Uganda is actively seeking new investors for its $4.5 billion refinery project after the expiration of its Project Framework Agreement (PFA) with a consortium of American and Italian firms on June 30.
The Ministry of Energy announced on Monday that although the Albertine Graben Energy Consortium (AGEC) had made significant progress, it had failed to secure the necessary financing. As a result, Kampala is now actively looking for new capital to move the project forward.
In a statement, the ministry highlighted the need for financing and expressed openness to offers from public sector capital providers interested in participating in the project, which is of both national and regional strategic importance.
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The Energy Permanent Secretary, Irene Batebe, confirmed that the Yaatra Africa-led consortium still had an opportunity to be involved in the refinery project.
She clarified that the government did not extend the PFA or sign an implementation project agreement with the consortium after its tenure expired without a Final Investment Decision (FID), which was originally expected to be reached in 2018.
The financing plan for the refinery entails a debt-equity ratio of 70:30, with the private developer primarily responsible for raising a significant portion of the capital.
With the search for new investors underway, Uganda aims to attract the necessary funding to progress the refinery project, which holds significant potential for the country’s energy sector and economic growth.
