2022 HAS BEEN A GOOD YEAR AS UGANDA TAKES GIANT STEPS IN THE DEVELOPMENT OF ITS NASCENT AUTOMATIVE INDUSTRY

 

By Moses Sserwanga

In the year ending 2022 , Uganda has made significant strides in the development of its nascent automotive industry with government owned  automakers Kiira Motors Corporation (KMC) taking the lead by producing  electric and Internal Combustion Engine (ICE) buses.

This growth has been fueled by the government of Uganda led by President Yoweri Museveni’s strategic vision  and commitment to invest heavily in the development of the local automotive industry to tap into the global market now estimated at 2.86n trillion US dollars and projected to hit 9 Trillion USDs by 2030.

There is already a marked mad rush in the global north to cash in on the lucrative automotive industry as automakers  switch to electric vehicles . Around 4.3 million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022 and its only fair that African countries-Uganda inclusive - should not be left out of this huge market .

 In the year 2022, Uganda has captured global headlines –in its concerted effort to champion locally produced automobiles and E-mobility technologies  in the East African region - growing its fleet of locally produced electric buses and executive coaches –the Kayoola Evs and the Kayoola Diesel Coaches (KDCs)- respectively .

What the government of  Uganda is doing

As Kiira Motors Corporation has leveraged the Luwero Industries facilities in Nakasongola to build and put on the market its validated fully electric buses and the KDCs –government has continued to invest in the construction of a world class – Kiira Vehicle Plant (KVP) located in the Jinja Industrial and Business Park –with the first phase (production line ) at 99% completion and the  second phase ( body shop, chassis line, paint shop, Quality Inspection and Testing (QIT) building and test track among others) –now underway .

Once the Kiira Vehicle Plant is fully operational , it will have the capacity to produce at least - 500,000 vehicles annually in Uganda by 2030 along with the establishment of efficient, integrated, sustainable, safe and inclusive public transport system(s); and promotion of environmentally friendly transport solutions in the EAC region and the rest of the African continent.

Uganda’s automotive flagship - Kiira Motors has produce more electric buses and the diesel coaches which are being operated by Kilita transporters on the Northern bypass and hired out to government and private organizations. Uganda Airlines and Civil Aviation Authorities are some of the early government entities to give a public endorsement of the Ugandan produced vehicles- some of which have covered 50,000 kilometers on the road  without a hitch.

During the year , KMC also produced  the beautiful orange Tondeka buses with fuel efficient engines and low carbon emissions. This deal was done through contract manufacturing and the buses have been deployed by Tondeka in a move intended to decongest the city and offer affordable transport solutions for urban centers.

Although much of what KMC has achieved thus far has been through technology transfer partnerships with establish and tested Original Equipment Manufacturers (OEMs) and sourcing materials and parts from the global supply chains; the company is now working with the  Secretariat of Science Technology and Innovations (STI)- led by Dr. Munica Musenero to ensure the localization of Uganda’s automotive industry materials and parts supply chain.  

“ The automotive industry is ‘an industry of industries’ and its essential that we harness our rich minerals to establish a local supply chain for vehicle parts , components, systems and mobility engineering services,” Prof. Sandy Stevens Tickodri-Togboa the Executive Chairman of Kiira Motors Corporation stated in an interview for this article .  Prof . Tickodri-Togboa is also of the firm view that Uganda should not sit back because it doesn’t have a “comparative advantage” for vehicle production –arguing that such economic theories were designed to keep the least developed countries backward.

“ We have all that it takes to produce vehicles in Uganda and Africa . The continent is rich in minerals which should  be harnessed to add value by producing vehicle parts and materials locally ,” he added .

Dr. Musenero is in total  agreement  and through her |STI Secretariat –she has decided to take the bull by the horns and established –one-stop-center to mentor innovators in the automotive value chain space .  The STI Secretariat is  now mobilizing the informal sector mobility tech-preneurs to guide them on the innovation path from  ideation through prototypes to commercialization. All these are encouraging signs- that a clear pathway has been set and there is no turning back for mission vehicles made in Uganda.

Economic Impact

Economists have established from global trends-that building an indigenous motor vehicle industry provides an unprecedented opportunity for value addition to the country’s minerals and other natural resources in line with government’s policy for import substitution and export promotion of motor vehicles, parts, components and systems.

Globally, it has been established that governments through their targeted industrialization policies together with the ready market demand and a skilled workforce play a leading role in the success of the motor vehicle industry.

Kiira Motors and other players in the industry have demonstrated that Uganda has the skill set and technical knowhow to produce vehicles locally, reduce on our import bill for –end of –life vehicles and mitigate the climate change challenges by adopting E-mobility solutions.

What must be done urgently

Government through the ministries of Energy and Mineral Development led by Hon. Ruth Nankabirwa and Permanent Secretary Irene Batebe and Ministry of Works and Transport led by Gen. Edward Katumba Wamala should fast-track investments to set up adequate  charging infrastructure for electric mobility in Uganda .

The writer is Media and Communications Consult

and Advocate of the High Court of Uganda

msserwanga@gmail.com

 

 

KAYUNGA DISTRICT COUNCIL APPROVES KIIRA MOTORS ECO-AUTOMOTIVE INDUSTRIAL AND TECHNOLOGY PARK MASTER PLAN

 

The  Kayunga District  Local Administration has approved the Kiira Motors  ECO- Automotive Industrial and Technology Park (AITP) master plan –paving way for the development of the site that sits on 2 square miles .

The  AITP master plan was approved by  the Kayunga District Council during a meeting that was held on 13th October 2022. “This is therefore to submit the minute extract approving  Kiira Motors ECO- Automotive Industrial and Technology Park  master plan for your further consideration and action,” a letter addressed to the management of Kiira Motors and signed by the  Chief Administrative Officer Mr. Abdu Batambuze reads in part.

During the Kayunga District Council meeting , the motion to approve the AITP Master Plan was moved by Councillor Immaculate Namata and seconded by Hon. Councilor Katumba Joseph Ntamu according to a minute extract signed  by the Town Clerk  Immaculate Galimuka  and Hon Saleh Bullnson ,the District Speaker .

Kiira Motors acquired the land through public procurement and has a land title registered in the company names. The residents are excited about the new developments with the park expected to create jobs and lead to the development of the area .

 Kira Motors Corporation acquired the two square miles of land in Bbaale to set-p the Uganda Eco-Automotive Industrial & Technology Park to support a wide range of investments in motor vehicle parts manufacturing, vehicle testing and automotive technology innovation enterprises. The pre-feasibility study and business plan for the park have been completed.

Economic Benefits

According to officials at Kiira Motors that park is in line with the National Physical Development plan 2022/2040 as approved by cabinet and will be prepared to attract investors to set up manufacturing plants for auto filters, brake pads, automotive glass, car seats, lithium ion batteries, bolts and nuts, wiring harness, tires, auto-electronics and bamboo boards among others.

“ This park is a long term investment and will improve the tax base, aid in business retention and promote business diversity in the area. It will also attract foreign exchange through the export of automotive products once fully operational;  encourage the  skilling of the local community in Uganda through by setting up a skilling centre  which will produce skilled labour for the industrial sector thus promoting development,” sources at KMC  explained.

The Kayunga area will also benefit since this huge national project of strategic importance will lead to infrastructure development such as  better roads, fibre, electricity lines, and railway among others.

There  will also be improved social amenities  within Kayunga district with the provision of school, health facilities, hotels, commercial and recreation centres.

“Eco-AITP will improve the aesthetic of the area around the site as greening is one of the major principles of the ECO Automotive Industrial and Technology Park. The Eco-AITP will contribute to the reduction of emissions through the use of clean energy and the production of hybrid and electric automobiles. This will further be attained through the greening of the park,” officials added .

Editor: msserwanga@gmail.com

FINANCING VALUE CHAINS IN UGANDA

 

By Moses Sserwanga

Media/Communications specialist

For many farmers of Agago  , financial literacy and  banking is a new phenomenon  since many of them had never  even entered a banking hall . The farmers in this remote district of Agago in northern Uganda keep their money under their mattress  a practice which does not encourage saving and investment .

As a  result ,the farmers  continue to wallow in  poverty with little or nor savings at all.  This  problem however ,may soon be history following a campaign by Bank of Africa to extend financial services to the remote parts of the country.

A new  Bank of Africa branch has been set up in Patongo Kalongo in Agago district to encourage farmers save money to accelerate agricultural  business growth.  According  to Mr. Paul Tonny Ekwang  Bank of Africa branch manager  ,the bank made  the decision to set up the branch with support from aBi Trust to demystify the use of the phrase “lack of cash flow” among the farmers.

“  We want the farmers to take advantage of the available  resources such as  Ox-plough, bulls, ample land , human resource  synergy to generate income for themselves and their businesses. That’s  why we are training farmers in financial literacy   which covers book keeping, the importance of  banking , available financial products to  boost agricultural production and marketing among other,” Ekwang says.

Four hundred  and eighty ( 480) farmers in selected business member groups  have been  trained  in Lira Palwo, Omot, Omiya Pacwa sub counties and Patongo and Kalongo town councils. “ The purpose of the training was to equip community beneficiaries  with knowledge  on basic  records keeping and financial management, value addition so that good quality  farm produce  is taken to the market. That way , farmers earn much more and grow their capacity to save and take advantage of other available financial opportunities within the banking sector,” he  explains.

Ekwang said that after the training farmers are in position to  determine their cash sales and have cash record book kept for each member. Farmers are also able to take on agriculture as a business which leads to increased  sales of agriculture produce.

The  farmers are also encouraged to approach the Bank of Africa branches in Patongo and Kalongo to open and maintain bank accounts, access loan facilities  during planting , harvesting and  marketing agricultural produce to increase income .

The bank manager was encouraged to note that following the training farmers who had hitherto never entered a banking hall have come up to open bank accounts. We have realized shs.31m in deposits from new clients .

The bank has also helped farmers to bring financial services near to them. People had to travel long distance to access a bank in Pader district.   With support from aBi Trust , the bank managed to open a new branch in Patongo,  bought  motor cycles they use to  travel to the villages to mobilise and train farmers in financial matters.

Challenges :

Because of trauma resulting from the two decade LRA war some farmers fear to approach the bank because of the armed police guards.

70% of the farmers  want to open a Dero (personal ) accounts  but  do not have  photos, identity cards and LC letters which are some of the requirements for opening up an account . 

MAYUGE FARMERS NOW PRODUCING FOR THE MARKET

 It’s been a long journey for the farmers of the remote district of Mayuge. They have had to withstand big challenges that included among others poor seed varieties, gender-based violence due to mistrust among family members, poor farming methods, effects of the climate challenge and the cheating middlemen who pay farmers low prices for their farm produce.

Now organized in a growing farmers’ association, the Mayuge farmers who were hitherto, largely producing for the homesteads are now engaging in large scale farming and realizing positive results of their hard-earned labor.

They have since formed the Mayuge District Farmers Association, (MDFA) which has grown from a membership of 500 in 2000 to over 20,000 to-date. Mr. Paul Ojikan the Coordinator of the Mayuga District Farmers Association who is also the Chairman of the National Soya bean Network the Association says that that the registered members work in 666 groups with 30 members each in eight sub-counties of Malongo, Kityerera, Imanyiro, Bukaboli, Buwaya, Busakira ,Kigandalo, and Mpungwe.

Originally formed to provide agricultural advisory services to improve food security at household levels for the members, MDFA has now organized smallholder farmers into marketing groups which are producing cash crops for particular markets. Two main crops, particularly the soya bean and maize were promoted for large scale commercial farming after a baseline survey which was conducted in 2007.

“ When farmers improved food security at the household level there was a surplus which required markets and thus the need to engage in farming as a business. But at the time, farmers faced challenges of limited access to; improved seeds , regular agricultural advisory services , lack of quality assurance facilities and reliable sustainable market for their farm produce and regular access to market information, “ Ojikan explains .

So we sought partners to help address the challenges which were hindering farmers’ productivity. “That’s why the leadership of Mayuge District Farmers’ Association made a decision to seek support from aBi-Trust which last year gave the Association an additional Shs. 444m grant to work on maize production, value addition, and collective marketing. On its part, the association had to contribute shs. 160M for a piece of land where a maize mill and offices will be erected to add value to the farmer’s crop and coordinate the activities of MDFA, respectively, “ Ojikan said.

With aBi-Trust ‘s support, major interventions were put in place which included among others, access to improved seeds, agricultural advisory services, market information from NARO which were distributed at the group level.
The extension field was also recruited to mobilise and train farmers in agronomic and post-harvest handling practices. Marketing committees of 5 people were set up in each group to carry out market research so that farmers get a fair price for the agricultural produce.

This offered a good opportunity for the farmers to bargain for a good price. . Between 2007-2013, at least 5,130 tons of soya beans were produced and sold by the members of the Mayuge District Farmers Association.
Farmers have since been encouraged to grow maize on a large scale because the huge demand for the grain on the market. But as farmers of Mayuge engaged in large sale farming, challenges emerged which needed immediate solutions to maintain a good maize value chain.
Other benefits from the aBi-Trust grant to the farmers of Mayuge include, training in agronomy, use of improved high yield maize and soya bean seeds, modern farming practices and proper utilization of farm inputs such as fertilizers and pesticides. The association has also set up demonstration sites at group levels for farmers to appreciate and apply new farming technologies and methods that will help boost soya beans and maize production.

Along with the maize and soya bean value chain, with the interventions supported by aBiTrust, Ojikan said the farmers have also been trained in gender-related concepts where families, plan together, budget together, farm together and share the proceeds of their farm produce together. “Through the gender project, women have been given an opportunity to participate productively in agriculture to benefit both themselves and their respective families.

The old traditional practices where women were neglected or their contribution to farming was not recognized are now being abandoned to ensure equality, transparency, and accountability at the family level. This has greatly improved relations, reduced tensions, and gender-based violence and as a result, boosted production and family incomes.

With support from aBi-Trust and savings of the association, Ojikan said that the association has acquired, computers, 3 motorcycles, digital camera, 300 tumplines, 7 moisture meters, 4 standard weighing scales, 10 driers among others.

Demonstration centers have been set up where high yielding seeds are multiplied and 80% of the improved seed varieties re-distributed to farmers. Because there is increased farm produce, MDFA has had to link farmers to better markets by providing information about prices for agricultural produce on a regular basis. “ We collaborate with market service providers like Fit- Uganda, farm Gain and Agrinet to get accurate information about the prevailing market prices. This helps farmers to sell their produce at the right price and cut out the cheating middlemen,” Ojikan explains.

MDFA is also emphasizing on quality assurance which involves , getting the right seeds, engaging in better farming practices and post harvest handling to ensure quality crop yields for better rewarding markets for farmers products.

Indeed, MDFA has put in place structures where Community Change Agents (CCAs) who double as marketing committee members provide farmers with information on the prevailing market prices on a regular basis.
Village Saving and Loan Associations, (VSLA) have also been set up to promote the culture of saving and investment among farmers. There are now 300 VSLA in Mayuge where members save and loan to each other to increase farm production.

The farmers also collectively market their produce at established bulking centers and as a result, have a better bargaining power which fetches them better prices Again, aBi-Trust’s support has come in handy here, with the VSLA members being trained in financial literacy on how to keep records. Each VSLA is given ledger books, a stamp, inkpad and passbooks to keep proper accounts.
Through the Mainstreaming Gender in Soya Bean Value Chain project, families are trained to work together to realize and appreciate the role of women, youths and men in sustainable agricultural production with a focus on farming as a business.

But all is not rosy for the farmers of Mayuge. They still face big challenges like the effects of climate change which results in prolonged drought,. The cheating middlemen still exist and the many sugarcane plantations are a threat to food security in Mayuge.

msserwanga@gmail.com

Another Endorsement: Works & Transport Minister Transported to Work on Electric Bus

Uganda’s nascent electric vehicle industry received yet another endorsement on Friday morning when the minister of (Works and) Transport Gen Katumba Wamala chose to board its product, the Kayoola EVS on his way to work.

General Katumba who joined about 60 other passengers aboard the Kayoola EVS, boarded the electric bus operated by Kalita bus company at Bweyogerere, along the Northern Bypass for the 14 kilometre stretch to Busega.

Earlier last month, the minister for Science Technology and Innovation who make the buses under Kiira Motors Corporation, joined the public on the electric bus on the same route and gave the a service a nod of approval. 

After the maker minister, now the user minister has also given his endorsement of the product of Uganda’s young engineers, who design the electric buses and build them in collaboration with the industrial arm of the Uganda Peoples Defence Forces, Luwero Industries in Nakasongola.

During the morning engagement with the public and other transport operators, General Katumba Katumba told taxi operators who are alarmed by the entry of the modern buses into the public transport sector, that mass transit is the way to go and there is no turning back .He advised them to prepare themselves to be able to fit in the changing transport landscape. 

Gen Katumba Wamala paying his transport fare on the Kayoola Electric bus while on his way to work Friday morning

The general assured the taxi operators that the government is pushing ahead with mass transit projects including the urban service train system. In addition to the Namanve – City centre train which Katumba says carries the equivalent of passengers for 65 taxis, the government is in final stages of instituting another urban rail route connecting the city centre and Kyengera on the populous western flank of Kampala.

The transport revolution in Kampala has been triggered by Kiira Motors Corporation’s release of ultra modern buses that are a hundred percent electric powered and also clean low emission diesel buses. 

So far, Kampala Capital City Authority has licensed two transport companies to operate the clean buses; Kalita which is on the 22 kilometre Busega – Bweyogerere high speed bypass and Tondeka on the circular City Square – Nakawa – Ntinda – Wangeya route.

Kiira Motors Corporation (KMC) is 100% government owned between STI (96%) and Makerere University (4%). KMC has been building the buses it designs in the military workshop in Luwero Industries, but will later next year shift its works to its new plant being constructed in Jinja. KMC has orders for over 1,000 buses, both low emission diesel and fully electric ones.

UGANDA PARLIAMENT HONORS MAKERERE UNIVERSITY ON MARKING 100 YEARS OF EXISTENCE, PROMISES MORE FUNDING

 

• Deputy Speaker Tayebwa pushes for increased funding of Makerere and other Universities in the country .
• Makerere showcases the Kayoola fully electric buses a leading innovation coming out of the university in its 100 years of existence  

The Deputy speaker of Parliament Thomas Tayebwa has called upon government to increase  funding for public universities to cater for research and innovations to ensure home grown solutions for local challenges .

Tayebwa was presiding over a plenary sitting where the parliament of Uganda passed a motion for a resolution to commemorate 100 years of the existence of Makerere University -one of the oldest and top universities in Africa and globally .

At the occasion , Makerere university- showcased one of the best innovations coming out of the Ivory Tower – the Kayoola fully electric buses that are produced in Uganda by Ugandan engineers led by Prof. Sandy  Stevens Tickodri-Togboa -majority of whom are products of the university.

A 40 member delegation of Makerere University’s  top management-led by the Vice Chancellor, Prof Barnabas Nawangwe and Council Chairperson Mrs. Lorna Magara, were  transported on the Kayoola EVs on their way to parliament for special recognition .

Deputy Speaker Tayebwa emphasized the need to invest more funds in both public and private University research programs to enhance learning systems in higher institutions to produce more job creators .

He said  universities should offer relevant education for the 21 century – to produce hands on graduates that are involved in the production of marketable innovations and  products .

The motion to honour the great university was moved by Sheema South MP, Prof.Dickens Mushemeza , who recognized Makerere University’s contribution to Uganda’s economic, social development and its active participation in the political transformation of not only Uganda but also other African countries.

The state minister for higher Education Dr. John Chrysestom Muyingo,called upon parliament to support Makerere University as it repositions itself – to become a research and innovation led university for the next 100 years.

Following the University’s training of medical doctors from Mulago Hospital, Dr.Muyingo encouraged members to support government in its efforts towards the construction of an independent hospital for Makerere University. 

“ We are also using these celebrations to solicit support for Makerere  to come up with its own university hospital. Makerere University has been training medical doctors from Mulago hospital. I will present a request to fund the construction of a medical training hospital at Makerere University and  I hope you will support me,” Dr. Muyingo told cheering MPs many of whom went through the gates of Makerere university.

What MPs said on the floor

* General Kiryowa Kiwanuka*: I am a proud student of Makerere University 1993-1996 where I was privileged to study law as a first degree and I was a student of Nkrumah hall. Makerere is transitioning into a research- led University and we will need to support it in every possible way to achieve that dream of finding home bread solutions to our problems. Makerere must start doing research to find solutions which are made for us and by us. Makerere has made us proud. 

*Bubulo East Mp,John Musila*: Mr. Speaker,  I want to add a voice that Makerere has contributed to the political transformation of the EAC region and the whole of Africa. We have produced Presidents in Kenya two of them, Jomo Kenyatta, Mwai Kibaki and in Tanzania, President Nyerere.

 *Jenipher Namuyangu Woman MP, Kibuku*: I want to salute the men and women especially the lecturers of Makerere University. I was a student there for six years, Mao was  my guild president. I agree that we need to support Makerere University to rehabilitate the halls of residence. I am told Lumumba apparently is closed for the next two years due to rehabilitation and am happy for that. Halls like Mary Stuart should also be considered.

*Nakaseke South MP, Lutamaguzi Ssemakula*: Everyone is here singing about Makerere University, most of us have gone through Makerere University but the question arises Mr Speaker, what have we done for Makerere University?

*Maracha East MP, Lematia Ruth Molly Ondoru*: I am not an alumni of Makerere for higher degrees but a close associate. I am a nurse by profession. When the nurses didn’t have degrees in this country- I sat down and prepared a proposal to introduce nursing degrees in Uganda. Therefore, I went to Makerere if they could take over this course, I am very grateful to Makerere, they were able to take it on. I am very happy today that nurses can also get degrees and PhDs in Uganda.

Asuman Basalirwa  Bugiri Municipality MP and one of the  former Makerere University Guild Presidents in parliament called for academic freedom of expression at the university .

OIL PIPELINE PROJECT WILL GO AHEAD DISPITE EU RESOLUTION SAYS PRESIDENT MUSEVENI

 President Museveni has assured Ugandans and the EAC region that the East African Company Oil Pipeline (EACOP) project, will go ahead despite a resolution by European lawmakers calling for it to be delayed over “rights violations”.

France’s TotalEnergies and the China National Offshore Oil Corporation (CNOOC) signed a $10-billion agreement earlier this year to develop Ugandan oilfields and ship the crude through a 1,445-kilometre (900-mile) pipeline to Tanzania’s Indian Ocean port of Tanga.

“I saw in the papers that the EU parliament passed a resolution directing TOTAL not to proceed with the East African Crude Oil Pipeline. Please, don’t waste your time thinking about that. We have a contract with TOTAL written very well. The oil will come out in 2025, the first batch. The Oil project will go on and no one can stop it,” President Museveni said during a meeting at Kololo Independence grounds ‘

Museveni later tweeted: “Total Energies convinced me about the Pipeline idea; if they choose to listen to the EU Parliament, we shall find someone else to work with…Either way, we shall have our oil coming out by 2025 as planned. So, the people of Uganda should not worry.”

President Yoweri Museveni’s strong comments about this much desired project follow those of Deputy Speaker Thomas Tayebwa, who stated thus ;”These are projects which were approved by the parliament of Uganda, the parliament of a sovereign country and anything to do with challenging their approval is an affront to the independence of this house and we cannot take it lightly,” he said.

Tayebwa lashed out at the  European Union Parliament  resolution calling the latest move by Europeans – “ economic racism” and “neo-colonialism.”

Presiding over parliament Tayebwa  condemned the resolution saying the idea behind it is an act of neo-colonialism by the Europeans thinking that they can control the economic affairs of independent African countries.

“The resolution is based on misinformation and deliberate misrepresentation of key facts on environment and human rights protection. It represents the highest level of neo-colonialism and imperialism against the sovereignty of Uganda and Tanzania” Tayebwa charged.

The production of Uganda’s oil in 2025 remains on course as contractors – CNOOC and Total Energies have registered another milestone with the completion of their first oil drilling rigs for the Tilenga project after passing endurance tests at the Honghua Factory, Guanghan City in China. 

The huge -costly equipment which were shipped and have been on the high seas on the journey to Uganda is said to have arrived at the East African port of Mombasa according to a tweet from CNOOC Uganda Limited . The one of Total Energies is expected to arrive in Uganda in November ,2022.

” Steps to first oil.@ CNOOC Uganda Ltd Kingsfisher oilfield rig reaches Mombasa port and will soon be in Uganda and there’s no turning back,” CNOOC Uganda stated on their official Twitter handle.

Once production commences -the oil will be transported to the sea port of Tanga in Tanzania through the East Africa Company Oil Pipeline ( EACOP) and will traverse the ten (10) districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Gomba, Mubende, Lwengo, Sembabule, Kyotera and Rakai in Uganda costing (approx. US$3.6bn).

CNOOC is one of two licensed oil companies that will work on the EACOP project till 2025 when the first oil is expected to be produced in what will be historic milestone for Uganda and the East African region . The other company involved in EACOP project is Total Energies Co. ltd .

Of the total 1,443km, Uganda will host 296 km of the pipeline. This is going to take up about 2,740 acres of land. A final Resettlement Action Plan report was submitted to the Ministry by the Pipeline Project Team (PPT) and the report was approved in 2021.

Total Energies’ Tier one contractor Zhongyuan Petroleum Exploration Bureau (ZPEB) received the oil rig code named ‘ZPEB Rig 1501’ at the official handover ceremony in China . ZPEB undertook to deliver the rigs after they – won the multi-million contract for the detailed designs and construction of oil drilling rigs for Uganda .

Total Energies Uganda Consultant Mr Thierry Vinay was excited about this giant step forward and has stated thus;” “This signifies progress towards the commencement of our drilling activities and subsequent delivery of first oil in Uganda. Thank you to all the teams that have worked tirelessly on building this rig and we look forward to receiving it in Uganda.”

The oil rig will be deployed to ensure the first oil production in 2025 at 400 oil wells -north of Lake Albert in Buliisa and Nyowa districts.  According to a statement from Total Energies – the ‘ZPEB Rig 1501’ is a highly innovative 1,500 Horsepower (HP) walking land rig with full integration, automation, low emission and is fully soundproofed. The rig’s 1,500 HP is equivalent to the horsepower of four heavy duty trucks. 

CNOOC said their rig the first that will be deployed in East Africa region – has been customized for its Kingfisher wells . CNOOC says the rig is a fully automated silent industrial equipment that is outfitted with industry -leading technologies such as well -site de-noising control , a zero discharge system ,and a pipe column automation system.

Total Energies will undertake drilling of more than 400 oil wells spread across 31 well pads in six fields (Jobi Rii, Ngiri, Gunya,Kigogole, Nsoga, Kasemene and Wahrindi) in Nwoya and Buliisa districts. 

The company is undertaking major infrastructural developments to allow timely drilling operations that will include the construction of the Tangi Operation Support Base camp. Some 600 oil workers for the exploitation of oil resources within Murchison Falls Park will be housed here .

The company is also undertaking civil works of the industrial area in Buliisa District. This covers 300 hectares and it will host the Central Processing Facility (CPF) operating for 24 hours with camping facilities for 4,000 people, an operations support base, drilling base, wastewater treatment plant, and a lake water abstraction system.

The CPF will process 190,000 barrels of oil per day with a supply of crude oil through 160 kilometers of flow-lines from the oil wells.  Another 95 kilometre-24 inch feeder pipeline will transport the processed crude oil from the central processing facility in Buliisa to the export hub and refinery in Kabaale in Hoima.

Minister Hon. Dr. Nankabirwa busy clearing all the hurdles to ensure smooth implementation

Energy Minister Hon. Ruth Nankabirwa and the ministry’s technical team led by Eng. Irene Batebe has been working around the clock to clear all obstacles that could undermine the fast and smooth implemnattion of the strategic national development project . The Ministry of Energy has since speared headed the passing of the East African Crude Oil Pipeline (EACOP) (Special Provisions) law – which is an important “legislation of our time”- because it will facilitate the first crude oil pipeline development in Uganda and the East African Region.

Nankabirwa has said that the law will facilitate the Implementation of  two important agreements – the Intergovernmental Agreement (IGA) between the Republic of Uganda and the United Republic of Tanzania which was signed  on May 26 2017  and the  Host Government Agreement (HGA) -which  was entered between the Republic of Uganda and the EACOP Company.

Moses Paul Sserwanga Esq.

Media and Communications Consultant /Advocate of the High Court

msserwanga@gmail.com