The final FEED and concept design are expected to be handed over three months later. The Uganda government expects the consortium to complete the ESIA studies by August 2021. Also, the Albertine Graben Refinery Consortium renewed its $17 million performance bond with the government, proving its commitment to move ahead with the project, which is located in Hoima district.
The project has faced a couple of land challenges as government faces resistance from projectÂaffected persons over compensation fees. Most of the land for the refinery project has been acquired though.
At the completion of the different preparation studies and designs, the consortium  which consists of Saipem SPA, Nuovo Pignone International SRL (both from Italy), Yaatra Africa, and Lionworks Group Limited (both domiciled in Mauritius) – is expected to sign a final investment decision for the 60,000Âbarrels Âper Âday refinery worth about $3 billion to $4 billion.
This should be in the year 2022. The government signed a project framework agreement with the consortium on April 10, 2018. However, the agreement only became effective nearly five months later on September 7, 2018.
There are a number of activities, such as the procurement of the contractor for the refinery, which will depend on how fast the other oil upstream companies – Total E&P and Cnooc – will sign the final investment decision for their projects which will allow them to start producing oil. Uganda’s government, through the ministry of Finance, Planning and Economic Development is discussing options on how to fund its 40 per cent stake in the country’s oil refinery as volatile international oil prices rattle capital markets.
The government’s funding is estimated at $500 million. Among the options available to government is to tap funds from Export Credit Agencies and commercial banks.
Cabinet will, however, have to debate and sign off on these options at some point in the last half of this year. The refinery is expected to be funded using debt to equity. The debt is expected to account for at least 70 per cent. The consortium has the responsibility for sourcing the debt.
jeff@observer.ug