Africa, Business, invesment, Invesments, news, Uncategorized, World Bank, World Bank Group

Africa News December 18, 2013 at 12:42PM

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VENTURES AFRICA – Uganda says it has short-listed six prospective companies to build a $2.5 billion oil refinery in Hoima district, 230km west of its capital Kampala.

Out of over 50 bidders who proposed to develop the 60,000 bpd refinery, China’s Petroleum Pipeline Bureau, South Korean-based SK Energy, Japan’s Marubeni Corporation, UK-based Petrofac consortium, RT – Global Resources based in Russia; and Dutch-owned Company Vito have been selected, said Uganda Minister of Energy and Mineral Development, Irene Muloni.

According to a Reuters report, following this selection, the six hopefuls will be issued a Request for Proposal (RFP), in 30 days where they will be required to tender a detailed proposal for financing and developing the refinery.

While reiterating fairness in selection process, Muloni revealed that the chosen firm could hold up to 60 percent stake in the refinery, while 10 percent of Uganda’s 40 percent share is open to acquisition from neighbouring countries like Rwanda, Tanzania and Kenya.

Commenting on the development, the Permanent Secretary of the Energy Ministry, Fred Kabagambe-Kaliisa, enthused that the interest of the international community in the project, showed that there are opportunities in investing in Uganda and its borders.

The project is expected to bolster Uganda which is considered one of the poorest countries in the world, with more than 30 percent of its populace surviving on less than $1.25 a day, according to the World Bank.

Though the country has the fourth largest oil reserves in sub-Saharan Africa, it is yet to fully realize its potentials.

 

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