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FID for USD4.5 Billion EA Energy Security & Transition project in Uganda confirmed for 2023

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FID for USD4.5 Billion EA Energy Security & Transition project in Uganda confirmed for 2023

U.S. group Albertine Graben Energy Consortium Partners (AGEC) has agreed with the Government of Uganda that the Final Investment Decision (FID) for the estimated US $4.5 billion East African Energy Security Transition Investment project will be taken in 2023. 

The Government of Uganda’s delegation was led by His Excellency President Yoweri Museveni and AGEC Representatives were led by Rajakumari Jandhyala- President and CEO of YAATRA Africa and included Presidents and Chief Executive Officers of Africa Finance Corporation (AFC), Eastern and Southern Trade and Development Bank (TDB), Honeywell, Baker Hughes.

The East Africa Energy Security and Transition Project is an estimated US$ 4.5 billion energy project that will add value to natural resources supplied by Uganda’s domestic oil resources in order to establish a regional energy facility producing finished fuels and associated storage, product transportation pipeline and market distribution infrastructure.  It is being developed and financed as a joint venture (JV) between the Government of Uganda with its East Africa partners and AGEC with its private sector partners.  The project brings together US private sector companies, African vision, leadership and capacity with global experts and investment partners for the implementation of strategic economic investment for the benefit of Uganda and the East Africa region.

The Final Investment Decision is the confirmation by all investors in the deal of their commitment under a shareholders’ agreement to invest equity. It is based on concluding the ongoing talks to, amongst other things, ensure committed feedstock from the Government of Uganda’s Upstream Joint Venture Partners (Total Energies, CNOOC, UNOC) and Implementation Agreements with the Government, as well as key ongoing work required for establishing operations of a commercially viable energy company receiving financing via capital markets.

The project supports import substitution policy by establishing a production facility to support the domestic regional fuel market. It also assists the introduction and adoption of LPG at the household level, given nearly 90% of households rely on charcoal, supporting the Government of Uganda’s Nationally Determined Contributions committed within the Paris Agreement.  The project will also supply fuel to support regional industries including transportation, aviation, agriculture, and manufacturing. It will be a critical contribution towards energy security, the alleviation of poverty, and the creation of approximately 40,000 direct and indirect jobs during its lifetime.

Commenting on the deal, President and Chief Executive Officer of Africa Finance Corporation, Mr Samaila Zubairu stated:

“AFC is one of the early-stage investors and is committed to investing and supporting the mobilization of capital from partners for this economically transformative project in Uganda and the East Africa region. This project supports sustainable industrialisation, provides employment to one of the youngest populations on the planet and helps achieve a more equitable energy transition in Africa.”

Highlighting its leadership role in the region, Eastern and Southern Africa Trade and Development Bank (TDB Group) President & MD stated:  

“TDB, we have a duty to support downstream regional energy security projects such as this which will reduce carbon emissions through smart US technologies and less carbon-intensive logistics as well as reduce the current harmful reliance on charcoal and chopped wood for household cooking. It will also enable the east Africa region to pool investments, industrialize and enhance trade while conserving scarce foreign exchange which can be diverted to investment in health and agricultural sectors”

Ugandan President Yoweri Museveni added:

“The announcement today brings Uganda and the region one step closer to a long-held dream: to add value to our resources, and achieve energy security and economic prosperity for all its citizens.”

Sarah K. Biryomumaisho is a seasoned multimedia Award Winning journalist with 11 years of experience in broadcast and writing. She is recognized for her expertise in the field and holds a Diploma in Business Administration from Makerere Business Institute, which has equipped her with a strong foundation in business principles. Sarah's commitment to professional development is evident through her continuous pursuit of knowledge and skills. She has obtained a Certificate in Media Management from Women in News, an esteemed organization dedicated to empowering women in the media industry. In 2020, she successfully completed a Course in Wikimedia, demonstrating her proficiency as one of the few Wikipedia Editors in the country. To further enhance her reporting capabilities, Sarah has also acquired a certificate in Gender Justice Reporting from The International Women's Media Foundation (IWMF). This specialized training has equipped her with a deeper understanding of gender-related issues and their portrayal in the media. Throughout her career, Sarah has contributed her talent to various media houses, including six radio stations, where she has showcased her versatility and adaptability. Her most recent engagements include Galaxy FM 100.2 and Radio 4. Additionally, she has served as a writer for Andariya Magazine, further demonstrating her ability to excel in different mediums. Sarah's expertise extends beyond journalism. She has worked as a Digital Communications consultant for the revitalized Uganda Airlines, leveraging her skills to effectively communicate the airline's message in the digital sphere. Her passion for digital media and technology makes her a valuable asset in the evolving landscape of communication. In her entrepreneurial pursuits, Sarah is the proud owner of TheUgPost, a renowned media organization with a strong presence in Uganda and a global reach. Through this platform, she continues to make a significant impact by providing reliable and engaging content to a wide audience. Sarah won the Top Environmental Journalist Award 2023 from Uganda Biodiversity Fund. Twitter; https://twitter.com/BiryomumaishoB

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