Uganda: South Sudan Traders’ Woes – Cabinet Sets Up Committee

Posted by murielle on

Government has set up a cabinet subcommittee to pursue the matter of Ugandan traders who supplied goods and services to the government of South Sudan but were not paid due to outbreak of war.

Frank Tumwebaze, the minister of ICT, Information and Communication said in a statement the subcommittee will comprise of the attorney general and the ministers of Finance, Trade and Industry, and Foreign Affairs.

Tumwebaze said cabinet during a sitting on August, 3, 2016 noted that many Ugandan exporters to South Sudan market were not paid due to instability.

“The ministries of finance and foreign affairs were directed by cabinet to establish with the government of South Sudan modalities for repatriation of proceeds of Ugandan companies held in commercial banks and also pursue government of South Sudan to expeditiously form a joint cooperation commission to arbitrate the pending claims of Ugandans against South Sudan,” Tumwebaze’s statement read in part.

Cabinet’s decision follows President Museveni’s remarks during a recent cabinet retreat at Kyankwanzi where he said firms that supplied goods and services to the South Sudan government and have not been paid should be bailed out.

LOANS

Cabinet also approved a loan request from the ministry of finance amounting to $71m to finance the power grid expansion and reinforcement project. The loan, to be provided by the World Bank shall benefit the districts of Gulu, Lira, Nebbi, Arua, Kole, Oyam and Nwoya.

However, in the meeting, cabinet deferred a loan request also presented by the ministry of finance on refugee-hosting areas support.

The loan amounting to $50m also from the World Bank is meant to finance and support the development response to displacement particularly targeting refugee hosting districts and communities.

Cabinet further resolved that any future borrowing or loans should never finance components of administration and capacity building.

“Loan amounts procured should only go to finance substantive activities of the loan objectives. In addition, cabinet added that loan beneficiary entities and ministry of finance, the contracting entity, should never procure or sign off any loan before all the preparatory activities are in place to avoid delayed implementation that results into financial penalties on unutilized loans,” he noted.

OIL PRODUCTION LICENSES

Meanwhile, the cabinet gave a green light to the minister of Energy and Mineral Development, Irene Muloni, to issue three petroleum production licenses to Total E&P UGANDA B.V over discoveries in exploration area 1 of the Albertine graben.

The production licenses to be issued are expected to run for 25 years, subject to renewal of an additional five years as provided for in the production sharing agreements (PSAs) and the Petroleum Act.

Uganda: South Sudan Traders’ Woes – Cabinet Sets Up Committee

Posted by murielle on

Government has set up a cabinet subcommittee to pursue the matter of Ugandan traders who supplied goods and services to the government of South Sudan but were not paid due to outbreak of war.

Frank Tumwebaze, the minister of ICT, Information and Communication said in a statement the subcommittee will comprise of the attorney general and the ministers of Finance, Trade and Industry, and Foreign Affairs.

Tumwebaze said cabinet during a sitting on August, 3, 2016 noted that many Ugandan exporters to South Sudan market were not paid due to instability.

“The ministries of finance and foreign affairs were directed by cabinet to establish with the government of South Sudan modalities for repatriation of proceeds of Ugandan companies held in commercial banks and also pursue government of South Sudan to expeditiously form a joint cooperation commission to arbitrate the pending claims of Ugandans against South Sudan,” Tumwebaze’s statement read in part.

Cabinet’s decision follows President Museveni’s remarks during a recent cabinet retreat at Kyankwanzi where he said firms that supplied goods and services to the South Sudan government and have not been paid should be bailed out.

LOANS

Cabinet also approved a loan request from the ministry of finance amounting to $71m to finance the power grid expansion and reinforcement project. The loan, to be provided by the World Bank shall benefit the districts of Gulu, Lira, Nebbi, Arua, Kole, Oyam and Nwoya.

However, in the meeting, cabinet deferred a loan request also presented by the ministry of finance on refugee-hosting areas support.

The loan amounting to $50m also from the World Bank is meant to finance and support the development response to displacement particularly targeting refugee hosting districts and communities.

Cabinet further resolved that any future borrowing or loans should never finance components of administration and capacity building.

“Loan amounts procured should only go to finance substantive activities of the loan objectives. In addition, cabinet added that loan beneficiary entities and ministry of finance, the contracting entity, should never procure or sign off any loan before all the preparatory activities are in place to avoid delayed implementation that results into financial penalties on unutilized loans,” he noted.

OIL PRODUCTION LICENSES

Meanwhile, the cabinet gave a green light to the minister of Energy and Mineral Development, Irene Muloni, to issue three petroleum production licenses to Total E&P UGANDA B.V over discoveries in exploration area 1 of the Albertine graben.

The production licenses to be issued are expected to run for 25 years, subject to renewal of an additional five years as provided for in the production sharing agreements (PSAs) and the Petroleum Act.