







In the newest report of Oil Roads, which is expected to borrow funds for. The China Exim Bank is supposed to be provider of 85 % of the cost of the operation and building of the roads in these projects. I will only look into one of them, as I have previously looked at this significant one.
This is the Hoima-Butiaba-Wasenko Road. A project that was supposed to start in 2015 and was clocking in funds from the state budgets in 2017. Back in 2015, the road was estimated to cost $126m USD. Today, with the recent report, the same road is costing $179,538m USD. That is jump of nearly $50m in a five years time. In addition, of these bloated funds, 85 % of it will be loaned from China and the rest 15% covered by the Government of Uganda (GoU).
In 2017, this project was designated the China Communications Construction Company (CCCC), which signed a deal in January 2016. However, by the time of the report 2019, it is another Chinese Company who has the contract. This is Chongqing International Construction Corporation (CRC) Ltd. With the recent contract, the loans are clearly getting direct back to the Chinese, as their corporations are the ones with the contracts to build. A clever way of borrowing and then getting returns.
With this mind, we can see the changes, see over the years how the price has changed. If Members of Parliament was afraid of the price per kilometre in the past. They should be now. As the changes of price on the same project has changed significantly. There is no doubt, that the Chinese government are getting added loans on each of the packages in this deal. As this is just one of the roads in question.
This is 111km is now costing 659,921,964,460.17UGX in Ugandan terms or 659bn shillings and that equals to about 5,9bn shillings. Therefore, the prices has sky-rocketed and the price per kilometre is abnormal and extremely costly. The overpriced asphalt and the consultation is in absurd levels. The previosly estimated price for this road was about 444bn shillings. Therefore, we can see rising price between the years in both currencies. About 200bn shillings growth in 5 years.
To many cooks and too few ingredients. They are boiling soup on nails on this one. Wonder how this will end. As I felt in 2017, that the pricing of this particular road was a bit too much, but now they have just escalated it.
We can wonder whose eating, but someone is. We just don’t know who, because there been designated funds to build this one in the past and it has still not commenced. Surely, this road will be built, but at what point. However, with the added loans, the pressure should be on. Also, to secure the oil so it makes financial sense too. That the added value is there. It got to be. Because this project is over the top. This is the real OTT service, paid for by the Chinese and the tab is all taken by the Ugandans. Peace.





In the Republic now its official that the companies that was supposed to buy the stake and the licences to drill for oil from Tullow Oil have backed out. This means, that Total and CNOOC is not operating or willing to foot-the-bill that Tullow left behind.
This is all a play for guards, they all want the slice of the price, but don’t want to be taxed for it. They want tax-holidays for operating and extracting the oil, even as the incentives to build the oil pipeline to Tanga, Tanzania is put on hold. Since a big part of the Lake Albert Basin is still in question. Since, the Tullow Oil doesn’t want to deal with the taxes in question.
Tullow Oil have to back-pay taxes, which it lost in court. They are obliged to pay these, but want the other companies to foot-the-bill, since they will drill and exploit situation. The others gather that this has occurred before they did and that Tullow should pay it. That is why it’s a dead-lock. Because, none of the companies want to pay the taxes.
This is the infamous taxes, which led to the Presidential Handshake drama and wobbling defence of it. That made all the people and civil servants dance for a hot minute. Now, we are seeing the deadlock because of this one.
The state is allowed and should tax the ones whose operating in their territory. Without a question or without any hesitation. Because, they should be able to pay for your rights to be able to do business somewhere. However, here it’s a mismatch of the amounts gained in courts and the planned surrender of Tullow.
Tullow considered that their Farm-Down deal with Total and CNOOC would clear their old debts with the Republic. Instead, the other companies want its shares, but not its past invoices. Which is natural. Because, your paying for other peoples misfortune and cost of operating. That is simple math.
It is Tullow that has done business, who has been operating and whose been in charge of certain parts of Lake Albert Basin. They got to stay responsible. Now, they just looking like a shell-company wanting to be a tax-evasion corporation, who puts their costs on their trading partners.
Within that reason, its understandable that Total and CNOOC wants to have other options and other obligations, also pay their taxes and returns, if they start to drill on the licences previously kept by Tullow. But at this moment, the company think it can get the hook and crook.
Because the victory of the President Handshake isn’t a bargain, but a huge toll for the company. That is why it wish to push the envelope to someone else. This is not natural, but not without a consequence. That they are backing out and giving way. Instead of going into business on these sectors of Lake Albert.
The loss, is also the proposed earnings, the supposed development of the oil sector and the pipeline to Tanzania. As everything stops and shuts its operations. As the CNOOC is sacking employees and who knows what Total does too. Tullow might even do it too, until they find someone who wants to pay their bills. Because, from history they showing that they don’t want too.
The state one, what was theirs, but the companies doesn’t want to pay to play. They want tax-holidays and a free ride to the promised land. That doesn’t happen and therefore, the stalemate and yet another set-back for the oil development there. Peace.


Today, the agreement published between Tullow, Total and CNOOC made a Sale and Purchase Agreement (SPA) on Area 1 and Area 2 in the Lake Albert Basin in the Republic of Uganda. That deal was issued on the 30th August 2016.
Now, nearly three years later. Tullow Oil has now back-tracked and said the deal didn’t go through. Surely the SPA and the Joint Venture Agreement wasn’t settled properly. If not, then the press release of Tullow wouldn’t say this:
“Tullow Oil plc (“Tullow”) announces it has been informed that its farm-down to Total and CNOOC will terminate at the end of today, 29 August 2019, following the expiry of the Sale and Purchase Agreements (SPAs)” (…) “The termination of this transaction is a result of being unable to agree all aspects of the tax treatment of the transaction with the Government of Uganda which was a condition to completing the SPAs. While Tullow’s capital gains tax position had been agreed as per the Group’s disclosure in its 2018 Full Year Results, the Ugandan Revenue Authority and the Joint Venture Partners could not agree on the availability of tax relief for the consideration to be paid by Total and CNOOC as buyers” (…) “Tullow will now initiate a new sales process to reduce its 33.33% Operated stake in the Lake Albert project which has over 1.5 billion barrels of discovered recoverable resources and is expected to produce over 230,000 bopd at peak production” (Tullow Oil plc – ‘Termination of farm-down agreement with Total and CNOOC in Uganda’ 29.08.2019).
This deal fell through because the companies didn’t want to compensate each other for back-taxes or the taxation of the possible profits to the Government of Uganda. Something that was approved upon the Joint Venture Agreement in August 2016 with Total and CNOOC.
This shows how hard it is start-up and the issues by operating in Uganda. Even Tullow Oil plc is trying to figure this one out. It was only in January 2017, when the Total was supposed to buy the biggest part of operated stake of 21,5% from Tullow. Surely, with the announcement in 2018 and now in 2019. This has all backfired and stopped, because URA and the companies couldn’t agree on their fees.
That dispute is the one that was interconnected with the “Presidential Handshake” of 2017. As the 6 billions shillings was doled around to civil servants and high ranking officials, who secure the capital tax gain from Heritage/Tullow Oil, which was awarded in February 2015.
Therefore, Tullow has to now find new buyers for their USD $167m stake in the Lake Albert Basin. This would be the payment of the Capital Gain Taxes (Awarded $157 Million) to the Uganda Revenue Authority. Apparently, Total and CNOOC didn’t want to do that apparently.
So from August 2016 to August 2019, the three companies and URA couldn’t come to an agreement on Capital Tax Gain, which Tullow owe URA after losing their case in February 2015. This shows, that the big victory of the state in this matter. Is actually making it harder to find someone who can afford or see it feasible to drill for oil in Area 1 and Area 2.
This is how it seems and the two other companies didn’t want to pay for what Tullow did before them. Peace.



Wilfred Niwagaba MP is really gunning for replacing Vice-President Edward Ssekandi and also repeal the Prime Minister post of Dr. Rukahana Rugunda. Clearly, the MP has ideas and want another sort of governance put into stone or to be amended into law. As the Constitution would stipulate certain Executive and higher offices in the Republic. Like it does today with the VP and the PM, which the President shall appoint with the approval of the Parliament.
Niwagaba Independent MP are clearly that his trying to send a message, that is why Muhammad Kivumbi Muwanga (Democratic Party) and Betty Ocan Aol (Forum for Democratic Change). They have co-signed on this motion for leave for Niwagaba to finish the private bill to the parliament.
This is really a joint opposition bill and really trying to change the government by changing the constitution. This bill is also planning to find a legal ways of cutting down the size of the cabinet, because of how it has mushroomed under this President. Therefore, this is really directly attacking the NRM model of governance.
But, I will be fixated with is not the slimming of the cabinet nor the idea of how the cabinet members are picked/appointed. I feel it is more enriching to discuss the changes from VP to DP and repeal the PM.
Just look at vital parts of the amendment of the VP role into a DP!
“108. Deputy President,
(1)There shall be a Deputy President of Uganda.
(2)A candidate in a presidential election shall nominate a person who is
qualified for nomination for election as President, as a candidate for Deputy
President.”
(…)
“(14) The Deputy President shall-
(a) deputise for the President;
(b) be the Leader of Government Business in Parliament;
(c) be responsible for the coordination and implementation of Government
policies across Ministries , departments, and other public institutions
(d) perform such other functions as may be assigned to him or her by the
President, or as may be conferred on him or her this the Constitution.” (Constitutional (Amendment) 26th July 2019).
“13. Repeal of article 108A of the Constitution.
Article l08A of the Constitution is repealed” (Constitutional (Amendment), 26th July 2019).
If you have followed the VP and his life, his the most ceremonial public office in the Republic. Seemingly, his the face of the patronage and the laxity, since the President handles everything with his micromanaging. That is why the VP is mostly a busy body and someone that greets the President at functions or even at the Entebbe International Airport.
Surely with two roles submerged into one in away, that is what it seems by this constitutional amendment. That the possible changes would be an amplified VP and PM into a DP.
I don’t know what big difference this will do, as this role would be less ceremonial, but have actual powers. Also, being the safe-guard for the President and the one in his place. However, this is could have all been amplified with the VP himself. Alas, the Prime Minister is the one of most importance, as well, as the biggest budget with the projects underlining the OPM. This is why the repealing of this role would also affect everything being connected with the OPM.
Ssekandi should really defend his value, his importance and his ways. The VP should defend himself with a VP drive, ask for supplementary budget and maybe got on a VP Drive across the Republic. So, that people can see his face, know that he exists and even shake his hand. No, I am kidding with that part, but he needs to show his face value. Because, what has the VP done, except smiling on pictures at selected functions over the recent years?
VP Ssekandi might be a powerful man in the placement of the political order, but in practical sense. It seems like the OPM kicks him to the curb. The VP seems like useless position at this time and place. That is because his not giving enough daily remindings that his alive and kicking it.
That is why the opposition MPs are trying to revise the law. To get someone who has a real function and who does something while serving for the state. Not only getting the brown envelopes and going to funerals as the state official. There is clear need for something more and especially not only having the President doing this. Peace.