Karuma power project feasibility study ready

By Charles Ariko

A feasibility study and Environment Impact Assessment (UIA) for development of Karuma hydro-power project has been completed., a statement has said.

Daudi Migereko, the energy minister, said the ministry can now invite partners that will team up with the Government to construct the dam.

Migereko said the partners would be considered through competitive bidding.

While meeting the Honorary Consul of Serbia, Jovan Lantincic recently, he said the EIA and feasibility study were done by Norpak.

Energy state minister Simon D'Ujanga and other senior officials in the ministry attended the meeting at Amber House in Kampala recently.

Migereko said the feasibility study and EIA reports could be accessed from the ministry.

Lantincic said Serbian companies were interested in exploring investment opportunities in the power sector.

24.12.06

Uganda pushes for free market access to the EU

JOSEPH OLANYO

KAMPALA

Rukundo

Ministry of Tourism, Trade, and Industry officials are pushing for Zero-rated market access to the European Union. Mr Emmanuel Mutahunga, the Senior Principal Commercial Officer in the ministry says while currently 60 per cent of the European Union imports from Uganda are zero rated, securing a generalised market access that is not going to change is the way to go .

"What we are asking the EU is to give us duty and quota free access on products," Mutahunga said.
In his presentation during a public dialogue on the protection of Uganda 's interests in the East and Southern Africa-EU Economic Partnership Agreements (EPAs) negotiations at Hotel Equatoria on September 4, Mutahunga said Uganda is using EPAs as a springboard in entering the global market.

The dialogue was organised by Southern and Eastern African Trade Information and negotiations Institute.
EPAS are trade deals being negotiated between the European Union and African, Caribbean and Pacific (ACP) countries.

The negotiations leading to the Economic Partnership Agreements (EPA) were launched in Brussels on September 27, 2002 .

The fundamental principles and objectives of the Economic Partnership Agreements as defined by the Cotonou Agreement, are sustainable development of the ACP States, their smooth and gradual integration in the world market, and eradication of poverty.

The EU is Uganda 's preferential market in terms of exports. Issues being negotiated at the moment include among others market access and how to increase the flow of trade between the Common Market for East and Southern Africa (Comesa) and the European Union.

Uganda like other Least Developed Countries are saying the European Union should remove their domestic support and subsidies.

A Research Fellow with Advocates Coalition for Development and Environment, Mr Onesmus Mugyenyi, said the swiftness of African, Caribbean and Pacific states in starting negotiations has not been correspondingly manifested at the level of defining their negotiating interests and priorities.

"To ensure that Economic Partnership Agreements do not constitute mere trade liberalisation tool between African, Caribbean and Pacific and EU member states but rather advance poverty reduction in ACP countries, there is need for clear vision and precise agenda in determining their priority areas of negotiations," Mugyenyi said.

More dams will solve water shortage

By Patrick Jaramogi
THE construction of dams is the only sustainable way of ensuring water availability and reservation, the Minister of Water and Environment, Maria Mutagamba has said.
? African water managers don t take water issues seriously and this came up during the World Water Conference in Mexico early this year. We shall start looking at water resources more comprehensively startin g with Africa , she said during a press conference at the ministrys boardroom in Luzira last Tuesday.
Mutagamba said, ? People say dams are bad, but there is no developed country in the world without dams. We must create capacity for storage by building more dams. People don t have the idea of water reservation. When we turned off Gaba water works II for two just days recently, Kampala residents complained because they dont know how to reserve water, she added.
Mutagamba said Uganda will host the Africa River and Lake Basin Organisation Conference between October 19- 21 to address the water crisis in Africa . Mutagamba said it was not only Lake Victoria that was experiencing low water levels, but also lakes, Tanganyika , Chad and Bunyonyi. She said 96% of the water lost from lakes is by evaporation.
Ends

10.12.06

Mukasa finds self in woman

By Stephen Ssenkaaba

Women tend to form the core of many visual artists explorations. But what is it that many artists find so fascinating about exploring the woman? For many male artists, it is a way of gratifying their instinct; for women, it is a mea ns of reaching out to their innermost self; a sort of self-discovery and expression of deep-seated emotions.

Geoffrey Mukasa, one of the many painters with a well documented penchant for painting women, says, ? Life revolves around the woman. In her, I find myself. She is beautiful, strong and very central to our daily activities. This message comes out quite clearly in his ongoing one-month exhibition at Tulifanya Gallery, Hanington Road .

In different forms, he projects different women s figures, empha sising their natural features and social standing.

He depicts the human face as a symbol of individual thoughts and feelings. His message, presented with thick purple and blue glazes, vivid lines enhanced with African geometric patterns and symbols, reflects different moods. Some faces are sad, others radiate hope and many offer a haunting blank stare. ? That is how I see the world, Mukasa says.

He sees it as a blend of joy, sadness, despair and success.

He grieves for children, for their lost innocence and turbulent circumstance and yet celebrates their strength.

22.11.06

Museveni woos S. Africa investors

NEW PARTNERSHIP: (seated) Rwanda President Paul Kagame, Former Zambian President Kenneth Kaunda and Museveni pose for a photo with delegates at the African Business leaders - forum in South Africa on Wednesday

By Vision Reporter
PRESIDENT Yoweri museveni has invited South African investors to help transform Uganda from a third world peasant society to a first world industrial society.
The transition would lead to the expiry of peasantry society and catapult Uganda into new light.
A statement from State House said Museveni assured investors that the government would soon end all their frustrations as appropriate interventions are addressed.
Museveni was recently meeting the South African Chief Executive Officers (CEOs) of business concerns and other potential investors at the Sandton Convention Centre in Johannesburg .
In order to achieve the transition, Museveni said, the country needed to broaden the minimum economic recovery from the 180,000 registered companies that are mainly low investment, low technology and high return enterprises to medium and large scale investment.
He said the interventions were in the form of free serviced land or with low rent, low taxes or tax holidays, faster licensing and ready feasibility studies.
The statement said Museveni promised more electricity to boost investment.
He invited them to invest in the textile, mining, fruit processing, abattoir, power generation, floriculture, wood, fisheries and information communication technology industries.
Museveni told the CEOs of the success achieved in petroleum exploration and commended Ugandan geo-scientists for attracting petroleum drilling and production companies from America , Europe and Australia .
The chairman of Coca-Cola SABCO, Phillip Gutsche and MTN vice-president talked about their experiences in Uganda and the potential awaiting able investors.
Ends

18.11.06

Uganda wins wetland management award

By Apollo Mubiru
UGANDA has scooped an award for best African country in sustainable management of wetlands.
Environment minister Maria Mutagamba received the award from African Union representative Dr. Abou Bamba at a conference for the African ministers Council on Water (AMCOW) at Speke Resort Munyonyo on Thursday.
She handed over the award to the First Lady, Mrs. Janet Museveni, who p resided over the function.
Mutagamba said Uganda was the only country in Africa with a wetlands inspection division in addition to the 10 internationally recognised Ramsar sites.
She said Uganda was the only country in Africa which had hosted the Ramsar convention and the only country in Africa , which had held the presidency for the Ramsar convention. Uganda hosted the convention last year in August at Munyonyo.
? Our recognition on wetlands management was not by chance. There are a lot of things Uganda has done for sustainable management of wetlands, ¦ she said.
Mutagamba added that Uganda had good policies on wetlands compared to other African countries.
She said due to increased industrialisation, population and environmental degradation, water levels for lakes and rivers were falling, causing what she termed as water stress.
She cited Mali , where she said a bottle of water is more expensive than a bottle of whiskey. She attributed depreciation of lake levels to the rising temperatures as a result of global warming and evaporation.
German ambassador Dr. Alexander Muehlen said when one first comes to Uganda , the impression is that there is sufficient water for everybody.
Ends

8.11.06

Museveni explains oil, prosperity schemes

PRESIDENT'S INDEPENDENCE DAY SPEECH

I congratulate you all upon this 44th anniversary of Uganda's independence.

In the 2006 NRM manifesto we promised, among other things, to increase household incomes and to work towards the transformation of rural communities. At the same time, for the last 20 years, the NRM has been building capacity for oil exploration and also doing the actual exploration.

On this 44th anniversary of our independence, permit me to dwell on Bonna bagaggawale (Prosperity for all) and oil.

Our policy of Bonna bagaggawale is the core of the sub-county-based Economic Development Strategy which aims at ensuring that every household in the country has a minimum income that enables it to access basic needs: shelter, food, clothing, health, education and decent form of transport (bicycle, motorcycles or even a car).
Development strategy
In order to achieve the above objectives, we shall mobilise, train and generally empower households and communities to use scarce resources, such as land, to obtain maximum income returns. To this end, the government has conceived the sub-county model of economic development. Therefore, the following activities will be run at all sub-counties:

a. Create a community information system to collect data on household assets, income and community infrastructure. This information will enable us to advise categories of households to make the best use of the land resources available to them.

b. Improve productivity, marketing, processing, trade and competitiveness through cooperatives, other farmers' groups and associations as well as clusters of individual rural middle class farmers; this links up well with the zoning of the whole of the rural areas for purposes of specialization.
c. Improve community infrastructure, schools, hospitals, water, roads and transport.
d. Improve local standards of physical planning and development.
e. Increase access to rural financial services, including micro-finance.
All the 1,000 sub-counties of Uganda will be involved.

All the above activities are planned and budgeted for as part of the implementation of our sub-county development effort that is being undertaken this fiscal year. Training of sub-county chiefs to implement the community information system, organise savings and credit cooperative organizations (Saccos) and co-operative marketing organisations will start in the next few weeks.

The concept of Bonna bagaggawale is deeply rooted in the government's desire to increase access to credit to the vast majority of Ugandans. As we move forward in the struggle to make poverty history, we must appreciate that private sector-driven financial services available to the poor have been limited mainly due to the perceived high cost, risk and inconvenience. In spite of the high interest rates, which should come down, micro-finance institutions have done a bit to fill this breach.
Micro finance
Micro-finance institutions have somewhat revolutionalised lending to the poor; instead of requiring big collateral, they steadily reduced the risk through groups' guarantees. From the initial small loans advanced to test the ability to pay, borrowers have moved to bigger loans and I am happy that the rates of recovery in micro lending are very high.

The clients of these micro-finance institutions value credit very highly and the demand for it is high in spite of the current high interest rates. However, most of the customers for these high interest rate loans are those in trade rather than the ones in agriculture and artisanship. This gap will be addressed by the new approach of Saccos.

Apart from the micro-finance institutions, the other socially oriented financial institutions (SOFIs) include the Post Bank as well as the Saccos which I have already referred to. We believe that if we can strengthen pro-poor financial systems, we shall have built sound financial intermediaries that can mobilise and recycle domestic savings.
In order to implement this strategy, the government decided, last year, to support the development of, at least, one Sacco infrastructure at every sub-county.

We intend to strengthen the national finance infrastructure network by re-organising, restructuring and expanding the operations of the Post Bank countrywide to every district.

The Post Bank branch at every district will become the channel for delivery of government funds to Saccos as well as the mechanism for the control of these organisations.

This linkage between Post Bank and the organizations will improve the security of the savings of depositors and, therefore, their confidence. Post Bank has currently 20 branches in 12 districts. Our plan is to have, at least, one branch in every district in Uganda.

Fellow Ugandans, if we can increase commercial-oriented productivity on our bibanja-based agriculture, improve on the provision of credit, encourage savings, ensure processing, secure markets and improve infrastructure, we shall be on the way to the fulfillment of our dream of prosperity for all.

The USA and the EU have, for some years now, given us quota-free, tariff-free access to their huge markets for 6,500 products for the former and EBA (everything but arms) for the latter. Our ponderous system has not done much to take advantage of this. In respect of the rural transformation, the greatest challenge is to metamorphose from traditional or peripheral colonial agriculture to commercial-oriented agriculture using the small land units of the households most optimally to ensure highest returns.
Oil exploration
A lot of Ugandans are 'counting their chicks before the eggs are hatched'. We already have prophets of doom proclaiming oil a curse even before one barrel has been produced in our country. It is, therefore, necessary for the government to be heard on this potentially important resource to our country.

In February 1986, the NRM government was approached by a consortium of Shell and Exxon oil companies on the possibilities of an exploration agreement with them for the western rift valley. We declined to enter into an agreement with the Shell/Exxon consortium for the following reasons:-

i) There were no trained personnel in the country in the field of petroleum geo-sciences, petroleum negotiation skills, petroleum law or petroleum economics;
ii) The prospective areas were not demarcated and the licensing of the entire potentially rich oil region to one consortium would have resulted in a monopoly.
iii) There were no specialised institutions in the country with the necessary tools to evaluate and understand the country's petroleum potential.

In order to respond to the challenges of the potential that oil promised, an intensive training programme was launched in 1986, with two young professionals, already trained in mining geology and geophysics, being dispatched to Aberdeen University and Imperial College London, in the U.K, to study Petroleum Geology and Petroleum Geo-physics respectively, at masters degree level. Training in the fields of petroleum exploration, petroleum economics, petroleum law and petroleum engineering followed and today we have a team of 20 Ugandan professionals trained in the oil industry with Master of Science degrees in respective areas.

Following the first five years of intensive training, we used the next 16 years to achieve the following:
i) We now have a fully-fledged department of Petroleum Exploration and Production, equipped with survey equipment, computers and modern petroleum laboratories.
ii) Using our trained local professionals, a significant part of the western rift valley area was geologically mapped and surveyed. The area was sub-divided into five exploration areas ready for licensing. There was a further sub-division and today there are six exploration areas.
iii) We established the petroleum regulations (Exploration, Production and conduct of exploration operations) in 1993 to guide the exploration work.
iv) We embarked on an informed campaign to attract oil companies to undertake oil exploration in our country.
Arising out of the above efforts, we got a number of oil companies to acquire exploration rights as follows:-
i) 1997: Heritage Oil and Gas Ltd. of the United Kingdom was given a license in the Semliki and southern Lake Albert Basin (Exploration Area 3);
ii) 2001: Hardman Petroleum Africa (pty), a subsidiary of Hardman Resources Ltd. of Australia and Tullow Oil of Ireland were given the mother Lake Albert Basin (Exploration Area 2);
iii) 2004: Tullow Oil and Heritage were given a license for the exploration of the Pakwach Basin (Exploration Area 1);
iv) 2005: Neptune Petroleum (Low Tower Resources) of U.K. was given a license for the exploration of the Rhino-camp Basin (Exploration Area 5);
v) 2006: Dominion Oil of United Kingdom and Alpha Oil of Uganda have applied for a license to explore the Lakes Edward-George Basin (Exploration Area 4). The Government has accepted their application and negotiations with them will soon commence.

I am happy to report that petroleum exploration in the western rift valley is very much on course. So far, between our lead Investors - Heritage Oil and Gas of U.K, Hardman Petroleum Resources of Australia and Tullow Oil of Ireland, six deep exploration wells have been drilled, three in the Semuliki area and three in the Kaiso-Tonya area of Hoima district (Mputa I, Mputa II and Waraga I).

The latter three wells contain exploration oil. Petroleum geologists have determined that the Mputa and Waraga oil fields have volumes of between 100 and 300 million barrels of oil. Of that oil, at least, 30 million barrels can be recovered. In the Waraga field, a maximum of 12,050 barrels of oil can be produced per day and in the Mputa wells, 1200 barrels from each well can be produced per day.

The future for oil production is, therefore, extremely promising. The proven recoverable 30 million barrels is the commencement of a long journey. The Mputa and Waraga oil fields which have partially been explored represent only six per cent of Block II which, itself, is one of the six blocks of the whole Western Rift Valley oil system.

I am sure, all Ugandans wanted their oil produced 'yesterday and not tomorrow'. To that end, the government, together with our business partners (Tullow Oil, Hardman Petroleum Resource, Heritage Oil and Gas and Tower Resources), have developed a plan to fast track the production of oil in Uganda. This is known as the Early Oil Production Scheme. We are also coming up with a new Oil and Gas policy to address emerging challenges.

The early Oil Production Scheme will involve the following:
i ) Setting up a mini-refinery to process a moderate amount of crude oil to produce diesel, Kerosene and heavy oil.
ii) Developing a heavy fuel oil-based power plant for producing cheap electricity since we shall be using heavy oil instead of diesel; this heavy oil will, moreover, be our own, devoid of high transport costs, etc.

We shall, therefore, be able to produce oil-based electricity that is almost comparable to hydro-electricity at a cost of about six American cents per unit. This is a far cry from the present 24 American cents per unit of electricity using imported diesel without subsidies.
We are aiming at producing between 6,000 and 10,000 barrels of oil per day. At this level of production, the 30 million barrels of recovered oil from the Mputa and Waraga fields can last around 10 years.

At the moment, Uganda is consuming the equivalent of 10,313 barrels of oil per day and our import bill of petroleum product stands at US$443,312,640 per year. Much of this money will, therefore, stay here as soon as our refinery is commissioned.
Construction of the mini-refinery will commence in 2007 and commercial production will be attained in 2009.

In the next five years we shall concentrate on the drilling of more potential oil fields in both the northern and southern parts of the Lake Albert exploration areas and in the Pakwach Basin so that we can establish their petroleum potential as we have done at the Mputa and Waraga oil fields. Heritage Oil has already embarked on the drilling programme in the Buhuka areas (Kingfisher prospect) at the boarder of Hoima and Kibaale districts.
Oil and Gas policy
The existing petroleum exploration and development policy is largely based on capacity building and the promotion of exploration. This policy direction has served its mission and there is now a need for a new Oil and Gas policy. The government is, therefore, coming up with a new national Oil and Gas policy whose goal is "to create lasting value for the Ugandan people". The National Oil and Gas policy is designed to:

a. Ensure efficient and effective management of Uganda's oil and gas resources;
b. Encourage transparency in the management and operations of the industry;
c. Ensure that moneys from the Oil and Gas sector are properly managed and utilised to create new wealth;
d. Encourage early production after commercial discoveries;
e. Control production to encourage sustainability;
f. Encourage local participation in the Petroleum and Gas industry;
g. Ensure equity amongst the stakeholders;
h. Ensure conservation of the environment in the Oil producing areas.
Risky business
Oil can liberate us from poverty as it has liberated some of the oil producing countries around the world. However, it should be appreciated that the oil industry is very risky.
More often than not oil companies drill dry wells; it is capital intensive and requires sophisticated technology and returns are slow in coming. For example, it has taken us 20 years of very hard and focused work to hit the oil at Mputa and Waraga!

In anticipation of the oil bonanza, land speculators are working over time to position themselves near the oil wells to reap big in the near future. I, therefore, wish to assure Ugandans that our oil will be a blessing for all Ugandans. Equity will govern the oil industry and the government is on the lookout for those elements of our society that intend to turn our precious oil into a curse.

Uganda's oil will never be a curse but a blessing. We were able to start the war of liberation with 27 rifles and achieve so much. How can we fail to defend the oil wealth of Uganda?

In our long oil journey we have used our modest resources to build Ugandan expertise in the oil industry and to build institutions for the same industry. I, therefore, wish to pay tribute to our Ugandan professional staff for internalising the basics and specifics of a sophisticated industry. They are now the best Government unit in the world. We are ready to help other African countries if they wish to solicit for our technical know how in this field.

We are also very grateful to our business partners. I have already mentioned the investing of their money in such a risky and long term project. I wish to assure you of the support of the government and people of Uganda. You should be assured that your investments are safe.
Kony terrorists
Through the peace talks in Juba, we are trying to provide a soft landing to the Kony terrorists. I still hope that they will take this chance. In case, however, they do no do so, UPDF has got all the means to sustain and deepen the victories we had already achieved by July this year.

We had forced Kony and Otti to flee to Garamba, killed some of the most notorious killers, stopped abductions of civilians, stopped ambushes, stopped attacks on IDPs, rescued many abducted children and greatly degraded Kony's group.

If they now misuse this chance, we are ready to conclude this problem our way as we were on the point of doing by June, 2006. Nobody should panic. The IDPs are going home and nobody can reverse this, the events in Juba notwithstanding. The UPDF is guaranteeing this process.

The process of disarming the Karimojong cattle rustlers is also continuing and will be concluded. I wish every Ugandan a happy 44th Independence anniversary. Thank you very much.

5.11.06

Indian firms to set up $12 million fish investments

JUDE LUGGYA

KAMPALA

PLANS are underway for two Indian companies to set up multi - million dollar investments in Uganda 's fisheries sector. The State Minister for Fisheries, Mr Fred Mukisa told a press briefing on Friday that the government has already identified land where the investors would establish their factories.

He identified the investors as Ms Mashuli Gashmani India Limited, which intends to spend $8 million to set up a commercial prawn fish farm and Ms Angelique that intends to set up a $4 million (Shs7.3 b) turnkey aquaculture enterprise.

"These investments that are taking off early next year will be peasant based. On top of producing their own fish and seafood, the investors will buy fish from small holder commercial farmers and process it for export," Mukisa said.
Prawns are a popular seafood that can be raised in fresh waters. On the world market, a kilo of prawn goes at $15 (Shs27, 450).

The prawn fish farm, according to Mukisa, will be a joint venture between the Indian investor and and a Ugandan fish exporter.

He said commercial fish farming is the future of the fishing sector that has relied on capture fishing for a long time but failed to earn meaningfully from fish exports.
He said stock taking of medium and small-scale fish farmers is progressing to ascertain their number and capacity to supply the prospective investors.

"The farmers who would need support from government to improve their capacity will get it," he stressed.

He said the government through the Fisheries Development Project, has set aside Shs1 billion to assist medium scale fish farmers and Shs500 million towards small hold fish farmers.

1.11.06

Top investors of the year survey starts

DOROTHY NAKAWEESI

KAMPALA

THE search for the investor of the year 2006 has taken off, with the nomination of the a panel of five judges by the Uganda Investment Authority (UIA) to carry out the survey countrywide.

The event commonly known as the Investor of the Awards (INOY) 2006, which is in its 12th year, is scheduled to take place on November 17 at Hotel Africana's Nile Conference Hall.

President Yoweri Museveni is expected to be the chief guest. The competition is aimed at promoting competitiveness amongst the investors and results will be used to benchmark their performances.

Speaking at the launch of the survey at Investment House on Kampala Road on Thursday, the UIA Acting Executive Director Hajji Issa Mukasa said 35 investors had picked forms but only 23 would compete.

Finalists
The finalists are the investors who were licensed and started production between November 2005 and October 2006.
INOY organising committee Chairman Joel Byaruhanga, said in order to avoid bias in the competition, the panel of judges will have representatives from the Uganda Export Promotions Board, Federation of Uganda Employers, Private Sector Foundation of Uganda , Uganda National Council of Science and Technology and Uganda Journalists Association.

"All the projects that we licensed were good and in order to avoid bias we brought in representatives with a balanced view when accessing the competitors," Byaruhanga said.

27.10.06

More tourists expected to visit Uganda in 2006

DOROTHY NAKAWEESI

KAMPALA

THE number of people visiting Uganda is set to exceed its target of 600,000 for the year ending 2006, Tourism Uganda has said.

According to provisional figures released by the Uganda Bureau of Statistics (Ubos), about 335,630 incoming visitors were recorded in the first part of the year. Out of these, 105,838 arrived by air through Entebbe International Airport .

The latest Ubos release is good news for the tourism industry, which suffered an 8.7 percent dip in arrivals inv2005. Although the tourism segment recorded positive growth last year, overall arrivals for 2005 slipped by 8.7 per cent largely as a result of a sharp fall in visitors from Kenya and Tanzania.

Tourism Uganda 's General Manager, Mr James Bahinguza said there is a possibility that the tourism industry will exceed the figure of 467,700 arrivals recorded in 2005 and also exceed the target of 600,000 arrivals during 2006 with a significant margin.

18.09.06

12 TH INTERNATIONAL TRADE FAIR FOR TRAVEL AND TOURISM “OTDYKH-LEISURE” MOSCOW – 19 TH -22 ND SEPTEMBER 2006

Uganda will be participating in the Otdykh - Leisure exhibition in Moscow at the International Exhibition Centre “Crocus Expo” and will be represented by three Uganda Tour and Travel Operators. They include Crystal Travel Services Ltd, Edsa African Safaris and Tours , and Sterling Safaris. The National Planning Authority which plans for the development of the country is also being represented.

There will be a presentation with a theme” Uganda as a Unique Tourist Destination in the East African Region ” on 21 st September 2006 at 11:00am.

Come and visit Uganda Stand, and find out why you must visit Uganda , a Country Gifted by Nature.

12.09.06

UWA sets new tariffs

SALOME ALWENY
KAMPALA

The Uganda Wildlife Authority has set new tariffs for national parks and game reserves which take effect on August 1. Ugandans will continue paying Shs5, 000 for a one-day visit, Shs7, 500 for two days, and Shs10,000 for three days to any category A national parks.They are Murchison Falls, Queen Elizabeth, Bwindi Impenetrable, Rwenzori Mountains, Kibale, Mugahinga Gorilla, Lake Mburo and Kidepo Valley National Parks.
Entry fee for foreign tourists to the parks has increased from $20 per adult for one day to $25, while a two-day visit remains at $35. Foreign tourists wishing to stay for three or more days will pay $50 per adult.The fee for a gorilla-tracking permit has increased from $360 to $378 for foreign tourists, and from $340 to $355 for East African residents. The price for a gorilla permit remains at ShS100, 000 for Ugandans. Foreign tourists visiting category B protected areas will pay $20 for a one-day visit. Ugandan adults will pay Shs3,000. National parks and wildlife reserves in category B are Mt Elgon, Semiliki, Katonga Wildlife Reserve and Pian-Upe Wildlife Reserve

10.09.06

China 's new march

By Edris Kiggundu
WEEKLY OBSERVER

The 23 minutes that Chinese Premier, Wen Jiabao, spent at Entebbe last week before being whisked off to Kampala , partly tell the story why the Asian power has lately become the toast of African countries.

For starters, there were no overbearing Chinese security men kicking journalists out of his way as you would expect, say if a senior American leader visited. Neither did he appear pompous or in need of some special kind of treatment.

He was warm too. When he moved over to shake hands with the hundreds of Chinese citizens gathered at one corner of the airport, his host President Museveni looked baffled. The President, who was already making for his limousine, probably thought all Jiabao needed to do was wave at them.

Growing influence

Jiabao definitely knows that as China woos African countries to do business with it, a lot is going to depend on how it portrays itself, globally.

And African countries, wowed by China's impressive economic growth, and big market have only been too willing to embrace it-- Uganda being one of the latest additions to this chorus.

Jibao's two-day visit has already culminated in several trade deals between the two countries. Some of the agreements will see Uganda and China co-operate in the areas of trade, investment, agriculture, energy, telecommunications and agro-processing, among others.

For Uganda , whose economy has been punctured by a severe power crisis, and is thus anticipated to grow at a low 4.9% this financial year, the agreements will be more than welcome.

On the other hand, China , growing at 9.9%, will be out to consolidate its impressive economic growth and seek new markets for its industries on its way to becoming the world's leading economic power.

"The most important thing [for Uganda ] is to attract as many investments as possible," Fan Guijin, the Chinese Ambassador to Uganda , told The Weekly Observer.

Also, Guijin said, both countries are working out plans that will see two of China 's car manufacturers establish assembly plants in Uganda in the near future.

Jiefang and Noringo, the companies in question, are expected to create many jobs in addition to boosting Uganda 's industrial growth.

This rhymes perfectly well with Museveni's remarks on Budget Day when he said that Uganda would start assembling new omnibuses and pick-up trucks with the assistance of China .

Guijin estimates Chinese economic assistance to Uganda since independence to be over $100m.
This includes construction of Mandela National Stadium in the mid 1990s, which consumed an estimated $30 million.

Besides, there is a heavy presence of Chinese firms and traders in the country doing private business.
In June last year, Uganda's Charge d'Affaires in Beijing, Jack Wamanga, told The Weekly Observer that about 200 Chinese, most of them traders, come to Uganda monthly.

"Our products are cheap and reliable, that is why they have a big market," Guijin said.

Rocky ties?

However, the presence of Chinese traders and their growing influence has been a point of controversy in Uganda .

Local business people, angered by rising taxes, last year protested that Chinese businessmen were using unscrupulous means to gain a foothold in the Ugandan market.

And Guijin would not like to see Chinese traders embroiled in wrangles with local business people.
He said: "Competition is good but I have told them [the Chinese] I don't want to see you engaged in retail business. Retail business is for local traders."

On a wider scale, the US and other Western countries have been critical of China 's economic ambitions in Africa .

Particularly, they are not impressed that Beijing has established trade links with Sudan and Zimbabwe , countries, they say, with a "questionable human rights record."

Last week, visiting US Assistant Secretary for African Affairs, Jendayi Frazer, told journalists that China 's economic relationship with Africa should be based on principles set out by the African Union and NEPAD.

She said: "I think we all should participate and engage Africa through the principles established by the AU and NEPAD which clearly states a new way of doing business across the continent and I think it will be helpful if China and others engage accordingly."

Yet as China makes economic in-roads in African countries like Uganda , its guiding principle seems to be: "Where there are economic prospects, there is a way."

ekiggundu@ugandaobserver.com

Russia's leading Energy Company, techhnopromexport, has asked the government to explore the use of gas in the production of electricity, writes Emmy Olaki.

Sergey V. Molozhavy, the general director, told energy state minister Simon D'Ujanga that a gas electricity station would solve Uganda's energy crisis in a shorter time, yet with sufficient quantities of power.

“Compressed gas takes a shorter time than hydro electricity, coal or any other power station to build. It is cheaper and environmentally friendly,” he said.

Molozhavy is leading a delegation from Russia, including some of Russia's best engineers, to look at potential sites for power construction.

The delegation was brought by Uganda's ambassador to Russia, Sam Sekajja.

5.08.06

Malaysian firm eyes Kalagala power project

A MALAYSIAN power firm, Virtual Peaks Resources, wants to construct and generate about 350MW at Kalagala Hydropower Project as an independent power producer (IPP).
The firm is a joint venture between Ranhill BHD and Perspec Prime BHD based in Kuala Lumpur.
The proposed local company will be called Kalagala Hydro Power Pte Limited.
The directors are Abu Talib Abdul Rahman, Dato' Hashimudin and Dato' Abdul Kadir, all Malaysians.
Kalagala site is located in Mukono at the downstream of the Owen Falls Dam close to Jinja.
The power firm intends to develop the site on Build, Own, Operate and Transfer (BOOT) basis.
It has applied to the Electricity Regulatory Authority (ERA) for permission to carryout feasibility studies.

ERA last week confirmed receipt of a “Notice of Intention to develop Kalagala Hydro site” in a media advert.
“M/S Virtual Peaks Resources SDN BHD has applied to obtain authorisation and permission of the authority to carryout feasibility studies,” read the advert in part.
“Copies of the notice from Virtual Peaks Resources SDN BHD are available for inspection during working hours at ERA House Plot 15 Shimoni Road, Nakasero-Kampala and at the LCV Chairman's office Mukono District Headquarters,” the advert added.

Copies of Notice of Intention submitted by Virtual Resources to ERA indicated that the ultimate installed capacity at Kalagala project would be in excess of 300MW to 350MW.

It said the overall construction time will be four years and the first unit is expected to enter into commercial operation 36 months after the start of construction. The power firm is also required to seek consent from NEMA for the Environmental Impact Assessment, Directorate of Water Development for a water permit, an investment licence from Uganda Investment Authority and the Ripporian Consent from the Riporian States.

Virtual Peaks Resources is required to submit technical, financing and commercial proposals specifying a reasonable generation tariff at the grid connection.

By Ibrahim Kasita

Uganda praised for debt relief usage

UGANDA has been named among four African countries that have effectively utilised their debt relief savings by multi-lateral donor agencies, a new report has indicated.

"Uganda used the bulk of debt relief savings to fund Universal Primary Education, doubling the school enrolment rate to 94%, which has contributed to Uganda's remarkable decline in HIV rates," reads the Debt, Aids, Trade, Africa (DATA) report.

The report, launched on June 29, has praised Uganda for channelling the debt relief savings towards the water and sanitation sector. The other countries named are Tanzania, Mozambique and Cameroon.
DATA, a UK-based organisation, monitors, examines and analyses the G8's promises to Africa.

The 2006 report was the first after the G8 meeting in Gleneagles, Scotland in July 2005. At the meeting, the G8, which comprises the UK, USA, Japan, Italy, Germany, Canada and France, set promises to help end extreme poverty in Africa.

GRACE NATABAALO

KAMPALA

WTO is hostile to Africa's development

I have closely followed the developments of the ongoing World Trade Organisation WTO negotiations on world trade since their first meeting in 1995 until the Hong Kong round in December 2005.

In all the past WTO meetings namely; the Doha round of 2001, the Cancun of 2003 and the last one in Hong Kong, poor countries have expressed their dissatisfaction that their economic interests have been ignored and that rich nations are focused to gaining from the trade negotiations at the expense of poorer nations.

There are two issues that I have observed and want to remind the African negotiators of before they decide on the best negotiating terms.
services.
Second, these rich nations are using the WTO to achieve legitimacy to control the world's poor countries.

The methods used to achieve their goals are that the rich and industrialised countries continue to maintain their trade advantage and protectionism but pressurise Africa to further privatize and liberalise their industrial and service sectors.

WTO BOSS: Mr Pascal Lamy
The pressure on developing countries is intended to push for total opening up of these sectors for foreign purchase and to reduce Africa's ability to protect their diverse interests.

Therefore for Africa to benefit from international trade, first, at the moment African negotiators should stop getting involved in WTO negotiations and embark on research to find the extent to which the US and EU are able to compromise their pre-planned positions.

Otherwise, like the rich nations, Africans want their interest to be central in the outcomes of the negotiations. It is impossible for all parties involved in the trade negotiations to have their interests considered as they desire instead the negotiating countries (rich and poor) should agree on a give and take position.

Second, as it were, the ground for negotiations is unbalanced for Africa because most of the African nations cannot even afford to facilitate their negotiators at the WTO center in Geneva where the negotiations are usually held.

Therefore Africans should stop negotiating as individual countries but as trading blocks so that it becomes easier to facilitate few competent negotiators.
However, sending trading block/regional representatives, though they may be competent, may face problems because the negotiators may become biased in favour of their countries and fail to represent the interests of other countries in the trade block.

Third, Africans must work against and stop the US and EU's divide and conquer strategy, which has dogged African unity, and resolve in the ongoing negotiations.

In their development strategy, which has been dubbed "the empty package", some poor nations have been basically cash bribed to accept the outcomes of the negotiations.

In fact, this divide and conquer package of several billions in development aid is difficult to resist for cash strapped small economies. Sources show that the aid package is intended to assist poor countries to rewrite their laws to conform to the WTO agreements.

Indeed aid has been the major tool used to compel developing countries to privatize services intended to improve the standard of living of the masses.
Developing countries have liberalised their health care, education and postal systems and have privatised state owned enterprises including electricity distribution, telecommunication and transportation enterprises.

It is evident that the WTO is gradually deepening and widening foreign multinational control of the activities that determine our daily lives and intends to make that control permanent.

Fourth, further training of negotiators is necessary to help them fully understand the meaning and intentions behind the WTO agreements and international trade regulations. Training should enable exposure of African negotiators through visits to advance countries to under study their improved trade systems.

It will then be possible to correctly interpret the WTO agreements and find loopholes in the international trade regulations that can be exploited by Africa.
Given that the EU and US have channeled enough resources through the WTO to achieve their goals using any means, one cannot advise African countries to completely pull out of the WTO negotiations because any boycott may result into self imposed sanctions.

Africa is economic impoverished and not self reliant by any standard, so it is important that Africa trade ministers negotiate on a give and take position for a better Africa with deep concern for the interests of the African people.

Ssombwe Ronald

KAMPALA

Oil levels now hit 10,000 barrel mark

ELIAS BIRYABAREMA

KAMPALA