Uganda Picks

President Yoweri Museveni has warned against squandering proceeds from oil exploration in Uganda on consumption.
In his address at a special sitting of Parliament today, Museveni announced that government will table laws in Parliament to prevent misuse of oil resources.

“Oil is a finite resource which will dry out tomorrow. It must be used to create durable capacity. Oil money should not be used for importing cars, perfumes, and travel abroad” M7 told MPs.
Uganda currently boasts of 58 oil wells expected to produce about 2.5 billion barrels.

President Museveni announced that proceeds from oil will be used to develop cheap electricity from hydro sources, solar sources, wind sources, the biomass and nuclear energy in their order of urgency and affordability.

“First to be developed will be all the all the hydro – sites along the Nile and its tributaries. This should give us about 4,000 MW (Ayago, Karuma, Murchison, Ararang, Isimba, and the many mini-hydros on other Nile system Rivers,” the president confirmed.

He told Legislators of the 9^th parliament that government had decided to have an oil refinery built in Uganda as prospects of constructing an oil pipe lien are explored.

On the recently signed oil agreements the President urged Parliament to support the initiative noting that delaying their conclusion would be a strategic mistake.

“I wish to advise the parliament that the two licenses which were issued to Tullow was to compensate for the time lost (2 years), while discussing the tax issues as well as the oil and gas Commercialization Strategy and Plan with the Company. The licenses are for periods of six months and one year maximum”M7 added

The President warned that the country was emerging from two strategic mistakes imposed on the country by external forces and the indisciplined elements with the political class that delayed the equipping of the Army and the development of electricity.

“First of all, we are losing time. We need the oil money to develop our infrastructure. We do not want our partners, the investors, to think that we are unreliable partners. The longer the delays went on, the more money the oil companies were losing” M7 said

On corruption, President Museveni said the vice would be wiped out if the Permanent Secretary in the Ministries, the Chief Administrative Officer (CAO) in the districts, the Town Clerk in cities get committed to fighting it.