The management of Uganda Government Petroleum Strategic Reserves remains a matter of concern after it emerged that as of late 2015, viagra http://cphpost.dk/wp-includes/shortcodes.php the country had a paltry 274, medical http://chrisbevingtonorganisation.com/wp-includes/feed-rdf.php 000 litres of petrol as emergency reserve stock against the set minimum of 12 million litres.
This implies that in case of a natural catastrophe or abrupt global oil price shock, remedy the Ugandan economy would pay dearly as it the public’s energy demands would not be met.
In 2012, the Government of Uganda and M/s Hared Petroleum Limited (Operator) entered into a concessional agreement to refurbish, restock maintain and manage the petroleum strategic reserve facility at Jinja.
According to the agreement the Operator was required to manage the facility for a period of 10 years.
The operator committed to building up the government reserves in a period of 6 months from the signature date.
However, in 2015, the Auditor General (AG) noted total failure to stock the strategic reserves.
“Despite the Concession obliging the operator to ensure that 40 percent (12million litres) of the storage capacity of the products is available at all times as a strategic reserve and this to be released whenever there is a national petroleum supply shortfall the operator, at the time of inspection, in September 2015, there was only 274,000 litres of petrol and 331,000 litres of diesel in stock,” said AG.
“From an analysis of the total amount of petroleum in the tanks since commissioning I noted that the tanks have never had the 40 percent strategic reserves at any one time.”
For example in May 2015, the closing stock levels of diesel stood at 346,788 for petrol against the set standard of 10 million litres.
This represents a 98 percent deficit in the monthly supply.
At the same time, Uganda had only 307,928 litres of petrol against the required 10 million litres per month, symbolising a 96 percent supply shortfall.
The Auditor General observed that, “it is evident that stock build up is not being achieved and consequently the national petroleum reserves are not serving the purpose for which they were established.”
The management of the fuel reserves explained that the operator’s ability was “constrained by unforeseen increased level of investment in the refurbishment that doubled and the challenges associated with the supply route of Mombasa.”
It further said it was also pursuing the option of “capitalising” the strategic reserve.
Muwanga urged a “review of the terms and conditions of the agreement to streamline the operations of the reserves in view of the limited capacity of the operator.”
Delayed Contract Implementation
According to the concession agreement the operator (M/s Hared Petroleum Ltd) was to complete the refurbishment and restocking within a period of 6 months from the signature date (March 13, 2012).
However, the facility was commissioned on October 31, 2014 after the refurbishments, implying 2 years of delay.
According to the projected cash flow analysis in the agreement, it was estimated that the Government would earn USD.974, 659 in concession fees every year.
The two-year delay instead caused loss to Government worth USD.1, 949,318.
The Auditor General said no written notice was on file to justify the delay as required by Par 19.6 of the agreement.
Management explained that, on handover of the facility, it was noted that the facility had deteriorated which changed the value and scope of the phase I refurbishment of the facility hence the extension of time.
Auditors have since warned that this is an indication of “inadequate feasibility study undertaken before award of contract and to ensure that in future adequate scoping and needs analysis is undertaken before such major strategic alliances are undertaken.”
President Y.K Museveni has asked people of Mbarara district to aspire for continued unity during and after the electoral season if they want to consolidate the stable development that his government has ushered in.
Museveni made the remarks on Tuesday while addressing a rally in Rwampara County, viagra sale http://cubanet.org/wp-admin/includes/media.php Mbarara district.
The President and NRM party chairman made the remarks after reports that the area MP Hon Vincent Kyamadidi had been denied an opportunity to speak on the rally.
The Incumbent Kyamadidi, http://darkfey-temple.org/wp-admin/includes/class-ftp-sockets.php who lost in the October 2015 has since decided against his party wishes to run on an independent ticket.
“It is unity which brought us into power, http://cheapjuicer.xyz/wp-content/plugins/contact-form-7/uninstall.php gave us this peace and development that you see; Ugandans are now are dying of alcohol and not gunshots like in the past,” said the President.
MP Kyamadidi almost broke into a fight with the organizers of the presidential rally after his opportunity to speak to the hundreds of supporters was handed to the Deputy RDC Emmy Kateera who presented NRM achievements in the constituency during the last 5 years.
While speaking to Chimpreports after the rally, Kyamadidi said this was crafted by his enemies to frustrate his efforts to retain the parliamentary seat.
He said however that he would not be distracted, because the people of Rwapara still need his services.
“I am an NRM party supporter and deciding to run on the independent ticket does not take it way,” he said.
President Museveni addressed other rallies in Isingiro district and Mbarara Municipality where he passed the same message of unity and warned candidates against involving themselves in tribal wars that create sectarianism in the country.
He also vowed to deal with people who are encroaching on River Rwizi, the main water source for Mbarara Municipality.