President Museveni addresses Parliament on oil

Feb 10, 2012

Ugandan President Museveni has defended oil exploration deals the Govt has signed with various companies but Parliament demands that Govt holds signing of other agreements.

BY APOLLO MUBIRU 

2:30 Museveni takes to the floor of the House to address MPs. He started by appealing to the MPs not to disturb the guest (himself)

While in Kasese, I made two points that NRM fought a resistance war without a reliable source of arm. He said they lacked food, clothes, etc but solved those problems systematically.

He said when they came to power, they used the NRC to solve the then existing problems ie control of foreign exchange, liberalization policy, reduction of civil servants, Infrastructure development etc

He regretted the external interference that delayed the professionalism of the army. He said both internal indiscipline and external pressure retarded development. He said many mistakes were made when army was reduced in numbers.

He said however that the strategic mistake was cured. Moving to energy sector, he said proposed for the energy fund after internal sabotage. President Museveni said his government moved to kick start the Bujagali hydro power project.

No power cuts
He said Uganda was determined to go with Bujagali even if it had not got external funding. We shall not have loading shading for three years because the project will address the power deficit. “It means that we have to move first to construct other damS.” Museveni said

Load shedding came back because of the problems which we now want solved by construction of evacuation and distribution lines. To deal with electricity you deal with feasibility study, tendering and look for the money to build the damS and also to look for the money for power lines.

But now because of our energy money, we deal with these problems ourselves. He said a number of sub power stations like Mpanga have been put in place.

All these projects have been done using our money; therefore today we are emerging from the two strategic mistakes that were imposed on us. When we had the oil debate earlier on in parliament, you were about to involve in a new strategic mistake.
 
NRM caucus rescinds decision
You made those decisions, we went to Kyankawanzi and NRM caucus said no, we cannot go by those mistakes.  It was good that we did not get to those mistakes. “Let me again take you this oil story.  I got involve in oil story in 1986.

Some two men came and met me in State House and wanted to enter agreement with us and I told them to go away and give me time to consult,” he said.

He said after making a strategy I sent some people to study and got masters in oil. He said he has now people with the relevant knowledge in oil.

My decision to send our people for education came in handy because our scientists proceeded on their own to do the surveys without the help of foreigners. 

Scientists at work

He said Ugandans scientists confirmed that there was oil contrary to earlier reports that our oil had evaporated.  

In all the initial stages, three stages were done by our scientists.  “We therefore must salute our scientist who did all this good work, “he said. I almost panicked when I was approached about oil.

The exploration will be done through competitive bidding and those who want to bid will do so when the time comes. “We have been telling them to wait for the law,” he said.  

Some people have been trying to tell me that refineries do not make money. We had a seminar in Munyonyo and everybody was lecturing and I could not be convinced.

Our people hired a group and it was discovered that they make money yet we were discouraged to build one. In other words a pipeline would be less profitable than refinery. The idea here was that the oil country does not have money or not willing to risk it in the production. They should take time to study what small and humble people can do.

In our case, out of the four stages, oil companies came to do one. We are very knowledgeable people.

Oil money for infrastructure development

Now that it is confirmed that we have oil, we shall be able to negotiate for higher shares from it. We had made reasonable agreements in 2001, whereas the recent agreements are much better.   

We are now able to do our projects without begging for funds elsewhere. Where shall now finish Karuma dam. We shall propose that oil money be used to build durable capacities because it will dry out one day like any other resource does. Oil money should be used for development power generation and other critical infrastructure, develop bio gas.

Now that we have security, enough power, educated human resource, oil and the money to transform Uganda, I therefore call upon NRM leaders and other shareholders to work together for the development of Uganda.

Details of the President's address in the New Vision newspaper
 

 

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