Hon. Amos Lugoloobi the newly appointed Minister of State for Planning and Finance designate has allocated Shs1.67 trillion has been allocated to support agroindustrialization initiatives next financial year.
He further allocated Shs49 billion in the budget for Financial Year 2021/22 to support the mineral development interventions.
Commercialising Minerals, Oil and Gas Endowments
51.Mr. Speaker, exploitation of Uganda’s minerals, oil and gas endowments, is a major source of growth in the medium term. Mineral beneficiation adds economic value to naturally endowed minerals. The commercialization of our oil and gas endowments will generate investments of between US$ 15 –20 billion over the next five years. The requirement to have these investments with substantial local content will enable the creation of jobs and allow local companies to benefit from supplying goods and services to the petroleum sector.
- Recently, the Governments of Uganda and Tanzania signed agreements that will facilitate the undertaking of the Final Investment Decision by the oil companies. These agreements will accelerate the production of the first oil.
Investment requirements in this sector will now present an opportunity for Foreign Direct Investment inflows, creation of both direct and indirect jobs, facilitate local enterprise growth, including forward and backward linkages to agriculture, tourism, and petrochemical industries. I thank the President for his foresighted leadership in guiding and spearheading the development of this sector.
53.Mr. Speaker, the priority interventions in the mining industry next financial year are as follows:- –
i. Establish the mineral reserves that are economically feasible for extraction in 80% of the country, and complete the airborne geophysical surveys of the remaining 20% in the Karamoja sub-region;
ii. Finalise the mining law and enhance Public Private Partnership (PPP) arrangements to develop minerals, starting with iron ore in Western Uganda, restoration of the Katwe Salt Factory and provision of an attractive taxation regime that protect and support local steel production.
iii. Explore all the geothermal resources to quantify the geothermal potential of the country and promote the development of Kibiro, Katwe, Buranga and Panyimur geothermal prospects.
54.Mr. Speaker, Shs. 49 billion has been allocated in the budget for Financial Year 2021/22 to support the mineral development interventions.
55.Mr. Speaker, in the oil and gas industry, critical actions that have now paved way for investment and commercialisation include the signature of agreements between Uganda, Tanzania and the International Oil Companies (IOCs) for the East African Crude Oil Pipeline (EACOP). The enabling legislation for the EACOP (EACOP Bill) will soon be brought to Parliament for consideration.
56.Mr. Speaker, the signature of these key agreements signals the commencement of the development and production phase of petroleum.
Construction of Tilenga and Kingfisher facilities as well as the East African Crude Oil Pipeline (EACOP), will commence this year and first oil is expected in early 2025. This development will create significant benefits to our economy and to all Ugandans, especially those who will participate in provision of services and goods to the industry. In addition, the following interventions will be undertaken:-
i. The second licensing round of exploration areas will commence in order to enable discovery for additional petroleum reserves;
ii. the construction of oil roads will continue;
iii. the National Content Policy that provides priority to Ugandans to supply the oil and gas industry and provide employment, will be implemented;
iv. Construct facilities for production and transportation of the crude oil, and the development of the required regulations including those related to tariff, metering, and decommissioning.