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SUMMARY OF 2016-2021 PRIORITY AREAS
THE REPUBLIC OF U GANDA

In line with the NRM Manifesto Commitments and


H.E. The President’s Strategic Guidelines and
Directives for the Term 2016 – 2021, the sector has
prioritized the implementation of the following: -
i. Lower the cost of electricity produced by
Bujagali Station from US Ȼ11 to US Ȼ6.
ii. Expand the transmission and Distribution
Network
iii.Increase access to modern forms of energy

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SUMMARY OF 2016-2021 PRIORITY AREAS
THE REPUBLIC OF U GANDA

iv. Expedite the granting of Oil Production licenses so


that actual production starts;
v. Rectify the weaknesses in the Minerals Department
to develop the mining sector to provide the raw
materials for industries
vi. Expedite the fertilizer projects at Sukuru Hills and
Mwitanzigye (Lake Albert).
vii. Equip the DGSM with a modern laboratory to test
and, therefore, help to quantify the mineral presence
in an area and determine its quality.
viii. Register all the artisan miners and the minerals they
mine should be declared so that it is exported
through formal channels. 9
THE REPUBLIC OF U GANDA
ENERGY SUB SECTOR FOCUS AREAS

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THE REPUBLIC OF U GANDA
PERFORMANCE IN POWER GENERATION

Power Generation Projects at various stages of


development: -
•Karuma Hydro Power Project (600MW): Construction
works have progressed to 92% and is expected to be
commissioned in December 2019.
•Isimba Hydro Power Project (183 MW): The plant was
successfully commissioned by H.E, the President of Uganda
on the 21st March 2019.
•The total Installed generation capacity is now 1,202 MW

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THE REPUBLIC OF U GANDA
OPERATIONAL POWER GENERATION PLANTS 2019
Licensed Contracted
Installed installed Capacity by
Capacity Capacity UETCL
ID Generation Plant Operator (MW) (MW) (MW)
Large Hydro 818 813 813
2 Nalubaale Eskom Uganda Limited 180 180 180
4 Kiira Eskom Uganda Limited 200 200 200
16 Bujagali Bujagali Energy Limited 255 250 250
25 Isimba GoU, Lead Agency: UEGCL 183 183 183
Small Hydro 107.14 107.14 103.64
1 Mubuku I (Kilembe Mines)
Tibet Hima Mining Company Limited 5 5 5
3 Kasese Cobalt (Mubuku
Kasese
III) Cobalt Company Limited 9.9 9.9 9.9
9 Bugoye (Mubuku II) Bugoye Hydro Limited 13 13 13
15 Mpanga Africa Energy Management Systems 18 18 18
14 Ishasha (Kanungu) Eco Power (Uganda) Limited 6.4 6.4 6.4
19 Nyagak I** Westnile Rural Electrification Company 3.5 3.5 0
18 Kabalega (Buseruka)Hydromax Limited 9 9 9
26 Muvumbe Muvumbe Hydro (U) Limited 6.5 6.5 6.5
29 Siti I Elgon Hydro Siti (Pvt) Limited 6.1 6.1 6.1
28 Rwimi Eco Power (Uganda) Limited 5.54 5.54 5.54
34 Lubilia Lubilia Kawembe Hydro Limited 5.4 5.4 5.4
27 05/12/19
Nyamwamba Africa3rd
Energy Management Systems Nyamwamba
India -Africa Hydro Carbons Conference
9.2 Limited
9.2 9.2
62 Nkusi PA Technical Services Limited 9.6 9.6 9.6
THE REPUBLIC OF U GANDA

OPERATIONAL POWER GENERATION PLANTS 2019


Licensed Contracted
Installed installed Capacity by
Capacity Capacity UETCL
ID Generation Plant Operator (MW) (MW) (MW)
Co-Generation 96.2 96.2 43.9
174 Kakira Sugar Kakira Sugar Limited 51.1 51.1 32
176 Kinyara Sugar Kinyara Sugar Works Limited 14.5 14.5 5
172 Kaliro Sugar Sugar & Allied Industries Limited 11.9 11.9 6.9
175 Lugazi Sugar*** Sugar Corporation of Uganda Limited 9.5 9.5 0
170 Mayuge Sugar*** Mayuge Sugar Industries Limited 9.2 9.2 0
Thermal 139 100 100
8 Namanve HFO Jacobsen Uganda Power Plant Company Ltd. 50 50 50
12 Tororo HFO Electro-Maxx Limited 89 50 50
Solar 40.1 40 40
32 Soroti Solar Access Uganda Solar Limited 10.1 10 10
33 Tororo Solar Tororo Solar North Limited 10 10 10
167 Xsabo Solar MSS Xsabo Power Limited 20 20 20
Hybrid 1.6 1.6 0
22 Bukuzindu Hybrid** Kalangala Infrastructure Services Limited 1.6 1.6 0
Total Generation Capacity 1,202 1,158 1,101
Source: Operators reported to MEMD 2018
** Off-grid generation
*** All generated Power is used internally
05/12/19 3rd India -Africa Hydro Carbons Conference
THE REPUBLIC OF U GANDA Performance in Power Generation
Welcoming H.E Y.K Museveni to Karuma HPP construction site

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Karuma Hydropower Project after third River diversion
THE REPUBLIC OF U GANDA

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THE REPUBLIC OF U GANDA
PERFORMANCE IN POWER GENERATION
Aerial View of Isimba Hydro Power Plant now operational

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THE REPUBLIC OF U GANDA
PERFORMANCE IN POWER GENERATION
HE the President Commissioning Isimba Hydropower Plant
Performance in Power Generation
THE REPUBLIC OF U GANDA

• When Isimba and Karuma HPP are commissioned and fully


absorbed/utilized, it is expected that the weighted
generation tariff will reduce from the current US Cents
6.47/kWh (Ush. 243.43) to US cents 5.34/kWh
(Ush.200.93), representing a reduction of 17.45%.

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PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• Achwa/Agago HPP (42MW): The plant is being developed


by an IPP and is undergoing final commissioning tests.
Commissioning is planned for August 2019.
• Muzizi (44.7MW): Bid evaluation for Technical proposals
for potential EPC contractors for the Muzizi HPP was
completed and now waiting for a No Objection from the
financier-KfW. The target is to sign the EPC contract by end
of August 2019. Resettlement Action Plan (RAP)
implementation is being handled. Construction is planned
to last 36 months and thereafter, it will be commissioned.
• Nyagak III (5.5MW): GOU provided bridge financing to the
Nyagak III HPP and construction resumed in April, 2019
and will last for a period of 36months, and thereafter, it
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will be commissioned.
PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• Kiba Hydropower Project (330 MW): This power project is


being developed as an Independent Power Producer (IPP)
on a Build Own Operate and Transfer (BOOT)
arrangement. Feasibility studies are expected to be
completed in June 2019.
• Oriang Hydropower Project (392MW): Engaging a new
developer where the previous one has failed to proceed
• Ayago Hydropower Project (840MW): The feasibility
study for this project was accomplished by M/s China
Gezhouba Group of Companies. Engaging a new developer
having failed to agree on the tariff with Gezhouba.

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PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• Uhuru Hydropower Project (300MW): Government


signed a Memorandum of Understanding with M/S
Bonanga Energy Ltd. from the Republic of South Africa to
undertake detailed feasibility studies. The company is
processing a permit from ERA to carry out a detailed
feasibility study.
• GET FIT Portfolio (156.5MW): 8 Renewable energy
projects under the Global Energy Transfer Feed-in Tariff
(GET FiT) with a total capacity of 87.14 MW have been
commissioned under the Global Energy Transfer Feed-in
Tariff Portfolio. The projects are: Siti I 6.1 MW, Waki 4.8 MW,
Muvumbe 6.5 MW, Nyamwamba 9.2 MW, Rwimi 5.54 MW, Lubilia
5.4 MW, Soroti Solar 10MW, Tororo solar 10 MW, Nkusi 9.6 MW
and Kakira Biomass Cogeneration 20MW). 21
PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• All the remaining GET FiT projects to a tune of 75.8MW


are under development with planned commissioning in
the FY2019/2020.
• The projects are:
Waki SHPP (4.8MW), Siti II SHPP (16.5MW), Kyambura
SHPP (7.6MW), Sindila SHPP (5MW), Ndugutu SHPP
(5.9MW), Nyamagasani I SHPP (15MW), Nyamagasani
II SHPP (5MW) and Kikagati SHPP (16MW).

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PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• Geothermal Energy Resources Development: Exploration


for geothermal energy has been carried out in the main
geothermal areas.
• Three areas in Kibiro, Panyimur and Buranga have reached
advanced stages of surface exploration. Drilling of
Temperature Gradient Wells (TGW) is to start at Kibiro and
Panyimur in 2019.
• The results of the TGW will be a basis for a feasibility study
that will involve drilling of deep exploration wells and
installation of a pilot power plant for electricity production
and direct use in industry and agriculture.

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PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• To attract private sector participation in geothermal


development, Government is developing the geothermal
policy and legislation.
• The policy will provide the basis for capacity building both
in human resource and equipment, and selection of the
best business and financial models of each prospect and
proceed with the development of the geothermal
resources of Uganda.

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PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

Initiatives to ensure reduction of retail electricity tariffs:


•Electricity Regulatory Authority (ERA) has put in place
means of tariff reduction starting with the tariff for
manufacturers to make our local goods competitive in the
regional and globe market.
•This is being done in a phased approach starting with Extra
Large, Large, medium, commercial through to domestic and
street lighting customer categories.
•The target of 5 US Cents has been achieved during off-peak
hours for extra large consumers.
•This was possible following the conclusion of refinancing
Bujagali (tariff reduced from 10.1 US Cents to 8.3 US Cents.
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PERFORMANCE IN POWER GENERATION
THE REPUBLIC OF U GANDA

• Government aims at gradually lowering the tariff for


individual residential and social service centres such as
schools, and Hospitals
• Least cost power generation (Large Hydro projects)
• Increase the load factor of the power plants hence
reducing the tariff by putting in place measures to grow
the energy demand:
i) electrification of industrial parks
ii)implementation of the Free Connection Policy to get
more households, businesses and industries consuming
electricity
iii) Power export to the Region under the Eastern
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African Power Pool and to Eastern DRC.
TRANSMISSION GRID PROJECTS
THE REPUBLIC OF U GANDA

Government commissioned electricity transmission


projects totaling to 630km. This brings the total length of
High Voltage grid coverage to 2258km.
•132kV Mbarara - Nkenda 160km Transmission Line and
associated substations project completed and energized
on 19th February, 2019.
•220kV Kawanda-Masaka transmission line and
associated substations, 137km, (Masaka, Kawanda and
Mbarara) project completed and energized on 19th
December, 2018
•220kV Mbarara- Mirama 65km power transmission line
and associated substations project completed and
energized on 7th December, 2018. 27
TRANSMISSION GRID PROJECTS
THE REPUBLIC OF U GANDA

• 220kV Nkenda-Fort Portal- Hoima, 226km, power


transmission line and associated substations (Nkenda
extension, new Hoima and Fort Portal extension).
Commissioned on 14th August, 2018.
• Upgrade of Queensway 132/33kV substation was
completed. The station was energized on 31 May, 2017
and officially commissioned on 17th August 2018
• 132kV Isimba- Bujagali 42km transmission line was
successfully energized on 26th November 2018 and
commissioned on 21st March 2019.

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THE REPUBLIC OF U GANDA TRANSMISSION GRID PROJECTS
THE REPUBLIC OF U GANDA
TRANSMISSION GRID PROJECTS
At the Commissioning of Hoima-Nkenda Transmission Line
THE REPUBLIC OF U GANDA

Nkenda Substation QueenswaySubstation

Isimba Switchyard
Isimba Switchyard

05/12/19 3rd India -Africa Hydro Carbons Conference


ON GOING TRANSMISSION CONSTRUCTIONS
THE REPUBLIC OF U GANDA

• Karuma Interconnection Projects (Karuma-Kawanda 400kV


254km, Karuma-Lira 132kV 75km, and Karuma-Olwiyo
400kV 60km lines and associated substations).
– Construction on going and is at 70% completion.
The project’s projected completion is in December, 2019.
• Industrial Parks and associated substations (Namanve South-
Namanve 132kV transmission line 10km; Namanve-Luzira 132kV
transmission line 31km; Nalubaale-Namanve 132kV transmission
line, Mukono T-off 5km; Nalubaale-Tororo 132kV line; Tembo Steels
Ltd T-off 12km.
– The substations works were completed.
– Transmission lines are at 50% completion.
The project is projected to be commissioned by April, 2020.
• Tororo-Opuyo-Lira 132kV: 76% complete . Expected to be
completed/commissioned by September 2019.
ON GOING TRANSMISSION CONSTRUCTIONS
THE REPUBLIC OF U GANDA

• Bujagali-Tororo-Lessos 220kV: 75% complete; Expected to be


completed by December 2019.
• 132kV Mutundwe-Entebbe Transmission Line, 35km.
– Works have started.
– The project is expected to be completed by February 2020
• 132kV Opuyo-Moroto Transmission Line, 168km and associated
substations.
– Works have started.
– The project is projected to be completed by February 2020.
• Opuyo substation upgrade (in Soroti).
– Works are ongoing at 40%.
– Planned completion is September 2019.
• Kawanda-Kapeeka, 132kV project. Construction ongoing with
commissioning expected in June 2019.
ON GOING TRANSMISSION CONSTRUCTIONS
• 132kV Lira-Gulu-Nebbi -Arua transmission Line, 293km
THE REPUBLIC OF U GANDA

and associated substations.


– Procurement of contractor is ongoing with the contractor
expected on board by July 2019.
– Works will be completed within two (2) years once the
contractor has been engaged. To be completed by June 2021.
• Procurement of contractors is ongoing for the following
lines:
– 132kV Mirama-Kabale transmission line, 80km;
– 400kV Masaka-Mbarara Transmission Line, 135km; and
– Gulu – Agago – Agago HPP 132kV Overhead Transmission Line
and associated 132/33kV Substations Project.
• Environment and Social Impact Assessment (ESIA) Studies
are on-going for the 132 kV Mbale-Bulambuli T Line.
THE REPUBLIC OF U GANDA
ON GOING TRANSMISSION CONSTRUCTIONS
• Completion of the projects above will make additional
1,300km of transmission line bringing the total power grid
coverage to over 3,550km of High Voltage (HV) power
lines from the current 2,258km. The primary substations
will increase from the current 25 to 42.
ACHIEVEMENTS OF THE RURAL ELECTRIFICATION
PROGRAM AND FUTURE PLANS
THE REPUBLIC OF U GANDA

• Government has so far implemented over 10,000 km of


Medium Voltage (MV) power lines and approximately 9,000
km of Low Voltage (LV) distribution power lines.
• This has translated into connection of over 700,000 customers
onto the national grid (increasing rural electrification access
rate from 1% in 2001 to over 13% in 2019).
• Nearly all the district headquarters are now supplied with
electricity. Works are ongoing to connect the districts of
Kotido and Kaabong to the grid. The Lines will be
commissioned in August 2019.
• Feasibility studies to connect Buvuma Islands are underway.
• 4,000 km of MV power lines and 5,000 km of LV power lines
are under implementation.
ACHIEVEMENTS OF THE RURAL ELECTRIFICATION PROGRAM
THE REPUBLIC OF U GANDA AND FUTURE PLANS
• 3,000 km of MV power lines and 2,000 km of LV power
lines under procurement. Implementation of works to
commence in FY 2019/20.
• The target is to connect all the sub-counties by 2021.
Government has secured a loan from Exim Bank of China
to implement this.
⁻ Under this project 4,000km of medium voltage networks
and over 6,000km of low voltage network shall be
constructed.
⁻ Electrification of 590 unserved sub-counties countrywide will
be implemented.
⁻ Priority extensions to high power consuming loads such as
medium and small scale industries will be implemented.
ACHIEVEMENTS OF THE RURAL ELECTRIFICATION PROGRAM
THE REPUBLIC OF U GANDA AND FUTURE PLANS
• In order to increase access rate to electricity from the
current 28% and also grow the demand, Government is
implementing the Electricity Connection Policy 2018.
• Under this policy, Government will subsidize fully the cost
of electricity connection materials. This will enable
citizens that are ready for electricity consumption to
access a free electricity connection.
• Over 300,000 connections are targeted annually.
• This initiative will realise growth in access to electricity to
30% by end of 2020, and over 60% access by 2026,
contributing an annual proportionate growth in
consumption of about 30%.
ACHIEVEMENTS OF THE RURAL ELECTRIFICATION PROGRAM
THE REPUBLIC OF U GANDA AND FUTURE PLANS

Vice President Edward Ssekandi launching the Electricity Connections Policy


ACHIEVEMENTS OF THE RURAL ELECTRIFICATION PROGRAM
THE REPUBLIC OF U GANDA AND FUTURE PLANS
THE REPUBLIC OF U GANDA
SOLAR-BASED RURAL ELECTRIFICATION FOR SOCIAL
SERVICES
• Government is promoting use of renewable energy
technologies in the Country that include solar system for
lighting rural homes and for the national grid.
• The Country now has 40MW of solar grid connected
systems.
• Solar water heaters have been installed in various health
units across the country, and solar crop drying
technologies for post-harvest management of high
perishable pineapple and other fruits is being piloted in
Kangulumira, Kayunga district.
SOLAR-BASED RURAL ELECTRIFICATION FOR SOCIAL
THE REPUBLIC OF U GANDA

SERVICES
• Solar and wind hybrid system are currently operating and
supplying power to the communities of Kacheri in Kotido
district, Lokopo community in Napak district, and Lufudu
landing site in Namayingo district. These systems are
supplying power to households, health centers and
schools.
• A Wind resource map and pilot wind power are being
developed.
PROMOTING THE USE OF ALTERNATIVE SOURCES
THE REPUBLIC OF U GANDA

OF ENERGY
• In a bid to harness wind resources in the Country,
Government has embarked on the investigation of the
wind energy resources e.g. in Kaabong (Karamoja
region).
• A Wind resource map and pilot wind power are being
developed.
• Government signed a memorandum of understanding
with the State of Israel on Renewable Energy and
Agriculture Development Project. The project shall
focus on establishment of a 200kW biogas project for
electricity generation and organic fertilizer production.
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NUCLEAR POWER DEVELOPMENT
THE REPUBLIC OF U GANDA

Government continued the promotion and development of


nuclear energy for peaceful uses in electricity generation,
cancer management, food safety assessment, tsetse fly
control, improving agricultural productivity, water resources
management and industries.
To this effect, progress is as follows: -
•Nuclear Energy Policy Development: Technical and
economic studies on nuclear energy development were
completed, and a draft nuclear energy policy prepared.
•A National Radioactive Waste Management Strategy was
drafted.
NUCLEAR POWER DEVELOPMENT
THE REPUBLIC OF U GANDA

• Memorandum of Understanding between Ministry of


Energy and Mineral Development and the Russian State
Atomic Energy Cooperation on Peaceful uses of Atomic
Energy was signed on 19th June 2017. The MOU’s focus is
on development of nuclear power infrastructure,
education and training, nuclear and radiation safety, non-
power application of atomic energy, nuclear research
centers and design and construction of nuclear power
plants.
• Memorandum of Understanding between Ministry of
Energy and Mineral Development and China National
Nuclear Corporation on nuclear energy development was
signed on 11th May 2018 in Beijing, China.
Nuclear Power Development
THE REPUBLIC OF U GANDA

The signing of the MoU with CNNC in Beijing


Nuclear Power Development
THE REPUBLIC OF U GANDA

The visit to South Texas Nuclear Power Plant in the United States of
America
Nuclear Power Development
THE REPUBLIC OF U GANDA

The visit to Nuclear Power Plant Technician Training Facilities at


Wharton County Junior College in the United States of America
THE REPUBLIC OF U GANDA
MEASURES TO IMPROVE ENERGY EFFICIENCY
• Energy Efficiency and Conservation Bill 2018: The Energy
Efficiency and Conservation Bill 2018 was prepared. The
Regulatory Impact Assessement for the bill was prepared
and the draft bill is to be sent to Cabinet for approval in
June 2019.
• Power Loss Reduction: Power losses have been reduced
from average of 19.5 to 16.9% by Dec 2018.
• Energy Audits: Conducting 10 energy audits in selected
industries and institutions.
• Installing Power factor correction equipment in 20
clustered Small and Medium Enterprises Energy Efficiency
Program
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THE REPUBLIC OF U GANDA
MEASURES TO IMPROVE ENERGY EFFICIENCY
• 30 Energy Efficiency Professionals (Certified energy
managers and auditors trained) were trainned
• Creating awareness on Minimum Energy Performance
Standards Program
• Training of Fifteen ISO 50,001 (Energy Management
Standard) Leads Auditors in was done. The Lead
Auditors are providing support to High Energy
consumers so that the ISO 50,001 Energy
Management standard is intergrated to reduce energy
bills.

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THE REPUBLIC OF U GANDA

Promotion of energy interventions in refugee settlements


and host communities:
Through the United Nations High Commission for Refugees
and Implementing Partners, the following energy
interventions have been implemented:
•2,290 improved stoves were constructed increasing the
number of refugee households with access to safe energy
saving tools.
•945 Kgs of carbonized briquettes were produced for sale for
household use and income generation.
•34,288 refugees participated in community awareness on
environmental awareness.
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THE REPUBLIC OF U GANDA

• 30 refugees trained in woodlot establishment; efforts


aimed at environmental restoration.
• 302,419 of assorted tree species were planted and a
coverage of 129 hectares under afforestation and
reforestation.
• 8 (eight) tree nurseries were established increasing
access to tree seedlings in refugee settlements.

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THE REPUBLIC OF U GANDA

THE PETROLEUM SUB SECTOR

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THE REPUBLIC OF U GANDA
PETROLEUM SUB SECTOR FOCUS AREAS
• Expedite granting of oil production licenses so that the
actual production starts
• Build oil refinery with capacity to produce 60,000
barrels per day
• Build an export pipeline to enable export of oil to the
Eastern Africa region and international market.
• Capacity building in the Petroleum sub sector
• Collaborating with the E.A partner states in the
development of shared infrastructure and harnessing
of the natural resources.

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STATUS OF THE UPSTREAM PETROLEUM SECTOR
THE REPUBLIC OF U GANDA

Licenses and Acreage


Total E&P Uganda B.V
• 3 Production Licenses issued for 4 fields
in August 2016
• 3 PL applications under review
Tullow Uganda Operations Pty Limited
• 5 PLs issued for 9 fields in August 2016

CNOOC Uganda Limited


• Issued Production License for the
Kingfisher Field in September 2013

Exploration Licensing
• 3 PSAs issued to Armour Energy Uganda
Ltd (Kanywataba) and Oranto Petroleum
Uganda Ltd (Ngassa deep and shallow
plays) in 2017.
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STATUS OF THE UPSTREAM PETROLEUM SECTOR
THE REPUBLIC OF U GANDA

Progress
•Three exploration licenses were issued in August 2016 to
Oranto and Armor Energy. The two companies are
reviewing existing data and undertaking seismic surveys.
•Various leads and prospects have been identified in the
Albertine Graben.
•Government launched the Second Licensing round on 8th
May 2019 at the East Africa Petroleum Conference and
Exhibition 2019 (EAPCE’19) in Mombasa Kenya.
•The Ministry is conducting geological, geochemical and
geophysical mapping in Moroto-Kadam basin, Karamoja
region.
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THE REPUBLIC OF U GANDA STATUS OF THE UPSTREAM PETROLEUM SECTOR
• Progress on Moroto-Kadam basin is approximately
285-line km of geophysical and 1500 square km of
geological data coverage which represent a basin
coverage of about 40%.
• The work done so far shows evidence of possible
presence of a working petroleum system as
demonstrated by the encountered oil seep and
potential source rocks.
• More work will be focussed on covering the entire
basin so that a comprehensive geological basin model
is developed to enable more definitive speculative
and exploration licensing activities.
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THE REPUBLIC OF U GANDA STATUS OF THE UPSTREAM PETROLEUM SECTOR
• Progress on Moroto-Kadam basin is approximately
285-line km of geophysical and 1500 square km of
geological data coverage which represent a basin
coverage of about 40%.
• The work done so far shows evidence of possible
presence of a working petroleum system as
demonstrated by the encountered oil seep and
potential source rocks.
• More work will be focussed on covering the entire
basin so that a comprehensive geological basin model
is developed to enable more definitive speculative
and exploration licensing activities.
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STATUS OF THE UPSTREAM PETROLEUM SECTOR
THE REPUBLIC OF U GANDA

Progress on Licensing
Second Petroleum Licensing Round: The unveiling of the
new Licensing Round was done on 8th May 2019 in
Mombasa, Kenya during the ninth East African Community
Petroleum Conference and Exhibition (EACPC 2019).
• The target areas for the Second Licensing Round are all
in the Albertine Graben and these are:
i. LR2_2019_Block01 (Avivi); Area coverage of 1026km2
ii. LR2_2019_Block02 (Omuka); Area coverage of 750km2
iii. LR2_2019_Block03 (Kasuruban); Area coverage of 1285km2
iv. LR2_2019_Block04 (Turaco); Area coverage of 637km2
v. LR2_2019_Block05 (Ngaji); Area coverage of 1230km2
59
THE SECOND LICENSING ROUND OF
THE REPUBLIC OF U GANDA

UGANDA
AVI KASURUBA
AVI VI N
VI
OMU
KA
OMU
KA

KASURUB
AN

TURAC THE 5
O
BLOCKS
NGAJI
TURA
1. AVIVI
CO 2. OMUK
NGA A
JI 3. KASUR
UBAN
4. TURAC
O
5. NGAJI60
STATUS OF THE UPSTREAM PETROLEUM SECTOR
THE REPUBLIC OF U GANDA

• Front End Engineering Designs (FEED) for the fields in the


Kingfisher Field Development Project and Tilenga
Development Project were completed in December 2017 and
May 2018 respectively
• The Kingfisher Field Development and Tilenga Development
Projects will entail the development of associated upstream
facilities; Flow lines, Drilling pads, two Processing Facilities,
Feeder pipelines, Camps and Supply Bases, among others.
• The FEED reports were submitted to Government and are
under review prior to their approval.
• The Field Development Plans within the Project areas are to
be further enhanced following the FEEDs before the Project
Operators enter into the Final Investment Decisions (FIDs) for
the development projects, expected in June, 2019. 61
STATUS OF THE UPSTREAM PETROLEUM SECTOR
THE REPUBLIC OF U GANDA

Land Acquisition and Environmental aspects for the Upstream


projects
• The Ministry continues to oversee the Resettlement Action plan
(RAP) activities for the Tilenga project operated by Total E&P
Uganda BV and Kingfisher Development Area (KFDA) project
operated by CNOOC Uganda Limited.
• The RAP for Kingfisher project is over 80% and that of Tilenga
project is around 50%.
• Some of the land that is required for the projects has been
gazetted by the Ministry of Lands, Housing and Urban
Development.
• A public hearing for the ESIA for Tilenga project was successfully
conducted during November 2018.
• The ESIA for Kingfisher was submitted to government and is under
review. 62
THE REPUBLIC OF U GANDA
REFINERY DEVELOPMENT
 GoU, in April 2018 entered into a Project Framework
Agreement (PFA) with the Albertine Graben Refinery
Consortium (AGRC) as the Lead Investor to develop a
60,000 BOPD in Kabaale, Hoima.
 The Project includes a 213 km products pipeline from
Hoima to Mpigi District .
 The Project is expected to cost about USD 3.5 Billion and
will have Debt (70%) and Equity (30%).
 The Refinery Configuration Technical Feasibility(FEL-2)
Study was completed and the report has been approved
by government.

63
THE REPUBLIC OF U GANDA
REFINERY DEVELOPMENT
 The approved Refinery Configuration will produce
Liquefied Petroleum Gas (LPG), Petrol, Diesel, Jet Fuel
and Heavy Fuel Oil (HFO).
 AGRC is commencing the FEED which is expected to be
concluded by end of this year.
 Regulation and commercial state participation in this
project are undertaken by PAU and UNOC, respectively.

64
THE REPUBLIC OF U GANDA
REFINERY DEVELOPMENT
Hon. Eng. Irene Muloni meets with AGRC leadership in Milan, Italy
on Uganda Refinery Configuration

65
THE REPUBLIC OF U GANDA
REFINERY DEVELOPMENT
OIL AND GAS INDUSTRIAL PARK IN HOIMA
• The Master Plan for the Kabaale Oil and Gas
Industrial Park (KIP) was approved by the National
Physical Planning Board.
• The plan provides for development of a refinery, free
zone, airport, Petro-chemical and energy based
industries among others.
• UNOC the manager of KIP is sourcing for a strategic
partner to develop the park and also promote
investment.

66
THE REPUBLIC OF U GANDA

REFINERY DEVELOPMENT
The Master Plan for KIP

67
REFINERY DEVELOPMENT
THE REPUBLIC OF U GANDA

Kabaale International Airport


•The Kabaale Airport and Terminal Master plan and
detailed engineering designs for phase 1 were completed.
•The construction of the first phase of the airport
commenced and is expected to be completed by Quarter 4
of 2019.
•The ongoing activities include: Site clearance, earthworks
which is involving levelling, construction of office,
workshops, and labour camps.
• The Ministry continues to collaborate with Ministry of
Works and Transport and Civil Aviation Authority to ensure
the airport is ready by the target dates.
68
THE REPUBLIC OF U GANDA
REFINERY DEVELOPMENT
KABAALE INTERNATIONAL AIRPORT CONSTRUCTION WORKS

69
REFINERY DEVELOPMENT
THE REPUBLIC OF U GANDA

Acquisition of land for the Refinery project


 Land for the refinery and attendant infrastructure
acquired after compensation and resettlement of
PAPs.

70
THE REPUBLIC OF U GANDA
REFINERY DEVELOPMENT
Rehabilitated Kabaale Health Centre

Rehabilitated Kabaale Health Centre (Hoima)

71
Nyahaira Primary School in the resettlement area (Hoima)
PIPELINE AND STORAGE DEVELOPMENT
THE REPUBLIC OF U GANDA

East African Crude Oil Pipeline (EACOP)


• The EACOP is a 1443 Kilometres long pipeline that will transport
crude oil from Hoima in Uganda to Tanga in Tanzania. It traverses 10
districts in Uganda.
• Front End Engineering Design (FEED): The Front-End Engineering
Design (FFED) study for EACOP was completed and the report
submitted to government for review. The FEED report will be
approved by PAU once the review process is complete.
• Resettlement Action Plan for Tanzania: The EACOP RAP activities for
the pipeline on the Tanzania section are ongoing.

72
PIPELINE AND STORAGE DEVELOPMENT
THE REPUBLIC OF U GANDA

East African Crude Oil Pipeline (EACOP)


• Resettlement Action Plan for Uganda. The RAP study for
the Uganda section was completed in December, 2018 and
the following activities were undertaken as part of the RAP
study; stakeholder engagements, preparation of strip
maps, social economic surveys and asset inventory. The
valuation report is being prepared for approval by the CGV.
• Environment Social Impact Assessment (ESIA): The ESIA
for the EACOP was completed and the report submitted to
government for approval. The report is currently under
review by the relevant government entities before it can
be approved by the National Environment Management
Authority.
73
PIPELINE AND STORAGE DEVELOPMENT
THE REPUBLIC OF U GANDA

East African Crude Oil Pipeline (EACOP)


Negotiation of the Host Government Agreement
• The Negotiation of the Host Government Agreement (HGA)
between the Government of Uganda and the Project
Company is progressing well and four rounds of
negotiations have so far been conducted. The Ministry of
Justice and Constitutional Affairs is leading the negotiation
for the Government of Uganda.
• Government reached agreement with the JV Partners on a
tariff of 12.77 USD and crude oil allocation to the refinery
of 60,000 bopd and the business model for the project is
being reviewed to reflect the above position.
74
PIPELINE AND STORAGE DEVELOPMENT
THE REPUBLIC OF U GANDA

East African Crude Oil Pipeline (EACOP)


Negotiation of the Host Government Agreement
• The negotiations resumed on 6th March, 2019 and the
target is to complete the negotiations and sign the HGA
before June, 2019.
• The governments of Uganda and Tanzania have held
fruitful discussions to harmonise cross-cutting issues like
decommissioning, National Content, insurance, security
and free movement of persons among others.
• The commercial interests of Uganda in the EACOP will be
represented by the Uganda National Oil Company as a
shareholder in the Pipeline Company.
75
THE REPUBLIC OF U GANDA
PIPELINE AND STORAGE DEVELOPMENT
When EACOP foundation stone was laid at Chogoleani, Tanga in Tanzania on
5th August 2017 by President Yoweri Museveni & President Magufuli

76
THE REPUBLIC OF U GANDA
PIPELINE AND STORAGE DEVELOPMENT

When EACOP boundary mark stone was laid at Mutukula on 9th November 2017 by
President Yoweri Museveni & Tanzania President John Pomber Magufuli

77
THE REPUBLIC OF U GANDA
PIPELINE AND STORAGE DEVELOPMENT

When EACOP foundation stone was laid at Kabaale on 11th November 2017 by
President Yoweri Museveni & Tanzania foreign minister Dr. Augustine Mahiga

78
PIPELINE AND STORAGE DEVELOPMENT
THE REPUBLIC OF U GANDA

Multi- Products Pipeline


• A 213 km long pipeline is planned to be developed as
part of the Refinery project to transport refined
products from Hoima Refinery to Namwabula in Mpigi
district.
• The route study for the pipeline was completed and the
Ministry procured a consultant to undertake a
resettlement action plan study for acquisition of the
land.
 RAP studies are ongoing with cadastral land survey and
valuation completed. Resources are required so as to
acquire this pipeline route as an infrastructure corridor
for the pipeline, electricity, roads and ICT.
79
PIPELINE AND STORAGE DEVELOPMENT
THE REPUBLIC OF U GANDA

Multi- Products Pipeline


 Ministry shall implement the RAP and compensation of
PAPs.
 Land acquisition for this pipeline is on a critical path for
the Refinery Project Framework Agreement.

80
PIPELINE AND STORAGE DEVELOPMENT
Natural Gas Pipeline
THE REPUBLIC OF U GANDA

• The Government of the Republic of Uganda (GoU) and the


Government of the Republic of Tanzania (GoT) signed an
MOU to develop a Natural Gas Pipeline on the 23rd August
2018.
• This MoU established a Joint Technical Committee (JTC) that
is supposed to coordinate all activities of the parties under
the MoU.
• Both the JTC for the GoU and GoT Team were established
and the first JTC meeting was held on the 25th and 26th
February 2019 at Dar es Salaam, Tanzania.
• The teams are currently reviewing terms of reference for a
consultant to conduct a feasibility study for the development
of a Natural Gas Pipeline from Tanzania to Uganda. 81
DEVELOPMENT OF STORAGE FACILITIES
THE REPUBLIC OF U GANDA

• Nakasongola Storage Tanks development is located in a


high security sensitive zone and is being developed by
the Ministry of Defence and Veteran Affairs.
• UNOC entered into a Joint Venture with One Petroleum
Company for the Jinja Storage Tanks (JST). This has
improved management of the facility and the Petroleum
supply service.
FUEL MARKING PROGRAM
• In a bid to ensure adequate and standard quality stock
of Petroleum products on the Ugandan market, the rate
of fuel marker failure of petroleum stocks is at 0.5%

82
THE REPUBLIC OF U GANDA

THE MINERAL SUB-SECTOR

83
THE REPUBLIC OF U GANDA
THE MINERAL SUB-SECTOR FOCUS AREAS

• Strengthening the regulation of the mining sector


• Continuing to carry out surveys to establish the
geological and mineral potential of the country
• Increasing private sector investment in the mineral
sector.
• Investing in Sukuru Phosphates by setting up a
Comprehensive Industrial complex .
• Establishing a State of the Art Ultra Modern Laboratory
for testing minerals within the country.

84
THE REPUBLIC OF U GANDA
THE MINERAL SUB-SECTOR
REGULATORY FRAMEWORK
A. The Mining and Mineral Policy, 2018 was approved by
the Cabinet on 7th May 2018;
The Policy goal
To develop the mining industry through increased
investment, value addition, national participation and
revenue generation to contribute significantly to
substantial socio-economic transformation and poverty
eradication.
B. Review of the Mining Legal Regime:
Reviewed the Mining Regulation, 2004 to accommodate
online applications and e-government system of mineral
licensing system
85
MINERAL SUB SECTOR PERFORMANCE
THE REPUBLIC OF U GANDA

Establishment of Regional Mineral Certification System:


• Government is implementing the International Conference
on the Great Lakes Region (Pact on Security, Stability and
Development in the Great Lakes Region) Act, 2017 with an
aim of issuing the first certificate for certified designated
minerals from Uganda.
• A draft of the regulations for Certification of Designated
Minerals has been submitted to the Ministry of Foreign
Affairs for onward forwarding to the First Parliamentary
Counsel for final drafting.
• Once these regulations are in place, it shall usher in mineral
traceability and certification mechanism for Uganda by the
Mineral Certification Unit established in MEMD. 86
THE REPUBLIC OF U GANDA
MINERAL SUB SECTOR PERFORMANCE
Acquisition of geodata and new mineral targets:
• The Sub-sector acquired and managed geoscientific
data for strategic minerals i.e. uranium, gold, base
metals, iron ore and wolfram.
• The Sub-sector monitored earthquakes using its
installed Uganda seismic network to acquire data
useful in monitoring of earthquake hazards. Geo-
hazards investigation surveys for ground failures and
landslides were conducted in Mt Elgon area.
• The data is hosted on GIMIS portal and DGSM for
promotion of mineral investment and research.

87
New mineral potential targets
THE REPUBLIC OF U GANDA

16 potential
mineral targets
identified

88
THE SUKULU PHOSPHATE COMPREHENSIVE
INDUSTRIAL DEVELOPMENT PROJECT
THE REPUBLIC OF U GANDA

• M/S Guangzhou Dongsong Energy Group Co. Ltd is to


develop the Sukulu phosphate resource into phosphates,
steel, glass, cement and brick products.
• The company has constructed infrastructure and the
processing plants. Commissioning of Phase one
comprising of the fertilizer plant and brick factory was
done in October 2018.
• The company has since produced bio-organic fertilizer
which has been distributed to tea, sugarcane and other
commercial farms for one-planting-season test.
• After this planting season, commercial production will
commence.
89
The Sukulu Phosphate Comprehensive Industrial
THE REPUBLIC OF U GANDA
Development Project (Wrong picture /caption)

90
Artistic Impression of The Sukulu Phosphate Comprehensive
THE REPUBLIC OF U GANDA Industrial Development Project

91
The Sukulu Phosphate Comprehensive Industrial Development
THE REPUBLIC OF U GANDA Project

92
THE REPUBLIC OF U GANDA

93
THE REPUBLIC OF U GANDA UPDATE ON SUKULU PHOSPHATE AND STEEL PROJECT

• The investor has acquired Exploration Licences for silica


sand and peat to provide raw materials for the production
of steel, glass and cement.
• Meanwhile, the construction of the steel plant, sheet glass
factory and slag cement plant is ongoing.
• Whereas the commissioning of the steel plant was
expected by July 2019, the ICBC Bank delayed to release
the steel plant loan proportion by seven months.
• This funding has since been secured and the steel plant is
expected to be launched in March 2020.

94
MINERAL SUB SECTOR PERFORMANCE (ctd..)
THE REPUBLIC OF U GANDA

Establishment of a computerized information system


• The e-government portal to enable online mineral
licensing was commissioned in the Ministry at DGSM in
August 2018.
• The Ministry of Energy and Mineral Development is in
the process of securing a Memorandum of
Understanding (MoU) with Uganda Revenue Authority
(URA) to develop an online payment transaction portal.

95
MINING CADASTRE PORTAL COMMISSIONING
THE REPUBLIC OF U GANDA

96
THE REPUBLIC OF U GANDA
MINERAL SUB SECTOR PERFORMANCE (ctd..)
Existing Mineral Rights
• A total of 716 Mineral Rights (licences) are in issuance
to promote mining investment.
• Among these include Cement at Hima, tin and
tungsten in Isingiro, Iron and steel, & Wolfram in
Kigezi, Zinc and Nickel from zeu, Salt at Lake Katwe
and Gold in Buhweju.
• The process of revamping Kilembe Mines is underway.
• The Ministry has also provided extension services and
carried out awareness campaigns targeting small-
scale miners through their associations so as to
regulate their operations.
97
INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Artisanal and Small-Scale Mining (ASM)


The Ministry in collaboration with the National
Identification Registration Authority (NIRA) is fast tracking
biometric registration of all artisanal and small-scale miners
(ASMs) in the country.
Non-tax Revenue (NTR) Generated
Revenue amounting to UGX14,230,860,561 was generated
from export of produced minerals while revenue
amounting to UGX1,468,932 was generated from import of
minerals and total NTR was UGX16,702,115,814.

98
INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

AGR Gold Refinery, Entebbe: AGR invested 15M US $ to set


up a gold refinery in Entebbe. The refinery has a capacity of
producing 200 Kg per day in a double shift and produces
gold bars (purity 99.99%); Small Minted Bars; and
Granulates.

99
INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

H.E President Y.K. Museveni commissioning AGR Gold Refinery, Entebbe

100
INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

MINERAL LABORATORIES
The Sub-sector is up-grading the mineral laboratories so as
to be able to provide effective and sustainable analytical
and mineral beneficiation test services for the mining
industry.
Key Milestones in the upgrade:
i. By end of June 2019, installation of an Inductively
Coupled Plasma Optical Emission Spectroscopy (ICP-
OES) and Accessory Equipment shall have been
completed. This is expected to usher in lower detection
limit (down to parts per billion (ppb)) and higher
analytical capacity/ throughput for almost all elements
of the period table at one go. This is therefore a game
changer for mineral exploration in the country. 101
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Key Milestones in the upgrade –Cont’d:


ii. By end of May 2019, installation of a 3.37 cu.m oven
shall have been completed and is expected to greatly
reduce turnaround time for sample preparation for
analysis and also greatly reduce risk of sample
contamination.
iii. Refurbishment of laboratory building to house fire
assay equipment commenced and within 4 months Fire
Assay Analytical Technique for precious metals (gold,
silver, and platinum) with AAS and ICP finish shall be
available.

102
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Key Milestones in the upgrade –Cont’d:


iv. Supply contract for X-Ray Diffractometer (XRD) and
various microscopes is in place and therefore within
next three (3) months the identification of minerals and
gemstones in geological materials shall be possible. This
is to greatly support geological mapping and mineral
value addition (metallurgical) test works.
v. Design of a Laboratory Information Management
System (LIMS) for the Minerals Laboratories is ongoing
and is expected to be installed and implemented by end
of June 2019. This is expected to bring about efficiency
and effectiveness in service delivery, and above all
accountability on the part of technical staff.
103
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Design of a Laboratory Information Management System


(LIMS) for the Minerals Laboratories

Ongoing refurbishment works of laboratory


104
Delivery of 3.37 cu.m oven building to house fire assay unit
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

• Mineral beneficiation: Contracts have been awarded for


construction of a Mineral Beneficiation Centre (MBC) at
Rwengoma in Ntungamo District at a cost of UGX. 5.742
Billion and also another awarded for a Regional Office
and MBC for Tooro Region in Fort Portal at a cost of
UGX. 3.99 Billion.
• Procurement is also being finalized for land in Busia for a
Mineral Beneficiaton Centre for Eastern Region.
• MBCs are to provide avenues for extension services for
improving mineral value addition techniques for
artisanal and small scale miners, act as training centres,
and also provide metallurgical test services tailored for
minerals in the specific region to industry players.
105
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Artist impression of sections of


DGSM Mineral Beneficiation
Center in Ntungamo District 106
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Section of architectural drawings of DGSM Mineral Beneficiation Center


and Regional Office for the Tooro Region in Fort Portal Municipality 107
E. INVESTMENTS IN THE MINERAL SUB SECTOR
THE REPUBLIC OF U GANDA

Establishment of Regional Mineral Certification System


(RCM):
The Ministry is implementing the International Conference
on the Great Lakes Region (Pact on Security, Stability and
Development in the Great Lakes Region) Act, 2017 with an
aim of issuing the first certificate for certified designated
minerals from Uganda.

Mineral beneficiation: Land was acquired in Ntungamo for


a mineral beneficiation centre whose construction is
planned for the FY 2019/20

108
4. CHALLENGES IN THE ENERGY AND MINERAL
DEVELOPMENT SECTOR
• Delays in land acquisition for electricity generation,
transmission and distribution Lines and substations,
leading to cost overruns. This includes seeking
compensation that is unwarranted e.g. in the case of LV
lines under Rural Electrification Agency (REA); claims for
compensation for sub surface rocks; and PAPs
challenging CGV rates.
• Land grabbing is affecting Land for mining and
installations for scientific research, Geo-hazards
monitoring, and mineral value addition centres.
• Inadequate financing to critical infrastructure projects
• High expectations arising out of the oil discovery and
Local content development 109
4. CHALLENGES IN THE ENERGY AND MINERAL
DEVELOPMENT SECTOR
• The private sector is reluctant to invest in power
generation projects as they require guarantees from
Government like Escrow Accounts and Sovereign
Guarantees
• Under staffing in the Directorates of Petroleum and
Geological Survey and Mines.
• Vandalism of power infrastructure.

110
5. PLANS FOR THE REMAINING PART OF THE NRM
MANIFESTO 2016-2021 AND NDP II CLOSURE

• Fast tracking RAP implementation and completion of


transmission projects
• Completion of Isimba Bridge.
• Airborne geophysical survey of Karamoja starting in
quarter 1 2019/2020
• Opening of new Oil and Gas Exploration Acreages in
an effort to increase resource base.
• Construction of infrastructure for oil production and
transportation
• UNOC has identified investment projects in which
government can invest and derive revenues in the
future.
111
6. CONCLUSION
THE REPUBLIC OF U GANDA

Despite the challenges in the Sector, there is steady


progress in project implementation.
• Electricity has been extended to nearly all district
headquarters and the remaining two districts (Kaabong,
and Kotido) to be connected by the end of the
FY2018/19. Focus is now moving to all sub-county
headquarters in the country.
• We now have excess capacity of electricity and striving to
grow demand so that we lower the unit cost of it.
• Electricity Act, 1999 is being reviewed to promote
efficiency and attract private investment in the electricity
sub sector.
112
THE REPUBLIC OF U GANDA
6. CONCLUSION
• Refinery development is on course. The lead investor for
the refinery has been identified and agreement signed.
• The Front-End Engineering Design for the East African
Crude Oil Pipeline (EACOP) was received and reviewed
by the Government.
• In the Mineral sub sector, Mining and Mineral Policy
2018 has been put in place and drafting of a new law is
nearly complete.
• The development of Sukulu Phosphates plant is near
complete, with phase one of the project commissioned
in October 2018.

113
CONCLUSION contd
THE REPUBLIC OF U GANDA

There is need to overcome key challenges through:


• Prioritised Land Acquisition for government projects.
• Increased Funding in general for energy and mineral
development infrastructure projects.
• Enhancement of capacity and supervision of inspection
in the mineral sub sector and implementation of Power
Projects.

In conclusion, I wish to point out that the ability of the


sector to attain the key priorities as reflected in the
presentation will largely depend on your support for
availability of adequate resources.
114
CONCLUSION contd
THE REPUBLIC OF U GANDA

In conclusion, I wish to point out that the ability of the


sector to attain the key priorities as reflected in the
presentation will largely depend on your support for
availability of adequate resources.
• In particular, I wish to thank H.E The President for the
visionary guidance to the sector, without whom this
performance wouldn’t have been realised.
• The Right Hon. Prime Minister for support and
coordination given to the sector.
• Cabinet Ministers, Member of Parliament for their
support in ensuring the sector has adequate resources to
implement the programs.
115
THE REPUBLIC OF U GANDA

CONCLUSION contd
• The NRM Executive for the support and guidance.
• The Development Partners for providing financing
the Sector.
• The Private sector for their interest in investing in the
sector.
• The media for communicating to the general public
work being done in the Ministry.
• The staff of the Ministry and Agencies in the sector
for the hard work put in to realize these
achievements.
FOR GOD AND MY COUNTRY.
THE REPUBLIC OF U GANDA

THANK YOU

117

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