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Minister Kitutu Roots For Local Suppliers In Oil & Gas Sector

Dr. Mary Gorreti Kitutu (pictured above), the Minister of Energy and Mineral Development has re-echoed the need to have local Ugandan Companies awarded contracts in the Oil and Gas Sector ahead of their foreign counterparts.

Dr. Kitutu made the remarks while officially opening the two-day 2nd National Content Conference organised by the Petroleum Authority of Uganda (PAU) at the Kampala Serena Hotel.

“Just like you have heard other leaders root for their countries first, Ugandan Companies should be considered first in every contract awarded in the Oil and Gas Sector. Uganda should come first in everything,” stressed the Minister.

Dr. Kitutu also pointed out that the Minerals, Oil and Gas sector has been prioritized among the sectors with the greatest multiplier effect on the economy as detailed in the National Development Plan III. The other sectors include tourism, agriculture, infrastructure and human capital development.

“In line with the goal of the National Oil and Gas Policy for Uganda of  using  the country’s oil and gas resources to contribute to early achievement of poverty eradication and to create lasting value to society, cross-sectoral linkages is considered a key component in the management of the sector that will bring inclusive growth,” said Dr. Kitutu.

Dr. Kitutu also revealed that her Ministry as the lead agency in the development of National Content has established a multi-sectorial Local Content Steering Committee responsible for overseeing the implementation of the Local Content Policy. The private sector is represented on the committee through the Association of Uganda Oil and Gas Service Providers.

“Government is reviewing the principles for the establishment of the Local Content Fund which is meant to provide Ugandan businesses with affordable financing. All the required consultations will be undertaken during the establishment of the fund,” said Dr. Kitutu.

 Ernest Rubondo, the Executive Director at the PAU noted that the first National Content Conference held last year documented the progress made in National Content in the oil and gas sector and made recommendations on how to enhance national content in the sector.

Ernest Rubondo, the ED at PAU delivering his opening remarks at the Conference

“The takeaways from last year’s conference which have continued to be taken forward are ; supporting of enterprise development and building competitiveness, increasing of value retention in the aspects of procurement, and planning for certification and accreditation of training institutions in collaboration with Ministry of Education andSports,”he said.

This year’s National Content Conference sought to enhance the agenda of going with others with the theme “Linkages between Oil and Gas and Other Sectors of Uganda’s Economy: Opportunities and Challenges.

The implementation of the linkages between the oil and gas sector and the other sectors of the economy can be categorized into those which were defined and are currently under implementation, those that are being defined, and those yet to be described.

Linkages under implementation include; land use planning, which was commenced in 2011, security, education and skills development, transportation and infrastructure. Linkages under definition include; tourism, health, housing, agriculture, financing and fiscal systems, and linkages yet to be described includediplomacy, and industry.

In his closing remarks, Robert Kasande, the Permanent Secretary for the Ministry of Energy and Mineral Development in a speech read by Mr. Rubondo said the Conference has been able to discuss the various linkages between the seven sectors of Agriculture, Education, Health, Infrastructure and Transport, Land use planning, Tourism, and Financing. Opportunities and challenges highlighted, participants urged to confidently take up these opportunities and collaboratively work towards addressing the challenges. Kasande also noted that much as it had been noted that several interventions hadbeen undertaken by both government and private sector, a lot more effort was needed as highlighted in the way forward.

The PAU was congratulated for successfully holding the second National Content Conference and hoped that next year they have even a better event than this year with more topical discussions.

Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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