Oil Contractors accuse government of frustration

Contractors who are looking forward to investing in the oil sector have expressed disappointment in government over the delay and unwillingness to pay them.

According to the President of the Association of Building and Civil Engineering Contractors, Jameson Olonya, majority of them have abandoned the country citing frustration.

His remarks came during a contractor’s dialogue, held under the theme, "Contractors' readiness to undertake projects in the Oil and Gas sector."

Some of the construction and engineering works that local contractors are engaged in includes the construction of well pads, roads and houses in the Albertine region amounting to about 10billion shillings.

When asked to clarify whether there was nothing done, he clarified that government was prioritizing a few strategic contractors ignoring the majority small ones.

“Now some of the payments are those that are very strategic in nature but we have got those in the routine nature of work and those are the ones that have suffered the most” Olonya remarked.

He added that, “It is a little bit a pain because you would imagine that the smaller people should have actually been the ones that are protected, promoted and supported but that’s those are the ones which are left.”

Relatedly, the Managing Director KCB, Edgar Byamah noted that KCB Uganda, in partnership with GIZ was in partnership with the vocational sector in equipping youth them with skills before they Graduate. Byamah added that there was need to train and sensitize the masses about the oil and gas sector and as a bank their primary focus was to support the local industry under the government’s initiative “Buy Uganda Build Uganda”.

Head Corporate Banking, KCB Bank Ramla Nantongo Munyakazi said that, “we have partnered with UNABSEC in the area of local content for oil and gas to be able to provide structured solutions towards those contracts that will enable them have equipment and working capital to complete on those contracts”.

In regard to how much that has been set aside for the 5-year period, Munyakazi revealed that the funding is based on each contractor’s capacity and level of the contract and each company is provided with a customised solution to what they are doing.

PSFU Chairman, Elly Karuhanga, via Zoom has encouraged contractors to learn how to write a technical bid because it would help them hit huge contracts. He also asked contractors to invest in themselves to acquire certification adding that the process is expensive but worth it.