US Ambassador to Uganda Deborah Malac : COURTESY PHOTO

The US Ambassador to Uganda Deborah Malac has urged the Ugandan government to use proper procedures in the development of its oil and gas sector so as not to fall prey to the problems that other mineral rich countries face.

The ambassador, while Speaking to a delegation on the contract, transparency and accountability in the attractive sector said that the parties involved should be aware that much as oil and gas is a very useful mineral, it can have permanent impact on the people and land and that it is not a shock that  29 of the 51 countries classified by the International Monetary Fund as “resource-rich” are actually low- or lower-middle income countries.

“The industry requires heavy investments of capital, time, and technology.  The sheer scale of these efforts to move mountains and reshape the ground beneath our feet takes great resources, and has the potential to generate large revenues.  Likewise, the costs of mismanagement, malicious or otherwise, can quickly escalate.  These revenues can be a powerful driver for corruption and unrest.  Across the world and throughout history, mineral wealth has often served to undermine democracy, create violence, and increase inequality,” She remarked.

She however hailed  the “government of Uganda for its past efforts to reform policy and law to make the extractive sector transparent and accountable.  I also wish to thank civil society actors—ACODE and others—for the engagements you have had and continue to have with government and private sector to enhance transparency and accountability.”

Read full remarks by the ambassador HERE

The dialogue was organized by the Advocates Coalition for Development and Environment

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Deputy Speaker Jacob Oulanyah says the parliamentary commission will provide tree seedlings to all legislators

Government has earmarked 15 billion shillings for national tree planting activities this year according to the state minister for environment Hon. Kitutu Mary Goretti

Kitutu was speaking after the head of delegation to the 21st session of the framework convention on climate change Hon. Lawrence songa laid his report in the house on the summit held held in Paris last year

Hon Songa read the report urging the government and other stakeholders to participate proactively against climate change which the minister of state for environment Kitutu agreed on.

ALSO READ:MP wants health center four in Maracha District

Deputy Speaker Jacob Oulanyah says the parliamentary commission will provide tree seedlings to all legislators and that they will be told when to plant by the National Forest Authority.

Oulanyah has also instructed the minister to present a substantive statement this Thursday on sand mining in Lwera wetlands which the Parliamentary committee on natural resources investigated in 2016.

The directive came after Hon Florence Namayanja asked government to report on the progress of implementing the parliamentary resolutions for various sectors citing the defiance by sand minors in Lwera wetland where mining of sand has resumed yet parliament had halted further activities in this area.

Government chief whip Ruth Nakabirwa promised to instruct the minister of environment to give parliament the action taken in response to parliamentary resolutions among of which is the halting of sand mining in Lwera.

 ALSO READ:Youth demand Minister Kuteesa Prosecuted

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Justus Akankwasa, Director Engineering and Technical Services, KCCA.

Addressing journalists at the Uganda media center recently, the Director  Engineering and Technical Services at KCCA, Justus Akankwasa, said that some of the cases involve mortgaged properties, absent landlords or multiple-owned properties, adding that the engagements are going on for them to secure the right of access.

“However, compensation for right of way for road and drainage construction is still a problem to us.We need access so that we improve on the drainage in the city and avoid flooding that can cause damage to lives and properties,” Akankwasa said.

Akankwasa also announced that a number of roads are nearing completion around the City such as Kira – Kabira road, Bwaise Junction, Mambule road and Makerere Hill road.

Fairway junction traffic lights with motorists moving at night.

The road widening and construction in the city are being funded by the World Bank and the Government of Uganda under the Second Kampala Institutional and Infrastructure Development Project.  This project is  worth US$183.7 Mill

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According to a, the press release, the plan will be implemented by 10 insurance companies under the Uganda Insurers Association. Many farmers groups have already been identified as key players in this process and they will closely work within associations to increase public awareness through farmer groups, organized events, fairs and the on-line platforms.

The scheme targets farmer groups, associations, larger farmers and ranchers who have suffered a number of agricultural challenges and risks such as excessive rains, fire, flooding, drought, pests, diseases and limited access to finance among others.

All categories of farmers will benefit however emphasis will be on the small scale farmers with potential of transforming into large scale farming. The scheme is therefore to help them be credit worthy and encourage them to access credit from financial service providers.

Some of the selected and prioritized enterprises include the following;
Crops: Maize, Coffee, Maize, Beans, Rice, Cotton, Bananas, Soybean and Sunflower Livestock: Cattle (beef & diary), Poultry, Pigs and Fish.
Financial Institutions involved in Agriculture Credit will insure loans in two ways:
a) actual loan received by the client; which would translate into the cost of production for the purposes of insurance
b) the bank can require that the entire enterprise is fully insured in order to protect the loan that has been invested in it.

It is important to note that; smallholder farmers will be subsidized at 50% and larger commercial farmers at 30%.

Poultry farming is one of the lucrative activities that brings in quick returns country wide.

Through the implementing companies, officials hope this scheme will help farmers have increased access to financial services, increased production, become food secure and enhance household incomes.

Farmers have also been advised to access more information and knowledge on how to benefit from the scheme by joining an upcoming West Nile Finance Fair that is to take place from the 17th-18th August in Arua.

It is also at this Fair that farmers will have a full presentation on the Agricultural Insurance Scheme that is being rolled out by the government.

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However, bailouts have happened before like in the USA where it worked and the economy recovered- the argument was that banks were too big to fall! In Europe however, Greece in particular sank economically and despite International Financial Institutions like the World Bank (WB) and International Monetary Fund (IMF) coming to try and rescue the country, the bailout hasn’t worked!

Dr. Richard Mukungu, the guest to the show and an economist, recommends a bailout but doesn’t agree with reducing interest rates.
The credit process has also not been followed by the banks, says Mukungu who is a Banker himself.

He also says there was a misrepresentation on the word bailout on the scheme.

Mukungu said there nine interventions recommended by economists that were founded to the Prime Minister, Ruhakana Rugunda, who was to brief President Yoweri Museveni for clearance. He said among these, were;

1. That was need for government to pay out all domestic arrears. In this case, the only category that would be considered to be on bailout were the traders who supplied South Sudan and were never paid, he said.
2. The second category were companies in the oil sector.
What increases domestic high interest rates is domestic borrowing.
Mukungu says there is urgent need to address local content. Local companies have not been supported to receive such treatment so that they can recover and help in the economic growth.

“When it comes to international companies, there are treated differently, this is not sustainable as most of this money is usually repatriated. If local companies are supported, the money remains within the economy and hence jobs can be created and maintained,” he argues.

Mukungu says 2 things are causing the current domestic debt. These he said is the current delay in the production of Uganda’s oil.

However, oil prices have fallen by more than 50 percent and China itself has slowed somewhat, these oil and gas exporters are facing a current account deficit.

Other economic analysts have also argued that the rapid economic growth that much of sub-Saharan Africa in the past 20 years with a growth registered between 1991 and 2011 appears to be coming to an end. And that is what is behind the present crisis leading to major Kampala companies requesting government intervention.

Hon.Ibrahim Nganda in one of the talks shows of the Gang at Capital FM studios.

Ibrahim Nganda Ssemujju, the Member of Parliament for Kyadodo East, claimed on the show that the list to bailout the companies in crisis are a “Saleh project”, meaning a list drawn up by Gen. Salim Saleh, brother to President Yoweri Museveni.

He mentioned that there were rumors in in Uganda that some of the companies in question are owned by the First Family, Ssemujju claimed on the show.

“Even if this is true, the fact of the matter remains that businesses are struggling because of fundamental weaknesses in the economy and the end of rapid growth of 1991-2011.One of the features of this 1991-2011 growth is something we often overlook: it was growth driven by heavy investment in infrastructure, most of which infrastructure was dependent on imported materials,” he explains.

He said government needs to quickly come out and recognize that there is indeed a problem to be fixed with the economy before this get out of hand.

To build the arcades, airports, roads, supermarkets, high-rise apartments, government offices and other infrastructure, we imported most of the materials.

Thus we were growing – but growing ourselves into national deficits and debt.
It was not our fault to wish to upgrade our infrastructure; but lacking the capacity to produce industrial materials of our own we had to import them and that is how we grew our way into the deficits we now see.

It was the same thing for the growth in the purchases of mobile phones, cars, televisions, computers, music home theatres, fridges, cosmetics, clothes and other imported consumer goods.
Growth that is mainly from imports had to one day come back to haunt these African countries and finally it has.

“You will be surprised that many of the traders in South Sudan are actually not Ugandans. Some People are just making claims for their benefit,” Ssemuju says.

Abdu Katuntu, the Bugweri County Member of Parliament however says there is also a problem on how these companies are managed.
He argues that many of the companies need restructuring to enable them work more efficiently.
“Some of the managers in these companies luck the necessary skills that can foster growth. What do expect if you have an incompetent team of managers running your businesses?”
He also wondered where government would find the 1.3 trillion shillings since it has a huge foreign debt already to think of.
The Gangsters as the like to be referred to also had a discussion on the on-going NRM retreat in Kyankwanzi and wondered if this time, government would improve on the delivery of services to Ugandans.

The weekly programme is moderated by Journalist Oscar Semweya Musoke.

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Prime Minister Dr Ruhakana Rugunda and the Chinese Minister for State Forestry Administration, Mr. Zhang Jianlong with their delegations

The Prime Minister Dr Ruhakana Rugunda has applauded the existing cordial and mutually beneficial relationship between the People’s Republic of China and the Government of Uganda. Dr Rugunda said Uganda was happy to benefit from China’s expertise in environmental conservation and technology.

The Premier made the remarks while receiving the visiting Chinese Minister for State Forestry Administration, Mr. Zhang Jianlong who called on him at the Office of the Prime Minister on Thursday. The Chinese Minister was in the country to sign a memorandum of understanding (MOU) between the State Forestry Administration of the People’s Republic of China and Uganda’s Ministry of Water and Environment. The cooperation will enhance technology transfer, research and development, institutional capacity building and information sharing between the two countries.

China and Uganda will work together to promote afforestation, sustainable forestry management and development of the forest economy. The partnership will also focus on bamboo growing and boosting of community forestry. The Premier said Uganda was happy to embrace bamboo development which was critical in environmental conservation and income generation. Bamboo is one of the most important agricultural plants in the world with hundreds of uses. It is a source for construction materials, household items such as furniture and decorations, food, medicine and musical instruments among others.

The Chinese Minister welcomed the partnership and urged government to develop capacity in the forestry sector, adding that the private sector could be brought on board especially in bamboo development. He said China was ready to introduce new species of bamboo trees in the country. Almost every household in China has something made of bamboo such as beds, chairs, baskets and chopsticks.

The Meeting was also attended by the Minister of State for Environment, Flavia Munaaba Nabugere and the Chinese Ambassador to Uganda, Zhao Yali.

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Parliament has approved over 340 million  dollar loans requests from various international lenders intended for electricity projects in the country.

The Committee on National Economy said in their report that the objective of the project is to contribute to the development of a relevant and quality skilled workforce in biomedical sciences to meet EAC’s immediate labour market needs. The Committee also said that the specific objective of the project was to provide high quality, competitive and skilled workforce in the EAC for social and economic development.

The government of Uganda will borrow US$135m from the International Development Association to support the Energy for Rural Transformation Phase 3; US70.73m from the Islamic Development Bank to support the Grid Rural Electrification Project; and another US$100m from the African Development Bank to support the Uganda Rural Electrification Access Project.

In addition, government will borrow a total of US$ 30m from the OPEC Fund for International Development and the Arab Bank for Economic Development in Africa and $11m from the Abu Dhabi Fund for Development to finance the construction of the 33KV distribution projects in Kayunga, Kamuli and Kalungu Service territories.

Parliament has also approved a further US$ 131.75m from Japan Bank for International Cooperation and Sumitomo Mitsui Banking Corporation to finance procurement of earth moving equipment. Meanwhile the Minister of State for Finance,  Fred Omach presented two requests to borrow from the IDA US$130m to support the Northern Uganda Social Action Fund 3; and another US$15m for additional financing to support the East Africa Public Health Laboratory Networking Project.

The Deputy Speaker of Parliament, Rt. Hon. Jacob Oulanyah referred both loan requests to the Committee on National Economy for consideration.

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EU Ambassador HE Kristian Schmidt and Parliament Speaker Rt. Hon. Rebecca Kadaga

In a move to call into question the ability of The Constitution (Amendment) Bill, 2015 to provide tangible reforms ahead of the general elections scheduled for 2016, a European Union Delegation to Uganda met Parliament Speaker Rt. Hon. Rebecca Kadaga. The delegation led by EU Ambassador HE Kristian Schmidt, on Friday June 5, 2015 discussed the proposed electoral reforms and the Non-Government Organisation Bill, 2015, which seeks “to provide a conducive and an enabling environment for the NGO sector.”

The Constitution (Amendment) Bill, 2015 that intends to amend the Constitution and change the name of the Electoral Commission (EC) to the Independent Electoral Commission; prescribes the procedure for the removal of its Commissioners; increase retirement age for judges and justices; and for related matters was questioned, with Ambassador Schmidt saying  “We see this as a missed opportunity. The issue is becoming divisive with some sections of the public saying they’re not being taken seriously”. He added that “The (Bill) did not meet our expectations, but we are outsiders. The civil society, clergy and public made very good suggestions, which were ignored… the reforms presented are cosmetic.”

On the Bill giving powers to the President to appoint and dismiss Commissioners of the Electoral Commission the ambassador had this to say: “What we believe is the objective criteria in selection of Commissioners. They should be screened by the Judicial Service Commission or another independent body,” The delegation asked that enough time is given to the consideration of both the Constitution (Amendment) Bill and the NGO Bill in order to include a wide variety of views.

The Speaker of Parliament, Hon. Kadaga said that despite claims that the Bill presented by government was shallow, the Opposition MPs had not moved any Private Members Bill to reflect their wide ranging proposals on electoral reforms.

She also noted her disappoint that the Constitution (Amendment) Bill was presented towards the end of the 4^th Session giving Parliament only a few months for its consideration. She said Parliament needed six months to properly study the Bill and that lack of quorum would affect its consideration. Hon. Kadaga however noted that civil society and political groups still have the opportunity to present their views on the Bill to the Committee on Legal and Parliamentary Affairs.

The delegation also included the British High Commissioner, Alison Blackburne; Ambassador of Ireland, Donal Cronin; Domenico Fornara (Ambassador, Italy) and the Germany Ambassador, Peter Blomeyer.

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We have been told that the bidding will be conducted in accordance with the open domestic bidding procedures contained in the Government of Uganda’s Public Procurement and Disposal of Public Assets Act, 2003, and it is open to all bidders from eligible source countries.  Sources in the ministry tell us that interested bidders may obtain more information from the Ministry of Gender, Labour and Social Development.

Also a complete set of bidding documents in English may be purchased by interested bidders on the submission of a written application to the address below at 7(b) and upon payment of a non-refundable fee of 100,000/= .

The method of payment is by bank .The document will be handpicked by the provider. No liability will be accepted for loss or late delivery, the sources said.

Ultimate Media

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