Sh70b set for oil refinery compensation exercise

By Robert Atuhairwe

The Government has earmarked sh70b for the compensation of people who will be displaced to pave way for the construction of an oil refinery in Kabaale parish, Buseruka sub-county in Hoima district.

Robert Kasande, the assistant commissioner in the energy ministry, said the Government was sourcing for a firm to carry out the resettlement exercise.

“That is not little money. The Government is looking for a consultant to implement the compensation process,” Kasande said.

He said they hoped to start the resettlement exercise in May and complete it later this year.

Kasande made the revelations while addressing local leaders at Kijungu Hill Hotel in Hoima about the progress of the refinery infrastructure development.

“The Government is committed to compensating all the affected people in a fair and transparent manner, that is why we are following all these processes,” he said.

Kasande said according to the resettlement action plan report, about 7,118 persons would be evicted from 13 villages.

According to Kasande, 98% of the residents preferred to be compensated, while 2% wanted resettlement.

He said those whose compensation exceeds sh100,000 would get their money via bank accounts.

For resettlement, he said, they would look for land and build houses and other social amenities like schools and hospitals, before relocating the people.

“There are proposals that for continuity of proper social set ups, these people should be resettled in Hoima and not far from Buseruka sub-county,” he argued.

 Kasande said after compensation, residents would be given a grace period to harvest their crops, before moving to their new homes.

“Those with permanent buildings will be allowed to remove their building materials from demolished structures,” he explained.

The refinery, which will be commissioned in 2017, according to Kasande, will enable value-addition to crude oil, while creating employment for the residents.

Over 29,000 hectares of land were earmarked for the construction of the refinery, according to a feasibility study conducted in 2010. The rest of the land will be used to set up infrastructure, including an airport, petrochemical industries, waste management plants and houses for the refinery workers.

The development comes after commercial deposits of oil and gas, which currently stands at 3.5 billion barrels, were discovered in the Albertine Graben.

Meanwhile, George Bagonza Tinkamanyire, the Hoima district chairperson, said there is need for the Government to come up with a communication strategy to counter false information by nongovernmental organisations operating in the area.

He said wrong information about the refinery and compensation had created anxiety among residents.