Page 6 - AfrOil Week 07 2021

AfrOil PIPELINES & TRANSPORT AfrOil

Uganda launches local content

and training initiative for EACOP

UGANDA THE Ugandan government has teamed up with be included in the Ugandan government’s roster
the Albertine Graben Oil and Gas Districts of authorised local content providers.
Association (AGODA), a group that represents PAU has not yet decided how it will deter-
the interests of local governments that oversee mine which companies are eligible for the
the districts where oil in located, to establish a training. Betty Namubiru, the agency’s national
local content and training initiative. content manager, said at the meeting earlier this
Representatives of AGODA, the Petroleum month that a consultant would be hired to for-
Authority of Uganda (PAU) and the Ministry of mulate the selection mechanism, carry out the
Energy and Mineral Development gathered in training and facilitate linkages between EACOP
Mubende earlier this month to mark the launch contractors and local firms. PAU will solicit bids
of the programme, which will be carried out for this consultancy contract in a competitive
over a period of two years. Speaking at the event, bidding process, she said.
Ernest Rubondo, PAU’s executive director, said The cost of the consulting services will be
the initiative would help ensure that Ugandan covered by a $500,000 grant from the African
stakeholders played a role in the construction Development Bank (AfDB), and 80% of this
of the East Africa Crude Oil Pipeline (EACOP) sum will be used to build the capacity of Ugan-
along a route from the Lake Albert oilfields to dan MSMEs, according to the bank’s private
the coast of Tanzania. sector operations manager Juliet Byaruhanga,
The Ugandan section of EACOP is slated who also attended the meeting. “The project
to pass through 10 districts of the country we are launching is targeted at developing the
on its way to the Tanzanian border – Hoima, capacity of local Ugandan MSMEs, which will
Kikuube, Mubende, Gomba, Kakumiro, Kyank- enable them access new market opportunities
wanzi, Rakai, Sembabule, Lwengo and Kyotera. and build linkages with larger national, regional
According to Rubondo, PAU, the Ministry and and international companies,” she said.
AGODA all want to give workers and micro-, Byaruhanga noted that the grant would help
small and medium-sized enterprises (MSMEs) PAU, the Ministry and AGODA establish con-
from these districts the opportunity to place a nections between local MSMEs and the contrac-
role in this major project. tors hired to construct EACOP. The parties hope
“This is a project to enable local business to see at least 70 small and medium-sized Ugan-
enterprises [to] benefit from the very big job, dan companies and at least 100 micro-sized
which is going to be done in laying the pipeline businesses sign deals with the pipeline builders,
which is going to be taking Uganda’s crude oil she said. These deals will help create and support
from here to Tanzania,” he was quoted as saying around 500 new jobs, she said.
in a PAU statement. France’s Total will lead work on EACOP,
According to the statement, the partners aim which will carry a price tag of $3.55bn. When
to give at least 200 MSMEs the opportunity to finished, the link will follow a 1,445-km path
participate in special training sessions for this from Hoima, a town in western Uganda, to
purpose. After the training is over, at least 100 of Tanga, a port on Tanzania’s coast. It will be able
these MSMEs will be registered so that they can to handle 216,000 barrels per day (bpd) of oil. ™

Uganda wants local firms to help build the pipeline (Photo: EACOP)

P6 www. NEWSBASE .com Week 07 17•February•2021