Keith Muhakanizi

Kaith Muhakanizi, the deputy secretary to the treasury while addressing journalist said that the government’s position is to use the money to build the proposed Dam that has had funding challenges for a nearly a decade.

Last week Tollow Oil paid Uganda 37 million US dollar in capital gains Tax after it earned 2.9 billion shillings for selling part of its shares to Total S.A., a French extractives company, and another one-third of its shares to the China National Offshore Oil Company (CNOOC).

Last month, Tullow Oil also paid Uganda over 300 million dollar in tax bill from the purchase of stakes of Heltage Oil last year which had created a dispute with the government of Uganda and threatened to stall developments in the oil industry.

Speaking to journalist Muhakanizi says the position to use Tulllow money for constructing Karuma Dam had not changed.

Muhakanize said, on the completion, the Dam will be connected to the national Grid and is expected to boost the Uganda’s electricity supply.

BY MUGISA ISAAC MATHIAS

The post Uganda to use tax payments from Tullow Oil Company to finance the construction of Karuma Dam first appeared on Uganda Multimedia News & Information.

Uganda recently discovered oil in the western Uganda Abertaine region worth billions of barrels. Commercial exploitation is expected to start in early 2011.

Thomas Richardson

However, analysts are still skeptical on whether Uganda oil wealth will contribute to the growth and development of the country because of rampant corruption by the Uganda government circles.

While addressing Uganda Members of Parliament who sit on the parliamentary committee on National Economy on Wednesday (30^th June 2010), the International Monetary Fund’s (IMF) Senior Resident Representative, Thomas Richardson expressed worry over the growing trend by oil rich countries to neglect other sectors of the economy like agriculture, yet they contribute significantly to a country’s Gross Domestic Product.

Richardson says that if the oil revenues are to help the country develop, they should be used to fund other sectors of the economy like agriculture.

Agriculture remains Uganda’s biggest sector of the economy employing over 80 percent of the population. Oil is likely to overtake agriculture when commercial production starts.

Also see stories related to oil exploration in Uganda

Walakira Nyanzi, Ultimate Media

The post Experts’ advice Uganda not to ignore other sectors of the economy in favour of oil first appeared on Uganda Multimedia News & Information.

Uganda oil exploration (NV)

Led by the Uganda’s Shadow Minister of Environment, Beatrice Anywar, the activists want to compel government to reveal to the public the contents of the agreement.

Anywar, who is also the woman MP for Kitgum adds that the petition seeks to lecture  government on how Ugandans will benefit from the oil revenue.

The Shadow Minister expects over one million Ugandans to sign the agreement before it is handed over to the President.

MPs have on several occasions clashed with the Energy ministry over the ministry’s reluctance to provide the agreements.

Ultimate Media

The post Environmentalists to petition Museveni to make oil deal public first appeared on Uganda Multimedia News & Information.