Commodities

Six bidders shortlisted for $2.5 billion oil refinery construction

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By FREDERIC MUSISI

Posted  Wednesday, December 18  2013 at  02:00

In Summary

Other East Africa countries are expected to buy up a 10-per cent stake each.

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Kampala

The Ministry of Energy and Mineral Development has presented names of six firms or consortia shortlisted to bid for the construction of the 60,000-barrels-per-day green field oil refinery.

The selected companies are a South Korean consortium led by SK Energy Company, Chinese consortium led by Petroleum Pipeline Bureau, Japan’s Marubeni Corporation, and Swiss-based Vitol Group SA.

Others are Russia’s RT Global Resources and London-listed Petrofac Ltd.
The appropriate multinational consortia to lead the $2.5billion project will be announced next year.

The ministry, early October opened the bid process with Request for Qualification (RFQ) from “appropriately qualified” investors and a total of 75 firms took part.
The ministry’s Permanent Secretary, Mr Kabagambe Kaliisa, in statement on Monday said they were overwhelmed with the significant interests in the project. “The interest in the Project RFQ clearly demonstrate that the international community sees real economic and energy opportunities within Uganda’s borders and the broader region,” he said.

The bidding process was closed in late November and six of eight consortia (association of companies) which submitted detailed Statement of Qualifications have been selected to receive the Request for Proposals (RFP).

The project has entered a second phase and evaluations are conducted by US-based consultancy, Taylor Dejongh. The six firms will be issued an RFP over the next 30 days and be required to submit a full proposal for the financing, development and operation of the project whose construction is scheduled for 2015.

Energy minister Irene Muloni said government was committed to an open and transparent process in the due process. “We look forward to working with our final partner to develop this refinery and further unlock Uganda’s vast energy resources,” she said.

The project will be developed in a public-private-partnership (PPP) of 40:60 venture. Other East Africa countries are expected to each buy-up a 10 per cent stake and so far Rwanda and Kenya have forwarded commitment.

A total of 29 square kilometres needed for the refinery plant have been mapped covering 13 villages in Kabaale Parish and the compensation of 7,118 people affected is ongoing in Hoima District.

musisif@ug.nationmedia.com