The Independent Uganda: You get the Truth we Pay the Price
Uganda has in the past handed out oil contracts for highly sensitive areas in the Albertine Graben, including Murchison Falls National Park, on an ‘ad-hoc basis’ with little transparency or consultation with local communities, the statement adds.
“On a positive note, Uganda’s new petroleum law sets the stage for an ‘open, transparent and competitive’ bidding process which could help it secure good deals with reputable companies but key aspects of this law have not yet been implemented, and it potentially allows the minister with responsibility for petroleum to circumvent the bidding process and enter into direct negotiations in order to advance the state’s ‘participating interest.’
“The government does not appear to have published allocation regulations for the bidding round or a new model contract, key documents for any bids.”
“Furthermore, two key institutions responsible for managing the sector, the Petroleum Authority and the National Oil Company are not yet operational, making it unclear exactly how companies will be selected or even what will be in the contracts.”
There are now calls for the government to select prospecting companies based on their previous track record.
“Those with a history of corruption, criminality, human rights violations or weak environmental protection should be excluded from the bidding.”
“The government should also publish details of everyone behind the bids, including the ultimate owners of companies, so it is clear who will profit from future deals,” said Boden.
A recent Global Witness report entitled ‘A Good Deal Better?’ showed that while Uganda has secured a good financial deal in its existing oil contracts, these deals and Uganda’s current laws could leave people and the environment at risk.
