State Minister for Energy Simon D’Ujanga

State minister for energy Simon D’Ujanga says that his ministry plans to extend power to the two border towns of Nimule and Kaya in the Karamoja sub region to help improving on the lives of refugees.

D’Ujanga also Okoro County MP, says that he is to travel to Juba this week to discuss with his counterpart on the modalities of connecting the power lines and to sign a memorandum of understanding.

D’Ujanga further says that the country has been affected by the influx of refugees especially the West Nile region and by providing power to the two border towns is one step of improving their lives and also reducing the burden on the host communities in many areas who look for better places with good living condition.

He says that if the discussions are complete between the two countries power lines will be put in place.

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Standard Chartered Bank has entered into a memorandum of understanding with Guoji group of companies to provide mortgage financing for Mirembe Villas –Kiggo. The managing Director Guoji group of companies   from china Zhang Chao signed on behalf of Guoji, and Harman Kasekende on behalf of Standard Chartered Bank.

Zhang Chao said that his company will construct house units totalling to 220 worth 50 million dollars and the units will be complete within a period of 2 years. The Chief Executive officer Standard Chartered Bank Harman Kasekende said that this project’s ultimate objective is for the bank to provide mortgage finance for residential properties to prospective purchasers of Mirembe –Villas –Kiggo. He said that this collaboration will bridge the gap posed by shortage of housing facilities in the country. He also said financial institutions are interested in partnering with real estate developers like Ghoji Group in growing and expanding the housing market in Uganda where there is a house unit deficit of 500,000.

The Chief Executive Officer Buganda Investments and Commercial Undertakings Limited Sebuwufu Roland said that this project will help Buganda to increase on its earnings and assist people to have better developed house units.

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By the time we went to press the MPs who had arrived included Lulume Bayiga (DP), Ibrahim Semujju (FDC), Huseein Kyanjo (Jeema) and John Ken Lukyamuzi (Conservative Party) among others.

According to the programme, the MPs whose conference has been sponsored by the conservative parties in Norway will discuss the economic challenges facing Uganda and East Africa as a whole.

The opening session of the conference has been attended by opposition party presidents Dr Kizza Besigye (FDC), Norbert Mao (DP), Olara Otunnu (UPC), Ken Lukyamuzi (CP) and Asuman Basalirwa of Jeema.

By Moureen Nakyanzi

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The minister ofUgandafor Finance Minister, Maria Kiwanuka says that the banks will charge 15% for a period of six months.

Some of the banks the government has agreed with include Stanbic Bank, DFCU Bank and Centenary Bank.

Ms Kiwanuka says that the government has put aside 25 billion shillings in the 2011/2012 national budget for the unemployed youths.

Ms Kiwanuka signed the Memorandum of understanding with Centenary Bank, DFCU Bank and Stanbic bank managers inKampalatoday.

Ultimate Media

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The students say that on Wednesday this week when Lukwago was addressing a meeting of councilors, Bernard Luyiga’s body guard attempted to sassinate Lukwago.

 It should also be remembered that Luyiga recently signed a memorandum of Understanding with NRM councilors to support him to become the Deputy mayor.

 The students say that Luyiga has now officially crossed from opposition to NRM and so he should resign his post and the electoral commission organises fresh elections. The law provides that when a candidate contests for any elective political post on a particular ticket and successfully wins the polls, that person is not supposed to cross from another political camp. When that person does it, he/she ceases to hold that post and the electoral commission organises fresh polls.

However for the case of Luyiga, he says he did not close to NRM. Luyiga argues that he only asked the NRM councilors to support him to become Deputy Mayor and that the body guard had no intentions of killing the Lord Mayor as was reported in the press.

By Christine Kate

The post Makerere University students move to impeach councilor Luyiga first appeared on Uganda Multimedia News & Information.

Through Bwambale , Musede and Co. Advocates, Mulumba states that 50% of the stake Tullow Bought from Heritage Oil was had already reverted to the government. Mulumba wants a declaration that Kingfisher discovery ceased to form part of the petroleum exploration area for Heritage and Tullow when Heritage failed to ask for a production license for block 3A after the exploration lincense had expired beyond the renewable eight years provided by the law.

Mulumba wants court to restrain the Attorney General, Heritage Oil and Gas Limited and Tullow Oil Uganda from “undertaking any further dealings including but not limited to exploration, production, selling, assigning, transferring any interest in exploration Area 3A (EA-3A) kingfisher (Kajubirizi) of the Albertine Graben.” Tullow which co-owns 3A with Heritage bought the later interests at 1.5billion US dollars in 2010. The company which now owns almost 100% of all the oil wells so far identified is planning to farm out 33% of its stake of France’s Total and another 33% to China’s CNOOC. The government is yet but expected to approve the sale by end of January 2012.

Here is a summary of the key issues of concern

1. The government is not ready to undertake oil production (more preparation and laws needed)
2. All Heritage Oil and gas assets sold to Tullow were null and void as the former’s license on Block #A (Kingfisher exploration had ended) and as per 19 (1) (b) of the Act they reverted the government.
3. The Memorandum of understanding signed between Tullow and Uganda government to normalize the license issue is null and void as it is inconsistent with the Petroleum Exploration and Production Act 1993
4. Licenses for the oil blocks should be made in accordance with the Public Procurement and Disposal of Public Assets Authority Act (open bidding).
5. The Court cases between Tullow oil and Heritage Oil and gas, as well as between the Uganda Revenue Authority (on behalf of the Uganda Government) and Heritage Oil and Gas –are warning signs of how uncertain it is that Ugandans will benefit from the oil sector.
6. The recent corruption allegations that top ministers have received hefty bribes from oil companies to give the companies favourble deals have further increased worries on the running of the oil sector and increased concerns that Ugandans might not benefit from the oil resource.
7. The increasing insistence by the government to keep oil production sharing agreements secret raises issues at what the government is hiding, how much has been given away and whether oil companies and not taking advantage of the country.
8. The confidentiality (secrecy) clauses in the Production sharing agreements no longer apply since the license with the companies with which the agreements were signed have since expired. According to section 59 of the Production Sharing agreement, the confidentiality clauses cease to exist when the license ceases to exist. It is for this very reason Ultimate media decided to publish the oil agreements.

Here is a Detailed review article on the case and especially its implication for Tullow Oil

Also see our other Uganda oil related articles

Uganda government production sharing agreements with oil companies

Uganda government approves Tullow oil takeover of Heritage assets

Ugandans ponder oil benefits

Fosterwheeler final report on Uganda oil industry refinery

Parliament pins Bank of Uganda Governor for spending first oil money on buying fighter jets

Government of Uganda outlines oil production program

Parliament calls for censure of key ministers Sam Kutesa, Amama Mbabazi and Hillary Onek over oil bribery allegation

Uganda urged to invest oil revenues in income generating activities

Uganda buoyant over oil prospects as Museveni outlines key strategy

Government asked to solve land purchase conflicts in oil producing areas

Ultimate Media

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