The Republic of Uganda has expressed commitment to fully-fund its US$4 billion oil refinery through equity, with the United Arab Emirates-based Alpha MBM Investments pledging funding over a three-year period.
Cabinet, last Tuesday, approved the equity-based financing structure, marking a departure from traditional international project financing.
The decision reflects a strategic shift as both the Ugandan Government and its private-sector partner, Alpha MBM Investments, prioritised self-reliance in advancing the refinery project.
Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa Ssentamu, highlighted the rationale behind the move, stating, “Those who have money no longer want to finance oil projects. We have to do it ourselves.”
She confirmed that Alpha MBM Group would spearhead funding efforts over the next three years to bring the project to fruition.
The refinery is expected to bolster Uganda‘s energy infrastructure, ensuring greater value addition to its hydrocarbon resources and supporting the country’s long-term energy and economic goals.
Source: https://energynewsafrica.com