Government Suspends Refinery Lead Investor

Dr. F.A. Kabagambe-Kaliisa, Permanent Secretary Ministry of Energy and Mineral Development INTERNET PHOTO Dr. F.A. Kabagambe-Kaliisa, Permanent Secretary Ministry of Energy and Mineral Development

The government of Uganda has announced that it has suspended negotiations with Rostec Global Resources (RTGR) Consortium for the role of Lead Investor for the Uganda Refinery Project, Dr. F.A. Kabagambe-Kaliisa, Permanent Secretary Ministry of Energy and Mineral Development, said in a statement. 

The Government team had shortlisted two bidders namely RTGR which was ranked as number one and the Preferred Bidder and the other led by SK Engineering of South Korea ranked as second and Alternate Bidder. The Government of Uganda has been in negotiations with the RT-Global Resources Consortium for the last 14 months.

Final agreement was reached in principle in May this year. However, just prior to the expected signature date at the beginning of June 2016, the RT-Global Resources Consortium made additional demands from the Government, seeking to reopen and renegotiate issues that had already been agreed between the parties. Consequently Government was left with no choice but to halt negotiations and draw the bid bond.

Kabagambe said government is now proceeding to invite the Alternate Bidder - SK Engineering & Construction for negotiations.

 

Last modified onFriday, 01 July 2016 13:39

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