Gilbert Mwijuke and Miles Rwamiti
5 September 2008
Kampala — WHEN oil was discovered in Hoima district, the Government started planning for an 'Oil City'. The district local government was directed to urgently identify land near the oil drilling sites for the city. This was two years ago
"This area will soon become a beehive of activities. It is envisaged that within four years of oil production, a large city will have developed in this place. Therefore, this calls for planned development," the district LC5 Chairman, George Tinkamanyire, was quoted by The New Vision then.
Today, a visit to this vast plane - which stretches for as many kilometres up to the shores of Lake Albert - reveals that communities in this zone are already benefiting from the exploration process ahead of 2009, when commercial oil production is expected to begin. Up to eight exploration wells have so far been officially confirmed to have commercial deposits of oil.
Construction of access roads
Many access roads are currently under construction, courtesy of Tullow Oil Uganda Limited and Heritage Oil and Gas Limited, the two companies that were licensed to produce oil in western Uganda. More than 60km have so far been constructed, according to a source working with Tullow Oil.
These roads have helped open up this previously isolated and inaccessible area as some of the local businessmen here will attest. "We used to walk up to 24 km from here to Kabbale, where we would then get vehicles going to Hoima town. Those were very hard times for us," says Zabron Kaahwa, a businessman at Kaiso landing site.
But the situation has changed now. It is because of this, Kaahwa says, that the fish business is thriving. He says: "Fish dealers can now drive their trucks up to the landing site." The price of fish has, as a result, risen from sh1, 000 to 1,800 a kilo, Kaahwa says.
Reliable sources estimate the total cost of constructing access roads in the areas of Howa, Sebigoro, Kyehoro and Kaiso at about $1m. The road to Mbegu camp in Kaiso-Tonya alone cost up to $200,000, a source said.
Kyehoro's first maternity centre
When Tullow Oil began operations in the oil-drilling zone, one of the basic needs of the communities here was a health centre.
"The nearest health centre was in Buseruka, 45km away from here. So, many of us used to give birth with the help of traditional birth attendants like grandmothers," says Doreen Bukeesa, a resident of Kyehoro and one of the beneficiaries of Kyehoro Maternity Centre, which has been built by Tullow Oil Company.
A mother of two, Bukeesa says she had to travel 84km to Hoima Hospital (an equivalent of Kampala to Jinja) to give birth to her first born.
Kyehoro Maternity Centre offers free antenatal services and will soon be offering free voluntary HIV/AIDS counselling and testing, according to Leah Kugonza, a midwife at the centre. It started operating fully in May and has made up to 10 deliveries so far, Kugonza says.
The health centre is currently run by Tullow Oil, but will soon be handed over to the Government. Tullow Oil has also established the Malaria Prevention Project at the nearby village, Kaiso, which offers new mothers free mosquito nets.
Lake Rescue saves more lives
The National Lake Rescue Institute, in partnership with Tullow Oil Uganda Limited, has established the Kaiso Lake Rescue, which is charged with the rescue of victims of accidents on Lake Albert. "We have so far saved a total of 67 lives and retrieved 27 bodies," says Jacobs Okumu, the project coordinator.
This project has benefited both Ugandans and Congolese using the lake, Okumu says. It has also introduced life jackets to the communities around Lake Albert, which are sold to the locals at sh20, 000. "We sell them at a subsidised price because the cost of producing just one life jacket is sh30, 000," says Okumu.
But some residents say this project is not much of an advantage to them. "They have helped to rescue a few people, but I don't think they are that useful to our community. They are just doing their own business, just like any other person here," noted one fisherman and resident of Kaiso-Tonya.
Schools get more classrooms
As part of its Corporate social responsibility programmes, Tullow Oil has funded the construction of classroom blocks at various schools around the oil-drilling zone. Among the beneficiaries are Nkondo, Kyehoro and Kaiso Primary Schools.
Tullow Oil has also been providing these schools with scholastic materials, on a regular basis.
And the parents cannot hide their excitement. "The bigger classrooms have attracted more pupils to this school (Kyehoro Primary School) and our children now have more interest in the school than in the past; they are no longer forced to go to school as was the case," says Onesmus Isingoma, a parent. Isingoma adds that the classrooms now have better facilities.
Increased land value
Since oil was discovered in Hoima, there have been scattered claims of some powerful politicians and army generals rushing to manipulate ignorant Banyoro villagers and buy their land cheaply.
This has consequently pushed up prices of plots, especially around oil-drilling areas. According to Robert Mujuni, the Kaiso LC1 Secretary, land has more value today compared to three years ago.
"We used to have less land wrangles since we never had outsiders with much interest in it," Mujuni says. "Land of 50 to 100 square metres goes for between sh1m to sh2m, which is almost twice as much what it used to cost before.
But we have special considerations for people intending to start up big businesses like hotels because we expect such a project to provide employment for our people," Mujuni adds.
Economic activities
In a move to generate as much local goodwill as possible, Tullow Oil is involving the locals here in various economic activities. The most embraced is Tullow Oil's Bee Keeping Project, which has registered up to 500 farmers.
"We started this project last year with improving people's standards of living as our main goal," says Latib Kyomuhendo, Tullow Oil's Bee Consultant.
The project has improved the locals' lives, as one of the farmers, Irumba Asuman attests: "At first I just wanted to get a job, but those available couldn't suit my age since they required young strong men. So I was given the option of joining the beekeeping project and honey has since been my main source of income," he says.
Also, two boreholes have been dug at Kyehoro and Bugoma, providing clean water for communities that have often suffered the wrath of the deadly cholera disease after drinking unclean water from the lake. These boreholes are also a source of income for some locals who sell water to people in some neighbouring villages who cannot access clean water.
The other side
Everything has got a good and bad side, so they say. True to this saying, these communities in Hoima will also have to endure the disadvantages that come with the exploration of oil. If, for example, Hoima is made the base for oil refinery, the locals here will have to endure the hazardous gases, noise pollution and oil slicks among other effects.
Also, the Banyoro might have to cope with hordes of immigrants seeking employment opportunities when full-scale commercial oil production begins.
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