Uganda’s planned refinery could cost more than originally estimated. The increase for the project isn’t in the construction cost but in the fact that Uganda could acquire more than its planned 8% stake in the project. The 60,000 bpd refinery had an initial price tag of around $2 billion.
The consortium made up of Saipem, Yaatra Ventures America and Intra-continent Asset Holdings holds 60% of the planned project. Uganda, Kenya, Tanzania, Rwanda and Burundi were expected to take 8% each to complete the remaining 40%. However, Irene Muloni, Ugandan Oil Minister, said that to date only Tanzania has taken its full share of 8%. Kenya took 2.5%. Rwanda and Burundi have so far not taken their shares. As a result, Kampala plans to acquire the remaining shares.
According to The East African, Ugandans are likely to dig deeper into their pockets to finance the construction of the refinery even though taking just the 8% would put the country heavily into debt.