MinBane

Helt ute av sporet (Okumala ekigwo okulyaku kya okuziga)

Archive for the tag “Hailemariam Desalegn Boshe”

Opinion: Now that the World Bank has new priorities, they will most likely not loan to the pipelines in East Africa!

 

There is certain movements that will strike as more expensive for the East African Community (EAC). This being for the Government of Uganda (GoU) and the Government of Kenya (GoK), who has big plans of petroleum pipelines from their oil-fields and to the coast. That being from Turkana to Lamu Port. While the Ugandan oil goes from Hoima to Tanga Port in Tanzania. Both development and industrial projects will have issues with the funding. The World Bank has supported massive infrastructure projects in both countries.

Therefore, for the two counties big development and oil industry, this is giant set-back, since they have to find funding and loans for the pipelines on the open market. Even with higher interests and making the profits of it lesser, than it would have been with a World Bank loan. It would not hurt the pocket as much as it does on the open market. The banks wants more profits themselves and also make sure they are paid-in-full.

With all this in mind. There are speculations, but first. Parts of the self-answering service. Before we look at the reactions in Kenya and Uganda. All of are important, as the state is involved in the licensing and building the pipelines. They are directly into the development and procurement of the pipelines. That is why this is big blow for the administrations and their possible tax-profits on it.

Word Bank Q&A:

Q. How is “upstream” oil and gas defined?

Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas” (World Bank, 2017).

Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision” (World Bank, 2017).

Kenya Pipeline:

The announcement by the bank, which has significant interests in Kenya’s oil prospecting sector, does not bode well for the country’s anticipated entry into the club of oil producing nations beginning next year. Analysts said they do not expect an immediate reaction to the announcement even as they acknowledged that it takes the shine from oil in the long term” (…) “Locally, the World Bank is offering technical support to the Kenyan government, through the Kenya Petroleum Technical Assistance Project, to prime all stakeholders for commercial oil production and sale. The six-year programme is scheduled to run until February 2021 and involves the World Bank managing a Sh5.2 billion fund set up by investors from Germany, Norway and Britain. The World Bank’s private lending arm, International Finance Corporation, is however directly involved in Kenya’s oil fields, having a 6.83 per cent stake in Africa Oil, the Canadian exploration firm with interests in northern Kenya oil blocks” (Mutegi, 2017)

Uganda Pipeline:

The pipeline, is expected to be completed by the year 2020, when the country is scheduled to start oil production. In fact, Uganda’s President, Yoweri Museveni and his Tanzanian counterpart recently commissioned the construction of the East African Crude Oil Pipeline. The two leaders laid mark stones for the crude oil pipeline in Mutukula, Kyotera district and Kabaale in Hoima district. Total E&P Uganda, a subsidiary of French oil giant, Total S.A, is spearheading the construction of the crude oil pipeline on behalf of the joint venture partners. Adewale Fayemi, the general manager, Total E&P Uganda says discussions are ongoing to discuss on the formalities of how the pipeline will be run. Already, an agreement has been reached that the East African Crude Oil Pipeline (EACOP) will be run and managed by a Special Purpose Vehicle (SPV) – private pipeline company. This means that a private company will be incorporated with joint venture partners – Tullow Uganda, Cnooc Uganda Ltd and Total E&P Uganda, and the governments of Uganda and Tanzania as shareholders in the company” (Ssekika, 2017)

Certainly, this will put a strain on the projects. They have to deliver another type of arrangement to make sure they get funding and have the funds to pay the added interests the banks wants. The added points on the dollar and the interest-rates will hit state-owned firms and the state itself. Since the pipelines most likely becomes more expensive and will be less profitable.

That the World Bank is pulling out of these projects is all within line of the Paris Accord, as they have professed is the reason. Still, this will make these projects more expensive and make sure they are earning less on it. Unless, the crude-oil prices are going up to a level that makes these investments even more profitable. That is only for time to tell. Since it is costly projects and also sophisticated to build. There is needed lots of expertise combined state planning to achieve the development plans.

This is just the beginning, but the pipelines and these investments are vital for both Kenya and Uganda. As the governments are already borrowing state funds on the possible earnings from the oil reserves in their basins. Therefore, they need to drill and need the petrodollar as quickly as possible. Peace.

Reference:

Mutegi, Mugambi – ‘World Bank dims Turkana oil hopes’ (14.12.2017) link: http://www.nation.co.ke/business/World-Bank-dims-Turkana-oil-hopes/996-4227848-u02v8n/index.html

Ssekika, Edward – ‘East African Crude Oil Pipeline: The Inside Story’ (11.12.2017) link: http://www.oilinuganda.org/features/economy/east-african-crude-oil-pipeline-the-inside-story-details-emerge-of-how-the-crude-oil-pipeline-will-be-financed-managed.html

World Bank – ‘Q&A: The World Bank Group and Upstream Oil and Gas’ (12.12.2017) link: http://www.worldbank.org/en/topic/climatechange/brief/qa-the-world-bank-group-and-upstream-oil-and-gas

Advertisements

IGAD lnternal Memo: “Re: IGAD Special Mission to Somalia” (13.09.2017)

South Sudan: Entebbe Declaration on the Operationalization of the Arusha Agreement on the Reunification of the SPLM (27.07.2017)

South Sudan: SPLM/A-IO claims the TGoNU are “Forum Shopping” the Peace Process (27.07.2017)

UN in South Sudan concerned about civilians fleeing clashes in Upper Nile (13.07.2017)

Reports from the UN International Organization on Migration (IOM) “suggest that Government forces are now approaching the town of Maiwut, 25 kilometres north-west of Pagak”.

WASHINGTON D.C., United States of America, July 13, 2017 – Thousands of South Sudanese civilians are fleeing to neighbouring Ethiopia as Government troops advance on a rebel stronghold in the Upper Nile region, a senior United Nations official today said, expressing grave concern about what is already the world’s fastest growing refugee crisis.

Reports from the UN International Organization on Migration (IOM) “suggest that Government forces are now approaching the town of Maiwut, 25 kilometres north-west of Pagak. I’m gravely concerned by this ongoing situation,” the Special Representative of the Secretary-General in South Sudan, David Shearer, told reporters from Juba, the capital.

He added that while it is unclear which side began the fighting, the military advance by the South Sudan forces “is not in the spirit of the unilateral ceasefire” declared by the Government in May.

Mr. Shearer said there has been “active military engagement” over the past week north of Pagak, and at least 25 aid workers have relocated in the area as a result of the insecurity.

The senior UN official, who is also the head of the UN Mission in the country, or UNMISS, also voiced great concern about an orphanage near Torit, south of Juba, surrounded by Government and rebel fighters who are preparing to fight.

“It’s unacceptable that 250 innocent children, and the people who care for them, find themselves in no-man’s land between the warring parties,” Mr. Shearer stressed.

Requests by UNMISS to access the Hope for South Sudan Orphanage have been denied “locally, on the ground.”

The Government forces central command in Juba yesterday gave UNMISS “the go-ahead to send peacekeepers to the orphanage. I’m hopeful that will happen today,” he added.

Mr. Shearer urged both sides to reflect on President Salva Kiir’s Independence Day message of peace and withdraw from the facility.

In addition to accessing the orphanage, a group of Nepalese peacekeepers have been sent to protect civilians and the UN base in Torit.

“The number of patrols we can undertake in the town will increase with the additional peacekeepers. In turn, that should provide more security and boost confidence,” said Mr. Shearer.

He noted that his deputy, Moustapha Soumaré, is travelling to Torit tomorrow and will report back.

South Sudan: Maj. Gen. Saki James Palaoko resignation from SPLM-IO to join National Salvation Front (NAS) – (12.07.2017)

The Political Opposition Forces – “All-inclusive negotiations toward a new agreement are essential to sustainable peace in South Sudan” (11.07.2017)

 

 

UNISFA condemns recent attacks in Abyei (12.07.2017)

To date, Abyei has no police service system in place and there is no functioning joint local administrative structure.

ABYEI, South Sudan, July 12, 2017 – The United Nations Interim Security Force for Abyei (UNISFA) condemns all attacks perpetrated by unknown armed groups in Abyei Area which resulted in deaths and injuries of civilians.

UNISFA expresses its deepest condolences and sympathy to the family of the victims and vows to investigate swiftly the attacks with the Joint Peace Committee, the traditional leaders, as well as Sudan and South Sudan governments, and bring the perpetrators to justice.

UNISFA emphasizes its commitment to implement its mandate to secure Abyei Area and to protect civilians under imminent threat of physical violence, without prejudice to the responsibilities of the relevant authorities.

To date, Abyei has no police service system in place and there is no functioning joint local administrative structure. The absence of these systems has resulted in the increase of criminal cases.

The current influx of population in Abyei has contributed towards increased economic and social activities in the area. The unemployment among the youth is a cause of concern which also leads to manifestation of crime in various forms.

In light of the recent incidents, UNISFA has stepped up its security measures particularly in and around Amiet common market which is a vital economic hub for different tribal groups including Ngok Dinka and Misseriya. Most of the criminal incidents in recent months have taken place in the vicinity of the common market.

The last two months have seen an upsurge in cases of cattle-rustling, carjacking attempts and robbery/shooting incidents. In May, a grenade exploded in Amiet market resulting in injuries to some civilians.

UNISFA reaffirms that criminality in all its forms is a serious threat to the security situation in Abyei Area.

UNISFA urges all communities and groups to support the Mission in its efforts to maintain the degree of peace and stability that Abyei has been experiencing over the last two years. The criminal activities should not deter the significant progress made towards improving relations between the Messiriya and the Ngok Dinka communities.

UNHCR welcomes the support of the European Union for South Sudanese new arrivals in Sudan (10.07.2017)

GENEVA, Switzerland, July 10, 2017 – UNHCR’s Representative in Sudan, Noriko Yoshida, welcomed the contribution of EUR 3.1 million in humanitarian funds from the European Union (EU) for South Sudanese new arrivals in Sudan.

“We are seeing a great increase in the number of refugees coming across the border into Sudan, indicating that things are not getting better in South Sudan despite all our hopes for peace and security there. Support from the EU and others is heartily welcomed”, Yoshida said.

Nearly 160,000 South Sudanese refugees have newly arrived in Sudan in the first half of 2017. Yoshida expressed her gratitude to Sudan for its continued generosity hosting over 400,000 South Sudanese refugees since December 2013, and an estimated 350,000 South Sudanese remaining in Sudan following South Sudan’s secession.

Impressed by the generosity of ordinary Sudanese people who share very limited resources with South Sudanese refugees in dire need, Yoshida said UNHCR and its partners are seeking to scale up their assistance to host communities receiving refugees.

“More funding is needed so that we can meet the existing and growing needs of refugees and host communities. Support from EU and other donors will ensure we have the resources to meet immediate needs and put in place adequate services to improve the quality of the current response”.

EU humanitarian funding covers three states (White Nile, East and South Darfur states) out of five states which have been considerably affected by the influx of South Sudanese refugees. The funding is earmarked to registration activities, reception support and shelter and provision of basic household items.

EU humanitarian aid has previously supported UNHCR in the response and provided EUR 4.4 million in 2016 towards UNHCR’s efforts to respond to critical life-saving needs.

UNHCR and its partners have appealed through a Refugee Response Plan for USD 221 million in 2017 to assist refugees and host communities in Sudan. As of June 2017 less than 20% of the funds have been received.

South Sudan: National Salvation Front – “Independence Day Message” (09.07.2017)

Post Navigation

%d bloggers like this: