THE REPUBLIC OF UGANDA

NATIONAL ADDRESS ON ENERGY AND MINERALS

BY

H.E YOWERI K. MUSEVENI

THE PRESIDENT OF THE REPUBLIC OF UGANDA

ON THE OCCASION OF THE

ENERGY AND MINERALS WEEK 2020

DATE: DECEMBER 1, 2020

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Fellow Ugandans,

INTRODUCTION
1. I am pleased to address you on this occasion of the Energy
and Minerals Week. The Energy and Minerals Sector is a key
sector which contributes immensely to Uganda’s economic
development. Energy includes electricity for industry, lighting
up our homes and socio economic development, petroleum
products such as petrol, diesel and oil, and other forms
including solar, wind, firewood, charcoal and geothermal.

2. Uganda is also endowed with several mineral resources.

Currently, over forty (40) minerals are known in Uganda.
Metallic minerals include: gold, copper, lead, zinc, cobalt,
nickel, chromite, tin, Beryllium, columbite, tantalite, iron, silver,
titanium, lithium, bismuth, magnesite, manganese, wolfram,
Uranium and rare earth elements. Industrial minerals include:
limestone, pozzolana, gypsum, silica sand, rock salt,
diatomite, marble, clay, talc, vermiculite, phosphate, mica,
kyanite, kaolin, graphite, feldspar, peat, asbestos and hard
rocks for dimension stones and aggregates.

3. Recent mineral resources assessment of the country has also

indicated possible kimberlite pipes (diamond) in Eastern
Uganda. Kimberlite are the source rocks for diamond. Under
the NRM leadership, we recently discovered our own oil which
will be used for infrastructure development. On this, my eyes
are on the ground to stop any frustrations in the oil production
and trade.

4. Government has organized the Energy and Minerals Week

2020 in order to:

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 i) Provide information regarding sector progress and
achievements with respect to NRM Government
commitments since 1986;
ii) Create awareness among Ugandans on the numerous
achievements of the NRM government in relation to the
utilization of Energy and Minerals;
iii) Provide a platform for issue-based dialogue and
engagements among stakeholders;
iv) Provide a platform for the promotion of the efficient and
rational utilization of Energy and Minerals resources.

5. The Energy & Minerals Week 2020 is being held under the
theme “Energy & Minerals for Industrialization, Job
Creation and Shared Prosperity”.

6. This week, the NRM government wants to focus the nation

on:

i) Sustainable Clean Cooking to safeguard our forests

and trees where you people get firewood and charcoal
for cooking. I want to urge all Ugandans to reduce on
cutting down our trees. Since we have electricity now,
we can use it for cooking. You can also use LPG (Gas).
ii) Affordable Power Consumption and Reliability for
industrialization. This has always been the focus of the
NRM Government and power will increasingly become
cheaper when Karuma comes on line and some
minimal electricity sector reforms.
iii) Minerals for National Development and Wealth
Creation. On this, I need to reemphasize the need for
value addition to our minerals so that Uganda can
maximize benefits from its minerals.

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7. I would like to assure you that the NRM Government is
committed to improving electricity generation, transformation
and distribution to support industrialisation as well as
ensuring universal access to affordable, reliable and modern
energy.

8. Government shall also continue supporting mineral sector

development interventions. Currently the Mineral Laboratories
are being equipped and upgraded to match with international
standards. The Mining and Minerals Bill which will guide in
management of the mineral sector for the next decade or so
is being concluded. Also, anytime from now, Karamoja will be
flown to acquire more data for mineral resources exploration,
development and exploitation.

KEY UPDATES ON DEVELOPMENTS IN THE UGANDA’S

ENERGY AND MINERALS SECTOR

Key Updates in Uganda’s Power Sector

9. Allow me to remind you that Energy is a major driving force
for social economic transformation of our country. When the
NRM assumed leadership in 1986, power generation had
fallen from 150MW in 1963, to 60MW.

10. The NRM Government has been building up the power sector
and last Year, we launched the 183MW Isimba Power Plant
increasing the electricity generation capacity to 1252MW
today. The generation capacity is expected to exceed
2,000MW by 2021 due to additional generation expected from
Karuma (600 MW) and several small hydro power plants such
as Kikagati (16MW), Nyamagasani I (15MW) and
Nyamagasani II (5.9MW) and solar power plants.

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11. In the medium term, Government will develop the large and
small hydro power projects including Ayago (840MW),
Orianga (392MW), Kiba (400MW), Achwa I (42MW), etc… in
pursuit of our vision 2040 goals.

12. In the long term, Government will develop geothermal

resources, Nuclear, Solar and Wind for electricity generation.

13. To ensure that power generated is evacuated, Government

is expanding the power transmission infrastructure through
the construction of several high voltage transmission lines
and substations.

14. Under the leadership of the NRM Government, the

transmission network has expanded from 1,165 km in 2003
to the current footprint of 2,989Kms of high voltage lines as
at end of quarter one of FY 2020/21. This is a representation
of 1,008km of 220kV transmission lines and 1,946km of
132kV transmission lines and 35km of 66kV transmission
line.

15. I can authoritatively tell you that there were no 400KV high
voltage transmission lines in Uganda before NRM but we are
soon completing the Karuma-Kawanda 400KV high voltage
line. Other electricity transmission lines which shall be
completed by close of this Financial Year 2020/21 include:

i) Tororo-Opuyo-Lira 132kV;
ii) Bujagali-Tororo-Lessos 220kV;
iii) Karuma-Lira 132kV;
iv) Karuma – Olwiyo 132kV;
v) Bujagali 220kV bays;

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 vi) Mutundwe – Entebbe;
vii) Opuyo substations upgrade;
viii) Opuyo – Moroto.
16. As earlier mentioned, Government is focused on the
electrification of Industrial parks and high voltage lines to
supply Iganga Industrial Park, Mukono Industrial Park,
Kapeeka Industrial Park, Kampala Industrial and Business
Park (KIBP) and the Mbale Industrial Park. These Industrial
Parks provide jobs to our youths.

17. On 25th of October, I was in Arua where I launched the

construction of the 132KV Kole-Gulu-Nebbi-Arua high
voltage electricity transmission line and the associated
substations to extend the national grid to the West Nile. This
will solve electricity problems in that area.

18. Through the Rural Electrification Agency (REA), the national

distribution network extended to rural areas by 2,550Km of
Medium Voltage lines and 2,596Km of Low Voltage Lines by
the end of Financial Year 2019/20. A total of about 1,392km
of Medium Voltage power lines and 1,482km of Low Voltage
power lines are under implementation and are expected to be
commissioned by the end of this Financial Year 2020/21. In
addition, 2,500km of Medium Voltage lines have been
surveyed in preparation for appraisal and future
development.

19. Electrification of District Headquarters is almost 100%

complete (with the exception of Kaabong which is expected
to be complete by December 2020). Financing for the
electrification of Buvuma and Sigulu Island has been secured.

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20. NRM Government has also made it possible for Kalangala
Islands to be connected to the national grid through the
submarine cable. This is expected to boost tourism in those
islands.

21. We have commenced on the electrification of Sub-county,

Division and Town Council headquarters in which works are
on-going in 25 districts covering 570 sub county
headquarters.

22. In 2005, the distribution network was only 16,000km. Through

Umeme, the country has had the electricity distribution
network expand to 14,923km of Medium Voltage lines and
20,933km of Low Voltage Lines, bringing the total to
35,856km of distribution network. During the Financial Year
2019/20, the country added 1,710km of distribution lines
(Medium Voltage and Low Voltage) to the network.

23. The number of households connected to grid electricity has

grown from 290,000 in 2005 to 1.526 Million by June 2020. In
the previous Financial Year 2019/2020, we managed to
connect an extra of 152,482households on grid electricity
through the Electricity Connections Policy, which was
designed to accelerate connections.

24. Our target is to make sure that every household has access
to electricity by 2030. We shall use on-grid connections as
well as solar home systems and small isolated mini-grids to
reach all Ugandans.

25. Electricity Connections Policy facilitates free connections to

electricity consumers who are within a 90-meter radius of an
existing low-voltage pole. Before such policy was in place,

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 obtaining a connection attracted a minimum cost of up to
UGX600,000. Now the only cost to customers is an inspection
fee of UGX20,000. People with premises that require up to
one electricity pole can apply and will obtain a free
connection. NRM cannot allow our poor supporters to stay in
darkness.

26. Industrial consumers can benefit from the rebate system

through the design, finance and construction of the electricity
distribution infrastructure to their facilities and then be
reimbursed in terms of energy consumed to cover the cost
incurred. The Energy Rebate applies to line constructions and
extensions by industrial Consumers. More information
concerning the rebate system can be obtained from ERA.

27. When Karuma Power Plant is commissioned and fully

absorbed/utilized, it is expected that the weighted generation
tariff will reduce from the current US Cents 6.47/kWh (Ush.
243.43) to US cents 5.34/kWh (Ush.200.93), representing a
reduction of 17.45%.

28. The target of 5 US Cents has already been achieved during

off-peak hours for extra-large consumers. This was possible
following the conclusion of refinancing Bujagali Hydro Power
Plant (tariff reduced from 10.1 US Cents to 8.3 US Cents).

29. Government has a keen interest to grow demand for

electricity through the promotion of productive use of energy
as well as the creation of industrial parks. The Industrial parks
are projected to increase electricity demand by 1000 MW.

30. In addition, Government is also promoting the adoption of

other renewable energy technologies such as solar PV for

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 lighting especially street lighting, homes, health centers and
schools; Biogas systems for cooking applications; Solar PV
technology for water heating and water pumping; Wind
energy technology which is currently under study in the
Karamoja region; and Geothermal energy which is estimated
to have a potential of 450MW.

Key Updates in Uganda’s Minerals Sector

31. As earlier mentioned, the NRM Government is committed to
developing the numerous minerals for jobs and wealth
creation for our people. At the time NRM came to power in
1986, the mineral sector had been crippled by the political
and economic turmoil between 1970 and 1986. However,
when the NRM government came into power and restored
security and peace in the country, and also initiated reforms
in the sector, the Mineral Sector has recovered a lot and
currently, it is one of the priority sectors considered in NDPIII
with capacity to spar economic development of the country.

32. In 1986, we had only two staggering Cement industries at

Hima and Tororo which were being operated by the Uganda
Cement Industry. Today we have four (4) Cement factories.
Now we have Simba Cement Ltd and Kampala Cement Ltd,
in addition to the Hima and Tororo Cement factories. Soon
we shall be having five (5) factories when Sinoma Cement
Factory (Uganda) Limited at Mbale Industrial Park is
completed.

33. Consequently, cement production has greatly increased from

the 76,000 tonnes in 1986 when NRM came into power to 7
Million currently.

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34. Two years ago I commissioned a $620 million (more than 2
trillion) polymetallic plant Tororo for the manufacture of
phosphate fertilisers, steel, cement, glass, bricks. It started
with the fertilizer line, and I hope you are using the fertilizers.

35. The phosphate fertilizer production plant will manufacture the

first purely organic fertilisers on the local market and will be
producing 50,000 tons at the start which will grow to 100,000
tons as the demand grows even beyond borders across the
region. Please embrace the use of locally manufactured
organic fertilizers to increase your crop production, now that
our soils have been overused and are no longer fertile.

36. Recently on March 29th, 2020, I launched a multi-billion

marble factory in Karamoja for making tiles, table and kitchen
tops, and other marble products. At the time of establishment,
the plant was employing 120 local. This what I want, value
addition. Let investors come, establish industries using our
minerals here and give jobs to our youths.

37. We still have several investment opportunities in the minerals

sector. And I call upon Ugandans and other investors out
there, to please take advantage of the prevailing peace and
security in the country, and favourable fiscal and legal
regimes and invest in our mineral sector. Some of available
opportunities include:

i) Graphite (1.7 Billion metric tons of confirmed reserves)

for batteries and brake pads;

ii) Iron ore (350 million metric tons of confirmed reserves

and a resource base of over 1 Billion metric tons) for
steel;

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iii) Marble (over 300 million tons) for paint, tiles and
terrazzo manufacture;

iv) Rare Earth Elements (REEs) (300 million metric tons)

for rechargeable batteries, catalytic converters,
magnets and associated miniature motors, fluorescent
lighting, and glass and glass polishing agents;

v) Vermiculite (54.9 million tons) for brake pads and brake

shoes, and paints;

vi) Cobalt (5.5 million metric tons) for batteries;

vii) Copper (4.5 million tons of Cu and Co) for motors and
electrical conductors;

viii) Columbite – Tantalite (3.5 million tons) for alloying for

strength and higher melting points materials;

ix) Kaolin (2.8 million tons) for paint;

x) Silica sand for glass;

xi) Lithium (occurrences) for lithium ion batteries;

xii) Tungsten (reserves at Kirwa and Nyamuliro) for alloys

and steels for high strength at high temperatures;

xiii) Chromite (occurrences) for plating, alloying for

corrosion resistant, and pigment for glass, glazes, and
paint; and

xiv) Uranium for Nuclear Power generation.

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 xv) Titanium (occurrences) for low density and high
temperature resistant alloys finding use mostly in
aircraft, spacecraft and missiles;

38. Efforts have been made for Uganda to benefit from the
exploitation of these mineral resources, and this is seen by
the current promotion of in-country value addition to the
minerals as opposed to export of raw mineral ores or
concentrates.

39. Indeed the NRM Government has a plan to develop the

nascent automotive industry through the Kiira Motors
Corporation by using our own key mineral resources such as
iron ore for automotive steel; silica sand for glass; rare earth
elements for glass glazing, catalytic converters, batteries, &
electronics; graphite for brake pads; oil for plastics; cobalt &
lithium for batteries; kaolin, marble and vermiculite for paint;
tungsten, columbite, chromite and titanium for metal alloys;
copper for auto electric conductors and motors etc.

Key Updates in Uganda’s Oil and Gas Sector

40. The process of commercialization of the discovered oil and
gas resources is being undertaken. The Government and the
international oil companies have taken steps to acquire land
for the Kingfisher and Tilenga project facilities and the East
African Crude Oil Pipeline. The facilities include well pads,
central processing facilities, water abstraction points, infield
and feeder pipelines, camps among others. Government also
acquired land for the refinery and is currently acquiring land
for the refined petroleum products pipeline from the refinery.

41. Extraction will take place at two oil fields and once extracted,
the oil will be partly refined in Uganda to supply the local

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 market and partly exported to the international market via the
East Africa Crude Oil Pipeline (EACOP).

42. On the 13th of September 2020, I and my Tanzanian

counterpart signed the Host Government Agreement (HGA)
on the pipeline system of the East Africa Crude Oil Pipeline
(EACOP) project, which cleared the way for the construction
of 1,445km long Pipeline that will transport crude oil from
Uganda’s oil fields in Hoima, to the Port of Tanga. We also
agreed that each state party commences negotiations of all
pending project agreements with immediate effect and
expedite the implementation of the EACOP project. Works on
the pipeline are expected to begin by the end of the year, and
it will carry up to 200,000 barrels of oil per day.

43. Construction of Kabaale International Airport in Hoima is

underway. Upon completion, the Airport will be handy in
facilitating delivery of equipment for the oil refinery. With the
anticipated growth of the oil industry in the region, it will
additionally facilitate the rising movement of people to and
from the region and grow the area’s tourism potential given
the many tourist attractions in the vicinity.

44. The Second Licensing round was launched in May 2019 and
is expected to be concluded in 2021. This licensing round
covers five blocks namely; Avivi, Omuka, Kasuruban, Turaco
and Ngaji. The licensing round is driven by a number of
factors including but not limited to establishing of additional
petroleum resources to the current resource base in the
country to ensure sustainability and viability of oil production
and utilisation of infrastructure and facilities being put in
place.

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45. In the past the current efforts in exploration of oil and gas
have been concentrated on the Albertine Graben.
Government is now extending the oil and gas activities to
other basins. In this regard, and as required by law, an impact
assessment is being undertaken in the frontier basins of
Moroto-Kadam, Lake Kyoga and Hoima to open them up for
potential exploration. This process is expected to be
concluded in 2020.

CONCLUDING REMARKS
46. As I conclude, I wish to reassure you that the NRM
Government is committed to developing the country’s energy,
mineral, oil and gas resources, as well as putting in place
supporting infrastructure for sustainable industrialization,
inclusive growth, employment and wealth creation.

47. I call upon you to tune in for all the Energy and Mineral Week
2020 activities, and please do not miss the televised
conferences which will take place as follows:

i) The Biomass Energy/Clean Cooking Dialogue on

Wednesday the 25th of November 2020;

ii) Celebrating 100 years of Geological survey in Uganda

on Thursday the 26th November 2020;

iii) The Power Forum on Friday the 27th of November 2020.

48. It is now my pleasure to launch the Energy and Minerals

Week 2020.

For God and My Country!

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