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Uganda: Lake Katwe Sale to Be Readvertised
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New Vision (Kampala)
23 April 2008
Posted to the web 24 April 2008
Kampala
THE tender for privatisation of the Lake Katwe Salt Project is to be re-advertised after getting unsatisfactory responses last year. The Privatisation Unit's (PU) spokesman, Jim Mugunga, said they want more responses.
Over 300 local artisans earn their living from collecting salt from the lake. The salt is worth over sh0.5b on the open market per year.
A United Nations Industrial Development Organisation paper says the project has assets worth $3.5m and its brine water deposits are the only source of salt in Uganda.
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"The lake bed is 0.8m thick and contains over 12 million tonnes of salt, varying in composition and depth. It has salt rocks that can sustain an industrial extraction plant with a production rate of seven tonnes of salt per hour for 34 years."
"At present, all salt approved for human consumption totalling 60,000 tonnes per year is imported from neighbouring countries. This is above the 40,000 tonnes expected to be produced by the project" the report says.
Mugunga said some of the companies, which responded to the previous advertisement wanted to use the lake as a source of raw materials for factories elsewhere.
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