Ugandan local companies are failing to qualify for contracts in the oil and gas sector due to lack of enough capital, says the Uganda National Oil Company (UNOC) Chief Executive Officer, Ms Proscovia Nabbanja.
She says despite the government’s target is to ensure that 40 per cent of the contracts are awarded to local companies, such companies have failed to win contracts that are capital intensive because their capital is still low.
Uganda discovered oil in the Albertine region districts of Bunyoro sub-region of Kikuube, Hoima, Buliisa and Masindi and also in the northern part of Uganda in Nwoya district.
Ms Nabbanja says as such, most of the contracts which are capital-intensive will be awarded to foreign companies.
“We want to retain at least 40 per cent of the contracts. Their capacity is tied to human resources and financing as well because if you’re going to be awarded a contract of two billion [shillings] for instance, or one billion [shillings], it’s very difficult to get a Ugandan company that may have the capacity, for example, to contract a Central Processing Facility [CPF] for argument’s sake,” she says.
The oil and gas sector has so far created 13,000 jobs and at the peak of the project, more than 60,000 jobs will be created in Uganda.
She made the remarks while announcing the 90-day sensitisation campaign aimed at urging the population to support the ongoing developments in the sector.
