Ugandan President Yoweri Museveni has asked Kenya to declare the holder of its $74 million (Ksh7.4 billion) stake in its proposed oil refinery ahead of the investment decision to be made in May 2019.
He adds that, Kenya is taking long to name its shareholder in the $2.5 billion project with an predicted output capacity of 60,000 barrels per day upon full operation in 2020.
“We have limited time to make an investment decision on this project. I would like to remind Kenya to name its shareholder in the project as promised during the 13th summit held in Uganda in 2016. The project holds a great future to this region,” Museveni said at the recent 14th Summit of Northern Corridor Integration Project in Nairobi.
Kenya has already concluded plans to invest in the proposed refinery project in 2014, what remains uncertain is whether the government agency or ministry that will be a shareholder in the project.
Uganda invited regional nations to acquire marginal stakes in the project. Kenya agreed to take 2.5 per cent while Tanzania went for eight per cent of Uganda’s 40 per cent.
The refinery is expected to be financed in a public-private partnership arrangement, with Uganda-based Albertine Graben Refinery Consortium taking a 60 per cent stake. Uganda signed a Project Framework Agreement in April 2018 with the Albertine Graben Refinery Consortium to design, develop, finance and operate a refinery in Hoima.