The government of Uganda on 10th April signed a lucrative deal with Albertine Graben Refinery Consortium (AGRC) to develop, design, finance, construct, operationalize and carry out maintenance of the country’s first and only oil refinery in Hoima District, Western Uganda.
The signing of the mega deal was witnessed by President Yoweri Kaguta Museveni at State House Entebbe. Italian and US ambassadors Domenico Fornara and Deborah Malac also were present. Irene Muloni, the energy minister signed on behalf Ugandan government.
Under this agreement, AGRC will be responsible for funding the pre-FID activities listed above and will also proceed to construct and operate the refinery. The consortium has also been tasked to ensure Ugandans get jobs and skills out of the project.
The signing of the PFA means pre-Final Investment Decision (FID) activities like Front End Engineering and Design (FEED), Project Capital and Investment Costs Estimation (PCE), Environmental and Social Impact Assessments (ESIA) can commence.
Ownership of Consortium
Energy minister Irene Muloni speaking during the signing of the agreement assured the country that her ministry had done extensive consultations before arriving at who to assign the project, estimated to cost between $3-4 billion.
The Consortium’s ownership, acoording to a statement released by government comprises of YAATRA Africa from Mauritius, Lionworks Group Limited also from Mauritius, Nuovo Pignone International SRL a subssdiary of General Electric Company located in Italy and SAIPEM SPA also from Italy.
Uganda is represented in the consortium by the Uganda National Oil Company (UNOC), which is a limited liability petroleum company owned by the government. Dr Josephine Wapakhabulo, the chief executive officer, of the Uganda National Oil Company, said the refinery will grow UNOC's business portfolio and help unlock other planned investments at the Kabaale Industrial Park.