Uganda and Tanzania early this week entered Final Investment Decision a very crucial phase in the oil production process.
The oil production project is expected to employ over 60,000 people and is expected to unlock U$15 billion into Uganda’s Economy.
Companies will directly employ about 14,000 people, Indirectly, about 45,000 people will get employed by the contractors.
Uganda is expected to produce 230,000 barrels of oil per day (at peak). 57% of the jobs will go to Ugandans. The direct employment of over 14,000 individuals is expected to create a total of USD. 48.5 million annually. First Oil drop out of the ground is expected in 2025.
However, there are concerns emerging following this historic signing of the Final Investment Decision.
“There is a lot of excitement surrounding the oil deal and the pipeline project and you will find that no one is looking at the losses the country will make as a result,”Abubaker Kawalya, MP Rubaga North.
Kawalya adds that the common man may not benefit from this oil deal. Uganda has no money to finance the oil deal and that means we will have to take loans. How long will it take us to repay those loans ?
Christine Kaaya ,Woman MP Kiboga District notes, “We want to quicken the process of oil mining in the country because the investment we are making is heavy and yet we are worried that the price of fuel worldwide is falling. We also need an oil refinery as Uganda.”
Lubwama Mukubabyasi, researcher says that most of the Ugandans involved in the oil project are military cadres and people with connections.
Meanwhile, Solomon Muyita, communications specialist from the Ministry of Energy says Uganda holds only 15% shares in Oil pipeline project, “At least 60,000 people will be employed as a result of the oil deal”