WHATS NEW :

Member engagement: Investment opportunities in the oil & gas sector

  • Private Sector Foundation Uganda
  • PSFU NEWS

MEMBER ENGAGEMENT ON THE INVESTMENT OPPORTUNITIES WITHIN THE OIL AND GAS VIRTUAL MEETING HELD ON 10TH FEBRUARY 2021

On 10th February 2021, a virtual meeting was held with members to share information on potential investment opportunities available in the oil & gas sector.

There were Sixty-Seven (67) participants from both the PSFU membership database and representatives from the Ministry of Local Government, Ministry of Trade, Industry and Commerce, Ministry of Gender, Labour and Social Development, Ministry of Tourism, Wildlife and Antiquities, Ministry of ICT and Sciences etc. 

Presentations from Uganda Chamber of Mines and Petroleum (UCMP) and Petroleum Authority of Uganda (PAU) were made mainly highlighting the oil geographical coverage of oil minerals in Uganda, Foreign Direct Investment to date, commercial plans available, field developments, key drivers of investment and available investment opportunities for most of the economic sectors of Uganda.

Uganda Chamber of Mines and Petroleum (UCMP) and Petroleum Authority of Uganda (PAU) presentation. 

  • Geographical coverage

Albertine Graben is the principal prospective areas for petroleum exploration with 21 oil and gas discoveries, 14 fields under development, 6.5 billion barrels of oil equivalent in place, 1.4 billion barrels recoverable, gas (non-associated) initially in place (GIIP) stands at 500 BCF, 40% of Albertine Graben has been explored; less than 15% is licensed. Other sedimentary basins in the country are under investigation; example Moroto-Kadam Basin 

  • Foreign Direct Investment to date

Investment in exploration and appraisal operations was over US$3.5 billion by the end of 2018, US$ 15 to 20 billion expected to be invested in the next 3 – 4 years. Massive opportunities for: Primary investors, e.g. exploration companies, Secondary investors, e.g. service companies (contractors), Tertiary investors, e.g. subcontractors. 

  • Commercial plans

Road to first oil –us $ 20 billion investments i.e. medium term include, upstream (pipelines, Central processing facility, base camps etc., Uganda refinery project of 60,000 bpd, east Africa crude oil pipeline of 190,000 bpd, support infrastructure i.e. airport, industrial parks, roads. Long term include development of petrochemical and energy based industry. 

  • Field development to 1st

450 wells planned to be drilled in the next 3-5 years, refinery development, pipeline development, support infrastructure i.e. Kabaale industrial park, road construction etc. 

  • Key drivers for investment highlighted included the following; 
  • Entering a Construction Phase for the next 3 to 5 years
  • 11,000 to 15,000 in camps being fed everyday
  • Over 100,000 people in the graben doing activities involved in oil and gas
  • Over 1m people moving within the Albertine Graben during the construction phase of the oil and gas projects.
  • Post Construction (25-year investment)
  • New exploration projects 2018-2024 • Necessary infrastructure in place like airport, Roads, Power
  • Infrastructure being put in place like the airport
  • Road network is being improved, approximately 700kms of tarmac road
  • Infrastructure being put in place will boost urbanization and therefore ensure investment in Agriculture is feasible.
  • Key areas for consideration include the 10 districts in Uganda traversed by the EACOP • Other key areas include Hoima, Biiso, Butiaba, Kabwoya, Buliisa, Masindi. 

Available opportunities in Engineering Procurement and Construction (EPC) phase to 1st oil were highlighted as indicated in the table below; 

No

Sector

Opportunities

1.       

Engineering

•      Civil Engineering and Design Services

•      Mechanical Engineering Services

•      Specialized Engineering Services

•      Drilling Equipment & Supplies

•      Manufacturing & Supplies (steel, pipes, metal basic structures)

•      Management & Technical maintenance Services (Engineering, plant, Surveys

•      Equipment maintenance: Generators, Pumps, etc.

•      Electrical Equipment (installation, repair & Maintenance)

•      Capital Equipment: industry Heavy Machinery

•      IT/Communication Services

•      Computer maintenance & System services

2.       

Construction

•      Construction Services (Building, earthworks, civil works, tunneling, piles, caissons etc.)

•      Construction Materials: Steel, basic structures

•      Construction Materials: Raw Materials (Cement, Gravel, Sand, etc.)

•      Demolition and site preparation

•      Building & facilities maintenance

•      General &Site Support Services (Catering, hospitality, maintenance, laundry, cleaning, waste Management; etc.)

•      Consumables for Site Support (food, water, office supplies, stationery, etc.)

•      Personnel Services:  Vocational, induction, Training & Health, Safety & Environment

•      Manpower/recruitment services

Consumables: Uniforms, Personal Safety Equipment

3.       

Logistics

•      Supply Chain Management Services

•      Freight forwarding, 

•      Customs,

•      Warehousing,

•      Transport of goods

•      Lifting Services

•      Vehicle Fleet Management

•      People Transportation,

•      Logistics in-country (Car, truck rentals and other vehicles)

•      Accommodation for Expatriates

•      Evacuation Services

•      In-country flight Services

4.       

Agriculture

·         Commercial agriculture

·         Agriculture machinery

·         Cold chain including storage and transportation

·         Food processing

5.       

Housing

·         Provision of low middle and high end housing

·         Construction/ provision of office space

·         Construction/ provision of warehousing facilities

6.       

Civil works

Supply of;

·         Earth moving and lifting equipment

·         Mechanical equipment

·         Electrical equipment

·         Firefighting equipment/ material

·         Piping equipment

·         ICT equipment

7.       

Health

·         Medical emergency response

·         Provision of in site clinics

·         Personnel medical insurance

·         Occupational health services

·         Medical supplies and logistics

·         Medical infrastructure services

·         Consultancy services for the development of health management systems, policies and procedures • Health Risk Assessments, gap analysis and planning of medical services • Medical Emergency Response Planning and management • Provision of onsite clinics, medical staff, equipment and supplies and road ambulances • Topside Support service- 24/7 medical support (on call) • Medical Assistance and Medical Evacuations

8.       

Other services

•      Energy: Fuel, Electricity, Generators

•      Environmental services

•      Financial & Risk Services: Banks, Insurance

•      Hazardous Waste Management

•      Health Services

•      Legal Services

•      Security Services

•      Consumables: Lubricants/Chemicals

•      Consumables, replacement Parts

•      Maintenance & Repairs

•      Site improvement Services (Gardening, landscaping, pest-control)

•      Goods: (wholesale Distribution/manufacture e.g. foodstuffs, stationery, drinking water, etc.

 

Services that have been ring-fenced for Ugandans under the legislation which presents a great opportunity for the local investors in the tertiary category include the following;

 

1.Transportation. 2. Security. 3. Foods and Beverages. 4. Hotel accommodation and Catering. 5. Human Resource Management. 6. Office supplies. 7. Fuel supply. 8. Land surveying. 9. Clearing and forwarding. 10. Crane hire. 11. Locally available construction materials. 12. Civil works. 13. Supply of locally available drilling and production materials. 14. Environment studies and impact assessment. 15. Communications and information technology services. 16. Waste management, where possible.

Standards presentation by Uganda National Bureau of Standards (UNBS)

The standards presentation included the importance of standards, current stock of standards with the thematic areas plus certification as detailed below; 

  • Introduction depending on the importance

Safeguard consumers and users of your products and services, provide a strong basis for regulation, helping save time and reduce barriers to trade, help businesses of any size and sector reduce costs, increase productivity and access new markets, build customer confidence that your products are safe, reliable and compatible, reduce costs across all aspects of the business and Product competitiveness. 

  • Current stock of standards

The Uganda Standards for Oil and Gas are 442 clustered in thematic areas i.e. UNBS/PAU jointly have further mapped other standards for supply of goods and services covering: tourism, catering, logistics, camping, pesticide control, waste management, construction and induced services, transport, land surveying, food and beverages, Hotel and accommodation, suppliers of construction materials, skilling and local content deficiencies or gaps  as well as Quality, Health, Safety, Security & Environment. The table below shows the thematic areas and number of standards.

 

No

Thematic areas

# of (No of standards)

        i.             

Petroleum and petrochemical products

193

      ii.             

Drilling, development and production

equipment and materials

74

 

    iii.             

Petroleum management and

occupational health and safety

(52)

 

     iv.             

Petroleum Distribution

65

       v.             

Petroleum transportation and refining

58

 

  • Certification

The type and definition of the needed certification that meets specific requirements were discussed as below;

 

  • System Certification: system that meets requirements of relevant standard and meets customer requirements.
  • Product certification: Assurance that the production process in place meets safety and quality requirements. e.g. mineral water, cement, textiles, food materials, safety ware.
  • Process certification: ensures safety of operations and safe and quality product – e.g. HACCP/GHP/GMP. It supports local product and export competitiveness.

 

 

4.0 Business reactions

 

Through a discussion on what is required, who and how members can benefit from the presented investment opportunities within the sector, the following highlights the reactions to the presentations done by UCMP, PAU and UNBS.

 

  • Members were informed that government re-fenced the legal element in the Local content i.e. good terms are provided for local suppliers.
  • Clarity on the definition of the what a regulated or registered Ugandan company is i.e. “Ugandan company” for purposes of section 125 of the Act and these Regulations means a company incorporated under the Companies Act, 2012 and which—
  • (a) provides value addition to Uganda;
  • (b) uses available local raw materials;
  • (c) employs at least 70% Ugandans; and
  • (d) is approved by the Authority under regulation 9(4). Thus a company to be considered as a Ugandan Company, has to be Incorporated in Uganda as per Companies Act 2012.
  • Members were informed that a company can be incorporated outside Uganda BUT registers here in Uganda either as a branch or a subsidiary.
  • Final Investment Decision will be finalized by end of this quarter i.e. commitment is needed to prepare the private sector.
  • Need to know the levels of financial institutions involvement in the preparation of the investment opportunities.
  • Need to share registration Information i.e. how members can register on the national suppliers’ database.
  • Need to carryout capacity building in terms of training i.e. time, volumes and standards to enable the business community to benefit from the opportunities.
  • Utilization and access of public land within the Albertine region through Public Private Partnerships.
  • Involvement of the local government to disseminate information.
  • Need to involvement of youths in the investment opportunities preparation process considering that the youth are innovation.
  • Guide on ways of negotiating the pricing of the goods/services i.e. fish supply.
  • Opportunities under the sector should be safeguard from politics.
  • How local businesses can observe environmental and social safeguard.
  • Need to upscale the level of sensitization of the citizenry on the subject to enhance their capabilities to tap into the available opportunities.
  • Clarification whether the local businesses supplying goods and services can be provided with a common pool to crowd fund for social investment activities for communities in the oil and gas affected region. 

Responses /recommendations 

  • Though Final Investment Decision commitment from investors ends in the next month, members need to understand how to prepare for the opportunities
  • PAU and PSFU to work together to disseminate registration of members to the National Suppliers’ Database.
  • Camp managers to handle the price of the supplies and quality of products through competitive bidding.
  • Cost recovery mechanism is that companies are given leeway to procure after approval of documents by PAU.
  • Local content fund to be considered in the local content bill.
  • Recommended that Uganda Development Bank to be part of the financing exercise.

More reading: https://www.monitor.co.ug/uganda/news/national/total-eacop-oil-deal-in-high-gear-after-call-for-bids-3304704

 

17.02.2021 - Consultative Grain stakeholders' meeting

  • Private Sector Foundation Uganda
  • PSFU NEWS

BRIEF ON THE CONSULTATIVE GRAIN STAKEHOLDER’S MEETING HELD ON 17TH FEB 2021

Ministry of Finance, Planning and Economic Development (MFPED) in partnership with the World Bank’s private sector arm, the IFC, organized a follow-up Stakeholder consultative meeting on the Grain Sector in Uganda on February 17, 2021.

PSFU led by the Executive Director, Mr. Gideon Badagawa & Director Policy, Advocacy & BDS, Mr. Stephen Asiimwe attended the follow-up Consultative Meeting which was aimed at articulating sector development requirements, discuss ongoing and planned support by the Government and the IFC/WB and agree to next steps to support the sector. Other members in attendance were representatives from Ministry of Finance, Ministry of Trade, Ministry of Agriculture, World Bank-IFC, Grain Council, among other stakeholders

The meeting discussion was around the key issues affecting the grain sector, ongoing and planned support by the government and IFC/WB to resolve the pending problems to the sector. It was noted that efforts have been made by the Government and other stakeholders to improve the grain sector through development of governing policies, improving storage facilities through the warehouse system and many others however these interventions need more enforcement to achieve a more efficient grain sector with effective players who will make Uganda grain more competitive.

Key recommendations shared to improve the sector included;

  • The government should develop SOPs that can be adopted by schools so that they are opened, to motivate purchases, thus improve the grain prices especially at the level of the farmers.
  • Enforcement of the standards at both local, regional and national level to ensure the grain meets the import and export standards.
  • Support the warehouse system and have it operate.
  • Improve market Access. Establish free market for all products across borders. Also developing a commodity exchange system.
  • Emphasis on the quality of grain should be enforced right from the initial stage of preparation of farming land, quality of seed/grain planted to the final product at the stage of selling it.
  • Improvement of the infrastructure to favor the grain sector. There is need to support the improvement of the infrastructure like the roads, electricity connectivity to be able to support the sector activities.

 

PSFU invites You to a scheduled information sharing Zoom meeting on guiding applicants on how to apply under START facility Call for Proposals.  The meeting will re-occur in 5 sessions starting this Friday Jan 08,2021 then Jan 22,Feb 05, Feb 19 and Mar 05,2021 from 10am to 12noon for all the 5 sessions respectively.

 

Topic: Scheduled Zoom Meeting - guiding members how to apply under START facility CfP3 & information sharing

Join Zoom Meeting:

https://zoom.us/j/97780131742?pwd=Tmh3alhDTDZuaG5xKzlOK3FHS2FxUT09

Meeting ID: 977 8013 1742

Passcode: CFP3

 

ABOUT START FACILITY

The Support to Agricultural Revitalization & Transformation (START) Facility is a blended finance facility providing a customized mix of business development services, project development and finance, structuring services, and financial products in the form of concessional and zero interest loans, technical assistance grants and partial credit guarantees. 

The START Facility is implemented by the United Nations Capital Development Fund in partnership with Private Sector Foundation Uganda and Uganda Development Bank Ltd. The START Facility is designed to support the implementation of the food security and nutrition component of the Development Initiative for Northern Uganda (DINU) programme by improving access to finance for Small & Medium Enterprises (SMEs) engaged in agricultural value addition in Northern Uganda.

3rd Call for proposals for START Facility

  • Private Sector Foundation Uganda
  • PSFU NEWS
  • Through CfP3, START Facility is inviting proposals for commercially viable investment projects focused on agro-processing / value addition including, not limited to. processing plants, post-harvest handling technologies, effective storage systems, digital technologies to handling agro-processing, storage and any other agricultural value addition projects.

    Priority will be given to enterprises engaged in apiary, cassava, coffee, groundnuts, livestock, rice, sesame, sorghum, soybean and vegetables value chain projects that contribute to economic empowerment of women and youth, contribute to development of refugee hosting areas and leverage the refugee potential for local development as well as to projects that aim at reducing environmental risks and ecological scarcities. Other agricultural value chains may also be considered.

  • Language of proposal: Proposals must be submitted in English via the online portal www.start.go.ug
  • Deadline for submission: The deadline for submission is 15th March 2021 12:00 midnight GMT+3 (Nairobi)

pdf Download Advert (1.50 MB)

document Download Information Note (77 KB)

Kampala, Tuesday, 8th December 2020 To address urgent, pandemic-related needs in the health care sector, The Private Sector Foundation Uganda (PSFU) in partnership with the Mastercard Foundation COVID-19 Recovery and Resilience Program is providing   more than 45,000 test kits, 1,000 medical beds, 1,000 medical mattresses, and 1,000 bed linen to the Ministry of Health. The provision of this equipment is intended to complement the Government of Uganda’s efforts to manage and curb the spread of COVID-19 in the country. Uganda, currently has more than 22,000 positive COVID-19 cases and has registered 206 COVID-19 related deaths, according to the online platform COVID HQ Africa (www.covidhqafrica.com).

“We hope that this contribution will support the increasing number of cases presenting at the hospitals, so that individuals receive the care and treatment they need at the various treatment centers,” Said Mr. Gideon Badagawa, Executive Director, PSFU.

 “Supporting efforts to safeguard public health amid the pandemic remains a top priority for the Mastercard Foundation COVID-19 Recovery and Resilience Program,” said Samuel Yalew Adela, Mastercard Foundation Country Head, Uganda. “Our collective work to enable the continuation of learning and the recovery of livelihoods is dependent on ensuring individuals are safe and healthy,” he added.

Alongside meeting emergency public health needs, the Mastercard Foundation Recovery and Resilience Program is working to ensure learning and businesses continue, economic recovery is supported, and innovation across sectors builds resilience within institutions, industries, and communities.

PSFU and the Mastercard Foundation are committed to supporting the Government of Uganda in its efforts in controlling the spread of COVID-19 in Uganda.

 

Ends.