Ibrahim Kasita
26 October 2008
Kampala — THE Uganda commercial Transporters and owners' association (UCTOA) and other service providers are up in arms against the oil exploration companies for allegedly favouring foreign firms while giving out transportation and other contracts.
This follows the awarding of contract by Heritage to a Kenyan registered firm, TRABNSEAST Kenya, to do local transportation.
The Uganda Revenue Authority last week impounded five trucks belonging to firm in Packwach district.
Oil exploration activities in the oil-rich Albertine Graben in the Bunyoro region are being carried out by Heritage, Neptune, Tullow and Dominion.
The local businesspeople expecting to reap from the oil windfalls invested heavily in transport and other businesses. But UCTOAâ-àsaid last week the oil companies were giving most of the transportation deals meant for the local firms to foreign firms.
"We are concerned about foreign vehicles doing local transportation all over the country," the coordinator, Willy Busulwa, said.
"The business community wants the Government to stop this illegal practice so that local firms can flourish."
The Government has been urging local businesspeople to take advantage of the opportunities created by the oil exploration and production activities.
However, the local service providers are not happy that the exploration firms are flouting the laws with impunity.
The law bars foreign registered vehicles from doing local transportation business.
Busulwa said the Government should intervene before the situation gets out of hand.
"By prefering foreign companies over the local firms, the oil firms do not want Ugandans to benefit from the oil wealth," he said.
The discovery of oil and gas and the planned early oil production scheme set for next year, has caused anxiety and stimulated economic activities as local businesspeople prepare to benefit from the oil revenue.
The scheme intends to start producing 4,000-5,000 barrels of oil per day. A mini-refinery for diesel, kerosene and heavy-fuel oil for local consumption shall also be set up in the area.
the other infrastructure to set in the area include an 85MW heavy-oil thermal plant, a transmission line from Mputa to Fort-Portal and Nkenda and a power distribution network from Kaiso-Tonya to Hoima.
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