Finance ministry ordered to help companies affected by S. Sudan war
Amelia Kyambadde
KAMPALA- Days after President Museveni promised to help companies affected by the conflict in South Sudan, Cabinet has directed the Finance and Foreign Affairs ministries to kick-start the process of repatriating proceeds of Ugandan companies in the troubled nation.
Yesterday’s Cabinet meeting chaired by the Prime Minister, Dr Ruhakana Rugunda, directed the two ministries to liase with their counterparts in South Sudan to establish modalities of repatriating cash of Ugandan companies held in the latter’s commercial banks.
In a statement released last evening, the Information minister, Mr Frank Tumwebaze, said the two ministries were also directed to pursue the government of South Sudan to expeditiously form a joint cooperation commission to arbitrate pending claims of Ugandans against South Sudan individuals.
“Cabinet discussed the plight of Ugandan exporters to South Sudan market that suffered non-payment due to the instability there,” he said.
To expedite the process under the spirit of President Museveni’s Kisanja Hakuna Mchezo, meaning a term of no games, Mr Tumwebaze yesterday confirmed reports that a sub-committee of Cabinet was also put in place to lead the talks with the government of South Sudan. The sub-committee, according to Mr Tumwebaze, comprises the Attorney General, Mr William Byaruhanga and Trade minister Amelia Kyambadde. Finance minister Matia Kasaija was tasked to oversee the whole process.
President speaks
At the opening of last week’s joint Cabinet retreat in Kyankwanzi, President Museveni spoke about the plight of “distressed companies” that need government bailout, singling out those that were exporting to the restive country but were not paid as a result of the war.
However, yesterday’s Cabinet meeting didn’t resolve to use government money to bail out such companies.
“The companies that were exporting to South Sudan should be looked at differently because the government of South Sudan was unable to pay,” the President said.
Oil licensing
Cabinet also approved a request from the Minister of Energy, Ms Irene Muloni, to allow her issue three petroleum production licenses to Total E&P B.V, over discoveries in exploration area 1 of the Albertine Graben and Gunya to be operated by total E&P Uganda B.V.
Mr Tumwebaze said the licenses to be issued have a duration of 25 years and can be renewed for an additional five years as provided for in the production sharing agreement (PSA).
“The licenses also provide that where oil fields extend across boundaries of licence areas, it’s agreed that these oil fields be developed as one unit,” Mr Tumwebaze said.
He added: “The final decision will be taken in 18 months after issuance of the licences and first oil is expected in the financial year 2019/2020.”
The Petroleum Authority of Uganda will regulate the licenced companies while the National Oil Company will take care of government’s commercial interests. The minister is expected to address journalists this week to give details on all licences so far issued and the progress of the oil sector.
Cabinet also approved a loan request from the Ministry of Finance amounting to $71m from the World Bank to finance the Rural electrification strategy (RESP) for 2013-2022 which aims at improving power access to 26 per cent by 2022.
Some of the beneficiary districts include Gulu, Lira, Nebbi, Arua, Kole, Oyam and Nwoya.
Cabinet, however, deferred a proposal for a $50 million loan from the World Bank to support refugee hosting districts and communities. Members noted the need for the loan to cover all refugee hosting areas of the country and coming up with a policy on supporting refugee hosting communities with or without a loan.
