THE REPUBLIC OF UGANDA

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT

ANNUAL REPORT

JULY 2018 – JUNE 2019

Mandate: “To establish, promote the development, strategically manage and safeguard the rational and sustainable exploitation and utilisation of energy and mineral resources for social and economic development”.

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FOREWORD

This report provides an overview of the FY 2018/19

annual targets, achievements, outputs and future

plans of the Ministry of Energy and Mineral

Development (MEMD).

During the reporting period, a total of 235.35.6MW was added to the power generation mix. Of the new

capacity, 183MW was from Isimba Hydropower project commissioned on 21st March, 2019; and

52.35MW was from the GETFiT projects. Significant Eng. Irene Muloni Minister of Energy & Mineral Development progress was also registered with transmission line

projects totaling to 630km completed and

commissioned bringing the total length of High

Voltage (HV) grid coverage to 2569.8km. Over 10,000

km of Medium Voltage power lines and approximately

9,000 km of Low Voltage was registered. Connections

of about 333,297 customers were added onto the Hon. Simon D’Ujanga Hon. Peter Lokeris national grid. Minister of State for Energy Minister of State for Mineral Development Various studies for the development of the Oil and Figure 1: The Political Leadership of the Ministry Gas Sub-sector were concluded. Discussions went on for the various agreements prior to taking the FID. The Minerals sub sector registered success especially in reorganising Artisanal small-scale miners.

MEMD hosted the 8th Annual Energy and Mineral Development Joint Sector Review (EMD JSR) from 27th – 28th 00 September 2018, for the key stakeholders under the theme: “Enabling Investment in Energy, Minerals, Oil and Gas sectors for Social and Economic Development”.

The Uganda Vision 2040, recognises the role of energy as an enabler, to the extraction of minerals, as well as oil and gas as key infrastructure areas to provide the necessary impulse to the National economy. The Ministry is working towards attaining a more reliable network that will enable evidence-based research interventions as to attract more partners and resources. I call upon all sector stakeholders to continue supporting, working closely and making extensive use of the established infrastructure for economic development.

Hon. Eng. Irene Muloni MINISTER OF ENERGY AND MINERAL DEVELOPMENT i

LIST OF ABBREVIATIONS (Acronyms)

AAS Atomic Absorptions Spectrophotometer ACP African Caribbean Pacific AFRA African Regional Cooperative Agreement for Research, Development and Training Related to Nuclear Science and Technology AGR African Gold Refinery AGRC Albertine Graben Refinery Consortium ASM Artisanal Small-scale Miners BGR Bundesanstalt für Geowissenschaften und Rohstoffe BoQs Bills of Quantities BPD Barrels Per Day CAA Civil Aviation Authority DCIUNIN Design, Construction and Installation of Uganda National Infrasound Network DGSM Directorate of Geological Survey and Mines DoP Directorate of Petroleum EACOP East African Crude Oil Pipeline EAGER East Africa Geothermal Energy Facility EAPCE East African Petroleum Conference and Exhibition EPCM Engineering, Procurement, and Construction Management ERA Electricity Regulatory Authority ERT Energy for Rural Transformation EU European Union FID Final Investment Decision GERP Grid Expansion and Reinforcement Project GIA Gender Impact Assessment GMIS Geological and Mineral Information System GRD Geothermal Resources Department GSD Geological Survey Department HGA Host Government Agreement IAEA International Atomic Energy Agency IAEA-TC International Atomic Energy Agency- Technical Cooperation ICGLR International Conference of the Great Lakes Region IDEP International Development and Economic Planning for Africa IGA Intergovernmental Agreement Ltd Limited MD Mines Department MEMD Ministry of Energy and Mineral Development MLA Minerals Liberation Analysis MW Mega Watt MWAMID Mineral Wealth and Mineral Infrastructure Development NEMA National Environment Management Authority NEU Nuclear Energy Unit

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NOGP National Oil and Gas Policy PEDPD Petroleum Exploration, Development and Production Department PFA Permanent Secretary PS Production Sharing Agreements PSAs Project Steering Committee PSC Petroleum Supply Department PSD Primary Teachers’ College PTC Quarterly Implementation Plans QIPs Quarterly Progress Report QPR Resettlement Action Plan RAP Refinery Development Project RDP Rural Electrification Agency REA Renewable Energy Department RED Rare Earth Elements REEs Residue Fluid Catalytic Cracker RFCC Request for Quotation RfQ Regulatory Impact Assessment RIA Regional Initiative on Fight against the illegal exploitation of Natural RINR Resources SDGs Sustainable Development Goals SFI Strategic Friends International SMMRP Sustainable Management of Mineral Resources Project STDWG Siting and Technology Deployment Working Group TASO The AIDS Support Organisation TC Technical Committee TGW Temperature Gradient Wells ToRs Terms of Reference UAC Uganda AIDS Commission UCI Uganda Cancer Institute UCSD University of California, San Diego UEDCL Uganda Electricity Distribution Company Limited UEGCL Uganda Electricity Generation Company Limited UETCL Uganda Electricity Transmission Company Limited UGRD Uganda Geothermal Resource Development UGX Uganda Shillings UIRI Uganda Industrial Research Institute UKEF UK Export Credit Financing UNBA Uganda National Biogas Alliance UNBS Uganda National Bureau of Standards UNCC-AA United Nations Conference Centre in Addis Ababa UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change UNOC Uganda National Oil Company XRF X-ray Florescence iii

Table of Contents FOREWORD ...... I LIST OF ABBREVIATIONS (ACRONYMS) ...... II

LIST OF FIGURES...... VII EXECUTIVE SUMMARY ...... 1 1.0 INTRODUCTION ...... 6

1.1 MANDATE OF THE MEMD ...... 6 1.1.1 Vision ...... 6 1.1.2 Mission ...... 6 1.2 ROLES AND FUNCTIONS ...... 6 1.2.1 Guiding Principles and Core Values of the Ministry ...... 6 1.2.2 Strategic objectives and goals for the Medium Term ...... 7 1.2.3 Main Priorities ...... 7 1.2.4 Major Strategies ...... 7 1.3 THE MINISTRY’S ORGANIZATIONAL STRUCTURE AND ESTABLISHMENT ...... 8 2.0 THE ENERGY RESOURCES SUB SECTOR ...... 9

2.1 ENERGY EFFICIENCY AND CONSERVATION ...... 9 2.1.1 Energy Efficiency and Conservation Bill ...... 9 2.1.2 Energy Policy (2002) Review ...... 10 2.1.3 Capacity building in Energy Management ...... 10 2.1.4 Promotion of Energy Management in High Energy Consuming facilities ...... 12 2.1.5 Energy Audits ...... 13 2.1.6 Energy Efficiency Program ...... 15 2.1.7 Standards and Labeling ...... 17 2.1.8 Promoting Fuel Efficiency in Transport ...... 17 2.1.9 Awareness Creation on Efficiency Utilization of Energy ...... 17 2.2 ELECTRIC POWER ...... 23 2.3 RENEWABLE ENERGY PROMOTION ...... 47 2.3.1 Biogas NAMA Project...... 47 3.0 PETROLEUM SUB SECTOR ...... 67

3.1 PETROLEUM EXPLORATION, DEVELOPMENT AND PRODUCTION ...... 67 3.1.1 Promotion of the Country’s Petroleum Potential and Licensing ...... 68 3.1.2 Policy formulation and Implementation ...... 70 3.1.2 Resettlement Action Plan Activities ...... 71 3.1.3 Regional Initiatives...... 71 3.1.4 Infrastructure Development ...... 73 3.1.5 Financial Report ...... 73 3.1.6 Employment for Sustainable Development-Skills for Oil and Gas Africa (E4D/SOGA) ...... 74 3.2 PROGRESS OF ACTIVITIES UNDER THE MIDSTREAM PETROLEUM DEPARTMENT ...... 74 3.2.1 Land Acquisition for Refinery Development...... 74 3.3 PETROLEUM SUPPLY AND DISTRIBUTION ...... 83 3.3.1 Activities Performed by the Petroleum Supply Department ...... 83 3.3.2 Supply Situation ...... 83

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3.3.3 LPG Supply and Infrastructure Interventions ...... 83 3.3.4 Monitoring and Inspection ...... 83 3.3.5 Enforcement ...... 86 3.3.6 Transport and Storage ...... 88 4.0 THE MINERAL SUB SECTOR ...... 96

4.1 GEOLOGICAL SURVEY ...... 96 4.1.1 Policy, Legal and Regulatory Framework ...... 96 4.1.2 Establishment of Uganda’s Mineral Potential ...... 96 4.1.3 Earthquake monitoring and Advisory Services...... 113 4.1.4 Institutional capacity Development ...... 115 4.2 MINES ...... 115 4.2.1 Policy, Legal and Regulatory Framework ...... 115 4.2.2 Licensing ...... 115 4.3 GEOTHERMAL RESOURCES ...... 124 4.3.1 Policy, Legal and Regulatory Framework ...... 124 4.3.2 Establishment of Uganda’s Geothermal Potential ...... 124 4.3.3 Licensing and inspection ...... 128 4.3.4 Health safety and social awareness ...... 128 4.3.5 Institutional Capacity Development ...... 129 5.0 THE SUPPORT SERVICES ...... 130

5.1 FINANCE MANAGEMENT AND ACCOUNTING ...... 131 5.2 HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT ...... 134 5.3 SUPPLIES, FACILITIES MANAGEMENT AND WELFARE ...... 144 5.4 RESOURCE CENTRE ...... 144 5.5 SECTOR PLANNING AND POLICY ANALYSIS ...... 145 5.5.1 Budgeting and Budget Estimates ...... 145 5.5.2 Monitoring and Reporting ...... 146 6.0 CHALLENGES AND MITIGATION MEASURES ...... 148

6.1 CHALLENGES...... 148 6.2 MITIGATION MEASURES ...... 148 APPENDICES ...... 149 APPENDIX 1: THE MINISTRY ORGANIZATION STRUCTURE ...... 149 APPENDIX 2: CAPACITY BUILDING ...... 150

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List of Tables Table 1: Progress on projects under implementation by the end of June 2019 ...... 33 Table 2: Progress on projects under implementation by REA by the end of June 2019 ...... 34 Table 3: Key Issues and Recommendations from the National Charcoal Dialogue ...... 50 Table 4: Assessment of ethanol production potential among sugar companies ...... 53 Table 5: Summary of Petroleum Directorate Budget Expenditure for FY 2018/19 ...... 73 Table 6: Summary of PEDPD Recurrent Budget Expenditure for FY 2018/19 ...... 73 Table 7: Summary of the PEDPD Development Budget Expenditure for 2018/19 ...... 74 Table 8: Status of Petroleum Outlets Inspection...... 85 Table 9: Status of Petroleum Outlets enforced upon ...... 87 Table 10: Petroleum outlets that have since ceased (closed) operations ...... 87 Table 11: The total monthly imports for the FY 2018/19 in litres ...... 90 Table 12: Monthly average pump prices in UGX (FY2018/19) ...... 90 Table 13: Monthly average international crude prices in US$ (FY2018/19) ...... 91 Table 14: Oil Marketing companies market share (FY2018/19) ...... 91 Table 15: The distances to the nearest road and water source from the iron ore target ...... 103 Table 16: The distances to the nearest road and water source ...... 103 Table 17: The distances to the nearest road and water source from the target location of the iron ore ...... 104 Table 18: Area and tonnage estimates for the different categories of sand in Diimu ...... 106 Table 19: Earthquake events recorded on atleast three seisduring the reporting period ...... 113 Table 20: Licencing Status as of 30th June 2019 ...... 116 Table 21: Mineral Production Statistics ...... 120 Table 22: Non-Tax Revenue (NTR) collected in FY 2018/19 ...... 121 Table 23: Comparative examining of Mineral exports for FY2018/19 and those of FY2017/18 ...... 122 Table 24: FY2018/19 Sub Programme Wage and Non-Wage Recurrent Budget Performance ...... 131 Table 25: Summary of Wage and Non-Wage Recurrent Budget Performance by June 2019 (Bn) ...... 131 Table 26: GoU Development Budget Performance in the FY 2018/19 by June 2019 (billions) ...... 132 Table 27: GoU Development Budget comparison between 2018/19 and 2019/20 (UGX billions) ...... 133

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List of Figures Figure 1: The Political Leadership of the Ministry ...... i Figure 2: Top Executives of the Ministry ...... 1 Figure 3: Management of the Energy Resources Directorate ...... 9 Figure 4: The Minister Hon. Irene Muloni awarding a certificate to a Certified Energy Auditor ...... 10 Figure 5: Participants of the Certified ISO50001 lead auditiors training ...... 11 Figure 6: The Energy Management Awards 2018 held at Pearl of Africa Hotel in Kampala ...... 12 Figure 7: The Launch of the ISO50001 Energy Management System Standard ...... 13 Figure 8: The Power Factor Correction unit (Capacitor Bank) installed at Agroways Factory in Jinja district ...... 14 Figure 9: The Energy Management Training for Kasana an SME cluster in Kasana (Luwero District) ...... 15 Figure 10: A site survey one of the beneficiary sites in Kisenyi surburb (Kampala) ...... 16 Figure 11: Inspection of some Power Factor Correction Units installed in Kasana-Luwero SME cluster ...... 16 Figure 12: The EW2018 press conference officiated by Hon. Eng. Irene Muloni at the Uganda Media Center ...... 17 Figure 13: Hon. Eng. Irene Muloni and the Dutch Ambassador launching the Kyuusa Enfumba yo campaign ...... 18 Figure 14: Participants of the Power Forum 2018 ...... 19 Figure 15: Energy Management workshop conducted at Colline Hotel Mukono in July 2018 ...... 20 Figure 16: Energy Audit Team meeting at Nsava Feeds in Mukono ...... 20 Figure 17: Energy survey activity at a household in Lamwo district ...... 21 Figure 18: The consultant conducting the Financial Modeling training in Kitgum district ...... 22 Figure 19: Participants of the Solar PV Training in Kitgum District ...... 23 Figure 20: Downstream view of Isimba Powerhouse ...... 26 Figure 21: Isimba Powerhouse approach raod after placement of wearing course ...... 26 Figure 22: A view of the Isimba Machine Hall after completion of installation works ...... 27 Figure 23: Turbine pit, coupling of turbine shaft to lower Rotor shaft ...... 27 Figure 24: Outlook of Karuma Substation...... 28 Figure 25: View across from unit #1 to #4 at the Powerhouse ...... 30 Figure 26: Draft Tube #4 in place at Powerhouse ...... 30 Figure 27: Growth in the power transmission network ...... 32 Figure 28: Distribution losses ...... 38 Figure 29: Ministry official speaking at the village meeting during the survey exercise for land for construction and installation of a meteorology monitoring station in Buyende District ...... 39 Figure 30: Visit to Nuclear Power Plant Technician Training Facilities at Wharton County Junior College in the United States of America ...... 39 Figure 31: Human Resource Working Group members during a Human Resource Development Retreat in Jinja ...... 40 Figure 32: A participant sharing his views during the Stakeholders’ Workshop to share the findings of the Status Report on Radioactive Waste Management ...... 41 Figure 33: Participants of the consultative workshop of a Study on Local Industrial Involvement...... 41 Figure 34: Ms. Nafuna Sarah making a presentation during the consultation meeting with NPA officials ...... 42 Figure 35: Hon. Eng. Irene Muloni inspecting the Nuclear Energy Unit stall at the 2018 Energy Week Exhibition ..... 42 Figure 36: Hon. Eng. Irene Muloni, Minister of Energy and Mineral Development with IAEA Director General, Mr. Yukiya Amano (L) and Minister addressing the conference (R)...... 44 Figure 37: Hon. Eng. Simon D’Ujanga addressing the 62nd Annual IAEA General Conference in Vienna, Austria ...... 44 Figure 38: A participant sharing his views during the Stakeholders’ Workshop to share the findings of the Status Report on Radioactive Waste Management ...... 45 Figure 39: Ministry official making a presentation at the Uganda - China Joint Steering Committee Meeting on Cooperation in the Use of Atomic Energy for Peaceful Purposes (L) and Heads of Delegation signing the Record of the Meeting (R) ...... 46

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Figure 40: Co-chairs for the Uganda – Russia Bilateral Meeting on Draft Intergovernmental Agreement on Nuclear Energy exchanging minutes...... 46 Figure 41: The Regional Technical Advisor GEF – Mr. Faris Khader making remarks at the Inception Workshop for the Biogas NAMA Project at Golf Course Hotel, Kampala ...... 47 Figure 42: The first Board Meeting for the Biogas NAMA Project held at Amber House...... 48 Figure 43: The Minister of State for Minerals – Hon. Peter Lokeris giving the opening remarks at the Charcoal Dialogue at Golf Course Hotel, Kampala ...... 49 Figure 44: The old traditional stove (left) and the new improved cookstove installed at Yesu Akwagala High School Kyamulibwa in Kalungu district - Greater Masaka...... 55 Figure 45: The task force reviewing the draft Charcoal Policy Brief at Colline Hotel, Mukono ...... 56 Figure 46: Training on the techniques of QGIS for land use planning, assessment and degradation...... 57 Figure 47: One of the groups consulting from the trainer (left) and the final map that the group produced using QGIS techniques from the training in Mubende district...... 57 Figure 48: Task force reviewing the labelling and certification criteria for green charcoal at Colline Hotel, Mukono...... 58 Figure 49: Lighting a charcoal kiln fitted with a casamance chimney for better charcoal yields ...... 59 Figure 50: The LCV Deputy chairperson of Kiboga, Mr. Noah Kibwami handing over the casamance kilns to trained charcoal producers in Kiboga...... 60 Figure 51: The LCV Chairman of Nakaseke district Mr. Ignatious Koome handing over the casamances to charcoal producers in Wakyato Subcounty - Nakaseke district...... 60 Figure 52: Loading of the 30 casamance units at Kiryandongo, destined for the UNDP/IGG SURE FS Food Project in Karamoja...... 61 Figure 53: Monitoring of maize garden planted using SLM for one of the CSA groups in Mubende (left) and monitoring tree nursery for eucalyptus seedlings in Kiryandongo (right)...... 61 Figure 54: The Ministry Audit team at Buvuma health center IV ...... 62 Figure 55: The hot water access points at Buvuma health center IV ...... 63 Figure 56: Off-loading session of the trailer carrying the 394 solar systems upon arrival at Amber house ...... 64 Figure 57: Management of the Petroleum Directorate ...... 67 Figure 58: Minister Hon. Eng. Irene Muloni (2nd from left), Indian Prime Minister-H. E. Nahendra Modi (6th from right) and other dignitaries from various countries ...... 68 Figure 59: Second Licensing Round Blocks ...... 69 Figure 60: Minister of Energy and Mineral Development Eng. Hon. Irene Muloni (center) together with State Minister for Energy, Hon. Peter Lokeris along with other dignitaries at the Uganda Booth...... 72 Figure 61: St. Francis Catholic Church main building ...... 75 Figure 62: St. Francis Catholic Church multi-purpose building ...... 75 Figure 63: Capping and Subbase layer sections ...... 77 Figure 64: Subbase layer at Km 2+200 to 2+780 ...... 78 Figure 65: Disclosure meeting in Sembabule ...... 79 Figure 66: PAPs checking the strip map at Kabayola TC ...... 79 Figure 67: Meeting Project affected community at Kabayola PS ...... 80 Figure 68: Livelihood, vulnerability assessment meeting for MCYP 3 ...... 81 Figure 69: Disclosure meeting for the strip map for MCPY 2 in Mubende ...... 81 Figure 70: A well-designed Don retail outlet facility meeting the industry standards ...... 85 Figure 71: Lake transport route for petroleum products ...... 88 Figure 72: Jetty construction progress ...... 88 Figure 73: Ship pre-fabricated materials on terminal site at Bugiri-Bukasa ...... 89 Figure 74: JST status as at June 2019 ...... 89 Figure 75: Oil Marketing companies market share ...... 92 viii

Figure 76: Participants discussing issues about licensing ...... 93 Figure 77: Management of GSMD ...... 96 Figure 78: Katara Uranium anomaly survey map - Sampled points ...... 97 Figure 79: MUK/RCK/017 is graphitic schist with massive sulphide along bedding planes while MUK/RCK/017B is quartz veins with sulphides ...... 98 Figure 80: A is brecciated and sheared quartzite West of Kacerere trading Centre. B is brecciated quartzite cemented by hematite. C is quartzite cut through by quartz vein before faulting and D is brecciated quartzite/quartz vein...... 99 Figure 81: A - yellowish gravel with ferruginised sandstone panned by artisans; B - yellowish gravel with ferruginised sandstone with sub rounded and rounded boulders heaped by artisans; C and D - new and old open pits left by artisans ...... 99 Figure 82: Newly Refurbished Kigezi Region Geological Survey and Mines office in Kabale ...... 100 Figure 83: Location of the proposed site for iron ore smelting plant ...... 101 Figure 84: Geology of the proposed site for iron ore smelting at Kabirizi...... 102 Figure 85: Geology map of the survey area. Black lines indicate the IP survey profiles while the red dots indicate hematite observations...... 104 Figure 86: Location map of Boma (A) and Lwensakala (B) uranium prospects ...... 105 Figure 87: Augering logging of sand in Diimu to ascertain and quality the depth of sand...... 105 Figure 88: Geophysical interpreted anomalies ...... 107 Figure 89: Muko Iron anomaly (in red) ...... 107 Figure 90: Clockwise: Insitu boulders brownish weathered of Kayonza iron lens, Measuring the thickness of the iron lens, Micro folding within the specular hematite and Measuring the trend of the phyllites...... 108 Figure 91: Topographic map showing the extent of Kabale iron ore prospect (Left) and Regional geology of Kabale iron ore prospect...... 109 Figure 92: (Left) Insitu iron boulders of iron ore in Kyanamuzinda, (Right) Measuring the profile along an excavation for house construction in Rubuguri iron lens ...... 109 Figure 93: (Left) Insitu boulder of ferruginized phyllitic sandstone on Rubaya hill and displays the weathered iron ore profile in the murram quarry...... 110 Figure 94: GMIS Prototype for geodata sharing and promotion of the mineral sector (http://94.100.75.105/uganda/) ...... 110 Figure 95: Sample analysis ...... 112 Figure 96: The RED stars denote epicentre locations of the earthquake events; GREEN diamond represents broadband seismic stations while the BLUE hexagon represents the global seismic station (MBAR) located at Mbarara...... 113 Figure 97: A map showing distribution of temporary seismic stations for North-East Uganda ...... 114 Figure 98: Google Earth Map showing location of GNSS/GPS station sites (UGN1, UGN2, & UGN3) installed in Uganda...... 114 Figure 99: H.E the President of Uganda launching the Fertiliser Plant at Sukulu Phosphate and Steel Project ...... 117 Figure 100: Bio-organic fertilizer from the Sukulu Phosphate and Steel Project ...... 117 Figure 101: Illegal Gold mining in Nakabaat ...... 118 Figure 102: Inspecting DAO marble site in Rata. There was no activity at the site ...... 119 Figure 103: Lake created by excavation of granite by Multiplex Ltd in Dokolo municipality ...... 119 Figure 104: Quarry in Amuria was opened in Abuket village, Abwanget parish, Willa Subcounty Amuria district - UTM zone 36N 0566373mE, 0228733mN where big quarrying which is taking place was also inspected ...... 120 Figure 105: Panyimur Conceptual model along Profile P04 through Amoropii hot springs ...... 125 Figure 106: Shallow temperature surveys at Katwe ...... 126 Figure 107: 2D MT cross-section through Lake Kitagata ...... 127 Figure 108: Management of the Support services ...... 130 ix

Figure 109: Mr. Robert Kasande (P.S, MEMD) giving opening remarks during the celebration of the Health Week 136 Figure 110: Members of staff at the eye checkups conducted during the two days celebration of the Health Week, 2019 at Amber house ...... 137 Figure 111: Staff at the general medical checkup ...... 137 Figure 112: Members of staff undergoing the HCT exercise at Amber house ...... 138 Figure 113: Members of staff undergoing Hepatitis B screening and vaccination ...... 138 Figure 114: Doctor Daniel Byamukama giving inspirational talk ...... 138

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EXECUTIVE SUMMARY

The mandate of the Ministry of Energy and Mineral Development is to “Establish, Promote the Development, Strategically Manage and Safeguard the Rational and Sustainable Exploitation and Utilization of Energy and Mineral Resources for Social, and Economic Development”. The medium-term key priorities that the Ministry continues to implement are: - i) increasing electricity generation Robert Kasande capacity and transmission network; Permanent Secretary ii) increasing access to modern energy services through rural electrification and renewable energy development; iii) promoting and monitoring petroleum exploration and development in order to achieve national production; iv) developing petroleum refining and pipeline transportation infrastructure. v) streamlining petroleum supply and distribution; and vi) promoting and regulating mineral exploration, development, Prisca Boonabantu production and value addition. Accounting Officer vii) Inspecting and regulating Figure 2: Top Executives of the Ministry exploration & mining operations.

PROGRESS IN INCREASING ELECTRICITY GENERATION CAPACITY

Development of the Karuma Hydropower Project (600MW): Construction of Karuma Hydropower project has continued with progress attained standing at 93.61%. Civil works progress stands at 74.95% whereas the Hydro-Mechanical and Electro-Mechanical (EM) are at 1.99% and 16.67% respectively. Progress has been made on all six (06) units like cleaning of the oil pressure tank, protection commissioning, ring gate oil pressure systems, installation of air coolers and rotor assembly. The targeted commissioning is 31st December, 2019.

Development of the Isimba Hydropower Project (183MW): The 183MW Isimba Hydropower Project was commissioned on 21st March, 2019 and is now supplying power to the Main Grid.

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Development of the Ayago Hydropower Project (840MW): The project is targeted to be developed under a “Build Own Operate Transfer” model away from the previously envisaged “Engineering, Procurement and Construction” model.

GETFiT Projects: During the FY2018/19, the GETFiT Projects completed were Nkusi (9.6MW), Mahoma (2.7MW), and Waki (4.8MW) commissioned in October, 2018. Sindila (5.25MW) was commissioned in February 2019.

Energy Efficiency Programmes: Energy Management trainings were conducted among seven (07) clustered SMEs with a total of about 55 people trained on energy management in the milling business where the focus was on Power Factor Correction.

Nuclear Power Development: The Ministry continued to strengthen its cooperation in the field of nuclear energy use for peaceful purposes with the People’s Republic of China and the Russian Federation during the reporting period.

PROGRESS IN INCREASING GRID TRANSMISSION AND ACCESS TO MODERN ENERGY SERVICES

Transmission Infrastructure: During the FY2018/2019, construction of various transmission line projects totaling to 630km was completed and commissioned bringing the total length of High Voltage (HV) grid coverage to 2569.8km.

Rural Electrification: Over 10,000 km of Medium Voltage (MV) power lines and approximately 9,000 km of Low Voltage (LV) power distribution lines had been constructed by the Rural Electrification Agency (REA) by the end of the FY2018/19. This has translated into connections of over 333,297 customers (UMEME-169,000; REA-149,831 and UEDCL-14,466) onto the national grid and the increment of the rural electrification access rate from 1% in 2001 to over 13% in 2019.

PROGRESS IN PROMOTION AND MONITORING OF PETROLEUM EXPLORATION, DEVELOPMENT AND PRODUCTION

Regulatory Framework: The National Content Regulations for both midstream and upstream were translated to different local languages, namely: Luo, Luganda and Runyoro. The translations validation exercises have been carried out at meetings in Gulu, Masaka and Masindi for the respective languages.

Licensing Status: The Roadmap for the 2nd Licensing Round was presented at the Africa Oil Week conference held in November, 2018 in Cape Town, South Africa. Six (6) steering committee meetings for the 2nd Licensing round were held. Five (5) Exploration Blocks were put on offer for licensing. The second licensing round was launched on 8th May 2019 at the East African Petroleum Conference (EAPCE’19) in Mombasa, Kenya by the Minister of Energy and Mineral Development Eng. Hon. Irene Muloni.

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Investment Promotion: Promotional packages were updated and 300 promotional materials were produced and given out at two (2) national and three (3) international conferences.

PROGRESS IN DEVELOPING PETROLEUM REFINING AND PIPELINE TRANSPORTATION INFRASTRUCTURE

Commercialization Strategies

Refinery Development: The Albertine Graben Refinery Consortium (AGRC) submitted the recommended Final Refinery Configuration on 7th January 2019. SAIPEM, the FEED contractor recommended the Residue Fluid Catalytic Cracker (RFCC) as it provides the most optimal technical and economic solution.

Multi-Products Pipeline development: The Ministry through M/s Strategic Friends International (SFI), developed the Resettlement Action Plan (RAP) for the acquisition of land for a corridor to accommodate the pipeline that will be traversing the districts of Mpigi, Wakiso, Mityana, Kiboga, Kyankwanzi, and Hoima. The cadastral survey and the RAP reports were submitted in April 2019 to the Chief Government Valuer (CGV) for approval.

Crude export pipeline: Surveys for the pipeline, employee camps and access roads across the 10 districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera are complete and the total number of Project Affected Persons (PAPs) is 4,600.

PROGRESS IN STREAMLINING PETROLEUM SUPPLY AND DISTRIBUTION

Petroleum Products Market: The Oil Marketing companies were dominated by Vivo Energy with the highest market share as well as outlets in the country with 16% followed by Total Uganda limited with 12% of the market. 2,182.751 million Litres of petroleum products (Petrol, Diesel, Kerosene, and Jet-A1 fuel) were imported in FY2018/19.

Quality and Standards Monitoring: Monitoring the quality of petroleum products has improved progressively with a reduction of fuel adulteration levels. The compliance level with respect to PMS and AGO is at an average of 99.3% for monitoring of all countrywide retail outlets done at least once a month.

PROGRESS IN PROMOTING AND REGULATING MINERAL EXPLORATION, DEVELOPMENT, PRODUCTION AND VALUE ADDITION

Mineral Exploration, Development and Production

Mineral Exploration: The Government of Uganda carried out inspection and monitoring of the performance of Exploration Licenses to ensure compliance with the Mining Act 2003, Mining

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Regulations 2004. Thirty (30) Exploration Licenses in Kabale, Rubanda and Kisoro, Districts were inspected.

Mineral Development: The Sukulu Phosphate plant was commissioned by H.E the President of the Republic of Uganda on October 23rd, 2018. Construction of the steel plant, slag cement factory, glass factory and a baking-free brick factory is still ongoing.

Mineral Production: In FY2018/2019 a 6.9% increment in production was recorded compared to the previous FY2017/0218. This was attributed to increased exploitation of pozzolana and syenitic aggregates for the manufacture of cement in the newly established Simba Cement and Kampala Cement factories. The rate of smuggling of minerals out of the country reduced due to intense combined surveillance by the Mineral protection police. DGSM increased quantities of Wolfram declared as returns.

Licensing of Mining Activities

The Mining Cadastre and Registry System has registered a lot of improvement in the licensing process. A 32.2% improvement in processing of mineral rights was realized compared to FY2017/18. As well, production licences in FY 2018/19 increased by 30.9% compared to FY2017/18, thereby projecting a future increase in revenue collection from both annual mineral rent and monthly production returns.

Geothermal Energy Exploration

Kibiro: From 1st to 4th October 2018, micro-seismic network equipment, which was deployed at Kibiro and surrounding areas, was demobilised after two (2) years of data collection. The data awaits processing and interpretation to aid in up-dating and refining a geothermal conceptual model of the Kibiro prospect. Preliminary interpretation indicates that the region is tectonically active and further investigations are needed.

Buranga: Additional magnetotelluric/time domain electromagnetic (MT/TDEM) geophysical surveys have been carried out at Buranga Geothermal Prospect. The data will be used to update the current subsurface conceptual model of the area which will be a basis for locating TGW and exploration wells.

Katwe: The Geothermal Resources Department carried out 1-meter depth shallow temperature measurements at Katwe Geothermal prospect. Data was processed, analysed and interpreted. A shallow anomaly was detected but needs additional measurements to delineate its boundaries.

Geoscience Data DGSM together with M/s Beak Consultancy Ltd continued with designing the integrated Information Management System to facilitate geoinformation capture and sharing. Training in GIS and database systems was conducted and the GMIS prototype is up for testing.

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1.0 INTRODUCTION

The Ministry of Energy and Mineral Development Annual Report for the FY 2018/19 captures the achievements in line with the approved annual workplans. As guided by the NDP II (2015/16-2019/20), the Energy and Mineral Development sector is a primary growth enabler to the attainment of the National Vision 2040 aspirations. In that regard, this report gives an annual account of resources appropriated for the different interventions in the sector.

1.1 Mandate of the MEMD The mandate of the Ministry of Energy and Mineral Development (MEMD) is “To establish, promote the development, strategically manage and safeguard the rational and sustainable exploitation and utilisation of energy and mineral resources for social and economic development”.

1.1.1 Vision To be, “A model of excellence in sustainable management and utilization of energy and mineral resources”.

1.1.2 Mission “To ensure reliable, adequate and sustainable exploitation, management and utilization of energy and mineral resources in Uganda”.

1.2 Roles and Functions The roles and main functions of the Ministry are as follows: - i) To provide policy guidance in the development and exploitation of the Energy, Mineral, Oil and Gas resources. ii) To create an enabling environment in order to attract investment in the development, provision and utilisation of energy and mineral resources. iii) To acquire, process and interpret technical data in order to establish the energy and mineral resource potential of the country. iv) To inspect, regulate, monitor and evaluate activities of private companies in energy and mineral sectors so that the resources are developed, exploited and used on a rational and sustainable basis.

1.2.1 Guiding Principles and Core Values of the Ministry In executing its mandate, the Ministry promotes and practices the following: • Professionalism • Integrity • Transparency • Innovation • Customer focus • Fairness and equity • Predictability

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1.2.2 Strategic objectives and goals for the Medium Term In order to contribute effectively to the national objectives as enshrined in the National Development Plan, the Sector’s policy goals are: - i) To meet the energy needs of Uganda’s population for social and economic development in an environmentally sustainable manner. ii) To use the county’s oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society. iii) To develop the mineral sector for it to contribute significantly to sustainable national economic and social growth.

1.2.3 Main Priorities In the medium term, the key priorities of the Ministry are to: - (i) increase the electricity generation capacity and transmission network; (ii) increase access to modern energy services through rural electrification and renewable energy development; (iii) promote and monitor petroleum exploration and development in order to achieve national production; (iv) develop petroleum refining and pipeline transportation infrastructure; (v) streamline petroleum supply and distribution; (vi) promote and regulate mineral exploration, development, production and value addition; (vii) Inspect and regulate exploration and mining operations (viii) promotion of efficient utilisation of energy; (ix) monitoring geotectonic disturbances and radioactive emissions.

1.2.4 Major Strategies To achieve the above priorities, the following major strategies were adopted: - (i) To review and put in place modern policies and legislation that offers a conducive business environment (ii) Increase the energy mix in power generation, promote and co-invest in the development of new power generation and transmission projects (iii) To acquire and provide necessary information and data to attract and facilitate private sector participation and capital inflow (iv) Promote and / or implement rural electrification through grid extension, development of decentralised power supply systems and use of renewable energy resources. (v) Promote and monitor petroleum exploration, development and production by the private sector for local consumption and export. (vi) Promote and monitor mineral exploration, development, production and value addition by the private sector for local consumption and export. (vii) To carry out specialized and general training of manpower and strengthening capacity of the institutions responsible for managing and safeguarding the energy and mineral resources. (viii) Carry out energy audits and consumer awareness campaigns for energy efficiency.

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(ix) Establish standards and promote product quality, industrial safety, environmental protection and code of practice in petroleum supply operations. (x) Promote more efficient modes of transportation, in order to maintain security of petroleum products supply and curb smuggling. (xi) Monitoring and acquisition of seismic data and radioactive emissions.

1.3 The Ministry’s Organizational Structure and Establishment The approved structure for the Ministry of Energy and Mineral Development consists of three Directorates, 11 departments and 2 specialised units (one for Health, Safety and Environment; and another for Nuclear Energy). The three Directorates are: Energy Resources Development, Petroleum as well as Geological Survey and Mines. In addition, the ministry has agencies and parastatals under its mandate.

The political leadership of the Ministry consisted of the Minister of Energy and Mineral Development, Hon. Eng. Irene Muloni and two Ministers of State, Hon. Simon D’Ujanga and Hon. Peter Lokeris for Energy and Mineral Development respectively. The Permanent Secretary of the Ministry was Mr. Robert Kasande. The organisational structure for the Ministry is represented in Appendix 1.

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2.0 THE ENERGY RESOURCES SUB SECTOR

The Energy Resources Directorate comprises the following departments and unit:

i. Energy Efficiency and Conservation Department (EECD), ii. Electric Power Department (EPD) and

JAMES BAANABE iii. Renewable Energy

Ag. Director, ERD/ Department (RED)

Comm, EECD iv. The Nuclear Energy Unit

The Directorate is responsible for

a number of programmes and

projects being implemented by the above departments. The projects/programmes include: WILSON WAFULA Eng. CECILIA MENYA Ag. Comm, RED Ag. Comm, EPD i. Energy for Rural

Transformation (ERT) ii. Promotion of Renewable Energy and Energy Efficiency Programme iii. Electricity Sector Development Project (ESDP) iv. Large Hydropower NAFUNA SARAH Projects Head, Nuclear Energy Unit v. Small Hydropower Projects

Figure 3: Management of the Energy Resources Directorate

2.1 Energy Efficiency and Conservation 2.1.1 Energy Efficiency and Conservation Bill The Energy Efficiency and Conservation Bill provides for the standards and regulations for efficient utilization of energy in Uganda’s economic sectors. Stakeholder consultations regarding the Energy Efficiency and Conservation Bill and Regulatory Impact Assessment (RIA)

9 were concluded. The RIA report and revised Cabinet Memo were submitted to the MEMD Top Management for onward submission to the Cabinet Secretariat.

2.1.2 Energy Policy (2002) Review The first draft of the Energy Policy 2002 review was produced after internal consultations were completed. Aditional consultations were carried out with Kinyara Sugar Works Limited and Sugar Corporation of Uganda Limited (SCOUL) with regard to their policy proposals. These consultations informed the Regulatory Impact Assessment (RIA) for the Energy policy. The draft of the reviewed Energy Policy is in place. The last chapters on Financing, Communication, Monitoring and Evaluation were being finalized.

2.1.3 Capacity building in Energy Management 2.1.3.1 Certification of Energy Auditors (CEA) The Ministry of Energy and Mineral Development conducted an examinable training to certify Energy Auditors. The Certified Energy Auditor training was held from the 27th August 2018 to 5th September 2018. It involved 15 participants of whom 9 passed and got certification. This brings the total number of certified energy auditors in the country to 35. The successful participants were awarded certificates by the Minister of Energy and Mineral Development on the 26th September 2018.

Figure 4: The Minister Hon. Irene Muloni awarding a certificate to a Certified Energy Auditor

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2.1.3.2 ISO50001 Lead Energy Auditor training ISO50001 lead auditor training was conducted on the 26th -30th Nov 2018 with 15 individuals examined. This training yielded 15 certified ISO50001 lead auditors who were awarded certificates on the 17th April 2019.

Figure 5: Participants of the Certified ISO50001 lead auditiors training

2.1.3.3 Training on Business Development

In partnership with GIZ-PREEEP, three (03) business development training workshops for suppliers and service providers of renewable energy and energy efficient technologies were organized in Lira, Arua and Kampala on 10th May 2019, 13th May 2019 and 26th May 2019 respectively. The workshops were also used as a platform to create awareness about the planned market campaigns under the market development component of PREEEP.

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2.1.4 Promotion of Energy Management in High Energy Consuming facilities 2.1.4.1 Energy Management Awards 2018

The Energy Management Awards is an event which was aimed at encouraging companies to utilize energy efficiently. The awards aim at recognizing and rewarding consumers that have embraced energy efficiency through the application of modern energy management principles and practices, and in the process made significant energy cost reductions. The awarding gala took place on Friday 31st October 2018 at Pearl of Africa Hotel in Kampala. Twenty-seven (27) companies participated. The event was supported by GIZ-PREEEP, Electricity Regulatory Authority (ERA) and SUNREF.

Figure 6: The Energy Management Awards 2018 held at Pearl of Africa Hotel in Kampala The Energy Management Awards attracted a number of consumer categories from both the public and private sector. The respective winners were as follows: i. Hima Cement Limited (Winner – Best Energy Management Practices, Large Industries) ii. Roofings Limited (Winner – Electricity Savings Award, Large Industries) iii. Mukwano Industries Limited (Winner – Fuel Savings Award, Large Industries) iv. Abacus Parental Drugs Limited (Best Energy Management Practices, Medium Industries) v. Kayonza Tea Factory (Winner – Electricity Savings Award, Medium Industries)

12 vi. Abacus Parental Drugs Limited (Winner – Fuel Savings Award, Medium Industries) vii. Stanbic Bank Ltd (Overall Winner — Best Energy Management Practices, Service Sector) viii. Makerere University (Winner – Energy Award, Universities) ix. Stanbic Bank Ltd (Winner – Energy Award, Commercial Buildings) x. Speke Resort and Conference Center (Winner – Energy Award, Hotels)

2.1.4.2 Energy Management Awards 2020 Preparations and consultations on the next Energy Management Awards scheduled for 2020 were underway. Advertisements inviting applications from interested organizations/entities to participate in the energy management awards competition ran in the New Vision newspaper on 18/2/19 and in the Daily Monitor newspaper on 19/2/2019.

2.1.4.3 Promotion of Energy Management Systems based on ISO50001 Following the introduction and launch of the ISO 50001 Energy Management System Standard on 17th April 2019, awareness has been created on the requirements for implementing the energy management system. Over 10 industrial facilities expressed interest in having an energy management system piloted in their facilities.

Figure 7: The Launch of the ISO50001 Energy Management System Standard

2.1.5 Energy Audits

2.1.5.1 Implementation of Energy Audit recommendations

Energy audits were conducted to identify energy efficiency opportunities, carry out techno- economic analysis and make recommendations for energy saving. With support from GIZ, 7 factories namely Agroways in Jinja, Kyamuhunga, UGACOF, Kayonza tea factory, Mabale tea growers’ factory and Pearl Dairy in Mbarara were audited.

Five (05) of the factories mentioned above implemented light retrofitting and power factor correction projects. In light retrofitting, factories were replacing inefficient compact fluorescent 13 lamp (CFL) lighting with light emitting diode (LED) technologies to realize a demand and energy saving. During the power correction, capacitor banks were installed to improve the power factor of these factories to realize a demand and Energy saving. Most of these installations were implemented between October and December 2018.

Figure 8: The Power Factor Correction unit (Capacitor Bank) installed at Agroways Factory in Jinja district

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2.1.5.2 Energy Audit Equipment

Bids were received, evaluated and a contract awarded to the best evaluated bidder for supply of Energy Audit Equipment. A contract was signed for the supply of 3 units of Energy Audit Equipment.

2.1.5.3 Energy Audit Manual

Two inhouse consultation meetings to validate the Energy Audit Manual were held by the Energy Efficiency and Conservation Department. The Energy Audit Manual was approved at the end of the exercise.

2.1.6 Energy Efficiency Program

2.1.6.1 Energy Management Training

Seven (07) Energy Management trainings were conducted among seven clustered SMEs with a total of about 55 people trained on energy management in the milling business. This training focused on Power Factor Correction for the seven clusters.

Figure 9: The Energy Management Training for Kasana an SME cluster in Kasana (Luwero District)

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2.1.6.2 Purchase of Power Factor correction Equipment

A survey of beneficiary sites for Power Factor Correction equipment was undertaken. A contract was signed for the supply of 10 Units of Power Factor Correction equipment to 7 SME clusters. Due diligence on the functionality of Power Factor Correction equipment was carried out. The procurement of capacitor banks was carried out and installations were ongoing.

Figure 10: A site survey one of the beneficiary sites in Kisenyi surburb (Kampala)

Figure 11: Inspection of some Power Factor Correction Units installed in Kasana-Luwero SME cluster

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2.1.7 Standards and Labeling In collaboration with the Uganda National Bureau of Standards (UNBS), the Minimum Energy Performance Standards (MEPS) program was developed for electrical appliances that are imported or manufactured in the country. The program recommends minimum efficiencies or a maximum amount of electricity that an appliance must consume for it to be energy efficient. The aim is to introduce energy efficient appliances in order to reduce on wasteful consumption of electricity by appliances that are imported or will be manufactured in the country. Lighting appliances, air-conditioning appliances, refrigerating appliances and electrical motors are among the technologies piloted under the MEPS program.

2.1.8 Promoting Fuel Efficiency in Transport Awareness on fuel efficiency among the general public was carried out through dissemination of information regarding the use of electric motorcycles. Pilot studies on traffic volume and fuel consumptions in different districts were conducted and the reports are in place.

2.1.9 Awareness Creation on Efficiency Utilization of Energy

2.1.9.1 Energy Week 2018 The Energy Week 2018 (EW2018) was the 14th Annual Energy campaign focused on sustainable use of energy as well as access to clean energy technologies. It was held from the 24th to 29th September 2018 at the KCCA grounds, Lugogo in Kampala. The theme of the EW2018 was “Transforming Energy Sector through Increased Innovation, Investment & Integration for Future Sustainability of Uganda’s Energy Sector.” The major engagements included the following:

a. Press Conference at the Media Centre The media briefing on the Energy Week 2018 was officiated by Eng. Irene Muloni, Minister of Energy and Mineral Development on the 20th September 2018 at the Uganda Media Centre.

Figure 12: The EW2018 press conference officiated by Hon. Eng. Irene Muloni at the Uganda Media Center

17 b. The Kampala Energy March 2018 The march by MEMD staff was flagged off by the Minister of Energy and Mineral Development, Hon. Eng. Irene Nafuna Muloni on the 25th of September 2018 c. Energy Exhibition 2018 The Energy Week 2018 Exhibition took place from the 24th to the 29th of September 2018 at KCCA Grounds Lugogo in Kampala. The Ministry had support from GIZ PREEEP, WWF, Environmental Alert, USAID Power Africa, UMEME, ESKOM, UNCDF, ERA, UECCC, KCCA. The exhibition attracted a total of 117 exhibitors with 48 solar companies, 37 biomass companies, associations and government agencies. Awareness was raised on the need to adopt the use of cleaner energy sources and the long-term impact this will have on the environment. Radio adverts, two advertisements placed in the local dailies, and road drive shows were used as a platform to sensitize the public about the Energy Week 2018 Exhibition. The event was graced by the Minister of Energy and Mineral Development, Hon. Eng. Irene Nafuna Muloni who launched the Kyuusa Enfumba yo campaign.

Figure 13: Hon. Eng. Irene Muloni and the Dutch Ambassador launching the Kyuusa Enfumba yo campaign

18 d. Power Forum 2018 – Transformations towards a sustainable electricity market The Power Forum 2018 was a one-day event where stakeholders in the power sub-sector convened to discuss issues of public interest and strategize on the way forward for sustainability of Uganda’s power sub-sector.

The Power Forum was driven by a number of events including: increase in the power tarrifs; Bujagali HPP refinancing; construction updates on Karuma and Isimba HPP; rural electrification through mini-grids; as well as demand side management issues. There was a mini exhibition at the Power Forum that acted as a networking platform for exhibitors to showcase their products and services.

Figure 14: Participants of the Power Forum 2018

2.1.9.2 Sustainable Energy Campaign 2018 (SEC2018) The Sustainable Energy Campaign 2018 was aimed at promoting Demand Side Management through the use of alternative energy sources such as renewable energy and energy efficient technologies and practices in the country. The SEC2018 was held at Booma Grounds in Mbarara district from 23rd to 28th July 2018. The theme of the campaign was “ACCESS TO CLEAN ENERGY, A BRIDGE TO SUSTAINABLE DEVELOPMENT”. SEC2018 involved media campaigns, road drive shows and the SEC2018 exhibition. The exhibition provided an enabling platform for awareness creation among the general public on energy efficient and renewable energy technologies, energy saving habits, and alternative fuels. Support to the private sector in promoting and marketing energy efficient and renewable energy technologies was extended through the Sustainable Energy Campaign 2018.

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2.1.10 Sustainable Energy for All (SE4ALL)

2.1.10.1 Energy Management for Small and Medium Enterprises (SMEs) The Ministry of Energy and Mineral development (MEMD) is promoting demand-side management programs among small and medium energy consumers with the aim to improve energy efficiency among small and medium energy consumers. SMEs are a central part of Uganda’s economy comprising over 90% of Uganda’s economy and contributing above 75% of Uganda’s gross domestic product (GDP). It was against this background that MEMD, with support from the Inclusive Green Growth Programme, initiated Energy Management training for SMEs. A two-day energy management workshop was conducted at Colline Hotel Mukono, on 16th and 17th July 2018 where representation from 32 SMEs was registered.

Figure 15: Energy Management workshop conducted at Colline Hotel Mukono in July 2018 Premilinary energy audits were conducted in 3 SMEs namely, Kwagalana Maize Millers from Mukono Industrial Millers Ltd, Kigatta Industries Ltd from Mukono Central Millers Ltd and Nsava Feeds Ltd, representing independent Millers in Mukono town.

Figure 16: Energy Audit Team meeting at Nsava Feeds in Mukono

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2.1.10.2 Household Energy Access Survey in Lamwo and Kitgum districts Under the Sustainable Energy for All program, a database on energy access for households is being developed by the Ministry of Energy and Mineral Development. Thus, in line with this activity, a survey was carried out amongst households in Lamwo and Kitgum districts in Northern Uganda. The survey’s major objectives were to find out the sources of energy, the availability, affordability and amount of energy used by the households. Eight sub-counties in Lamwo district were surveyed considering a total of 30 villages. All in all, 330 households were surveyed. For Kitgum district, 21 parishes within 8 sub-counties were surveyed. It was noted that a majority of people in the district are still heavily dependent on wood fuel for cooking, and solar lanterns for lighting purposes. The survey further revealed that most of the households in Lamwo district are not connected to the national grid. The main source of lighting was solar which is utilised by a large number of households. In the cooking section, most households use biomass as a source of energy for their cooking needs. The biomass is mostly collected from the environment around the households thus creating a burden on the environment.

Figure 17: Energy survey activity at a household in Lamwo district

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2.1.10.3 Training on Financing Models for Renewable Energy and Energy Efficiency With support from United Nations Development Program (UNDP), a training was carried amongst financial institutions based in Kitgum. This training was on financial modeling, project assessment and evaluation for renewable energy and energy efficiency. A two days training from 5th - 6th February, 2019 was conducted where a total of 23 participants attended. The objectives of this training were to provide financial institutions with an understanding of available renewable technologies, to train financial institutions how to assess the viability of renewable energy and energy efficiency projects and to provide financial institutions with different models to finance these renewable technology and energy efficiency projects.

Figure 18: The consultant conducting the Financial Modeling training in Kitgum district

2.1.10.4 Solar PV Technical Training Under the Sustainable Energy for All Initiative, with funding from United Nations Development Program, electrical technicians were trained in solar photovoltaic (PV) system installation and maintenance. This was done in order to build technical capacity to enable uptake of solar PV systems in Kitgum and Lamwo districts as a source of energy. The major objectives of these trainings were to educate the technicians on the various components of a solar PV system and on proper installation, trouble shooting and maintenance of solar PV systems. The Kitgum training was conducted from 18th February to 22nd February, 2019 where a total of 22 technicians were trained. The Lamwo district training was conducted from 25th February to 1st March, 2019 with a total of 21 participating technicians.

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Figure 19: Participants of the Solar PV Training in Kitgum District

2.2 Electric Power The Ministry through the Electrical Power Department (EPD) continued to prioritize the development of energy infrastructure given that it plays a crucial role as a major catalyst for social and economic development. In this regard, the Government policy objective on energy is to ensure adequate and reliable supply of energy to support social and economic growth.

2.2.1 Policies, Legislation and Studies 2.2.1.1 Energy Policy of Uganda 2002 The policy goal was to meet the energy needs of Uganda’s population for social and economic development in an environmentally sustainable manner. Over the years, the sector has undergone a number of transformations that have necessitated policy review. Some of the f changes among the key priority areasinclude: a) Rural electrification is being implemented on a model of scaled, multi-technology electricity service territories comprising the entire rural territory of the country; b) Government through the Uganda Energy Credit Capitalization Company (UECCC) is providing credit support to companies developing renewable energy technologies; c) Government of Uganda (GoU) has put in place incentives like tax exemptions to promote the use of alternative renewable energy technologies; d) Government is promoting efficient utilization of energy by creating awareness among the public on the benefits associated with energy efficiency, energy management and auditing programs for large energy consumers;

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e) Government is fast-tracking the development of large hydropower projects with Engineering, Procurement and Construction (EPC) contractors for the construction of Isimba HPP (183MW), Karuma HPP (600MW), and other pipeline projects; f) There are a number of small hydropower, on-grid solar PV and biomass projects being developed and operated by private Independent Power Producers (IPPs) to feed into the grid; g) There has emerged a need to consider special interventions for the optimal utilization of the emerging power generation surplus while also ensuring timely generation expansion in the medium term, in case the demand/supply gap closes. 2.2.1.2 Electricity Connections Policy 2018 Government approved the Electricity Connections Policy (ECP) in January 2018 and it became effective on 24th August 2018 after a successful launch by H.E. the Vice President in Kasese district. The primary objective of ECP is to increase electricity access and provide cleaner energy for Ugandans. Under this policy, Government subsidizes fully the cost of electricity connection materials, enabling citizens that are ready for electricity consumption to access free connection materials. The cumulative number of connections made since ECP effectiveness was 149,831 by the end of June 2019 against the annual target of 300,000 connections. The biggest challenge faced by implementation of the ECP is the inability of the Service Providers to pre-finance connection materials. 2.2.1.3 Electricity Act 1999 Government has been holding consultations on the Amendment of the Electricity Act 1999. The Electricity Amendment Bill 2019 seeks to address the following: a) to remove inconsistencies in the law and harmonize it with other related laws; b) to improve the enforcement and compliance of the regulatory framework; c) to stimulate and increase power trading in the country by allowing embedded generators sell power directly to distribution companies or large customers; d) to increase the level of electricity access and improve service delivery; and e) to reduce power losses by providing stringent penalties for power theft and damage to electrical installations caused by vandalism The principles to be embodied in the amendment of the Electricity Act 1999 were tabled and later approved by Cabinet. Consequently, the First Parliamentary Counsel prepared the draft Electricity Amendment Bill 2019 which has been discussed at a technical level. The Electricity Amendment Bill 2019 is due to be sent to Cabinet for approval. 2.2.1.4 National Electrification Strategy Study The National Electrification Strategy (NES) Study is being undertaken with funding from the World Bank under the Grid Expansion and Reinforcement Project (GERP). The objective of the study is to create a National Electrification Strategy and corresponding plan aimed at sustainably and rapidly increasing national electricity access (on-grid and off-grid) to achieve the GoU’s national electrification targets as stipulated in the NDP II and Vision 2040. The NES

24 will also aim at increasing productive use of electricity and energy efficiency amongst consumers. Evaluation of Technical and Financial Proposals was concluded and a report submitted to the World Bank for clearance in May 2019. 2.2.2 Power Generation Government has continued to prioritize the development of energy infrastructure given that it plays a crucial role as a major catalyst for social and economic development. In this regard, the Government policy objective on energy is to ensure adequate and reliable supply of energy to support social and economic growth. Over the reporting period, a total of 235.35MW was added to the power generation mix. Of the new capacity, 183MW was from Isimba Hydropower project commissioned on 21st March, 2019; and 22.35MW was from the GETFiT (Global Energy Transfer Feed in Tariff) projects, namely: Nkusi 9.6MW; Mahoma 2.7MW; Waki 4.8MW and Sindila 5.25MW. Furthermore, in a bid to diversify the energy mix, the 10MW Mayuge Cogeneration plant and 20MW Kabulasoke Solar power plant were commissioned and integrated to the grid. This has led to the country’s installed generation capacity to peak at 1,182.44MW.

The country’s current power generation mix is illustrated as below:

2.2.2.1 Large Hydropower Projects a) Isimba Hydro Power Project

The 183MW Isimba Hydropower Project was commissioned on 21st March, 2019 and is now supplying power to the Main Grid.

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On 12th April 2019, the Owner’s Engineer (OE) issued the Taking over Certificate for the 183MW Isimba Hydro Power Plant and 132kV Isimba-Bujagali Interconnection Project. Todate, all the units have been successfully commissioned and the 28-day trial run period completed. As well, the Functional guarantee tests/efficiency tests have been concluded on Unit 3. Landscaping and road construction works are ongoing. Regarding the access bridge, the contractor concluded the geological investigations and submitted designs for approval. Tests for concrete mix are ongoing.

Regarding the Resettlement Action Plan (RAP), the compensation progress stood at 92.87% for the transmission line and 93.29% for the dam site and reservoir. In regard to compensation of islands, an opinion has been received from the Solicitor General recommending revaluation of the compensation packages. The Contractor is also carrying out compensation of victims whose property has been affected by rock blasting. The evaluation of claims by the tourism operators is ongoing by the RAP consultant.

Figure 20: Downstream view of Isimba Powerhouse

Figure 21: Isimba Powerhouse approach raod after placement of wearing course

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Figure 22: A view of the Isimba Machine Hall after completion of installation works b) Karuma Hydro Power Project Construction of Karuma Hydropower project has continued with progress attained standing at 93.61%. Civil works progress stands at 74.95% whereas the Hydro-Mechanical and Electro- Mechanical (EM) are at 1.99% and 16.67% respectively. Progress has been made on all six (06) units like cleaning of the oil pressure tank, protection commissioning, ring gate oil pressure systems, installation of air coolers and rotor assembly. The targeted commissioning date is 31st December, 2019.

Figure 23: Turbine pit, coupling of turbine shaft to lower Rotor shaft

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Figure 24: Outlook of Karuma Substation c) Ayago (840MW) Hydropower Project

The project is targeted to be developed under a “Build Own Operate Transfer” model away from the previously envisaged “Engineering, Procurement and Construction” model. d) Achwa 2 (41MW) Hydropower Project

The project is being developed by ARPE Ltd and construction progress was at 99%. Commissioning was planned for October, 2019. Uganda Electricity Transmission Company Limited is constructing the 132kV evacuation line from Agago to Gulu substation. In the meantime, Uganda Electricity Distribution Limited is completing a 33kV line from the power plant to Agago to act as an interim solution to facilitate the commissioning of the plant. Civil Works: o Weir Area (Rubber Dam, Inlet and Intake): - All completed with final commissioning, and now is in operation. o Channel: - All completed, commissioned with water filling, and is in operation with all rubber dam and forebay spillway flap gates regulating water levels automatically. Storm water management activities for channel surrounding area are in progress. o Forebay complex: - completed and commissioned with water filling and operational with flap gates in automatic regulation guaranteed. o Penstocks: - Installation completed, and waiting for turbines operation for functional tests.

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o Powerhouse and Control building civil works: - completed and are functional. o Tailrace civil works: - completed and functional and is also filled with water as normal operation. o Switchyard Civil works: - Completed and is functional.

Electro-mechanical activities: - in general installation and erection activities for all systems are completed and now all equipment is either in dry test or commissioning as listed below: o All turbine/generators and their auxilliaries installation is completed and all are in dry commissioning progress. o All electrical balance of plant installations and pre-commissioning is completed, and functional tests as commissioning is in progress with all panels and switchgears energized as normal function. o All mechanical balance of plant installation and commissioning is completed, except the air conditioning and powerhouse ventilation system. o Switchyard HV electrical system and main transformers installation and cold testing is completed. Due to absence of the 132KV evacuation, and the delay in 33KV evacuation, some equipment of the civil works (HSS equipment) such as forebay flap gates, penstock inlet wheel gates at forebay, and penstocks will not be completed with the related performance tests with units running with full load. Similarly, for the electro-mechanical equipment (turbine, generator, main transformers and HV switchyard equipment), it will not be completed with performance tests in the near future due to the absence / delay in the 132KV evacuation lines. e) Achwa 1 (42MW) Hydropower Project

During the period under review the Project developer embarked on a revised, accelerated schedule associated with construction of a Spiral Case assembly platform to allow equipment erection outside the incomplete Powerhouse. UEDCL contractors progressed well with the “line” and started with the construction of the Switchyard – these two appear on course to be ready by end of October 2019. However, concerns remain with the capacitor banks being manufactured offshore for Gulu and Kitgum substations. Contractor reports will only be ready at the end of November 2019.

33KV Line compensation: this line is delayed due to issues of compensation of the landowners. These led to riots in which the community blocked all roads to the Project for a day. The matter was settled by the district and UEDCL leadership after they promised to have compensation documents endorsed by the Chief Government Valuer. This issue remains volatile and remains a threat to site access.

Civil Works: Construction of the Intake/Weir progressed well and is on schedule. The Contractor targets completing the first phase before the dry season in December 2019 at which time the second phase construction will take advantage of the receding dry season river levels.

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Electro-Mechanical (EM) Works: The equipment supply contractor has completed about 80% of the Factory Acceptance Tests (FATs) in India and now commenced more intensely on equipment delivery to the site for installation.

ARPE is soon to engage (by early September 2019) an EPC Contractor for construction of the HPP1 to HPP2 132KV connection transmission line.

Figure 25: View across from unit #1 to #4 at the Powerhouse

Figure 26: Draft Tube #4 in place at Powerhouse 30 f) Muzizi (48MW) Hydropower Project

Procurement of the Engineering, Procurement and Construction contractor is ongoing with technical evaluation having taken place in May, 2019. The evaluation report was submitted to KfW and is now awaiting a No-Objection in order to proceed to the financial evaluation stage. Regarding the Resettlement Action Plan (RAP), the RAP report was approved by the Chief Government Valuer, however, KfW did Object to the rates approved in the report given that they were not based on replacement cost and present value. Uganda Electricity Generation Company Limited the project implementing agency has been advised to review the RAP report rates before proceeding with the compensation.

2.2.2.2 Small Hydropower Projects a) Nyagak III (6.6MW) Hydropower Project

The purpose of the project is to provide reliable power to the isolated West Nile Grid. Uganda Electricity Generation Company Limited (UEGCL) is the lead implementing agency with M/s Hydromax Ltd as the private partner under a Public Private Partnership (PPP) framework. Government of Uganda (GoU) has bridge financed the project to a tune of 2.6 billion UGX following termination of the grant from KfW of 8million Euro. The Owner’s Engineer, Intec Gopa is now on board and construction resumed on the 31st April 2019 with progress now at 6% comprising of construction of the Employer’s Camp, Project road network and river diversion ongoing. b) GET FiT Projects The GETFiT Projects completed are: Nkusi (9.6MW); Mahoma (2.7MW); Sindila (5.25MW) and Waki (4.8MW) commissioned in the FY 2018/19.

2.2.3 Power Supply

2.2.3.1 Progress on increasing power transmission infrastructure

The Government of Uganda has continued to invest in the reinforcement and expansion of the power transmission infrastructure in order to ensure that all generation capacity is efficiently and effectively delivered to the load centres. This will enable actualization of the universal electrification targets as set out in the National Development Plan II and Vision 2040. During the FY2018/2019, construction of the following transmission line projects totaling to 630km was completed and commissioned bringing the total length of High Voltage (HV) grid coverage to 2569.8km. The details of the completed projects are as follows: • 132kV Mbarara – Nkenda 160km Transmission Line and associated substations project completed and the line was successfully energized on 19th February, 2019.

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• 220kV Kawanda - Masaka 137km Transmission line and associated substations project was completed and energized on 19th December, 2018 • 220kV Mbarara - Mirama 65km Transmission line and associated substations project was completed and energized on 7th December, 2018. • 220kV Nkenda - Fort Portal - Hoima, 226km, Transmission line and associated substations project was completed and the project was commissioned on 24th August, 2018. • Upgrade of Queensway 132/33kV substation was completed, energized, and officially commissioned on 17th August 2018. • 132kV Isimba-Bujagali 42km transmission line was completed and successfully energized on 26th November 2018. Official commissioning took place on 21st March 2019. • Industrial Parks substations works have been completed for Namanve, Luzira, Mukono and Iganga. Significant progress has also been registered on other projects under implementation that will add 1300km of transmission lines bringing the total power grid coverage to over 3550km of HV power lines from the current 2569.8km. The primary substations will increase from the current 25 to 42 primary substations. These will enable delivery of power to the existing and newly identified load centers.

Figure 27: Growth in the power transmission network

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2.2.3.2 Major Constraints The major constraints have been slow resolution of challenges regarding land acquisition for the project sites. Whereas government has endeavored to avail funding, issues cited below have caused delays to project works. The issues include: • Land/Property owners who demand for exorbitant compensation amounts as compared to valuations of the Chief Government Valuer (CGV), leading to protracted reviews. Some project valuation reports have had as many as 6 reviews. Land acquisition delays have dire consequences that include cancellation of funding by the lending partners and failure to execute the much-needed projects on time. • Speculation and high expectations: Landowners engage in speculative practices when transmission line projects are announced. • Vandalism of transmission towers

Table 1: Progress on projects under implementation by the end of June 2019 Project Status and Commissioning date Karuma Interconnection Construction on going at 70% completion; Karuma-Kawanda 400kV 254km, Karuma-Lira Projected completion in December, 2019. 132kV 75km, and Karuma-Olwiyo 400kV 60km lines and associated substations Industrial Parks and associated substations Construction of the substations 100% Namanve South-Namanve 132kV transmission completed. line (10km); Namanve-Luzira 132kV Transmission lines at 50% completion. transmission line (31km); Nalubaale-Namanve To be commissioned by April, 2020. 132kV transmission line, Mukono T-off (5km); Nalubaale-Tororo 132kV line; Tembo Steels Ltd T-off (12km) 132kV Mutundwe-Entebbe Transmission Line, Construction on going at 30% completion 35km 132kV Opuyo-Moroto Transmission Line, Works ongoing and 10% completed 168km and associated substations 132kV Lira-Gulu-Nebbi-Arua transmission Line, Procurement of contractor is ongoing. 293km and associated substations Works will be completed within two (2) years. 132kV Mirama-Kabale transmission line, 80km Procurement of contractor is ongoing. 400kV Masaka-Mbarara Transmission Line, Procurement of contractor is ongoing. 135km Procurement of Supervision Consultant completed 132kV Gulu – Agago – Agago HPP Overhead Prequalification of EPC Contractors Transmission Line and associated 132/33kV completed. Substations Project RAP Implementation is 86% complete. Tender documents are pending financier’s approval

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132 kV Mbale-Bulambuli Transmission Line ESIA Studies on going. Sourcing for financing for construction. Opuyo substation upgrade (in Soroti) Works are ongoing at 40%. Planned completion is September 2019. 132kV Kawanda-Kapeeka, transmission Construction on going at 85% completion; project, 52km Projected completion in October, 2019. 132kV Tororo-Lira Transmission Line (263km) Total number of towers: 725 Completed Foundations: 692/725 (97%); Erected towers: 638/725 (88%); Stringing: 116km/263km (44%)

2.2.4 Power Distribution Over 10,000 km of Medium Voltage (MV) power lines and approximately 9,000 km of Low Voltage (LV) distribution power lines had been constructed by the Rural Electrification Agency (REA) by the end of FY2018/19. This has translated into the connections of over 333,297 customers onto the national grid during the reporting period. The rural electrification access rate has over time increased from 1% in 2001 to over 13% in 2019. The overall national electrification rate stood at 28% at the end of the FY2018/19. In addition, about 4000 km of MV power lines and 5,000 km of LV power lines are under implementation with 3,000 km of MV power lines and 2,000 km of LV power lines under procurement. In April 2019, REA embarked on implementation of a project aimed at bridging the gap between supply and demand through the accelerated rural electrification program. Under the project, over 400km of MV and over 6,000km of LV network are being constructed, electrifying 545 unserved sub counties countrywide in addition to priority extensions to high power consuming loads such as medium and small-scale industries and power for production centers. Alongside these projects, REA is also implementing grid intensification and densification projects aimed at connection of the surpressed demand within the existing national grid footprint. This project targets the connection of underserved load centers and load centers within a 2km footprint of the existing grid, through transformer injections, expansion of the low voltage reticulation network and short expansions of the medium voltage network, majorly targeting highly populated areas such as municipalities, divisions and bust trading centers countrywide.

Table 2: Progress on projects under implementation by REA by the end of June 2019 Project Description Summary scope Status 1 Energy Development and Access Construction of 455.84km Original scope of Expansion Project in Seven MV, 404.72 LV and works under Defects Towns in Uganda funded by installation of 181 Liability Period (DLP). OPEC/ OFID transformers in the districts Commissioning is on- of Buikwe, Mukono, Apac, going for variation Lira, Dokolo, Oyam, Nwoya works.

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2 Rural electrification projects in Construction of 857.69km 100% completion of Eastern Uganda funded by MV, 1,448.57km LV and works in the original BADEA/OFID installation of 484 scope transformers in the districts of Kamuli, Buyende, Jinja and 70% completion of Kayunga variation works 3 Project of extension and Construction of 1,544.76km - 100% completion of rehabilitation of the rural MV, 2,444.43km LV and works in the original electrification project in the installation of 829 scope mid-western and south-western transformers in the North - 96% completion of service territories funded by the Western, Mid-Western, works in addendum 1 French Development Agency South, South Western, Mid- - 0% completion of (AFD) Western, Rwenzori Service works in addendum II Territories Draft Contract sent to AFD for approval. - Project completion by January 2020 4 132 kV Mirama – Kabale Construction of 996.14km 80% completion of electricity transmission line and MV, 923.43km LV and works distribution project, funded by installation of 588 Islamic Development Bank (IDB) transformers in the districts Lot 3a: MV conductor - Phase II of Katakwi, Agago, Kitgum, stringing, Pader, Dokolo, Lira, Kole, transformer Apac, Tororo, Soroti, Kabale, installation and pre- Kisoro, Kanungu, Rukungiri, commissioning are Ntungamo, Ibanda, Isingiro, on-going. Project Mbarara, Mitooma, Kyenjojo, completion by early Kabarole, Rubirizi September 2019.

Lot 3b: Pole erection on-going. 5 Construction of distribution and Construction of 709.4km MV, 58% overall project low voltage networks in 158.33km LV and installation completion. Karamoja region under the of 105 transformers in The projected Opuyo – Moroto 132kv Moroto, Nakapiripirit, completion date is transmission line project, Amudat, Kotido, Abim December 2019. funded by Islamic Development Bank (IDB) - Phase I 6 Grid Rural Electrification Construction of 1,715.43km 74% completion of project, funded by Islamic MV, 1917.11km LV and works Development Bank (IDB) - Phase installation of 1,046 III transformers in South Western, Western, North Western, Rwenzori Service

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Territories, Westnile, North North West, Central North, Northern, Central, Mid- Western, Eastern and North Eastern 7 Rural Electrification Projects in Construction of 338.4km MV, 23% completion of Kalungu District and environs 375.8km LV and installation works funded by Abu Dhabi Fund for of 348 transformers. Development (ADFD) 8 Rural Electrification Projects in Construction of 326.8km MV, Lot 1: Route line six Districts of Uganda funded 283.8km LV and installation surveys and by Kuwait Fund (KFAED) of 191 transformers in the Engineering Designs districts of Kiryandongo, complete. Kibaale, Nebbi, Gulu, Bushenyi, Sheema, Rukungiri Lot 1B: Processing of and Kasese. advance payment 9 Uganda Rural Electricity Access Construction of 1410.6km Projected completion Project (UREAP) funded by MV, 1119.74km LV and date is March 2020. African Development Bank installation of 556 transformers in the districts of Nakasongola, Kiryandongo, Luweero, Alebtong, Amuria, Soroti, Mbale, Manafwa, Serere, Ngora, Bukedea, Kaliro, Iganga, Luuka, Gulu, Nwoya, Lira 10 Energy for Rural Transformation Construction of 581.57km Lot 1, 2: Design Phase III (ERT-3) funded by MV, 137.3km LV and approval on-going. World Bank/ IDA installation of 129 transformers Lot 3: Under procurement.

RAP report was approved by the World Bank. Valuation report was still under review by the Chief Government Valuer (CGV) 11 Construction of GoU priority Construction of 968.35km Procurement of projects (8 lots) funded by GoU MV, 1341.6 LV and contractors for lot 1, project cost installation of 644 2, 3, 4, 5, 6, 7, 8

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transformers in the Central, concluded Rwenzori, Mid-Western, South, Central, Western, South Western, North North West, Northern, Central North, West Nile, North Western Service, Eastern, North Eastern 12 Project of Bridging the Demand (Over 4,000km of MV, over The Consultancy Supply Balance Gap through the 6,000km of LV, targeting Contract was signed Accelerated Rural Electrification electrifying 590 unserved sub on 12th June 2019. Programme funded by the Exim counties countrywide) Project completion Bank of China by July 2022. 13 Electrification of Nangoma Rakai (8km of MV, 21.5km LV, 100% complete by village and environs under 8 distribution transformers) January 2019. Uganda-Tanzania Cross Border Electrification project funded by GoU 14 Construction of Kanyantorogo Kanungu 90% completion of Switching Station in Kanungu works. District (GOU) Project completion by end of July 2019 15 Project for Electrification of Adjumani, Koboko, Yumbe, Contract signed. Refugee Settlements in Kitgum, Paidha (73.24km of Verification of Northern Uganda funded by the MV, 79.4km of LV, 39 performance Norwegian Government distribution transformers) guarantees 16 Master Plans Master Plans for 13 rural completed electrification Service Territories 17 Implementation of Off grid Mini 25 Mini-Grids in Northern Procurement Grids Uganda -Lamwo District concluded and at negotiation stage 15 Mini-Grids in Southern St- Isingiro & Rakai District

2.2.4.1 Challenges • Delayed procurement for donor funded projects due to lengthy requirements such as a “no objection” at each stage. • Some development partners require that way leaves compensation is completed before construction works can commence. • There is difficulty in acquiring right of way due to some difficult Project Affected Persons (PAPs)

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• The power distribution sub sector is experiencing a shorter than expected life span for wooden poles • Vandalism of power distribution infrastructure before and after commissioning of projects.

2.2.4.2 Energy Distribution Losses

Electricity Distribution losses still remain one of the major challenges faced by the subsector. Overall, the Distribution Utilities recorded a Distribution Loss of 16.8% during 2018, indicating a 0.5%-point improvement from 17.3% recorded in 2017. UMEME, the main operator reduced the Distribution Losses to 16.4% in 2018 from 17.3% in 2017; although this was below the target of 14.7% set by the ERA for 2018.

Figure 28: Distribution losses

2.2.5 Promotion and Peaceful Application of Nuclear Energy

The Nuclear Energy Unit (NEU) continued to promote and develop Nuclear Energy for power generation and other peaceful purposes during the reporting period as detailed below.

2.2.5.1 Nuclear Power Infrastructure Development NEU conducted pre-feasibility studies for the nuclear power programme in Uganda as indicated below: a. Detailed survey of potential sites for nuclear power development To further prepare for the collection of site-specific data, the Siting and Technology Deployment Working Group (STDWG) continued to survey land for construction and installation of meteorology monitoring stations. Potential areas for installation of the station in Buyende

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District were identified and the process for acquiring the land is ongoing. In addition, the contractor that will design supply, deliver, install and commission the meteorological monitoring station has been selected.

Figure 29: Ministry official speaking at the village meeting during the survey exercise for land for construction and installation of a meteorology monitoring station in Buyende District b. Human resource development The Ministry continued to support specialized training of NEU staff in nuclear related fields to build more capacity for implementing the nuclear power programme. Appendix 2 shows the status of training for the five (5) graduate trainees in NEU that were recruited in January 2017. Within the framework of the IAEA Technical Cooperation Programme, ten (10) members of staff participated in short professional training courses on, Stakeholder Involvement, Nuclear Power Infrastructure Development, Funding and Financing for nuclear power and nuclear power infrastructure development.

Figure 30: Visit to Nuclear Power Plant Technician Training Facilities at Wharton County Junior College in the United States of America 39

As one of the strategies of building human resource capacity and creating awareness in Nuclear Energy, officials from the Ministry led by the Minister of Energy and Mineral Development and Members of the Natural Resources Committee of the Parliament of Uganda participated in a scientific visit on introduction to nuclear power to Texas, United States of America in August 2018. As a result of the visit, the legislators got a good understanding of the technical aspects and public policy issues. It was recommended that a training institute for skilling technical human resource for Nuclear power be established in the country.

A Human Resource Development Working Group (HRDWG) retreat to finalize the draft technical paper on competences required for a nuclear power project in Uganda was conducted at the Source of the Nile Hotel, Jinja from 7th - 11th August 2018. The competences for the different phases of the Nuclear power project were identified.

Figure 31: Human Resource Working Group members during a Human Resource Development Retreat in Jinja c. Radioactive Waste Management A stakeholders’ workshop was held on 18th April 2019 to share the findings of the Status Report on Radioactive Waste Management from existing applications of ionizing radiation in the country. The meeting agreed that in the short term, organizations with the existing sources should sign a Memorandum of Understanding (MoU) with Atomic Energy Council (AEC) with clear responsibilities of the different entities for interim storage of sources at Mpoma, and in the long run, the Ministry develops a policy and strategy on radioactive waste management. The policy should propose a national institution to manage radioactive waste and an establishment of a centralized national radioactive waste management facility.

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Figure 32: A participant sharing his views during the Stakeholders’ Workshop to share the findings of the Status Report on Radioactive Waste Management d. Local Industrial Involvement As part of the process for the development of the local industrial involvement strategy for Uganda, the study on local industrial involvement in the supply of goods and services required for the first nuclear power project in Uganda is ongoing. A technical paper identifying potential goods and services local companies will supply or offer during the construction of the first Nuclear power plant in Uganda was prepared. A consultative workshop to share findings of the Study on Local Industrial Involvement was held on 22nd May 2019, at Amber House. It was noted that there was need for more stakeholders’ consultation to harmonize the definition of what a “local” company is, and also a capacity survey of the local industries to be carried out.

Figure 33: Participants of the consultative workshop of a Study on Local Industrial Involvement

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2.2.5.2 Stakeholder Engagement on Nuclear Energy a. Consultations on Nuclear Energy Development Consultations were held with the MEMD Top Management on the key issues in the draft Nuclear Energy Policy on 28th February 2019. The meeting was in agreement with the proposed Nuclear Energy Policy and the need to transform the Nuclear Energy Unit to a Department. In addition, a consultative meeting was held with National Planning Authority (NPA) on 5th June 2019 on the status of the nuclear power programme. The meeting proposed that feasibility studies for the nuclear power programme be conducted.

Figure 34: Ms. Nafuna Sarah making a presentation during the consultation meeting with NPA officials b. Raising Awareness on Nuclear Energy Development The Ministry of Energy and Mineral Development continued to raise awareness on the contibution of nuclear energy to socio economic development, through exhibitions and dissemination of information packages to the general public.

Figure 35: Hon. Eng. Irene Muloni inspecting the Nuclear Energy Unit stall at the 2018 Energy Week Exhibition 42

The Nuclear Information Centre was equipped with furniture for displaying and storing documents such as IAEA publications, books and brochures. Procurement of a nuclear power plant model was initiated. The Ministry also developed and disseminated awareness materials on nuclear energy. These include: - Directory on Nuclear Technology Services in Uganda, Note Books, Calendars and Information Booklet on IAEA-TC, 2019/2023. The Directory on Nuclear Technology Services in Uganda provides contact details of institutions in the health, water, agriculture, energy and education sectors; where nuclear technology services are offered to enable the public easily access them. The note books provided information on the mandate and functions of the Nuclear Energy Unit, highlighted activities that are carried out, and quotes to support the promotion and development of the use of nuclear energy for power generation and other peaceful purposes. The Information Booklet on IAEA-TC, 2019/2023 gives information on the ongoing projects under the Uganda-IAEA technical cooperation programme, and the roles of the National Liason Office and project counterparts in implementing instutions.

2.2.5.3 Coordination of the IAEA Technical Cooperation Programme

During the reporting period, the Ministry continued its coordination role of the IAEA Technical Cooperation programme. a. Country Programme Framework A draft Country Programme Framework (CPF) between Government of Uganda (GoU) and International Atomic Energy Agency (IAEA) for the period 2019-2023 was prepared. The Country Programme Frameworks (CPF) serves as the framework of reference for the proposed technical cooperation between the IAEA and a member state for a five-year period. The CPF reflects an agreement between the two parties on where nuclear science and technology can contribute directly and cost-effectively to national development priorities and goals. The CPF will focus on Food & Agriculture, Human Health, Water, Energy, Industry, Reasearch, Security and Radiation Protection. Meetings to review the draft Country Programme Framework (CPF) were held in August 2018. The CPF is set for signature in September 2019 at the margins of the IAEA General Conference. b. Ministerial Conference Hon. Eng. Irene Muloni, Minister of Energy and Mineral Development attended the Ministerial conference on Nuclear Science and Technology: Adressing Current and Emerging Development Challenges from 29th to 30th November 2018, in Vienna, Austria. The Minister called for international cooperation on the nuclear energy use and encouraged member states to develop human resources in relation to nuclear power. At the margins of the conference, the Minister requested for IAEA to conduct an Intergrated Nuclear Infrastructure Review (INIR) mission to advise on the status of nuclear infrasture development in the country.

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Figure 36: Hon. Eng. Irene Muloni, Minister of Energy and Mineral Development with IAEA Director General, Mr. Yukiya Amano (L) and Minister addressing the conference (R). c. IAEA General Conference Hon. Eng. Simon D’Ujanga, Minister of State for Energy led the Uganda Delegation to the 62nd IAEA General Conference. At this event, the Minister delivered the country statement highlighting the key achievements for the IAEA Technical Cooperation. This includes among others; professional training of Ugandans in the field of nuclear science and technology, as well as supporting the restoration of radiotherapy services in Uganda. Uganda also handed over the Chair of AFRA during the 29th AFRA Meeting of Representatives held at the margins of the conference. Some of the achievements was the signing of the Regional Cooperative Framework for 2019 – 2023. In addition, two Ugandans were awarded AFRA Scholarships to pursue a Master’s degree in Nuclear Science Technology.

Figure 37: Hon. Eng. Simon D’Ujanga addressing the 62nd Annual IAEA General Conference in Vienna, Austria 44 d. Support to other Government Entities The Ministy continued to support Ministries, Departments and Agencies (MDAs) involved in IAEA technical cooperation by approving expert missions, and processing nominations for participation of over 140 Government officials in IAEA and AFRA supported activities. i. Health sector

The Ministry coordinated and monitored the installation of a new cobalt 60 machine at Uganda Cancer Institute for cancer treatment. It also helped coordinate the construction of the six bunkers for the cancer treat machines at the Uganda Cancer Institute (UCI).

The Ministry also coordinated the purchase of the new Dual Gamma Spect Camera for the Nuclear Medicine Department in Mulago National Refferal Hospital, used for diagnosis of diseases. ii. Industry and Coopearatives

The Ministry coordinated the purchase of the Triple Quadruple Liquid Chromatography Mass Spectrometer (LCMS/MS) for the Uganda National Bureau of Standards (UNBS) to support the national capacity for monitoring food contaminants with the ultimate objective of safeguarding consumers and increasing the national export potential for agricultural products.

The Ministry also participated in the multi-sectoral benchmarking tour to Malaysia from 2nd to 5th December 2018 organized by Uganda Development Corporation (UDC). The objective of the tour was to carry out a technical assessment to aid the establishment of a gamma irradiation decontamination facility in Uganda; that uses application of gamma sterilization technology as an alternative treatment for harmful organisms in exports of fresh produce. Uganda losses millions of shillings yearly due to interceptions and destruction of her agricultural exports at the international markets as a result of non-compliance with the Sanitary and Phyosanitary (SPS) measures. The investment mainly targets sanitization of agricultural produce (mainly fruits and horticultural goods) destined for both local and export markets. It was noted that the country should consider making preparations for the regulation of the Gamma Irradiation practice.

Figure 38: A participant sharing his views during the Stakeholders’ Workshop to share the findings of the Status Report on Radioactive Waste Management

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2.2.5.4 Bilateral Cooperation on Nuclear Energy The Ministry continued to strengthen its cooperation in the field of nuclear energy use for peaceful purposes with the People’s Republic of China and the Russian Federation during the reporting period. A Joint Steering Committee meeting on Uganda – China Bilateral Cooperation in the Use of Atomic Energy for Peaceful Purposes was held at Imperial Royale Kampala from 26th - 28th March 2019. The meeting was to develop a cooperation roadmap and work plans for specific projects and shape the bilateral cooperation between China and Uganda. The three projects were identified, namely; Nuclear Power Plant, Research Reactors and Irradiation Facility. The meeting agreed on conducting feasibility studies and formation of working groups for the proposed projects.

Figure 39: Ministry official making a presentation at the Uganda - China Joint Steering Committee Meeting on Cooperation in the Use of Atomic Energy for Peaceful Purposes (L) and Heads of Delegation signing the Record of the Meeting (R)

In addition, the Ministry in a bilateral meeting held in Kampala on 14th March 2019 finalized negotiating the draft Intergovernmental Agreement between the Government of Uganda and the Government of the Russian Federation. The Agreement is set for signature in September 2019 at the margins of the IAEA General Conference.

Figure 40: Co-chairs for the Uganda – Russia Bilateral Meeting on Draft Intergovernmental Agreement on Nuclear Energy exchanging minutes. 46

2.3 Renewable Energy Promotion The Renewable Energy Department which is under the Energy Resources Directorate of the Ministry promotes the use of renewable energy sources and technologies for electricity generation and thermal applications for institutions and households. Below is an update of the activities carried out in the financial year 2018/19.

2.3.1 Biogas NAMA Project The Ministry is implementing a project entitled “NAMA on Integrated Waste Management and Biogas Production in Uganda” (Biogas NAMA) with funding from Global Environment Facility (GEF) through United Nations Development Programme (UNDP). This is a five-year project from 2018 – 2023. The funding allocated to the project is USD 3,070,030 in cash and co-financing (in- kind, equity, guarantee) worth USD 13,888,000. The objective of the Project is to improve waste management practices in towns and municipalities through the introduction of Integrated Waste Management for Biogas Energy Generation. The project targets to install a total of 2.90MW of electricity generated from three (3) biogas plants, which is equivalent to about 20,300 MWh/year of electricity. MEMD will implement the project in collaboration with National Water and Sewerage Cooperation (NWSC), National Environment Management Authority (NEMA), Electricity Regulatory Authority (ERA), Ministry of Water and Environment (MWE), Kampala Capital City Authority (KCCA), and the Municipalities of Jinja, Mbale, Masaka and Mbarara. These will be the Responsible Parties to the implementation of the project.

2.3.1.1 Technical Inception Meeting A two-day Technical Inception Workshop was held from 26th – 27th February, 2019 at Golf Course Hotel, Kampala to kickstart the implementation of this Biogas NAMA project. In attendance were representatives from government, Civil Society Organisations (CSOs), private sector and donor agencies. The meeting was presided over by a representative of the Permanent Secretary – Mr. Wafula Wilson (the Acting Commissioner, Renewable Energy Department), the Representative for the Resident Representative, UNDP – Mr. Onesmus Muhwezi and the Regional Technical Advisor GEF – Mr. Faris Khader.

Figure 41: The Regional Technical Advisor GEF – Mr. Faris Khader making remarks at the Inception Workshop for the Biogas NAMA Project at Golf Course Hotel, Kampala

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2.3.1.2 Inaugural Board Meeting The first Board Meeting was held on 4th April, 2019 at Amber House chaired by the Permanent Secretary – Mr. Robert Kasande with participation of board members from ERA, NWSC, KCCA, NEMA, MWE, Kakira Sugar Works, and Town Clerks of Mbale and Jinja. The purpose of the board meeting was to approve the Project’s 2019 Annual Work plan and officially kickstart project implementation.

Figure 42: The first Board Meeting for the Biogas NAMA Project held at Amber House.

2.3.1.3 Recruitment of Project Management Unit During the FY 2018/2019, the Project Finance and Administration Officer was recruited as part of the Project Management Unit. The Project Manager is expected at the beginning of the FY 2019/20.

2.3.2 Dialogue on Sustainable Charcoal Production and Utilisation The Ministry together with the Office of the President (OP) and a multisectoral task force comprised of Ministry of Water and Environment (MWE), National Forestry Authority (NFA), Ministry of Local Government (MoLG) and Uganda National Alliance on Clean Cooking (UNACC), UNDP, WWF, UNHCR and GIZ, organised a national dialogue on Sustainable Charcoal

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Production and Utilisation. This was in response to a survey undertaken by OP on heightened charcoal trade across the border points of Elegu and Busia following the ban on charcoal production in Kenya.

The Dialogue was held on 28th May, 2019 at Golf Course Hotel, Kampala under the theme “Together for a Sustainable Charcoal Industry”. The workshop was presided over by the Deputy Head of Public Service – Ms. Deborah Katuramu; the Minister of State for Economic Monitoring, OP – Hon. Dr. Kasirivu-Atwooki; Commissioner, Forest Sector Support Department (FSSD), MWE, Ms. Adata Margaret and Minister of State for Minerals – Hon. Peter Lokeris.

Figure 43: The Minister of State for Minerals – Hon. Peter Lokeris giving the opening remarks at the Charcoal Dialogue at Golf Course Hotel, Kampala

The Dialogue brought together participants from Government, private sector, CSOs, development partners, research fraternity and academia. The purpose of this Dialogue was to bring together key stakeholders to discuss the key challenges in the unsustainable charcoal production and agree on implementable actions to address these challenges. From the discussions, the participants agreed on recommendations to ensure charcoal production and utilisation is carried out in an environmentally friendly manner. These are summarised in the table below.

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Table 3: Key Issues and Recommendations from the National Charcoal Dialogue S/N Issues Considered recommendations Responsibility Centre 1 Weak enforcement of • Set up a Regulatory Body for Biomass MEMD, O.P existing environmental energy to handle issues of charcoal and and MWE related legal firewood. frameworks • Establish a special enforcement/Police unit for biomass energy. • Recruit more staff to enforce policies and by-laws on biomass issues at the sub county level e.g. forest rangers • There is need to establish effective laws and regulations 2 Corrupt police officers • Need to form transportation LG, Uganda who demand fines Committees that oversee charcoal Police, from charcoal transportation. The team needs to be Charcoal transporters rather comprised of police, justice officials, Association, than taking them to revenue officials, local government MoJ court officials and a member from a charcoal Association. 3 Interference in the law • Sensitization of political leaders on the MEMD and enforcement dangers of uncontrolled harvesting of MWE measures by top trees for charcoal politicians and well- placed Government Officials. 4 Lack of a specific • Gazette the formulated charcoal MWE, MEMD, regulation and ordinances and roll-them out in all MoLG, DLGs standards on charcoal districts in the country. production and trade • Finalization of the Charcoal Guidelines. • Establish and finalize the standards on charcoal and briquettes. 5 Lack of clear Harmonizing different policies and MWE, MEMD, institutional charcoal interventions in different MDAs and joint NEMA, DLGs coordination monitoring. 6 Gaps in existing legal • Revision of the Forest and Tree MWE, NFA framework to regulate Planting Act and the Regulations tree cutting for any including toughening punitive purpose. Absence of a measures legal framework to regulate tree cutting for any purpose

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S/N Issues Considered recommendations Responsibility Centre 7 Ignorance of the law • Sensitization of charcoal traders on the MWE, MEMD, by traders and existing laws and regulations. DLGs community members • Translating laws and standards into local languages. 8 People are not well • Massive sensitization on the dangers of MWE sensitized and are climate change caused by massive generally insensitive cutting of trees. about the dangers of • Need to involve the leadership of the climate change as a charcoal producers’ association in the result of environment sensitization and awareness creation destruction. campaigns. 9 Inadequate • Embark on sensitization of the people MEMD, MWE, sensitization of the especially at the grassroots on the DLGs, OP, public for clean available alternative sources of energy NFA cooking solutions and and energy saving technologies. other environmentally • Hold Regional Dialogues on Biomass friendly solutions. energy 10 Low adoption of clean • Put in place specific incentives to MEMD cooking alternatives increase access and affordability to such as briquettes, these alternative fuels e.g. tax biogas and Liquefied reduction, reduction of power tariffs, Petroleum Gas (LPG) etc. 11 Large scale consumers • Government should make it mandatory MoES, like schools and for major biomass consumers e.g. MEMD, MoIA, prisons who are schools and prisons to use energy MoH causing increased efficient technologies. demand of charcoal • Need for private sector to partner with and wood fuel. schools to supply briquettes. 12 Law enforcers also Toughen punitive measures against the UPF, LGs, complained of security illegal/unlicensed charcoal producers MWE threats to their lives. especially from protected areas. 13 Lack of clear guidelines • The Charcoal Guidelines being MWE, DLGs regarding disposal of developed should address the issue of impounded charcoal impounded charcoal of unlicensed from unlicensed charcoal producers. charcoal producers. 14 Increasing rate of • Dedicated tree planting for energy. MEMD, NFA, deforestation • Investing in waste recycling/ waste-to- MWE energy solutions such as briquetting, biogas.

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S/N Issues Considered recommendations Responsibility Centre 15 Some borders are • Government should strengthen MIA porous and thus deployment along boarders. making it easy for • Uganda should have bilateral some smuggling of discussions with Kenya on charcoal charcoal to cross production and trade. borders. 16 Inadequate financing • Hold an Annual Dialogue event for MEMD, MWE, of the charcoal Biomass energy. OP, subsector • Inter-ministerial planning and Development budgeting for sustainable charcoal Partners activities. 17 Limited support from • Relevant MDAs should provide support MEMD, MWE, the line Ministries to to Uganda Charcoal Traders’ NFA, MoLG the Uganda charcoal Association and tree planters traders’ association

2.3.3 Assessment of ethanol production potential among sugar companies The Ministry conducted a survey and data collection mission among large sugar factories to estimate the potential of bioethanol that can be produced from these sugar factories to meet the coutnry’s blending mandate as stipulated in the Biofuels Act, 2018. The table below summarises the key technical parameters assessed.

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Table 4: Assessment of ethanol production potential among sugar companies Parameter Kakira Sugar Kinyara SCOUL Mayuge Kaliro Sugar Kamuli Hoima GM Works Sugar Industries Factory Sugar Sugar Ltd Start Date 1920 1969 1924 2016 2011 2014 2016 2014 Location Jinja Masindi Buikwe Mayuge Kaliro Kamuli Hoima Buikwe Cane crushing 7,500 4,200 3,850 3,500 1,650 1,250 1,500 1,250 capacity (daily tonnage) Sugar 150,000 125,000 72,000 30,000 20,000 10,000 8,000 10,000 production capacity (tonnes/yr) Main products Sugar, Sugar, Sugar, Sugar, Sugar, Sugar, Sugar, Sugar, Ethanol, Power, Ethanol, Ethanol, Power, Molasses Molasses Molasses Power Molasses CO2 Molasses Molasses Cogeneration Electricity to Electricity None Electricity Electricity model staff and to staff exported to to staff export to the the grid grid Total electricity 52 14.5 9 – 12 – generated (MW) Electricity 20 9 3 3 2.6 consumed (MW) Electricity 32 – – 9 – exported to the grid (MW) Sugarcane 8,000 9,000 10,200 – 480 –

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Parameter Kakira Sugar Kinyara SCOUL Mayuge Kaliro Sugar Kamuli Hoima GM Works Sugar Industries Factory Sugar Sugar Ltd plantation – Estate (ha) Sugarcane 21,000 400 400 – 11,000 – plantation – Out growers (ha) Ethanol 60,000 L/day Nil 30,000 30,000 – – 5,000 L/day production L/day L/day Ethanol 20,400,000 10,200,000 10,200,000 1,700,000 production Litres Litres Litres Litres (annually) Sugar recovery 8.5 8.0 9.0 6.5 6.5 6.5 6.0 6.5 % Sugar cane 115 85 75 – – – – – yield

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2.3.4 Construction of energy efficient institutional cook stoves The Ministry constructed five (5) institutional cookstoves among five educational institutions namely: Yesu Akwagala High School - Kyamulibwa in Masaka district; Kasaka Secondary School in Gomba district; Kakooge Secondary School in Nakasongola district, Bertina Primary School in Wakiso district and Masindi Senior Secondary School in Masindi district. Each of these institutions received a twin cook stove and 2 mild steel saucepans of 250 litres each to demonstrate the efficient use of fuelwood and reduce wood consumption among schools.

Figure 44: The old traditional stove (left) and the new improved cookstove installed at Yesu Akwagala High School Kyamulibwa in Kalungu district - Greater Masaka.

2.3.5 Renewable Energy Department (RED) Staff retreat The Renewable Energy Department organised a retreat for its staff which was held at Uganda Civil Service College in Jinja during March 2019. The purpose of the Departmental Retreat was to: i) Align the schedule of duties with the job descriptions and person sepcifications for the different staff; ii) Train, coach and mentor staff; iii) Enable the staff to appreciate the terms and conditions of service, code of conduct, plan for retirement and the Quality Management System (QMS); iv) To consolidate what the department was achieving and to increase its outputs. The staff went through the specific job descriptions for each officer in their respective positions right from the Energy Officers to the Commisioner. Other key topics discussed included: retirement planning, reporting requirments for QMS and opportunities at the Ministry.

2.3.6 Green Charcoal Project 2.3.6.1 Development of Charcoal Policy Brief The Ministry in collaboration with the Ministry of Water and Environment (MWE); the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) as well as district local governments (DLGs) developed the National Charcoal Guidelines to promote a sustainable charcoal industry in Uganda.

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During the Financial Year 2018/19, a task force comprising of key stakeholders in the value chain namely: MEMD, MWE and DLGs was constituted to develop a charcoal policy brief which is a compressed version of the Guidelines to inform and influence critical players including decision makers, legislators and other national and local leaders about the unsustainable charcoal production. The Ministry organised a meeting at Colline Hotel in Mukono to refine the draft policy brief and to draw appropriate strategies to ensure its wide criculation and national roll out.

Figure 45: The task force reviewing the draft Charcoal Policy Brief at Colline Hotel, Mukono

2.3.6.2 Training of District staff on land use planning, assessment and degradation In the month of May 2019, the Ministry conducted a training on land use planning, assessment and degradation for district staff from the districts of Kiboga, Kiryandongo, Mubende and Nakaseke. The objective of this workshop was to train District Land Use Planning staff in the use of techniques that support community planning, implementation processes and land degradation assessment. The training was attended by various officers from the district namely: Forestry Officers, Environment Officers, Natural Resources Officers, Land Officers, Physical Planning Officers and Planning Officers as well as staff from the Ministry. This training was to enable the respective officers interface with software (QGIS) regarding mapping for planning purposes before actual field training in degradation assessment using LADA-WOCAT tools. The training was held in Mubende district at Primrose Hotel.

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Figure 46: Training on the techniques of QGIS for land use planning, assessment and degradation.

The officers underwent a practical training in using QGIS software in which they were divided into small groups and taught various mapping tools and techniques such as selecting area of interest in a bigger map, labelling features, layer symbology, map layout, plotting field based raw data on a map, converting excel files into a suitable format for mapping, calculating the area and perimeter of a given feature, adding an inset map, digitising and printing a map.

Figure 47: One of the groups consulting from the trainer (left) and the final map that the group produced using QGIS techniques from the training in Mubende district.

2.3.6.3 Labelling and Certification Criteria for Charcoal During the Financial Year 2018/19, the Ministry with support from UNDP consolidated a taskforce to develop the guidelines for labelling and certifying sustainably produced charcoal in Uganda. The purpose of labelling and certification is to protect and raise awareness of the consumer and to give concerted efforts to the consumer to know why they should pay more for certified charcoal. The task force developed a draft set of labelling criteria for certification of sustainably produced green charcoal for quality assurance.

A workshop for the task force was held at Colline Hotel - Mukono to review the draft criteria which were broken down into the following sections:

57 i) The source of wood (feedstock for charcoal produced) ii) The technologies used to convert wood into charcoal iii) Packaging and labelling which bears the Quality mark/stamp iv) Transportation of charcoal (i.e. customised truck) The above criteria together with good practices for charcoal production e.g. methods of felling, haulage, storage of wood and charcoal and end-user utilisation (technologies used for cooking) will constitute a labeling and certification scheme. The latter two items will not be a basis for acquiring the label. The guidelines for labelling included: i) Species of trees for charcoal production ii) Source of biomass iii) Technolgies used to convert the biomass iv) Weight label for the charcoal. The task force meeting agreed that the mark be owned by MEMD with Uganda National Bureau of Standards (UNBS) supporting its enforcement.

Figure 48: Task force reviewing the labelling and certification criteria for green charcoal at Colline Hotel, Mukono.

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2.3.6.4 Dissemination of Improved Charcoal Production Technologies The Ministry contracted Centre for Research and Sustainable Soulutions (CRSS) to fabricate, install and train charcoal producers and skilling artisans in fabrication and, use and maintenace of improved charcoal production for sustainable charcoal production. Overall, 152 casamance kilns were produced and popularised in the four Green Charcoal Project pilot districts of Kiboga, Kiryandongo, Mubende and Nakasongola. A total of 218 charcoal producers were trained in best practices and the use of the casmance kilns for charcoal production. Eleven (11) technicians were trained in technical skills for fabrication of the casmance kilns.

Figure 49: Lighting a charcoal kiln fitted with a casamance chimney for better charcoal yields

The LC V Chairpersons of the four pilot districts who are also Board members of the project handed over the kilns to the charcoal producing beneficiaries. The Ministry had fabricated 182 casamance units, however, due to circulation in pilot districts the Green Charcoal Board decided to donate thirty (30) units of the 182 to the UNDP /IGG SURE Food Project in Karamoja. These were handed over to UNDP/IGG Sister project in Kiryandongo by the MEMD.

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Figure 50: The LCV Deputy chairperson of Kiboga, Mr. Noah Kibwami handing over the casamance kilns to trained charcoal producers in Kiboga.

Figure 51: The LCV Chairman of Nakaseke district Mr. Ignatious Koome handing over the casamances to charcoal producers in Wakyato Subcounty - Nakaseke district.

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Figure 52: Loading of the 30 casamance units at Kiryandongo, destined for the UNDP/IGG SURE FS Food Project in Karamoja.

2.3.6.5 Monitoring of charcoal producer association and CSA Groups The Ministry together with the Project Management Team undertook a monitoring exercise of the beneficiaries of the casamance kilns disseminated and Climate Smart Agriculture (CSA) grants within the project districts of Kiboga, Kiryandongo, Nakaseke and Mubende. The main objective of this monitoring was not only to track the progress of project activities but also to try and develop a functional data base.

Figure 53: Monitoring of maize garden planted using SLM for one of the CSA groups in Mubende (left) and monitoring tree nursery for eucalyptus seedlings in Kiryandongo (right).

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The activity sought to achieve the following specific objectives: i) To collect information on challenges faced in revenue collection, policy enforcement, adoption and use of improved charcoal production technologies and implementation sustainable land management practices. ii) To create a data base to influence policy as far as charcoal is concerned. iii) To map project intervention areas using GIS for easy tracking in the future.

From the interaction with district officials, charcoal producer associations and CSA groups, the following were the key challenges faced:

i) There was no specific law streamlining the licensing of charcoal producers. ii) the gazzetting and implementation of the drafted charcoal ordinances has delayed thereby rendering the revenue collection process difficult. iii) Land ownership limiting investment in tree planting. iv) There was no incentive for investing in the new improved charcoal production technologies because charcoal produced from improved and traditional technoliges fetched the same price on the market. v) Plummeted prices of maize discouraged users for sustainable land management practices.

2.3.7 Installation of institutional solar water heating systems in the districts of Buvuma and Kamuli districts The Ministry procured and installed two institutional solar water heating systems at Buvuma health center IV in Buvuma district and Kamuli General Referal hospital in Kamuli district to promote the use of solar water heating technology in hospitals/health centers to supply hot water to the maternity wards, operating theatre, and the admission wards. The systems aid to save funds spent on the electricity bills and improve on the standards of services being offered in the health units. The solar water heaters a renewable energy technology use the free resource of the sun to produce cheap and reliable supply of hot water with a payback period of 2-3 years. The solar water heating systems are robust with thus having a long-life span. The systems emit no fumes; they are noise free and have minimum maintenance costs.

Figure 54: The Ministry Audit team at Buvuma health center IV 62

Figure 55: The hot water access points at Buvuma health center IV

2.3.8 The 4MW solar plant project at Busitema University The Ministry is in the final preparatory stages to receive the 4MW solar plant from the Arab Republic of Egypt that is to be installed at Busitema University. Various meetings among different stakeholders have been held to streamline the implementation of the grant.

The ministry received and handed over the 7.5hectares of land to the Egyptians. The land was surveyed, earmarked and project signpots have been erected. The land has been continously cleared of all the bushes.

A technical team consisting of officials from the Ministry and an official from Busitema University visited the Arab Republic of Egypt to finalise the technical discussions for the implementation of the grant and pay a courtesy visit to the manufacturers of the equipment of the 4MW solar grant.

The procurement of services for the transportation of the first lot of equipment from the Mombasa port to Busitema University was initiated.

2.3.9 Solar systems grant from the Hunan provincial Government of China The Ministry received a grant of 394 solar systems from the Hunan Provincial Government of China. The systems include; 50W complete portable rural home solar systems, 100W complete portable rural home solar systems, 2KW solar systems for schools and health centers, 1.5kW and 500 Wp solar water pumping systems, solar street lights and mosquito killer lamps. The systems were received and stored at Amber house premises and now await dissemination. The Ministry has assessed various potential beneficiaries of the 394 solar systems.

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The grant will boost the adaption of solar technologies and also improve on the livelihoods of Ugandans far from the grid and those practicing agriculture without irrigation.

Figure 56: Off-loading session of the trailer carrying the 394 solar systems upon arrival at Amber house

2.3.10 Scaling up Renewable Energy Program The Ministry of Energy and Mineral Development with Support from the Strategic Climate Fund, through the African Development Bank, (AfDB) received a preparation grant to assist Uganda in preparing the Wind Resource Map and Pilot-Wind Power Development Program for Uganda under the Scaling – Up of Renewable Energy Program (SREP).

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The project is covering the following activities: i. Detailed wind resource assessment in the Northern Region by installing six (6) wind masts ii. Technical feasibility studies of two (2) sites. iii. Detailed Environmental and Social Impact Assessment and a detailed Resettlement action Plan on the two (2) sites. iv. Preparation of a Wind energy Strategic Plan and an Investment Guide

The project is being implemented in the districts of Kotido, Napak, Moroto, Nakapiripirit, Amudat and Kabong in Karamoja sub-region.

The Ministry is in the final stages of procuring a consultant who will conduct the wind resource assessment and develop a wind map for the pilot of wind power development.

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2018 Uganda Energy Balance Petroleum Products Biofuels & Waste Thousand Tonnes of Oil Solar Jet Other Gas / High Sulphur Hydro Geothermal Wind Commercial Agro Residues Electricity Total Equivalent ( ktoe ) LPG Gasoline PV Charcoal Kerosene Kerosene Diesel Oil Fuel Oil Firewood and Waste Production 0 0 0 0 0 0 313 0 0 3 12644 0 3248 0 16208 Imports 67 734 116 49 904 72 0 0 0 0 2341 0 0 3 4286 Exports (-) 0 0 0 0 0 0 0 0 0 0 0 0 0 -20 -20 International Marine Bunkers (-) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 International Aviation Bunkers (-) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

PRIMARYSUPPLY Stock Changes (+ draw, - build) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TPES 67 734 116 49 904 72 313 0 0 3 14985 0 3248 -17 20475 Transfers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Statistical Difference 0 0 0 0 0 0 0 0 0 0 579 2927 19 16 3542 Transformation 0 0 0 0 0 -72 -313 0 0 -3 -5517 -1456 -1720 364 -8717 Electricity Producers 0 0 0 0 0 -72 -313 0 0 -3 0 0 -1720 364 -1744 Petroleum Refineries 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Charcoal Plants 0 0 0 0 0 0 0 0 0 0 -5517 -1456 0 0 -6973 Gas-To-Liquids 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Coal-To-Liquids 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

TRANSFORMATION Blast Furnaces 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Transformation Processes 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Energy Industry Own Use 0 0 0 0 0 0 0 0 0 0 0 0 0 -15 -15 Losses 0 0 0 0 0 0 0 0 0 0 0 0 0 -84 -84 Total Final Consumption 67 734 117 49 904 0 0 0 0 0 10047 1471 1548 264 15200 Industry 1 73 0 39 271 0 0 0 0 0 1766 147 745 173 3216 Transport 0 587 117 0 542 0 0 0 0 0 0 0 0 0 1246 Households 40 0 0 10 0 0 0 0 0 0 7447 1177 611 57 9343 Com. & Public 25 0 0 0 0 0 0 0 0 0 834 147 191 33 1231 Agriculture/Forestry 0 73 0 0 90 0 0 0 0 0 0 0 0 0 164

FINAL CONSUMPTION FINAL Others (Non Specified) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Non-Energy Use 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Uganda primary energy supply, 2018 Uganda energy consumption by source, 2018 Category % Category % Petroleum 9.5 Petroleum 12.3 Selected indicators Hydro & other electricity 1.4 Electricity 1.7 Population projection, 2018 (Source: UBOS) 39059000.0 Renewable energy 89.1 Renewable energy 86.0 Total energy consumption per capita (kgOE/a) 389.2 Total 100.0 Total 100.0 Total electricity consumption per capita (kWh/a) 78.5

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3.0 PETROLEUM SUB SECTOR

Honey Malinga Ag. Director, PD

Rev. J. F. Tukwasibwe C/PSD Irene Batebe Frank Mugisha Ag. C/MPD Ag. C/PED&PD

Figure 57: Management of the Petroleum Directorate

3.1 Petroleum Exploration, Development and Production The Petroleum Exploration, Development and Production Department (PEDPD) in the Directorate of Petroleum (DoP) of the Ministry of Energy and Mineral Development (MEMD) is responsible for promotion, licensing, and policy initiations for the Upstream petroleum sub-sector in the country.

This section outlines the activities undertaken by PEDPD during the 2018/19 financial year under the following functions: - • Promotion of the country’s petroleum potential and licensing; • Monitoring upstream petroleum activities; • Policy, legislation formulation and implementation; • Capacity building in the petroleum sub-sector; • Regional Initiatives; • Infrastructure Development

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3.1.1 Promotion of the Country’s Petroleum Potential and Licensing 3.1.1.1 Promoting Investment in the Oil and Gas Sub Sector Promotional packages were updated and 300 promotional materials were produced and given out at two (2) national and three (3) international conferences. As a result, the international oil industry continued to show significant interest in participating in the Ugandan sub-sector. The key areas of interest by international companies were in provision of goods and services related to exploration and development of the upstream infrastructure. 3.1.1.2 Petrotech 2019 and the Second India-Uganda Business Conference in India At the invitation of Hon. Dharmendra Pradhan, the Indian Minister for Petroleum & Natural Gas, Skill Development and Entrepreneurship; the Minister of Energy and Mineral Development in Uganda; Eng. Hon. Irene Muloni, led a 3-person delegation to New Delhi - India to attend the 13th International Oil & Gas Conference and Exhibition (PETROTECH) from 10th to 12th February 2019. The Minister was accompanied by Messrs. Tonny Sserubiri; Principal Geologist/Exploration in the Directorate of Petroleum and Sam Gizamba Gibuziu; Personal Assistant to the Minister. Upon successful completion of the PETROTECH conference, the Ugandan delegation was then hosted by the Uganda High Commission in India for the Second Uganda-India Business conference in Kolkata. The two-day meeting examined investment and other business opportunities in Uganda's key sectors including energy, tourism, agro-processing, minerals and infrastructure. The Kolkata conference took place from 14th to 15th February 2019.

Figure 58: Minister Hon. Eng. Irene Muloni (2nd from left), Indian Prime Minister-H. E. Nahendra Modi (6th from right) and other dignitaries from various countries

3.1.1.3 Licensing for Petroleum Exploration and Production a) The Second Licensing Round The second licensing round was launched on 8th May 2019 at the East African Petroleum Conference and Exhibition (EAPCE’19) in Mombasa, Kenya by the Minister of Energy and

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Mineral Development, Hon. Eng. Irene Muloni. The Roadmap for the 2nd Licensing Round was presented at the Africa Oil Week conference held in November, 2018 in Cape Town, South Africa. Six (6) steering committee meetings for the 2nd Licensing round were held. Five (5) Exploration Blocks were put on offer for licensing, namely: i. Avivi covering Obongi, Adjumani, Amuru and part of Arua districts and with an acreage of 1026km2; ii. Omuka covering Nebbi, Nwoya, Buliisa districts and with an acreage of 750km2; iii. Kasuruban covering Buliisa, Hoima and Masindi districts with an acreage of 1285km2; iv. Turaco covering Ntoroko district with an acreage of 635km2; and v. Ngaji covering Kanungu, Rukungiri and Rubirizi districts with an acreage of 1230km2. Below is a map showing the above-mentioned areas up for licensing. The licensing process will be conducted in accordance with the National Oil and Gas Policy for Uganda, 2008 and the Petroleum Exploration, Development and Production Act, 2013.

Figure 59: Second Licensing Round Blocks

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b) Production Licences Applications for production licenses over Lyec field in EA1A, Jobi-East field in EA1 and Mpyo field in EA1, all made by TOTAL E& P Uganda Limited were still under consideration by Government of Uganda during the financial year 2018/19. The Petroleum Reservoir Reports and the attendant Field Development Plans for the three fields represents approximately 95% completion. PEDPD expects to conclude the review of these three applications during financial year 2019/2020 . 3.1.1.4 Opening new areas for petroleum activities and speculative surveys (a) Geological & Geophysical Surveys: Geological and geophysical surveys in the Moroto-Kadam basin continued during the financial year 2018/19. A cumulative total of 270-line kilometres of geophysical data and over 400 sq. km of geological and geochemical mapping has been undertaken in Moroto-Kadam basin. This accounts for 30% of the basic geological and geophysical data acquisition in this basin. These surveys are to continue during the financial year 2019/2020. (b) Impact Assessment for opening up of new areas for petroleum activities Procurement of consultancy services to undertake ESIA assessment for exploration activities in the new areas was concluded and the inception phase of the study completed in June 2019. The main study was scheduled for start in July 2019, with a duration of 6 months. 3.1.2 Policy formulation and Implementation 3.1.2.1 National Content Regulations The National Content Regulations for both midstream and upstream sub sectors were translated to the local languages of Luo, Luganda and Runyoro. Following the translations, validation exercises have been carried out including meetings in Gulu, Masaka and Masindi for the respective languages. The Petroleum Directorate supported the World Bank during a workshop for the vocational training institutions in Fort Portal in February 2019. The objective of the workshop was to sensitise the institutions and discuss the skills requirements for vocational training for the oil and gas sub sector. The Petroleum Directorate also supported the World Bank during a workshop to bring together business owners in the Albertine Graben in Hoima in May 2019.

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3.1.2.2 Review of the National Oil and Gas Policy (NOGP) for Uganda PEDPD commenced development of Terms of Reference for a consultant to review and update the current National Oil and Gas Policy for Uganda. This will include the development of a new Petroleum Sector Investment Plan, in line with the policy. Following the development of the Monitoring and Evaluation (M&E) framework for the National Oil and Gas Policy, the Ministry engaged a consultant to develop a database system to operationalise the framework. Populating the M & E database for the NOGP with the relevant data continued. The data so far entered represents 30% of the required information.

3.1.2 Resettlement Action Plan Activities The Ministry of Energy and Mineral Development continued to supervise the Resettlement Action Plan implementation for the Tilenga and Kingfisher development projects, based in Buliisa and Hoima districts respectively. Tilenga • RAP 1 (industrial area and access roads) was at 99% completion - pending completion of housing • RAP 2 & 4 (3 NGIRI well pads, 3 Kasamene -Wairindi well pads, 1 Water Abstraction Unit, Flow lines, Access roads) was at 70% completion - pending release of district compensation rates by the concerned host districts • RAP 3, 3B & 5 (2 Ngiri well pads, 4 Gunya well pads, Flow lines, Access roads) was at 70% completion - pending release of compensation rates by the host districts Kingfisher Kingfisher Project Development ESIA was submitted in December 2018 and later reviewed. Two public hearings on the same were undertaken on 19th June 2019 in Kikuube District and 21st June 2019 in Hoima District. The public hearings were well attended with over 7000 and 6000 participants respectively. The FEED Studies and ESIA Approvals for the Kingfisher, Tilenga and EACOP Projects are key for the Oil Companies to take the Final Investment Decisions.

3.1.3 Regional Initiatives 3.1.3.1 The 9th East African Petroleum Conference and Exhibition 2019 (EAPCE’19) The 9th East African Petroleum Conference and Exhibition (EAPCE’19) was held at Pride Inn Paradise Beach Resort, Convention Center and Spa in Mombasa, Kenya from 8th to 10th May

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2019 under the theme “East African Region: The Destination of Choice for Oil and Gas Investment Opportunities to Enhance Socioeconomic Transformation”. The country was represented at all levels of the event ranging from sponsorship, preparation, participation, session rapporteurs, session chairs, presentations and Country Booth. Messrs Wilson Tumushabe and Stephen Sherura were Uganda’s representatives on the EAPCE’19 steering committee which met on four occassions. Uganda’s participants came from Government institutions, civil society and business communities. The Ministry made six (6) technical presentations and ran a promotional booth at the event. Other Ugandan presentaions were made by the Petroleum Authority of Uganda, Uganda National Oil Company and industry service providers. On the overall, the event was successful. At the same event, the Ugandan second licensing round was launched by the Minister of Energy and Mineral Development, Hon. Eng. Irene Muloni on the 8th May 2019 with five (5) blocks offered for licensing.

Figure 60: Minister of Energy and Mineral Development Eng. Hon. Irene Muloni (center) together with State Minister for Energy, Hon. Peter Lokeris along with other dignitaries at the Uganda Booth.

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3.1.4.2 EAC Sectoral Council The Ministry of Energy and Mineral Development participated in the East African Community (EAC) Sectoral Council meeting held between 15th - 19th October, 2018 in Arusha, Tanzania.

3.1.4 Infrastructure Development Construction of Phase-3 of the National Petroleum Data Repository, Laboratories and offices for the Directorate of Petroleum and Petroleum Authority of Uganda (PAU) continued. Progress of construction was at 65%, while that of payments was at 60%.

3.1.5 Financial Report

3.1.6.1 Recurrent Programmes The Petroleum Director’s office utilised Uganda shillings One Hundred Sixty-Nine million, Two Hundred Seventy-Eight thousand, Four hundred Seven (UShs. 169,278,407) on recurrent programmes as summarised in the Table below. Under the recurrent budget, the Petroleum Exploration, Development and Production Department (PEDPD) utilised Uganda Shillings Three Hundred Nineteen Seven Hundred Seventy-Two Thousand Sixty-Three (Ushs. 319,772,063).

Table 5: Summary of Petroleum Directorate Budget Expenditure for FY 2018/19 Code Item Expenditure (UGX.) 30302 Initiate and formulate petroleum policy and legislation 25,500,920 30303 Capacity building for the oil and gas sector 119,676,500 30305 Develop and implement a Communication strategy for the Oil 24,100,987 & Gas Sector Total 169,278,407

Table 6: Summary of PEDPD Recurrent Budget Expenditure for FY 2018/19 Code Item Expenditure (UGX.) 30301 Promotion of the country's petroleum potential and 289,485,063 licensing 30302 Initiate and formulate petroleum policy and 16,592,000 30306 legislaParticipationtio n in Regional initiatives 13,695,000

Total 319,772,063

3.1.6.2 Development Budget PEDPD utilised Uganda shillings Forty-Nine billion, Five Hundred Fifty-Six million, Eight Hundred Seventy-Three thousand, Eight hundred Thirty-Three (Ushs. 49,556,873,833) on Government of Uganda - Development programmes as summarised in the Table 7 below.

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Table 7: Summary of the PEDPD Development Budget Expenditure for 2018/19

Code Item Expenditure (UGX)

30301 Promotion of the Country's Petroleum Potential and 1,003,967,642 30302 LInicenitiatesing and formulate petroleum policy and legislation 173,749,717 30303 Capacity building for the oil and gas sector 3,228,439,459 30304 Monitoring Upstream Petroleum activities 128,189,959 30306 Participation in Regional initiatives 906,116,883 Transfer to the other Government Institutions (PAU and 32,182,733,096 30351 UNOC) 30372 Non-Residential Buildings 10,577,508,436 30375 Transport Equipment 220,000,000 30376 Purchase of Office and ICT Equipment 727,014,470

30377 Purchase of Specialised Machinery & Equipment 329,052,171

30388 Furniture and Fixtures 80,102,000 TOTAL 49,556,873,833

3.1.6 Employment for Sustainable Development-Skills for Oil and Gas Africa (E4D/SOGA) The E4D/SOGA programme was set up to address skills gaps in oil and gas supply chains and associated sectors in East Africa and to assist the Government of Uganda (and other East African partner governments) in preparing their private sector workforce for upcoming opportunities in the petroleum activities. A total of EUR 11.2m was earmarked for the E4D/SOGA Uganda project over a five-year period starting from 2015 to 2019. During the review period the programme was able to support various activities including: • Local Enterprise Development • Skills Development and matching

3.2 Progress of activities under the Midstream Petroleum Department

3.2.1 Land Acquisition for Refinery Development

3.2.1.1 Cash compensation • A total number of 2,662 out of 2,680 Property Owners who opted for cash compensation, which is about 99.3%, have been compensated. The remaining 0.7% (18 PAPs) is composed of 3 land owners who are still disputing the land rates and 15 tenants who have never shown up for disclosure. Those disputing the rates are in court and proceedings progressing while there are several media communications trying to locate the missing tenants. The process is expected to be concluded by end of the second quarter in FY 2019/2020.

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3.2.1.2 Resettlement Resettlement Infrastructure • Construction of two churches, namely, Wambabya Anglican Church and St. Francis Catholic Church, Nyakasinini were completed. • Construction of a Police post at Kyakaboga was at 51% completion as at end of the reporting period. • Four boreholes were drilled and pump testing done. Boreholes have been dug and handed over to PAPs for use.

Figure 61: St. Francis Catholic Church main building

Figure 62: St. Francis Catholic Church multi-purpose building 75

Court case • The court case of Wandera John Bosco, AFIEGO & 10 others Versus Attorney General Misc. Application No.704 of 2014 in which some PAPs under the instigation of an NGO called AFIEGO are disputing the rates and complaining about delayed resettlement is still ongoing in the High Court (Land Division) in Kampala and came up for hearing on 4th March 2019.. • The Ministry continued sensitization of the remaining project affected persons (PAPs). 3.2.1.3 Monitoring and Evaluation Consultancy The Consultancy for Monitoring and Evaluation of the refinery area RAP process was completed. The consultant M/s Kaika Investco Ltd submitted the final Report which was reviewed by Government and consequently approved.

3.2.2 Refinery Development • Government signed the Project Framework Agreement (PFA) with the Albert Graben Refinery Consortium (AGRC) as the potential investor who will design, build, finance and operate the refinery on 10th April 2018. • The Consortium consists of Yaatra Africa LLC, Lion Works Group, Nuovo Pignone International SRL (a GE company), and Saipem SPA. • The refinery consortium AGRC submitted the Performance Bond on 17th August 2018 that established the effectiveness of the Project Framework Agreement. • The Albertine Graben Refinery Consortium (AGRC) submitted the recommended Final Refinery Configuration on 7th January 2019. SAIPEM, the FEED contractor recommended the Residue Fluid Catalytic Cracker (RFCC) as it provides the most optimal technical and economic solution. • The Front-End Engineering Design (FEED) commenced in March 2019 and is expected to last 15 months. The ESIA is expected to commence in the 2nd quarter of FY 2019/20.

3.2.3 Development of the Oil and Gas Industrial Park • The 29.57 Sq.km of land acquired in Kabaale has been planned into an oil and gas industrial park to accommodate the oil refinery, an International Airport, export hub,

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energy-based industries, Petrochemical Industries and other associated facilities. • The Ministry handed over the management and development of the Industrial Park to Uganda National Oil Company. • Environmental Impact assessment study for the Industrial Park is expected to commence in September 2019. 3.2.4 Development of Kabaale International Airport • Physical Progress on airport construction was 28% against 26% time completed. • The runway is expected to be completed in December 2019 for test run and rest of the works to be completed in 2023. • This is being managed and undertaken by Ministry of Works and Transport (MoWT) and Civil Aviation Authority (CAA). • During the year, 214 grave sites were relocated from the airport construction site.

Figure 63: Capping and Subbase layer sections

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Figure 64: Subbase layer at Km 2+200 to 2+780

3.2.5 Development of Pipelines and Storage Facilities 3.2.5.1 Multi- Products Pipeline • The Ministry engaged a Consultant, M/s Strategic Friends International (SFI) Ltd, to develop and implement a Resettlement Action Plan (RAP) for the acquisition of land for a corridor to accommodate the pipeline that will be traversing the districts of Mpigi, Wakiso, Mityana, Kiboga, Kyankwanzi, and Hoima. The cadastral survey reports were submitted in April 2019. • The RAP study was 95% complete as at end of the year under review. Valuation reports are being finalised and will be submitted to the Chief Government Valuer for approval. • There were delays caused by absence of approved values by the district land boards where the pipeline transits. 3.2.5.2 East African Crude Oil Pipeline (EACOP) The EACOP project consists of a 24-inch, 1445 km long buried pipeline starting from Kabaale in Hoima district running to Chongoleani near Tanga in Tanzania. 297km of the Pipeline is in

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Uganda traversing the districts of Hoima, Kikuube, Kyankwanzi, Kakumiro, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera. Resettlement Action Plan • Surveys for the Pipeline, employee camps and access roads across the 10 districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera are complete and the total number of PAPs is 4600 PAPs. • The draft valuation reports for the districts are almost complete pending rectification of some land titles and final submission to the Chief Government Valuer. • The RAP report is expected to be completed in Q2 of FY2019/20.

Figure 65: Disclosure meeting in Sembabule

Figure 66: PAPs checking the strip map at Kabayola TC

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• As part of the disclosure exercise the following activities were successfully undertaken with Research Assistants collecting the required data i.e. the Livelihood Restoration Survey as well as Gender and Vulnerable Group Focus Group Discussions. Also undertaken was the orientation of the Resettlement Committee that was based on the guidelines for establishing such committees. • The constitution of the resettlement committee comprises of 6 members that include; the village LC I Chairperson, Community Development Officer and a representative for male elders, female elders, women and youth. • Their responsibilities include mobilisation of communities, resolution of disputes, maintenance of records on disputes and resolutions. They were also inducted on meeting etiquettes, procedures, quorum and confidentiality requirements, among others.

Figure 67: Meeting Project affected community at Kabayola PS

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Figure 68: Livelihood, vulnerability assessment meeting for MCYP 3

Figure 69: Disclosure meeting for the strip map for MCPY 2 in Mubende

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Front End Engineering Design (FEED) (i) Front End Engineering Design was submitted by TOTAL E & P to Government and is being reviewed by a team comprising of the Ministry of Energy and Mineral Development, Petroleum Authority of Uganda and Uganda National Oil Company. (ii) 68% of the Engineering, Procurement, and Construction Management (EPCM) completed. ESIA and other studies • The ESIA for EACOP was completed and submitted to NEMA and PAU for approval. • A public hearing is planned for Q2 FY 2019/20 to gather the views of the public on the study. This has also been undertaken in Tanzania Negotiation of the Host Government Agreement (i) The Negotiation of the Host Government Agreement (HGA) between the Government of Uganda and the Project Company progressed. Eight negotiation meetings have so far been conducted. (ii) The Ministry of Justice and Constitutional Affairs is leading the negotiation for the Government of Uganda. (iii) Harmonisation meetings of the Host Government Agreement held between the Government of Uganda and the United Republic of Tanzania are also on going.

3.2.5.3 Natural Gas Pipeline • A Natural Gas Pipeline MOU between GOU and Government of the United Republic of Tanzania signed, in August 2018. A draft Harmonized Joint Operating Strategy prepared. • Draft Procurement and Disposal Rules and Intergovernmental Agreement (IGA) developed and are being reviewed. • Feasibility study to commence following approval of the rules and execution of the IGA.

3.2.6 Development legal and regulatory framework for Midstream activities • The Technical Working Group on Refining and Transportation continued to develop additional standards for Midstream operations. • 30 standards and codes for Midstream Operations have been developed.

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3.3 Petroleum Supply and Distribution

3.3.1 Activities Performed by the Petroleum Supply Department The key policy objective in Uganda’s downstream subsector, as spelt out in the Energy Policy for Uganda (2002), is: To ensure adequate, reliable and affordable supply of petroleum products at internationally competitive and fair prices within appropriate health, safety and environmental (HSE) standards. The implementation of this policy objective is spearheaded by the Downstream (Petroleum Supply) Department as provided for under the Petroleum Supply Act, 2003. Below, the downstream department gives an update on performance progress for the Financial Year (FY) 2018/19.

3.3.2 Supply Situation Uganda is a net importer of Petroleum Products with 92% imported through the Kenya’s infrastructure while 8% is supplied through Dar es Salaam, Tanzania. The average monthly imported petroleum products amounted to 179 million litres in FY 2018/19 from 172.0 million litres in the previous FY 2017/18.

Supply of Petroleum products has been normal for all products throughout the year. There has been tremendous improvement in the importation of all the products through Kenya following a meeting held at Amber House with the Kenyan delegation from Ministry of Petroleum and Mining; Kenya Pipeline Company; Energy Regulatory Commission of Kenya and some Oil Marketing Companies on the 2nd May 2019.

The country had enough stocks for all petroleum products but the increased importation of Kerosene on average over 5.0millions litres monthly raises a red flag. It has been noted that some Oil Marketing Companies (OMCs) imported big volumes of Kerosene of recent and resell it to other OMCs. With increased use of solar energy in the rural areas and enhanced grid connections, the increase in kerosene imports raises some questions.

3.3.3 LPG Supply and Infrastructure Interventions The LPG pre-feasibility study was completed and a report submitted to the ministry of Energy and Mineral Development. The Development Committee (DC) of the Ministry of Finance, Planning and Economic Development (MoFPED) was also updated on the progress of the pre-feasibility for approval to commence a detailed LPG feasibility study together with associated promotion. The LPG supply and infrastructure intervention is expected to become a project once the approvals of MoFPED are completed.

3.3.4 Monitoring and Inspection Petroleum facility monitoring and inspection is carried out by the Petroleum Supply Department (PSD) as mandated by the Petroleum Supply Act 2003 to ensure compliance to industry standards and regulations.

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The specific objectives of monitoring and inspection are to ensure that the industry in accordance with the Petroleum Supply Act 2003 and the Petroleum Supply (General) Regulations 2009 is well regulated as far as health, safety, environment, fair competition, standards and ensuring good business practices in the country are concerned. The monitoring and inspection was carried out using the in-house monitoring checklist.

The results from the inspection indicate that there has been continued violation of Health, Safety and Environmental (HSE) aspects by facility operators who continue to operate in total disregard of these key aspects. Some facilities are operating below the bare minimum safety standard of having well serviced fire extinguishersand others have not trained their staff members on how to operate fire fighting equipment.

New unlicensed outlets continue to prop up with some having approvals from Local Government authorities with visible poorly designed plans and locations, notwithstanding the fact that sensitization workshops have been held for all stake holders. The monitoring team advised petroleum facility owners to acquire US 947-1: 2011 from UNBS for guided development.

On a good note, the number of licensed outlets is gradually increasing and acquiring or processing the required documentation for licensing. Operators continue to complain about the long period it takes to receive approvals from National Environment Management Authority (NEMA). They reported that it sometimes takes more than a year for NEMA to respond to their applications for Environmental Impact Assessment (EIA) certificate thereby stalling the industry licensing process.

3.3.4.1 Specific Objectives of Monitoring and Inspection • To check the level of compliance with the licensing requirements. • To ascertain the extent to which the petroleum facility constructions meet the minimum set facility standards as per US 947-1:2011. • To establish whether the previous inspection recommendations were implemented. • To ascertain whether facilities comply with safety, health and environmental standards. • To access and collect information that is vital for National Petroleum Information System. • To ascertain the level of safety awareness of the personnel involved in the industry. • To verify whether the licensed companies adhere to periodic reporting, regulation and petroleum standards. • To find out the level of stocks vis-à-vis the standard stocking requirements. • To sensitize the operators on adherence to licensing, environment, safety, health, business and standards requirements.

3.3.4.2 Methodology The methodology adopted for the monitoring exercise was interviewing and observation to find out the following: records/book keeping, Health, Safety and Environment, compliance

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with other regulatory authorities like NEMA and Local Authorities, stock levels, housekeeping, compliance to facility standard US 947-1: 2019 and possession of the necessary licenses and permits as required by the Petroleum Supply Act (2003).

Table 8: Status of Petroleum Outlets Inspection S/N Quarter 2018/18 No. Outlets Inspected 1 1st Quarter FY 2018/19 was conducted in the 110 districts of Kyenjojo, Kagadi, Kibaale, Kakumiro, Kikuube, Hoima, Masindi, Nakasongola, Kiryandongo, Kyankwanzi, Kiboga, and Wakiso 2 2nd Quarter FY 2018/19 was conducted in the 138 districts of Amuru, Packwach, Paidah, Nebbi, Arua, Koboko, Maracha, Yumbe, Moyo, Adjumani, Gulu, Kitgum, Pader, Lira, Oyam, and Apac 3 3rd Quarter FY 2018/19 was conducted in the 173 districts of Mukono, Kayunga, Buikwe, Jinja, Mayuge, Kamuli, Iganga, Bugler, Bugiri, Busia, Tororo and Mbale 4 4th Quarter FY 2018/19 was conducted in the 179 districts of Mbarara, Sheema, Bushenyi, Rubirizi, Kasese, Bunyangabu, Kabarole, Bundibujo, Ntoroko, Kyegegwa Mityana, Kyenjojo, Mubende and Wakiso TOTAL 600

The sub-sector is attracting a lot of local investment with well-designed retail outlet facilities meeting the industry standards.

Figure 70: A well-designed Don retail outlet facility meeting the industry standards

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3.3.5 Enforcement The Petroleum Supply Act (2003) provides that the Commissioner of the Petroleum Supply Department shall enforce the Act, the Petroleum Supply (General) Regulations (2009) and the Petroleum (Marking and Quality Control) Regulations (2009) on a regular basis. The Act also provides for supervision and monitoring of the transportation, processing, supply, storage, distribution and marketing of petroleum products in the downstream petroleum industry.

The Ministry carried out enforcement exercises against illegal and defaulting downstream petroleum operators.

Many facilities were faulted on the petroleum licensing status, standards and regulations, and were thus stopped from operating until requirements were put in place. The closed facilities were discovered while on routine field compliancy checks on petroleum operators to requirements of adherence to Petroleum Supply Laws and Regulations. The facilities involved had either not processed construction permits or petroleum operating license of the respective facilities.

3.3.5.1 Objectives I. To ensure that the quality and integrity of petroleum products is maintained through preventing smuggling and dumping of products.

II. Ensure public safety and protection of public health and environment in all petroleum supply operations

III. To eliminate unfavorable business practices especially adulterating petrol products aimed at making profit regardless of the negative costs to the public.

IV. To promote fair competition in the petroleum supply and marketing industry in Uganda.

3.3.5.2 Implementation The ministry takes action by closing the defaulting facilities and thus requiring them to commit themselves on mitigation measures to counter possible future re-occurrence on the faulted act. Some offenders and non-compliant petroleum retail outlets are reported to police for initiating prosecution process in courts of laws if the offender has failed to regularize as required under the petroleum laws and standards.

3.3.5.3 Enforcement activities During the FY 2018-19, the enforcement team covered some regions of Uganda and 416 petroleum facilities were involved as shown in the table below. Twenty-Nine (29) prosecution cases were prepared while 14 illegal Petroleum operators were decommissioned.

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Table 9: Status of Petroleum Outlets enforced upon S/N FY 2018/19 Quarter No. Outlets Inspected 1 1st Quarter enforcement was conducted in 92 South-Western and Central Uganda in the districts of Wakiso, Kampala, Masaka, Bukomansimbi, Gomba, Sembabule, Mpigi, Butambala, Ibanda, Kiruhura, Mukono, Kamwengye, Mbarara, Mubende, Mityana and Kalungu. 2 2nd Quarter enforcement was conducted in 95 districts of Kampala, Wakiso, Mukono, Mayuge, Iganga, Mbale, Kumi, Soroti, Busia, Buikwe, Jinja and kamuli 3 3rd Quarter enforcement exercise was conducted 195 in districts of Kampala, Wakiso, Kiboga, Kyankwanzi, Hoima, Masindi, Buliisa, Kagadi, Fort Portal, Bundibugyo, Kyenjojo, Ntoroko, Kamwenge & Ibanda 4 Kyankwanzi, Kiboga, Kikuube, Hoima, Kagadi, 34 Kabarole, Ntoroko, Kamwenge and some areas around Kampala

TOTAL 416

3.3.5.4 Achievement of continued enforcement Due to more frequent field enforcement and presence in the field, there is increased number of applications for petroleum operating licenses and petroleum construction permits. However, there is still need to address the rampant illegal operators who violate the existing standards.

Table 10: Petroleum outlets that have since ceased (closed) operations S/n Name of outlet Location 1 Belta Filling Station Wakiso 2 Kikandwa filling Station Kikandwa, Wakiso 3 Lwamata Filling Station Lwamata, Kiboga 4 Job Creator F/S Kyenzige, Kagadi 5 Kyenzige Filling Station Kyenzige, Kagadi 6 Kyenzige II F/S (near police post) Kyenzige Kagadi 7 Muhooro F/S (Albertine co. Ltd) Muhorro, Kagadi 8 Nyakisi Petro Station Hoima 9 Shell Katosha Katosha, Kyenjojo 10 Lukaya F/S Lukaya, Masaka 11 Ka-Gate F/S Kagate, Kiruhura 12 Municipal Oil Kasingo Kasingo, Hoima

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13 Munteme F/S Hoima 14 Kabwoya F/S Kabwoya, Kikuube 15 Mukikwaya F/S Hoima 16 Pachwa F/S Pachwa, Kikuube 17 Pachwa II F/S Pachwa, Kikuube 18 Aziz F/S Muhorro, Kagadi

3.3.6 Transport and Storage Consultancy services to undertake a study on transportation of refined petroleum products across Lake Victoria study was completed. The final study report was presented to the Ministry and discussed. The final study highlights various opportunities and challenges hindering the successful utilization of Lake Victoria for transportation of refined petroleum products to Uganda.

Figure 71: Lake transport route for petroleum products

Figure 72: Jetty construction progress

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The Private Lake Transport project by Mahathi Infra involves development of an oil jetty, receiving terminal and four barges. The jetty development is progressing well and currently stands at 170m out of 210m already completed, while eight tanks have also been completed. The barges construction is behind schedule but fabricated materials for them are on site pending joining.

Mahathi infra, a private developer putting up a jetty, storage tanks and vessels at Bukasa- Bugiri is at 55% completion. The tank foundation, welding shop and staff quarters are complete. Parts for ship materials pre-fabricated are already on site pending joining them.

Figure 73: Ship pre-fabricated materials on terminal site at Bugiri-Bukasa

3.3.7 Storage tanks and reserves development Monitoring of Jinja Storage Tanks (JST) has been ongoing and UNOC is restocking and managing JST. The total stock level as at end of Quarter 4 - FY2018/19 was 1, 029,752 litres of diesel and petrol. Nakasongola Reserves development is being spearheaded by Ministry of Defence and Veteran Affairs.

Figure 74: JST status as at June 2019

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3.3.8 National Petroleum Information System 3.3.8.1 Petroleum product imports The country imports were stable with the highest recorded imports in January 2019 (186 million litres). A monthly average import of 179 million litres per month was achieved and the total import volumes for the whole financial year were 2,150,926,889 litres as shown in the table below. The product growth rate of imports in the period under review was 2.58%, -3.745% and 6.81% for petrol, kerosene and diesel respectively. The imports for the petrol, kerosene and diesel in the FY 2018/19 grew by 4.5% from the previously FY 2017/18 imports of 1,948,480,667 litres.

Table 11: The total monthly imports for the FY 2018/19 in litres TOTAL IMPORTS SUMMARY PMS BIK AGO JET A1 TOTAL (Litres) (Litres) (Litres) (Litres) (Litres) Jul-18 75,582,804 5,205,569 91,206,434 5,506,167 177,500,974 Aug-18 77,095,964 4,289,077 88,021,369 7,953,713 177,360,123 Sep-18 69,307,861 5,531,343 90,047,490 11,050,823 175,937,517 Oct-18 81,495,255 5,738,645 79,032,614 13,166,440 179,432,954 Nov-18 73,945,247 4,165,942 82,734,354 14,370,183 175,215,726 Dec-18 79,796,060 3,472,220 85,005,687 11,619,037 179,893,004 Jan-19 84,085,561 5,052,975 86,508,827 10,360,272 186,007,635 Feb-19 84,470,086 3,804,978 83,337,913 11,327,434 182,940,412 Mar-19 84,644,050 3,598,110 86,967,333 10,478,045 185,687,538 Apr-19 84,226,706 3,816,484 77,683,055 9,282,061 175,008,305 May-19 76,755,376 5,538,326 90,044,655 9,968,656 182,307,013 Jun-19 80,625,279 4,631,792 88,378,619 11,730,809 173,635,690 TOTAL 952,030,249 54,845,461 1,028,968,348 126,813,640 2,150,926,889

3.3.8.2 Local pump prices The local pump prices in the country had a steady upward trend as the price rose due to the growing price of the dollar against the Ugandan shilling. There was, however, a slight dip in the price during the period of January and February 2019 as shown in the table below. Table 12: Monthly average pump prices in UGX (FY2018/19) Petrol (UGX) Kerosene (UGX) Diesel (UGX) Jul-18 4,250 3,400 3,900 Aug-18 4,250 3,400 3,900 Sep-18 4,250 3,400 3,900 Oct-18 4,300 3,500 4,050 Nov-18 4,300 3,500 4,100 Dec-18 4,300 3,500 4,100 Jan-19 4,100 3,500 3,800 Feb-19 4,100 3,500 3,800

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Mar-19 4,100 3,500 3,800 Apr-19 4,380 3,800 3,950 May-19 4,400 3,800 4,000 Jun-19 4,400 3,800 4,000

3.3.8.3 International Petroleum prices The oil market saw a rather significant surplus in the first half of 2019, much larger than previously expected. Looking forward, supplies are set to tighten in the second half of the year, but that may only be a hiatus before the glut returns.

Table 13: Monthly average international crude prices in US$ (FY2018/19) CRUDE OIL OPEC in US$ Nymex (WTI)in US$ Brent (ICE) in US $ Jul-18 72.11 68.87 73.32 Aug-18 71.38 67.74 73.10 Sep-18 76.88 70.11 78.86 Oct-18 79.37 71.16 80.93 Nov-18 60.97 52.48 61.68 Dec-18 58.14 50.94 60.02 Jan-19 58.74 51.60 50.51 Feb-19 63.83 53.53 64.57 Mar-19 66.37 58.18 67.23 Apr-19 70.78 63.28 71.18 May-19 69.97 62.80 71.77 Jun-19 62.92 53.77 62.01

Global oil supply exceeded demand by about 0.9 million barrels per day (mb/d) in the first six months of 2019, according to the International Energy Agency’s latest Oil Market Report.

3.3.8.4 Market Share The Oil Marketing companies were dominated by Vivo Energy with the highest market share as well as outlets in the country with 16% followed by Total Uganda limited with 12% of the Market. This is also due to the prominence of these two companies and experience in the industry.

Table 14: Oil Marketing companies market share (FY2018/19) OMC % Market Share Vivo Energy Uganda Ltd 16% TOTAL UGANDA LIMITED 12% NILE ENERGY LIMITED 8% STABEX INTERNATIONAL LIMITED 6% HASS PETROLEUM (U) LIMITED 4% KOBIL UGANDA LIMITED 3% PETRO UGANDA LIMITED 3%

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MOUNT MERU PETROLEUM (U) LIMITED 3% ORYX OIL UGANDA LIMITED 3% MOIL (U) LIMITED 3% Others 41%

Vivo Energy Uganda TOTAL Ltd, 16% UGANDA Others, 41% LIMITED., 12%

NILE ENERGY LIMITED, 8% STABEX MOIL (U) LIMITED, INTERNATIONAL 3% MOUNT MERU LIMITED, 6% ORYX OIL UGANDA PETROLEUM U PETRO UGANDA KOBIL UGANDA HASS PETROLEUM LIMITED, 3% LIMITED, 3% LIMITED, 3% LIMITED, 3% (U) LIMITED, 4%

Figure 75: Oil Marketing companies market share

3.3.9 Petroleum Standards Standards development for the downstream subsector continued to progress well in collaboration with Uganda National Bureau Standards (UNBS). The Technical committee on Petroleum (TC 16) held Technical Committee (TC) meetings for review of US 947-1:2011 and it was successfully completed and gazetted as a new standard US 947-1:2019. The petroleum bulk storage standard US 947-2:2019 was also completed and gazetted for use by the public and are available at Uganda National Bureau of Standards (UNBS).

3.3.9.1 Standard development The program was fully involved in the development of the following standards: • DEAS 158:2018 automotive gasoline (premium motor spirit)-specification and DEAS 177:2018 automotive gas oil (Automotive diesel)- specification have been harmonization at EAS level. • DUS 249 Engine Oils has been approved by the national standard council. • DUS 197-6: 2014 Liquefied Petroleum Gases (LPG) — Part 6: Product Specifications • DUS 971 Lubricants, industrial oils and related products (class L) — Classification — Part 6: Family C (gear systems)

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• DUS ISO 12925-1 Lubricants, industrial oils and related products (class L) — Family C (gears) — Part 1: Specifications for lubricants for enclosed gear systems • DUS ISO 6743-6 Lubricants, industrial oils and related products (class L) — Classification — Part 6: Family C (gear systems).

3.3.9.2 Petroleum Standards Awareness sensitisation The two-day workshop was organised by the Department from 13th -14th December 2018 at Lake View Resort Hotel-Mbarara town. The purpose of the workshop was to sensitise the stakeholders about Petroleum Regulations and Retail Facility Standards. The participants comprised representatives from the Local Government town councils from South Western and western Uganda as these are the approving authorities at the local level. Objectives of the workshop (i) To ensure smooth collaboration between Ministry of Energy and Mineral Development (MEMD) and the local governments, in ensuring compliance with the regulatory framework governing the petroleum supply operations, and hence enhance transparency and accountability in the petroleum supply operations. (ii) To sensitise participants about petroleum regulations and standards in order to create mass awareness and hence bring about a trickle–down effect as a result of the local governments added benefit of monitoring their areas on behalf of MEMD, and in full knowledge of the regulations and standards governing petroleum operations. (iii) To ensure public safety, protection of public health and the environment in all petroleum supply operations and installations.

Figure 76: Participants discussing issues about licensing

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3.3.10 Licensing During the reporting period, the Department continued to streamline the licensing regime under the Petroleum Supply Act 2003 and General Regulations of 2009. In the same period, a total of two hundred fifty-five (255) companies were issued with Petroleum Operating Licenses and two hundred twenty-two (222) Petroleum Construction Permits were issued. One hundred one (101) Construction Completion Certificates issued to developers of petroleum facilities in the country. In addition to the above one hundred eighty (180) Environmental Impact Statement (EIS) reports and three (03) Project briefs were reviewed and recommended to the National Environmental Management Authority (NEMA) for approval and six (15) EIS were rejected. The Department started using the National Petroleum Information System in the licensing process starting with receiving of the application, approvals, evaluation, fees assessment and insuring of Permits and operating license. The system tracks application at various stages of processing.

3.3.11 Quality Assurance 3.3.11.1 Progress under the new contract with Global Fluids International (GFI) GFI is a company contracted by the Government of Uganda represented by MEMD to supply a chemical marker or tracer or identifier and applying the chemical marker in all fuel imports at gazetted Customs border entry points so that marked fuel can be differentiated from unmarked fuel through a process of testing the fuel in the entire supply chain. This process of marking the fuel and testing the marker concentration levels is aimed at detecting and controlling fuel adulteration which compromises quality of the fuel, smuggling and dumping or offloading transit fuel.

Under the Fuel Marking Program, two vehicles were delivered and fitted with mobile laboratory testing machines or analyzers (X-Ray Fluorescent Spectrometers). As well, five machines or analyzers in total have been delivered including the one analyzer for confirmatory test checks in the central laboratory. 3.3.11.2 Industry Compliance Levels for fuel quality monitoring ➢ Monitoring the quality of petroleum products has improved progressively with reduction of levels of fuel adulteration. The compliancy level with respect PMS, and AGO is at an average of 99.3% for monitoring of all countrywide retail outlets done at least once a month. ➢ There are 2905 retail station outlets recorded in the data system in the above period. Out of these stations, the monitoring coverage is at an average of 92 % per month. ➢ There were 203 cases of non-compliance out of which 10 had un-customized product in the above period. ➢ The total number of samples analysed from donors in central laboratory was 15,275. ➢ Engine Oil Baseline Quality Survey that was conducted around Kampala areas revealed only 39% were found to be complaint with the standard, the rest of samples analyzed were non-compliant with respect US 249:2000/EAS 159 standard.

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3.3.11.3 Border Quality Checks ➢ Quality checks at border entry points of Busia, Malaba and Mutukula are being undertaken and going on well. ➢ In order to ease operations at the border entry points, container laboratories were procured and already delivered and assembled in the fuel inspection yards. ➢ Procurement and installations of utilities (water and electricity) for the containerized laboratories is ongoing. ➢ Efficiency and effectiveness in quality checks are expected to improve once the operations shift to the container laboratories in the yards.

3.3.11.4 ISO/IEC 17025 quality management system The laboratory embarked on a comprehensive implementation of the ISO/IEC 17025 quality management system, technical audits were done and application for recognition has been made awaiting assessment toward international accreditation.

3.3.11.5 Stakeholders’ workshop and sensitization/ awareness campaign Three stakeholder’s workshops and public awareness/sensitization on aspects of quality and quality were conducted in Western, Central and in the West-Nile regions.

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4.0 THE MINERAL SUB SECTOR

The Directorate of Geological Survey and Mines is mandated to establish, promote the development, and strategically manage and safeguard the rational and sustainable exploitation and

utilization of mineral resources for socio-economic development of the Z. BAGUMA people of Uganda, in line with the Ag. Director/ DGSM NDP II and Vision 2040.

The Directorate of Geological Survey and Mines is composed of three Departments, namely: Department of Geological Surveys; Mines Department; and Geothermal Resources Department.

G. BAHATI A. ALABA F. TUGUME The directorate is headed by a Commissioner, Commissioner, Ag. Commissioner, Director and each Department is Geothermal Dept Mines Dept Geological Survey headed by a Commissioner.

Figure 77: Management of GSMD

4.1 Geological Survey 4.1.1 Policy, Legal and Regulatory Framework

Progress has been made to improve the policy, legal and regulatory framework for licensing and regulat ing exploration and exploitation of mineral resources. The mining and minerals

policy was gazetted on 28th June 2019 to replace the Mineral Policy 2001. The draft Mining

and Minerals Bill, 2019 was in place to which the Ministry commenced regional stakeholder consultative meetings as well as a national validation to enrich the contents of the Bill before presentation to Cabinet. The Mining Regulations, 2019 were gazetted in July 2019 and they replace the Mining Regulations of 2004. The National Mineral Laboratory Services Policy Draft was formulated and presented to the Ministry Top Management on 14th August 2018 and comments generated were incorporated. 4.1.2 Establishment of Uganda’s Mineral Potential

4.1.2.1 Geochemical survey of Katara Uranium Anomaly

Geological survey and Ground gamma-ray spectrometry were carried out on the Katara uranium anomaly. Uranium was found to be associated with an unconformity of Proterozoic Quartzitic sandstone with older pelitic metasediments.

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Ground gamma-ray spectrometry over the anomaly reveals the uranium content in country rock to vary between < 1 to 15 ppm while anomalies between 50 to 4000 ppm eU were along a river within the swamp.

Figure 78: Katara Uranium anomaly survey map - Sampled points

Also, gamma ray spectrometry in streams and along profiles, across shear zones and alluvial sediments in the swamps and the springs revealed uranium concentration (eU) varying from 1.7 to 5704ppm. The highest uranium concentration (eU) of 5704 ppm was recorded on spring (at 217600mE, 9955144mN) which drains from contact between sheared quartzite and black shale. It was observed that shear zone with breccia cemented with limonite adjacent to black shale, shows high uranium concentrations, while the shear zone with breccia with hematite and another with quartz as cementing matrix show low uranium concentrations. The anomaly covers 6km2 in the swamp including a lateral thickness of 60m over the sheared quartzite adjacent to the swamp. However, the highest readings were recorded within a thickness of 25m of intensely sheared and brecciated quartzite cemented by limonite and in contact with black shale. The uranium anomaly appears to be associated with the shear zone with breccia cemented by limonite in contact with black shale that could have provided the reducing environment for the deposition of uranium.

Recommendations: i) To establish the uranium resource in the peat, pitting should be done to determine the thickness of the peat and calculate the tonnage. ii) Mapping of the shear zone and its extent by pitting through the alluvial to the bed rock.

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iii) Radon measurements over the generated soil uranium anomaly and inferred faults to narrow the target area and locate pitting targets. iv) Detailed geological mapping and follow-up of the soil anomalies

4.1.2.2 Geochemical Survey of Muko iron anomaly to determine minerals associated with iron mineralization

One hundred and thirteen (113) stream sediment and thirty-eight 38 rock samples, were collected during the survey. The samples have been prepared and are being analysed with a portable XRF. As well, during the survey, several mineralisation indicators such as: sulphide bearing rocks, shear zones, faults and breccia floats were observed. Massive sulphides were observed along Karungu stream which flows from Kyabagara at location 824943mE/9840255mN. The sulphides were observed in beddings of sheared graphitic schist and quartz veins. The sheared and hydrothermal altered quartz vein in contact with water has a smell of sulphur and has black minerals probably tantalite. A float of breccia of sandstone cemented by haematite was found down streams. Samples of sulphide bearing minerals were collected and will be analysed for gold and base metals.

Figure 79: MUK/RCK/017 is graphitic schist with massive sulphide along bedding planes while MUK/RCK/017B is quartz veins with sulphides

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A

B

D

C

Figure 80: A is brecciated and sheared quartzite West of Kacerere trading Centre. B is brecciated quartzite cemented by hematite. C is quartzite cut through by quartz vein before faulting and D is brecciated quartzite/quartz vein.

The gold potential of the muko iron anomaly is also highlighted by artisanal workings (Figure 74) observed in Nyamabare and along River Migyera where the artisans mine alluvial gold around Nyamuyaga in Rwanchererere, Butanda Parish, Butanda Sucounty.

B

A

Figure 81: A - yellowish gravel with ferruginised sandstone panned by artisans; B - yellowish gravel with ferruginised D C sandstone with sub rounded and rounded boulders heaped by artisans; C and D - new and old open pits left by artisans

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4.1.2.3 Refurbishment of Kabale regional Mines office

Due to the high mineral potential of the region there have been a number of developments to revive the mining activities in South Western Uganda such as acquisition of land in Ntungamo District to construct a mineral beneficiation centre, site investigation of land for iron ore refinery in Rubanda and upgrading of Kabale regional Mines office.

The regional office which takes care of Kigezi region mining operations was refurbished. (Figure 82).

Service of the Regional office to clients

The office offers among others the following services: i. Dissemination of Information on minerals and licenses to clients ii. Guiding clients on how to acquire mineral rights iii. Advising clients on best mining practices for health, safety and environment safeguard while mining

Figure 82: Newly Refurbished Kigezi Region Geological Survey and Mines office in Kabale

4.1.2.4 Preliminary investigation for the proposed site for iron ore smelting plant in Rubanda

A team of 8 (Eight) officers from DGSM together with staff of Rubanda District visited the area to assess the geotectonic suitability of Kabirizi site for iron ore smelting in Rubanda District.

The land is located along Kabale – Kisoro Highway in Kabirizi and belongs to Rubanda District Local Government - although the District does not have land title deeds for it. Preliminary surveys indicate the land to be about two hundred thirty-three (233) acres.

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Figure 83: Location of the proposed site for iron ore smelting plant

Geological mapping The area is generally underlain by granite which is overlain by alluvial and volcanic ash in the Western and Eastern parts respectively.

Pitting The proposed site is generally flat covered by alluvial and volcanic tuff towards the road. Pitting was done to understand the nature of the subsurface. Five (5) pits were dug in areas covered by volcanic tuff and logged. The logs show that the area is covered by massive volcanic ash to a depth of about 1.2m, while in some areas it is covered by dark-gray soil grading into weathered volcanic ash with isolated brown volcanic ash to a depth of 0.8m. It was noted that the water table in the pitted areas vary from 1.22 to 1.98m. Drilling should be done to determine the depth of hard bed rock in the areas covered by volcanic ash/tuff and alluvial.

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Figure 84: Geology of the proposed site for iron ore smelting at Kabirizi

Factors that affect location of the plant Other than the availability of land and proximity of the iron ore factors such as the source of the reducing agents (coal), source of power, market and other raw material such as limestone are very crucial and worth considering before making a choice of a location for iron ore smelting plant.

Conclusion i. Preliminary investigation for the proposed site for iron ore smelting plant in Rubanda shows the area to be suitable provided other factors such as source of the reducing agents (coal or natural gas), source of power, railway lines, market and other raw materials such as limestone are catered for. ii. Well-designed water draining system to keep the area dry for ease in construction is required since the water table on average is at about 2m below the surface

4.1.2.5 Assessment of infrastructure for drilling of iron ore targets

Upon identifying and selection of iron ore targets for drilling in Rutenga, Muko and Kabale areas, roads to the targets and water for drilling was also assessed. Note that selection of targets for drilling was based on ore reserve tonnages arrived at using geological and geophysical investigations and therefore there is need for drilling to verify the reported tonnages.

Drilling targets in Rutenga iron ore anomaly The drilling targets in Rutenga iron ore anomaly include Bucundura, Katagata, Kitojo, Kasambya, Nyarugorogoro, Rwengongo and Rushebeya-Nyakarambi. Most of these iron ore lenses in Rutenga zone can be accessed by use of village motorable roads that come off the

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main Mparo-Kisiizi road. Table 15 below shows the shortest distance from the target to the nearest road and water source. For some of the targets, the water sources are nearer while others the distances are up to and over 1 Km where the water can be carried by a truck.

Table 15: The distances to the nearest road and water source from the iron ore target Site Name Distance Road Water Bucundura 250m 1km Katagata 100m 200m Kitojo 300m 500m Kashambya 120m 100m Nyarugorogoro 500m 1.6km Rwengongo 200m 100m

Drilling targets in Kabale-Katuna iron ore anomaly The drilling targets in Kabale-Katuna iron ore anomaly include Katuna, Kicumbi, Karukara, Kamuterere Buhara, Makanga, Nyamiringa, Muruhita and Mwiguriro iron ore lenses. Some of the iron ore lenses in Kabale iron ore anomaly can be accessed by good murram roads for short distances off either Katuna or Kisoro tarmac road. Table 16 below shows the shortest distance from the target to the nearest road and water sources. The water can be carried to the sites by either tracks or pumping.

Table 16: The distances to the nearest road and water source Site Name Distance Road Water Karukara 500m 1km Muruhita 300m 1km Butanda 430m 460m Makanga 100m 1.14km Kicumbi 974m 1.87km Katuna 300m 956m Nyakyonga 1km 1.268km

Drilling targets in Muko iron ore anomaly Iron lenses in Muko iron ore anomaly include Kijuguta, Rubuguri, Higabiro, Rushekye, Kayonza, Rubaya, Kyanyamuzinda, Rugando (Kanungu), Kashenyi, Kamena. The Kyanyamuzinda, Rugando (Kanungu), Kashenyi and Kamena lenses, there has been drilling and proven reserves established. The accessibility for most of the locations is not a problem as most of the areas are easily accessed by use of good murram roads and motorable tracks judging from the distance of closest approach to the target. However, most of the prospects are located on top of the ridges and water must either be pumped uphill for over 1km or carried by a track.

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Table 17: The distances to the nearest road and water source from the target location of the iron ore Site Name Distance Road Water Rugando 100m 1km Rubuguri 350m 1.36km Rushekye 260m 1.5km Kayonza 350m 1km

4.1.2.6 A Resistivity/Induced Polarization survey of Kamena and Bukimbiri Iron ore targets

Resistivity/Induced Polarization survey over Kamena and Bukimbiri Iron ore targets outlined the lateral and vertical/depth extent of the iron ore lenses.

Figure 85: Geology map of the survey area. Black lines indicate the IP survey profiles while the red dots indicate hematite observations.

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4.1.2.7 Ground geophysics follow-up of Boma and Lwensakala uranium anomalies in Sembabule district

Eighteen ( 18) survey profiles (NE-SW) totaling to 46.85-line kilometers at Boma were made while fifteen (15) NE-SW survey profiles at Lwensakala (26.6) line kilometers were surveyed (Figure 95 A & B).

(A) (B) Figure 86: Location map of Boma (A) and Lwensakala (B) uranium prospects

Results indicate the highest concentrations of Uranium for Boma target being along profile 5 at the UTM coordinates 36N 03033164E, 0018428N, 1184m height (Datum WGS1984). The highest concentrations of Uranium at Lwensakala target were recorded at the UTM coordinates 36N 0284147 0013853, 1220m height (Datum WGS1984).

4.1.2.8 Diimu sand mapping

Sand has been mapped on approximate area coverage of 9.1 Km2 (9091489 m2) out of the targeted 75Km2. This was achieved through subsurface mapping of the area by dipping a total of 34 hand augured pits (e.g Plates/ Figs below) and 40 hand dug pits on a 500m spacing. Three categories of sand namely: silica sand, silty sand with quartz gravels and micaceous sand on an approximate area coverage of 5901753m2, 2044180m2 and 1145556m2 respectively has been delineated at an average thickness of 1.5m (Table 18 below).

Figure 87: Augering logging of sand in Diimu to ascertain and quality the depth of sand

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Table 18: Area and tonnage estimates for the different categories of sand in Diimu Sand type Area Average Volume Density Reserves (Tonnage) (m2) thickness (m3) (g/cm2)

(m)

Silica Sand 5901753 1.1 6491928 2.5 16229821

Silty sand with 2044180 0.73 1492251 2.5 3730629 gravel

Micacious silty 1145556 0.65 744611.4 2.5 1861529 sand

Total 9091489 21821978

Taking the specific gravity of sand to be 2.5g/cm2, then the respective indicated reserve of the different categories of sand are as follows: 22131574 Tons (Silica sand), 7665675Tons (silty sand with quartz gravels) and 4295835 Tons (Micaceous sand). The total indicated reserves is therefore 34093084 Tons (34 MT). A total of 50 samples have been collected which will be analyzed in Mineral dressing Laboratory (for size distribution tests), Petrology Laboratory (for mineral composition) and analytical Laboratory (for chemical composition) of the DGSM. Result will be interpreted to further categorize the sand and evaluate for its alternative uses (e.g. building, ceramics or glass manufacture).

4.1.2.9 Geological investigation of Muko iron ore

The specific objectives were to map and outline iron ore zone in the area, infer the volumes of the iron ore and estimate the iron ore reserves. The methodology adopted involved geological observations followed by rock type descriptions; taking measurements of structures such as strikes and dips and foliation using compass and clinometers. Spatial extents of iron ores lenses observed were mapped and their thicknesses, where possible, measured by tape measure. Geological map of the area was then produced using GIS software. Findings indicate that iron ore in Muko iron anomaly occur in lenses of differing shapes and areas distributed within the country rock of mainly phyllites intercalated with sandstones and occasionally with breccia in some locations tending conglomerates in texture. A total of 6 iron lenses, namely: Kijuguta, Kayonza, Rubuguri, Higabiro, and Rubayo have mapped in this investigation which were not documented in earlier studies. Additionally, three iron lenses namely: Rugando (Kanungu), Kamena, Kashenyi (Muchimbiri) and Kyanyamuzinda iron lenses which were studied in earlier studies have been re-investigated and one ferruginized breccia occurrence (Gakatu) have been mapped and the respective areas calculated in the Geographical Information System (G.I.S).

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Figure 88: Geophysical interpreted anomalies

Figure 89: Muko Iron anomaly (in red)

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The iron ore type is specularite (specular texture) and it is more concentrated in the northern region than in the south of this anomaly. The depth of the individual iron ore lenses varied between 5- 10 m as exposed by road cuts and the depth to which ASMs could mine. In this investigation we have assumed the average thickness of iron ore of 6m thickness as obtained in 17 drill holes at Butare followed by trenches and drillings up to 250 m down dip. Accordingly, a total of 165,407,393 tonnes of measured reserve have been estimated, including the Kanungu (Rugando), Kamena (Buchimbiri) Kashenyi (Buchimbiri) iron lenses which have been estimated through exploration drilling and trenching to be 50MT and Kyanyamuzinda to be 2.37MT.

Figure 90: Clockwise: Insitu boulders brownish weathered of Kayonza iron lens, Measuring the thickness of the iron lens, Micro folding within the specular hematite and Measuring the trend of the phyllites.

4.1.2.10 Kabale iron ore

Kabale iron ore anomaly is also one of the anomalies identified by the airborne geophysical surveys during the SMMRP). Geological exploration of the Kabale iron ore anomaly to establish its iron ore and base metals potential. The specific objectives were to; map and outline iron ore zone in the area, infer the volumes of the iron ore, estimate the iron ore reserves and map and document all existing artisans.

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Findings indicate that iron ore in Kabale iron prospect occur in lenses of differing shapes and areas distributed within the country rock of mainly phyllites intercalated with sandstones and occasionally with breccia in some locations tending conglomerates in texture. A total of 7 iron lenses (Buhara, Katuna_1, Kicumbi, Karukara, Katuna_2, Kamuterere and Mwiguriro, Nyamiringa/ Ntungamo iron lenses) and 2 iron occurrences (Muruhita and Mwiguriro) have been mapped and delineated and the respective areas calculated in the Geographical Information System (G.I.S). Assuming an average depth of 3.5m obtained through exploratory drilling of the Buhara iron ore prospect by Sino Minerals Ltd, a total of 63,221,292 tonnes of inferred reserve (resource) have been estimated.

Figure 91: Topographic map showing the extent of Kabale iron ore prospect (Left) and Regional geology of Kabale iron ore prospect. It is recommended that detailed investigations of the iron lenses and occurrences involving detailed mapping, trenching and pitting, exploratory drilling, sampling and sample analyses be carried out in order to calculate the measured reserves of Kabale iron ore anomaly. Such more reliable estimates could be confidently used to attract investment in order to boost the national revenues and thus accelerate the country’s socio-economic growth as heightened in the National Development Plan and Vision 2040.

Figure 92: (Left) Insitu iron boulders of iron ore in Kyanamuzinda, (Right) Measuring the profile along an excavation for house construction in Rubuguri iron lens

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Figure 93: (Left) Insitu boulder of ferruginized phyllitic sandstone on Rubaya hill and displays the weathered iron ore profile in the murram quarry.

4.1.2.11 Mineral Sector Development promotion

DGSM continued to promote the mineral sector as well as building capacity i) Integrated Information Management Systems (GMIS)

Figure 94: GMIS Prototype for geodata sharing and promotion of the mineral sector (http://94.100.75.105/uganda/)

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DGSM together with M/s Beak Consultancy Ltd continued with designing the integrated Information Management Systems to facilitate geoinformation capture and sharing. Training in GIS and database were conducted and now the GMIS prototype is up for testing. GMIS project was to be completed, installed and users trained by April 30th, 2019, awaiting the official launch. ii. DGSM webpage - DGSM continued to build and update the webpage of DGSM under the domain name www.dgsm.go.ug. The contract for use of its domain name was renewed in June 2019. Acquisition of Content Management System and SSL Certificate is ongoing. iii. Communication strategy – The Procurement process for a consultant to design a communication strategy for DGSM was ongoing. The process commenced on 10th June 2019 and was anticipated to end mid July 2019. iv. Geodata/ Information identification and acquisition - The Directorate receive 95 (Ninety-five) geoscientific publications which were acquired to build Institutional capacity for the mineral sector. 5 (five) unpublished technical reports were also received. v. Geodata/information was disseminated to one hundred (100) visitors and 26 (Twenty- six) staff members who were doing research on mineral resources of Uganda. vi. One hundred fifty-eight (158) copies of the Mining Act, 2003; 138 copies of the Mining Regulations, 2004; 41 copies of Mining and Mineral Policy; 1 copy of Mineral resources and 5 copies of the small-scale mining handbook were disseminated on a complimentary basis. vii. Exhibition: DGSM participated in the Ministry of Finance, Planning and Economic Development National Budget Month 2018/19 Exhibition Week at Kololo Independence grounds from 5th - 7th June 2019.

4.1.2.12 Licensing

To facilitate the licensing process, the Geological Survey Department: i) prepared and printed two hundred fifty-two (252) title prints for Mineral Rights. ii) reviewed mineral rights performance reports and applications to aid in renewal and grant of mineral rights.

4.1.2.13 Laboratory services

The laboratories section continued to offer geological materials sample preparation, chemical analysis, ore test work, and technical advisory services and training as part of geological data collection and inspection, monitoring and regulation of mineral exploration, mining and mineral trade activities in the Mining and Mineral Sub-sector by the Directorate. Sample preparation The laboratories undertook sample preparation for chemical analysis of a total of one thousand six hundred fifteen (1,615) geological samples from identified mineral target follow-up exploration activities in Kigezi Region and geochemical survey activities by the Geology Division under the Mineral Wealth and Mining Infrastructure Development (MWAMID) Project and also mineral exploration activities in West Nile Region. Analyses Analysed forty two (42) gold samples for gold content and a total of two hundred twelve (212) other geological samples such as rocks, carbonatite, coltan, wolfram, tin, amblygonite, beryl for wolfram, titanium, tin, niobium, tantalite, aluminium, iron, manganese, phosphorus, calcium, chromium, vanadium, copper, zinc, silicon sulphur, magnesium, selenium, potassium, zirconium, and vanadium content of which one hundred two (102)

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were police exhibit samples for verification and determination of mineralogy and elemental content. The analytical techniques used were gravimetric, X-ray fluorescence (XRF) spectrophotometry, titration, and mineralogy examination techniques. The purpose of these analyses was for mineral prospecting and exploration, trade purposes and for purposes of computation of royalty, and to facilitate police investigations. The laboratories have received new sample preparation, chemical analysis and mineral identification equipment, and also equipment that had broken down repaired, but have not yet been deployed as they wait for a rewiring of the laboratory buildings so as to have good quality power supply. This is evident in the graph below where not much increase has been realised in the number of samples analysed in the last two years. However, the approval of modifications to the wiring of office and laboratory blocks at DGSM in Entebbe was obtained and submissions made for initiation of procurement for the rewiring and installation of standard electrical installations.

2000

1500

1000

500

0 2013 2014 2015 2016 2017 2018

Sample Preparation Chemical analysis and mineral identification Ore test work

Figure 95: Sample analysis

4.1.2.14 Monitoring and Inspections

Regional Mineral potential - Fifteen (15) Regional Mineral potential and licensing status maps for Tooro, Bunyoro, Lango, Acholi, Teso, Bugisu, Sebei, Bukedi, Busoga, Buganda, Kigezi, Ankole and Rwenzori were prepared to facilitate the review of mineral rights in the in the country.

Monitoring of the performance of Exploration - GSD carried out inspection and monitoring of the performance of Exploration Licenses to ensure compliance with the Mining Act 2003, mining Regulations 2004. Thirty (30) Exploration Licenses in Kabale, Rubanda and Kisoro Districts were inspected.

4.1.2.15 Audit for metallurgical accounting and appraisal for mineral value addition

Laboratories Division technical staff and the Mines Officer in Charge of Eastern Region undertook a follow-up mining operation audit for metallurgical accounting and appraisal for

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mineral value addition of Tiira Gold Mine in Busia District and Namakera Vermiculite Mine in Manafwa District, on 5th and 6th July 2018. 4.1.3 Earthquake monitoring and Advisory Services

4.1.3.1 Earthquake Events

DGSM continued to operate and maintain the National Seismic Network of five (5) stations at Entebbe (ENTD/TEBE), Hoima (HOID), Nakauka (NAKD), Kilembe (KILD) and Mbarara- Kyahi (MBAR). Data analysis revealed six (6) earthquake events in the region, with three (3) events (red stars) located within Uganda region. Epicentre parameters of the events were recorded, and locations determined as in table 19 below.

Table 19: Earthquake events recorded on atleast three seisduring the reporting period

Date UTC event time Magnitude Latitude Longitude Depth (km) Geographical Region (DD.MM.YY) (hh:mm:ss) (Richter) (deg) (deg) 05.01.2019 18:13:46 4.8 3.0863 31.4085 17.1 Uganda 02.02.2019 07:29:47 4.3 -8.6246 32.7038 10 Tanzania 07.02.2019 08:52:38 3.7 -3.3005 37.3751 10 Tanzania 12.02.2019 17:38:47 3.9 -0.0322 29.7311 10 Uganda/D.R.Congo border 24.03.2019 16:21:15 4.7 -3.0654 38.162 10 Kenya 21.03.2019 09:15:40 5.5 -7.8777 32.0851 22 Tanzania 03.04.2019 19:40:51 4.5 1.7615 S 31.199 E 10 Lake Albert Region, Uganda

Figure 96: The RED stars denote epicentre locations of the earthquake events; GREEN diamond represents broadband seismic stations while the BLUE hexagon represents the global seismic station (MBAR) located at Mbarara.

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4.1.3.2 North-East/Northern Uganda Broadband Seismic Experiment

The nine (9) temporary stations in the North East and Northern Uganda were demobilized, and shipped back to IRIS PASCCAL, USA. However, a copy of the raw data that was acquired during the survey was retained at DGSM and will soon be made open and available for research use to whoever is interested.

Figure 97: A map showing distribution of temporary seismic stations for North-East Uganda

4.1.3.3 Geodetic Global Positioning System (GPS)

Three (3) geodetic GNSS/GPS stations covering the Central and Eastern regions of Uganda (Nabumali-Mbale, Buyende, and Nakasongola) were installed to supplement the 7 sites that were already (2017) installed within the Central and Western Kenya. The research program is purposely for Kinematic study of the East African Rift System (EARS) for investigating the rifting pattern and rate at which the EARS is moving apart.

Figure 98: Google Earth Map showing location of GNSS/GPS station sites (UGN1, UGN2, & UGN3) installed in Uganda.

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4.1.4 Institutional capacity Development

4.1.4.1 Infrastructure Development The following infrastructural developments were undertaken at DGSM: i) Contract for the design, implementation, maintenance and support services of a Laboratory Information Management System (LIMS) for the DGSM Laboratories was signed. ii) Five (5) laboratory fume hoods and four (4) scrubbers were serviced and maintained under an ongoing three (3) year contract. iii) Engineering designs, bills of quantities and procurement documents for the proposed Ntungamo Mineral Beneficiation Centre were prepared by a technical team from the Ministry of Works and Transport and necessary approvals obtained. Documentation has been submitted to the Procurement and Disposal Unit for initiation of procurement. iv) Submissions were made for initiation of procurement of a contractor to construct the Tooro Regional Offices and Mineral Beneficiation Centre for the DGSM in Fort Portal Municipality. v) Modified electrical wiring and installations drawings for the rewiring DGSM office and laboratory blocks at the Geological Survey and Mines Directorate in Entebbe were finalized, including bills of quantities and procurement documents and submissions made for initiation of procurement and for approval by Entebbe Municipal Council.

4.2 Mines 4.2.1 Policy, Legal and Regulatory Framework

4.2.1.1 Mining and Minerals Bill 2019 Cabinet approved the Principles for the Mining and Minerals Bill 2019. Consequently, technical review of the Bill was carried out and modifications incorporated in the draft during the one-week workshop from 5th to 11th May 2019, at the Imperial Golf View Hotel, Entebbe. Consultative review meetings with other stakeholders in the various parts of the country are expected to take place during the first quarter of FY2019/2020.

4.2.1.2 The Mining Regulations 2018 Review of the Mining Regulations 2018 was also concluded during a one-week residential work at the Victoria Mall - Best western Hotel, Entebbe from December 9th to 15th, 2018. Once passed, the regulations shall provide for online mineral licensing. The Mining Regulations 2018 shall also enable the implementation of ICGLR Regional Certification Mechanism, a regional initiative against illegal exploitation of Natural resources. The prevention of illegal exploitation and illicit trade in designated minerals regulations, 2018 was being developed. 4.2.2 Licensing

4.2.2.1 E-government based mineral licensing system Programming and upgrading of the mining cadastre to include an e-government based mineral licensing system is in advanced stages. Users including licence holders continue with registering to obtain user accounts that will enable them to submit/receive applications, make payments, submitting reports and production returns, as well as undertaking renewals online. Launching of E-licensing is planned for the beginning of FY 2019/20.

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4.2.2.2 Licensing Status There was a general improvement in the licensing process as shown in the table 20 below. This has been attributed to ongoing reorganization of the licencing administration. The newly established Mining Cadastre and Registry System is an intervention to increase accessibility to information, boost productivity, eliminate bureaucracy, reduce on the time taken to process mineral rights applications, minimize non-compliance and significantly enhancing government revenue collection.

Table 20: Licencing Status as of 30th June 2019

Type of License Status as at Granted Renewed Expired Transferred Revoked Status as at 30/06/18 30/06/19 Prospecting License 113 159 N/A 113 0 0 159 Exploration License 220 130 29 31 21 0 319 Retention License 4 0 0 1 0 0 3 Location License 49 61 12 10 4 0 100 Mining Lease 41 6 0 0 4 3 44

Mineral Dealers 91 82 N/A 32 0 0 50 Total 518 438 41 187 29 3 675

Comparative examination of mineral rights (EL, RL, LL &ML new and renewals) granted in FY2017/18 (242) vis-à-vis FY2018/19 (320) shows a 32.2% improvement. Also, production licences (LL &ML) increased by 30.9% from the one hundred ten (110) in FY 2017/18 to one hundred forty-four (144) in FY 2018/19. The increase in mineral rights projects a future increase in revenue collection from both annual mineral rent and monthly production returns. More funding for increased vigilance in monitoring and supervision of exploration and mining operations is recommended to realize this projection.

4.2.3 Monitoring and Inspections

The Inspections and monitoring division continued to inspect and monitor the mining, processing and exploration activities all over the country focusing on compliance with applicable laws, mine plan, checking whether the directions given during the last inspection visits were followed or not as well as checking whether the royalty is paid as per the production made. Flagship Projects: Sukulu Phosphate and steel project as well as Tibet- Hima (Kilembe Mines Ltd) were also monitored.

4.2.3.1 Sukulu Phosphate and steel project Construction of the dressing plant and the first phase of the fertiliser plant was completed and, was commissioned by H.E the President of the Republic of Uganda on October 23th, 2018. Construction of the first phase of the steel plant, slag cement factory, glass factory and a baking-free brick factory is still ongoing.

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Figure 99: H.E the President of Uganda launching the Fertiliser Plant at Sukulu Phosphate and Steel Project

Figure 100: Bio-organic fertilizer from the Sukulu Phosphate and Steel Project

4.2.3.2 Tibet Hima Mining Company limited (THMCOL) – Kilembe Mines Concessionaire Tibet Mining Company limited underperformed their debt and work obligations. The Minister of Finance, Planning and Economic Development issued the Company a Termination Notice terminating THMCOL’s Concession Agreement. ToRs for the selection of

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a new operator for Kilembe Mines were done and Twenty-one (21) parties have shown interest in taking over Kilembe Mines under a restrictive bidding process.

4.2.3.3 Other inspections Other inspections carried out during the FY2018/19 in the various parts of the country observed that: i. There is a lot of illegal mining, buying and transportation of minerals without appropriate mineral licences and permits which leads to lack of records on production from the operators and hence loss of revenue to both the local and central government. ii. Many of the licence holders are not available in their licence areas, implying that they are briefcase investors and no work is going on. iii. There is still ignorance in the local community regarding their role in exploration and mining operations. On the 7th of December 2018, it was reported from Ochuloi quarry that UNDP officials where beaten by the locals when they had gone to record a documentary on development minerals. Cameras were all destroyed, and the report is at Katine police post. iv. The quarry at Kamusalaba by CCCC Construction Company was left with an open pit that turns into a pool of water during rainy season which is a health and safety hazard.

Interventions i. Carrying out the registration process of ASMs faster and having leadership on mining operations in their groups will held in record keeping and uncover production by the ASMs. ii. Increased monitoring of mining and mineral trade operations involving the local leadership in known mining areas should be enforced. This will reduce on the illegal mineral trade as well as reveal non-compliant licence holders. iii. Revoking non-compliant licences to encourage others licence holders to work. iv. Continuous sensitization of the local community of their role in exploration and mining operations to provide a conducive environment to mineral developers and geotourists. v. Mine closure plans for mining companies should be scrutinized to ensure they provide for environment restoration. Ensuring heavier penalties to companies which failure to abide by their mine closure plans – fail to restore environment.

Figure 101: Illegal Gold mining in Nakabaat

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Figure 102: Inspecting DAO marble site in Rata. There was no activity at the site

Figure 103: Lake created by excavation of granite by Multiplex Ltd in Dokolo municipality

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Figure 104: Quarry in Amuria was opened in Abuket village, Abwanget parish, Willa Subcounty Amuria district - UTM zone 36N 0566373mE, 0228733mN where big quarrying which is taking place was also inspected

4.2.4 Mineral Production Statistics

The Mines department continued to closely monitor mining operations in the country. FY2018/2019 registered a 6.9% increment in production compared to the previous FY2017/2018 (Table 21). This is attributed to increased exploitation of pozzolana and syenitic aggregates for the manufacture of cement in the newly established Simba Cement and Kampala Cement factories. Increased monitoring of illegal mining activities along the porous DR Congo and Rwanda borders has also reduced on the rate of smuggling of minerals out of the country which explains the increased quantities of Wolfram declared as returns by miners in western Uganda. Vigilant monitoring to curb down illegal mining and smuggling of minerals is recommended for better performance.

Table 21: Mineral Production Statistics

Quantity in Tonnes Value in 103 UGX Mineral Average FY2017/18 FY2018/19 FY 2017/18 FY 2018/19 Price per Tonne in 103 UGX. Limestone 120 1,028,010.81 1,019,344.21 123,361,297 122,321,305 Pozollana 21 910,235.67 1,219,081.02 19,114,949 25,600,701 Gold 117,291 0.0000 0.03 361 3,150

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Vermiculite 579 7,186.10 10,285.34 4,160,752 5,955,212 Wolfram 34,575 109.50 246.77 3,785,928 8,531,934 Syenitic Aggregate 1.5 84,213.83 194,308.65 126,321 291,463 Kaolin 100 30,550.03 25,339.46 3,055,003 2,533,946 Iron Ore 271.29264 6,589.00 0.00 1,787,547 0 Granite 922.7625 - - 0 0 Lead 5000 - - 0 0 Coltan (30% Purity) 28,413 10.35 0.23 294,075 6,450 Tin (75% Purity) 34,034 98.04 18.25 3,336,680 620,974 Beryl (1% Beryllium) 8,715 - - 0 0 Diatomite 1,021 0 205.00 0 209,305 Grand Total 155,383,767.1 166,074,440

4.2.5 Non-Tax-Revenue (NTR)

The Mines Department registered a 4.02% NTR collection shortfall in FY2018/19 (UGX. 16,031,523,348) - Table 22, compared to FY2017/18 (UGX. 16,702,115,814). This was attributed to the drop in royalties as result of the Presidential ban of raw mineral exports. Royalties are a percentage of the value of minerals produced and or exported. Ban of mineral export did not only cut down production/mining but more so affected mineral exports and revenue collection as royalties. Royalties dropped from UGX. 13,727,098,474 in FY2018/19 to UGX. 11,027,116,650 in FY 2018/19. Also, mineral certification requirement – an initiative to fight illegal exploitation of natural resources in the great lakes region was another hindrance.

Table 22: Non-Tax Revenue (NTR) collected in FY 2018/19

FY 2018/2019 NTR Source Q1 & Q2 Q3 & Q4 Q1-Q4 ROYALTIES PAID BY HOLDERS OF MINERAL RIGHTS OR MINERAL DEALERS- 5,777,613,630 5,249,503,020 11,027,116,650 ANNUAL MINERAL RENTS (OTHER THAN FOR PROSPECTING LICENSE)- 1,558,590,000 1,863,447,114 3,422,037,114 MINERAL DEALERS LICENSE- 142,000,000 365,000,000 507,000,000 PREPARATION OF EXPLORATION LICENSE- 138,000,000 76,000,000 214,000,000 PROSPECTING FEES 56,000,000 45,500,000 101,500,000 PREPARATION OF A LOCATION LICENSE- 48,000,000 30,400,000 78,400,000 REGISTRATION OF EXPLORATION LICENSE- 12,000,000 83,000,000 95,000,000 PUBLICATIONS -MAPS 3,227,341 2,087,543 5,314,884 SURRENDER OF EXPLORATION LICENSE- 3,000,000 3,000,000 6,000,000 TRANSFER OF MINERAL RIGHT OR OF SHARE OF THE RIGHT IN RESPECT OF- 78,000,000 78,000,000 ANNUAL FEES FOR GOLDSMITHS LICENCE- 38,000,000 38,000,000 ANNUAL MINERAL RENT FOR RETENTION LICENSE- 25,000,000 25,000,000 PREPARATION OF A MINING LEASE- 15,000,000 25,000,000 40,000,000 RENEWAL OF A MINING LEASE- 5,000,000 5,000,000 RENEWAL FOR EXPLORATION LICENSE- 24,000,000 16,000,000 40,000,000 RENEWAL OF LOCATION LICENSE- 11,000,000 3,000,000 14,000,000

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LATE LODGEMENT FEES AND LATE LODGEMENT PERIOD- 8,975,000 63,675,000 72,650,000 BLASTING CERTIFICATE FEES 500,000 2,500,000 3,000,000 TRANSFER OF EXPLORATION LICENSE- 60,000,000 150,000,000 210,000,000 PREPARATION OF A RETENTION LICENSE- 10,000,000 10,000,000 SEARCH IN A REGISTER OF MINING INSTRUMENTS- 1,600,000 1,200,000 2,800,000 COPY OF OR EXTRACT FROM ANY REGISTERED DOCUMENT FOR EVERY PAGE- 200,000 200,000 AIRBORNE GEOPHYSICAL 26,264,700 - 26,264,700 PREPARATION OF A RETENTION LICENSE- 10,000,000 - 10,000,000 COPY ISSUED FOR LOST OR DESTROYED CERTIFICATES INCLUDING COPY OF ANY MAP ATTACHED TO THE ORIGINAL INSTRUMENT- 240,000 - 240,000 TOTAL 7,896,010,671 8,135,512,677 16,031,523,348

4.2.6 Mineral exports statistics

Mineral exports dropped by 60.24% from UGX. 690,131,321 in FY20117/18 to UGX. 274,374,335 in FY2018/19. This was attributed to a Presidential ban on raw mineral exports during the FY2018/19. This deterred our clients from carrying on their mineral businesses and hence the performance.

Table 23: Comparative examining of Mineral exports for FY2018/19 and those of FY2017/18

Quantity in Royalties on Exports Commodity Tonnes (UGX) Mineral FY2017/18 FY2018/19 FY2017/18 FY2018/19

Tourmaline - 0.20044 - 439,399

Tantalite 13.15 0.15 41,692,080 349,080

Gold 0.0100481 0.0094137 412,547,670 61,131,852

Wolfram 212 202 200,386,779 181,789,264

Ruby 0 0.00061 - 238,764

Amblygonite 0 96 - 15,211,790 Iron ore 9 0 33,750,000 -

Beryl (1% Berryllium) 72 78 1,754,792 14,907,709

Gemstones 0.003685 - 272,503

Kyanite 0 0.0003 - 33,974

Total 690,131,321 274,374,335

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4.2.7 Mineral Traceability and Certification

The Mines Department continued technical collaboration with Partnership Africa Canada (IMPACT) in the implementation of the Regional Initiative on Fight against the Illegal Exploitation of Natural Resources (RINR). RINR is one of the Protocols of the Pact on Security, Stability and Development in the Great Lakes Region under the International Conference of the Great Lakes Region (ICGLR). The following have so been achieved: i. A mine site inspection manual for Uganda was developed and finalized. ii. A mine site inspection template for Uganda was developed and finalized. iii. Training of government inspectors (Mines, Customs, Police, Labour, and Environment) to use the Mine Site Inspection Template. iv. Two mock mine site inspections were undertaken at Kikagati Tin Mine in Isingiro District and Nyamuliiro Wolfram Mine in Rubanda District to test the mine site inspection manual and mine site inspection template. v. A draft mineral export procedure for Uganda was developed and finalized and awaits validation in a stakeholder meeting. vi. The guidelines for evaluation process for chain of custody services providers that express interest was developed and await finalization before validation in a stakeholder meeting. vii. The National (Uganda) Road Map to the implementation of the 6th Protocol of the ICGLR Regional Initiative on the fight Against the Illegal Exploitation of Natural Resources was prepared. viii. Establishment of the “Uganda-ICGLR Certification Unit”, based at DGSM in Entebbe is underway to document production and trade of 3TG (Tin, Tungsten, Tantalum and Gold) minerals in Uganda and the Great Lakes Region. ix. BGR has Expressed Interest to provide technical assistance and capacity building to Uganda on to the ICGLR-RCM implementation in Uganda. DGSM and BGR are in the process of signing a MOU on the proposed support.

4.2.8 Sensitization and registration of ASMs

Formalisation of Artisanal and Small-Scale Miners (ASM) was ongoing. DGSM is carrying out this activity in partnership with civil society organizations such as Ecological Christian Organization, Safer World, Uganda Human Rights, among others. The following outputs have been registered so far: i. Mapping of ASM commenced in Mubende, Namayingo, Buhwezu, Busia, Moroto, Nakapiripirit, Amudat Kabong, Abim, Ntungamo, Isingiro, Kabale, Kisoro, Kasese, Rubanda and Bugiri Districts, ii. Registration and formation of Associations is ongoing, and over 40 (forty) associations have been formed so far. iii. Sensitization of the communities about the advantages of formation of associations is going on. iv. The mining regulations are being revised to include curbing illegal mining and trade. v. Construction of training and beneficiation centres for transfer of skills to ASMs is ongoing. vi. The DGSM commissioned a regional office for Karamoja sub region based in Moroto, Procurement to obtain a contractor to construct a Beneficiation centre in Ntungamo has been initiated.

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vii. Designs for the Beneficiation centre in fort portal have been finalized and await approval by ministry of works and Transport viii. A Minerals Protection Police Unit assisting the Mines Department to enforce compliance to the Mining Legislation is in place. ix. DGSM mediated between the ASMs and AUC Mining (U) Limited – an exploration and mining company mineral right holder to sharing a concession in Kassanda District as guided by H.E. the President of the Republic of Uganda. x. The consultant to carry out the biometric registration of Artisanal miners was procured. A contract was awarded, and the project launched.

4.3 Geothermal Resources

4.3.1 Policy, Legal and Regulatory Framework

The formulation of the geothermal policy with support from Climate Technology Centre Network (CTCN) of the United Nations Framework Convention on Climate Change (UNFCCC) was on going. Since then, the draft has undergone several improvements to come up with the current draft after a review workshop held at Essella Country Hotel in Kiira Municipality, Wakiso District on 24th to 26th April 2019. A draft Cabinet Memo was also prepared. The Regulatory Impact Assessment (RIA) is being finalized before submission to the Permanent Secretary, Ministry of Energy and Mineral Development for onward transmission to cabinet for approval. 4.3.2 Establishment of Uganda’s Geothermal Potential

4.3.2.1 Government of Uganda - EAGER cooperation project.

Government of Uganda signed a MoU with Adam Smith International (ASI) on behalf of East Africa Geothermal Energy Facility (EAGER) financed by the United Kingdom Department for International Development (DFID) on technical cooperation in geothermal exploration and development. Under the MoU, the two parties carried out detailed exploration at Panyimur and Buranga geothermal prospects and developed subsurface models of the two prospects.

The models have been a basis for locating sites for Temperature Gradient Drilling at the two prospects. Other achievements under the MoU are as follows: (i) Mentoring of the DGSM staff in data collection and interpretation, (ii) Conceptual modelling, (iii) Ranking of Uganda geothermal areas and selecting new areas for future studies, (iv) Development of business and financial models to guide geothermal exploration and development, (v) Development of a Geothermal database and website, (vi) Direct use application pre-feasibility studies of Kibiro and Panyimur.

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Figure 105: Panyimur Conceptual model along Profile P04 through Amoropii hot springs

4.3.2.2 Drilling Temperature Gradient Wells (TGW):

Ministry of Energy and Mineral Development (MEMD) procured a Consultant to design, assist in procuring a Drilling Contractor and supervise TGW drilling at Kibiro and Panyimur geothermal prospects. The agreement between the Consultant and Government of Uganda was signed on 13th May 2019. The procurement of a contractor to drill the sixteen (16) TGW has been initiated and will take a maximum of six (6) months. .

4.3.2.3 Sampling of geothermal fluids and flow rate measurements:

Sampling of geothermal fluids for volatile components was done at Kabuga in Kasese District, Buranga in Bundibugyo District, Kibiro in Hoima District and Panyimur in Pakwach District. Measurement of water flow rates was done at Kibiro. The Flow rate measurements are done every six months as a Baseline before the upcoming drilling programme. During drilling and subsequent extraction of the geothermal fluids, the changes in the flow rate, if any, will be compared with the original background values. This is part of the Environmental Impact Assessment of the project.

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4.3.2.4 Geophysical Exploration

In April 2019, the Geothermal Project Team designed and conducted a combined MT and ground magnetic survey at Rubaare geothermal area, Ntungamo District. A total 15 MT soundings were conducted. This was complimented by ground magnetic surveys involving 14 magnetic survey profiles. Data processing, analysis and interpretation is on-going.

4.3.2.5 Shallow Temperature surveys

The GRD conducted 1-meter depth shallow temperature measurements at Katwe Geothermal prospect whose data was processed, analysed and interpreted. A shallow anomaly was detected but needs additional measurements to delineate its boundaries. Similar surveys were conducted at Rubaare and Panyimur areas to map shallow thermal anomalies that could give indication of a thermal gradient in the area.

Figure 106: Shallow temperature surveys at Katwe

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4.3.2.6 Geothermal Risk Mitigation Fund (GRMF)

The final requirements were submitted to the African Union Commission (AUC) in Addis Ababa, Ethiopia awaiting the final decision on the AUC support to the Temperature Gradient Drilling programme at Kibiro and Panyimur. Once this support is approved, a Grant agreement will be signed with the Government of Uganda.

4.3.2.7 Katwe MT Survey

During the period of August to September 2018, MT Field surveys were conducted at Katwe geothermal prospect involving 43 MT soundings. Data was processed, interpreted and analysed by the staff and EAGER Experts.

Figure 107: 2D MT cross-section through Lake Kitagata

The results indicate a shallow cap rock (about 500m thick) overlying a possible geothermal reservoir with limited space between 500m and 900m below the surface. The basement in this area lies at approximately 900m below the surface. The above findings suggest a low temperature geothermal system with temperatures about 100ºC and a limited resource below the surface in the region of Lake Kitagata. More surveys are needed to delineate and test this model.

4.3.2.8 Micro-seismic surveys

From 1st to 4th October 2018, micro-seismic network equipment, which was deployed at Kibiro and surroundings, was demobilised after two (2) years of data collection. The data awaits processing and interpretation to aid in up-dating and refining a geothermal conceptual model of Kibiro prospect. Preliminary interpretation indicates that the region is tectonically active and further investigations are needed.

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4.3.2.9 Direct use application

Pre-Feasibility studies were conducted on direct use of geothermal heat other than power generation by GRD and EAGER. The study was carried out at Kibiro and Panyimur geothermal prospects. The preliminary results show that the two areas have potential for direct uses in fish drying, salt extraction, aquaculture, drying of agricultural produce and tourism. 4.3.3 Licensing and inspection

Three (3) companies are holding licenses at Buranga, Ihimbo and Panyigoro in Bundibugyo, Rukungiri and Pakwach districts respectively.

4.3.3.1 Gids Consult (U) Limited

The company is holding a Retention License (RL) over Buranga geothermal prospect. The operator has carried out additional MT/TDEM geophysical surveys. The data will be used to update the current subsurface conceptual model of the area that will be a basis for locating TGW and exploration wells.

4.3.3.2 Moto Geothermal Projekt

The holder conducted geochemical surveys (water sampling, isotopic sampling, rock sampling, gas sampling). The samples have been analysed at a laboratory in Germany and data processing and interpretation is on-going. The company is planning to continue with a feasibility study.

4.3.3.3 Bantu Geothermal

The holder has carried out geological, geochemical and geophysical surveys and plans to drill exploration wells.

Monitoring and inspection of geothermal activities was done at Buranga, Kibiro, Panyimur and Ihimbo. It is important to note that the private sector is not performing to expectations since the number of licenses has dropped from 14 in 2011 to 3 in October 2018 and no new licences have been granted. This is due to high geological risk in upstream geothermal exploration which can only be mitigated or reduced by Government participation in upstream geothermal exploration. 4.3.4 Health safety and social awareness

The GRD carried out an Environmental Baseline Survey at Kibiro to document the current state of the physical, social and economic environment. The baseline survey was a requirement for the successful AUC - GRMF application for Kibiro and Panyimur prospects. The procurement of consultants to undertake Environmental and Social Impact Assessment (ESIA) for drilling is at bidding stage.

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4.3.5 Institutional Capacity Development

4.3.5.1 Infrastructure Development

Direct use of geothermal energy: A project proposal titled “Technical Assistance for Direct Use Assessment of Panyimur and Buranga geothermal areas, Uganda” was approved by the Climate Technology Centre Network (CTCN) and will benefit from the CTCN assistance for a pre-feasibility study for geothermal direct use at the two prospects. The CTCN based in Nairobi, Kenya will communicate the next steps in project implementation.

Geothermal Risk Mitigation Facility (GRMF): Uganda qualified for AUC-GRMF funding to a tune of USD 648,800 to finance Temperature Gradient Drilling of four (4) wells each at Kibiro and Panyimur geothermal prospects. The above funding is 80% of the total project with the remaining 20% to be contributed by the Government of Uganda.

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5 .0 THE SUPPORT SERVICES

The major functions of the Support Services are: i. Financial management and accounting ii. Administration, personnel services and

human resources development iii. Supplies and facilities management iv. Planning and Budgeting v. Resource Centre vi. Policy formulation and implementation vii. Policy Analysis

The key outputs recorded during the period Prisca Boonabantu under review included: - Under Secretary, Finance and Administration i. Administration duties and personnel service Prisca Boonabantu ii. Human resources management and Under Secretary development iii. Financial management and accounting iv. Procurement/disposal and facilities management

Joseph v. Resource centre/library management Principa vi. Planning, monitoring and budgeting AccountantPrin cipal The Support services of this ministry were:- Hope Byaruhanga E. Ajutu Accountant AC/HRM Ag. Commissioner, SPPAD i. Implementation of the Restructured staffing of the ministry; ii. The payroll cleaning and update; iii. Pre-qualification of firms to supply goods and services, enhanced transparency and timely procurements; Hope Byaruhanga iv. Implemented the IFMS operations; AC/HRM v. Provided VCT services to staff; vi. Ministry’s Budget prepared and B Andrew Aribaruho Ambrose Asiimwe submitted on schedule; AC/HPDU AC/Internal Audit vii. Ministerial Policy Statement prepared

and submitted on schedule; viii. Implementation Plans and reports compiled and submitted on schedule; ix. Annual Reports prepared and published. Dorothy Birabwa x. Progressive Reports for the HPDU Implementation of H.E. the President’s Election Manifesto compiled.

Dorothy Birabwa Kenneth Akiiri Lubega Yakub

HPDU Principal Assistant Secretary AC Accounts

Figure 108: Management of the Support services

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5.1 Finance Management and Accounting

Budget Performance for FY 2018/2019 The Ministry’s approved budget for the FY2018/19 was UGX 1,756.7 billion of which UGX 6.225 billion was wage, UGX 85.788 billion was Non-Wage Recurrent, UGX 325.2 billion for GoU domestic development, UGX 1,339.2 billion as external financing and UGX 0.242 billion for Arrears. The budget outturn as at June 2019 for Wage and Non-wage recurrent was 75.3% and 86.8% respectively.

Table 24: FY2018/19 Sub Programme Wage and Non-Wage Recurrent Budget Performance Sub Prog Directorate/Department/Unit Non–wage (Bn) Wage (Bn) 03 Energy Resources Directorate 0.283 0.305 04 Directorate of Petroleum 0.255 0.077 Directorate of Geological Survey and 05 Mines 0.237 0.800 08 Internal Audit 0.481 0.000 09 Renewable Energy Department 0.286 0.000 Energy Efficiency and Conservation 10 Dept 0.258 0.000 11 Electric Power Department 59.191 0.000 Petroleum Exploration, Development 12 and Production Department 0.250 0.503 13 Midstream Petroleum Department 0.258 0.000 14 Petroleum Supply Department 9.017 0.226 15 Geological Survey Department 0.224 0.000 16 Geothermal Resources 0.223 0.000 17 Mines Department 0.244 0.000 18 Finance and Administration 2.532 2.773 19 Sectoral Planning and Policy Analysis 0.729 0.000 Total 74.468 4.684

Table 25: Summary of Wage and Non-Wage Recurrent Budget Performance by June 2019 (Bn) Item Approved Released by Spent by (%) Budget (%) of (%) of Budget end of June end of Released Budget releases 2019 June 2019 spent spent Wage 6.225 6.225 4.684 100.0 75.3 75.3 Non- 85.788 75.120 74.469 87.6 86.8 99.1 wage

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Table 26: GoU Development Budget Performance in the FY 2018/19 by June 2019 (billions) Code Project Name Approved Release Spent % Budget by Release June Spent 2019 1023 Promotion of Renewable Energy & Energy Efficiency 3.81 3.33 2.92 87.6 1024 Bujagali Interconnection Project 4.53 4.53 4.53 100.0 1025 Karuma Interconnection Project 29.29 29.29 29.29 100.0 1026 Mputa Interconnection Project 2.50 2.50 2.50 100.0 1137 Mbarara-Nkenda/Tororo-LiraTransmission Lines 10.65 10.65 10.65 100.0 1140 NELSAP 2.50 2.50 2.50 100.0 1143 Isimba HPP 19.94 49.43 49.3 99.7 1144 Hoima - Kafu interconnection 1.00 1.00 1.00 100.0 1183 Karuma Hydoelectricity Power Project 27.14 40.45 38.61 95.4 1184 Construction of Oil Refinery 9.81 9.81 9.74 99.3 1199 Uganda Geothermal Resources Development 4.30 3.85 3.38 88.0 1212 Electricity Sector Development Project 23.10 23.06 23.00 99.7 1221 Opuyo-Moroto Interconnection Project 4.00 4.00 4.00 100.0 1222 Electrification of Industrial Parks Project 25.00 22.33 22.33 100.0 1223 Institutional Support to Ministry of Energy and Mineral 24.59 21.21 21.04 99.2 Development 1259 Kampala-Entebbe Expansion Project 22.10 19.76 19.76 100.0 1350 Muzizi Hydro Power Project 4.52 4.14 4.14 100.0 1351 Nyagak III Hydro Power Project 0.29 2.89 2.89 100.0 1352 Midstream Petroleum Infrastructure Development Project 13.16 11.16 9.21 82.5 1353 Mineral Wealth and Mining Infrastructure Development 12.75 11.61 11.26 97.0 1355 Strengthening the Development and Production Phases of Oil 16.61 34.35 33.23 96.7 1387 2*220KV Kawanda Line Bays at Bujagali 220/132/33KV 0.20 0.20 0.20 100.0 Substation 1388 Mbale-Bulambuli (Atari) 132KV transmission line and 4.95 4.00 4.00 100.0 Associated Substation 1389 New Nkenda 132/33KV, 2*60MVA Substation 0.20 0.20 0.20 100.0 1390 Network Manager System (SCADA/EMS) 0.20 0.20 0.20 100.0 upgrade at the National Control Center and Installation of an Emergency Control Center 1391 Lira-Gulu-Agago 132KV transmission project 0.20 0.20 0.20 100.0 1392 Design, Construction and Installation of Uganda National 3.63 3.26 2.85 87.5 Infrasound Network (DCIIN) 1407 Nuclear Power Infrastructure Development Project 3.00 2.67 2.68 100.1 1409 Mirama - Kabale 132kv Transmission Project 7.20 7.20 7.20 100.0 1410 Skills for Oil and Gas Africa (SOGA) 1.00 0.93 0.93 100.0 1426 Grid Expansion and Reinforcement Project -Lira, Gulu, Nebbi 13.30 12.41 12.41 100.0 to Arua Transmission Line 1428 Energy for Rural Transformation (ERT) Phase III 5.27 35.24 35.23 100.0 1429 ORIO Mini Hydro Power and Rural Electrification Project 8.00 8.00 8.00 100.0 1492 Kampala Metropolitan Transmission System Improvement 7.50 7.50 7.50 100.0 Project 1497 Masaka-Mbarara Grid Expansion Line 7.00 7.00 7.00 100.0 1505 Minerals Laboratories Equipping & Systems Development 2.00 1.58 1.51 95.4

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Table 27: GoU Development Budget comparison between 2018/19 and 2019/20 (UGX billions) Code Project Name Approved Approved Budget (2018/19) Budget (2019/20) 1023 Promotion of Renewable Energy & Energy Efficiency 3.81 3.41 1024 Bujagali Interconnection Project 4.53 0.00 1025 Karuma Interconnection Project 29.29 0.00 1026 Mputa Interconnection Project 2.50 0.00 1137 Mbarara-Nkenda/Tororo-LiraTransmission Lines 10.65 21.95 1140 NELSAP 2.50 0.00 1143 Isimba HPP 19.94 48.04 1144 Hoima - Kafu interconnection 1.00 0.00 1183 Karuma Hydoelectricity Power Project 27.14 39.90 1184 Construction of Oil Refinery 9.81 12.41 1199 Uganda Geothermal Resources Development 4.30 3.90 1212 Electricity Sector Development Project 23.10 0.00 1221 Opuyo-Moroto Interconnection Project 4.00 7.00 1222 Electrification of Industrial Parks Project 25.00 47.94 1223 Institutional Support to Ministry of Energy and Mineral 24.59 29.39 Development 1259 Kampala-Entebbe Expansion Project 22.10 28.91 1350 Muzizi Hydro Power Project 4.52 2.52 1351 Nyagak III Hydro Power Project 0.29 2.29 1352 Midstream Petroleum Infrastructure Development Project 13.16 12.51 1353 Mineral Wealth and Mining Infrastructure Development 12.75 17.05 1355 Strengthening the Development and Production Phases of Oil 16.61 38.53 1387 2*220KV Kawanda Line Bays at Bujagali 220/132/33KV 0.20 2.66 Substation 1388 Mbale-Bulambuli (Atari) 132KV transmission line and 4.95 4.00 Associated Substation 1389 New Nkenda 132/33KV, 2*60MVA Substation 0.20 0.00 1390 Network Manager System (SCADA/EMS) 0.20 0.20 upgrade at the National Control Center and Installation of an Emergency Control Center 1391 Lira-Gulu-Agago 132KV transmission project 0.20 30.20 1392 Design, Construction and Installation of Uganda National 3.63 2.13 Infrasound Network (DCIIN) 1407 Nuclear Power Infrastructure Development Project 3.00 3.00 1409 Mirama - Kabale 132kv Transmission Project 7.20 15.00 1410 Skills for Oil and Gas Africa (SOGA) 1.00 3.58 1426 Grid Expansion and Reinforcement Project -Lira, Gulu, Nebbi 13.30 6.05 to Arua Transmission Line 1428 Energy for Rural Transformation (ERT) Phase III 5.27 5.77 1429 ORIO Mini Hydro Power and Rural Electrification Project 8.00 8.00 1492 Kampala Metropolitan Transmission SystemImprovement 7.50 3.90 Project 1497 Masaka-Mbarara Grid Expansion Line 7.00 41.16 1505 Minerals Laboratories Equipping & Systems Development 2.00 7.40 1542 Airborne Geophysical Survey and Geological Mapping of N/A 12.00 Karamoja

Financial Reporting The Integrated Financial Management System (IFMS) continued to enhance timely and effective financial reporting. Following the reforms in the Accountant General’s office, the Electronic Funds

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Transfer (EFT) mode of payment has further enhanced effectiveness and timely payments to stake holders. Timely reporting on financial matters still remains a strong point of IFMS.

5.2 Human Resource Management and Development

5.2.1 Establishment The Ministry of Energy and Mineral Development (MEMD) continued to implement its approved structure through filling the positions on replacement basis.

Recruitment of Staff and Promotions The Ministry of Energy and Mineral Development continued to fill the vacant positions by receiving a number of newly recruited staff and deploying them to respective duty stations. In addition, officers from different Ministries were also deployed to this Ministry and some of the officers within the Ministry were promoted to higher positions thus filling some of the vacant positions in the Ministry’s structure as illustrated below: -

Staff Transfers / External Deployment The Public Service by normal posting instructions, posted a number of newly recruited officers to the Ministry. Other officers joined the Ministry on transfer while others left the Ministry on transfer, mandatory retirement and natural waste.

Officers who were newly appointed into the Ministry for the period under review No Name Position Status 1 Fatumah Nakku Economist New appointment 2 Owechi Peninah Policy Analyst New appointment 3 Nabatanzi Anita Energy Officer New appointment 4 Mugabi Rachael Chemist New appointment 5 Muwumuza Linda Mechanical Engineer New appointment 6 Kyooma Dennis Petroleum Officer New appointment 7 Abesigamukama Keith Petroleum Officer New appointment 8 Uzatunga Paul Brian Geologist New appointment 9 Nankinga Stella Geologist New appointment 10 Ayikobua Joseph Geologist New appointment 11 Walugembe Daniel Geologist New appointment 12 Kalajja Adrian Mineral Dresser New appointment 13 Miiro Eddy Mineral Dresser New appointment 14 Sharif Waliggo Personal Secretary New appointment 15 Rose Namirembe Personal Secretary New appointment 16 Aguti Esther Petroleum Economist New appointment

Officers who joined the Ministry on transfer No Name Title Former Duty Station 1 Akirikirize Alex Assistant Secretary Ministry of Internal Affairs 2 Lutaaya Deogratius Senior Accountant Ministry of Finance, Planning and Economic Development 3 Ssentongo Fredrick Senior Procurement Ministry of Finance, Planning and Officer Economic Development

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4 Owamaani Miria Assistant Records Officer Ministry of Public Service 5 Harriet Nabayengo Office Attendant Ministry of Health 6 Ayorekire Allen Stenographer Secretary Courts of Judicature 7 Nabukali Lydia Pool Stenographer Uganda Prisons 8 Abago Jane Stenographer Soroti District Local Government

Officers who left/exited the Ministry on transfer No Name Title New Duty Station 1 Katushabe Assistant Secretary Local Government Patricia 2 Florence Office Supervisor Ministry of Water and Environment Kemigisha 3 Kabengyere Office Typist Directorate of Ethics and Integrity Lillian 4 Ibrahim Senior Accountant Ministry of Science and Technology Mukwaya 5 Nanyanzi Asiat Accountant Local Government 6 Tumwikirize Senior Procurement Officer Local Government Mike Duncan 7 Adoch Doreen Procurement Officer Ministry of Works and Transport 8 Owacgiu Gimbo Senior Records Officer Ministry of Health Charles 9 Kyamuni Mary Records Assistant Ministry of Health 10 Muwonge Records Assistant Courts of Judicature Matthew

Career Progression/Promotions The following officers were promoted during the year under review due to attainment of higher qualifications for some, while others met the requirements of the promotional offers as indicated below. Name Old title New title Duty Station Robert Kasande Commissioner, Permanent Secretary Ministry of Energy and Mineral Midstream Development Petroleum Department Lubega Yakub Principal Assistant Finance and Administration Accountant Commissioner, Accounts Andrew Principal Assistant Finance and Administration Aribariho Procurement Commissioner, Officer Procurement Cherotich Allen Assistant Records Records Officer Finance and Administration Officer Patrick Muhindo Economist Senior Economist Sector Planning and Policy Analysis Department Nsubuga Energy Officer Senior Energy Officer Directorate of Energy Emmanual S. Resources Development

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Lukaye Joshua Senior Geochemist Principal Geochemist Petroleum Directorate Sserubiri Tonny Palynologist Principal Geologist Petroleum Directorate (Exploration) Byona Susan Geophysical Geophysicist Petroleum Directorate Technician Anicet Mbonye Geophysical Geologist (GIS) Petroleum Directorate Technician Tumushabe Geologist Principal Geologist Petroleum Directorate Wilson Mbile (Reservoir) Tonny Ssuna Geophysicist Senior Geophysicist Petroleum Directorate Ddungu Mugizi Herbert Petroleum Senior Petroleum Petroleum Directorate Engineer Engineer (Development) Kuhasire David Laboratory Geologist (Production) Petroleum Directorate Dias Technician Godfrey Bahati Assistant Commissioner, Geothermal Department Commissioner, Geothermal Laboratory Department Sebagala David Inspector of Mines Senior Inspector of Mines Department Mines

Obituary During the year, the Ministry lost a staff member called Agunda Phillip (Office Attendant), attached to the Department of Finance and Administration. He passed away on 9th February, 2019 and was buried on 11th February, 2019 in Busia District.

Cross cutting issues During the year of review, the Ministry continued to implement its HIV/AIDS Workplace Policy that provides a framework for fighting against HIV/AIDS in the Ministry

Under the Policy, the Ministry implemented a number of activities aimed at preventing the spread of HIV/AIDS at the workplace, these include the following;

The Ministry commemorated Health Week, 2019 under the theme “Know your health status”. The activities took place from 2nd to 3rd May, 2019 at Amber House Headquarters. The function was officiated by the Permanent Secretary, Ministry of Energy and Mineral Development.

Figure 109: Mr. Robert Kasande (P.S, MEMD) giving opening remarks during the celebration of the Health Week 136

The Ministry of Energy and Mineral Development also partnered with Dr. Agarwal’s Eye Hospital which conducted free eye checkups for staff at Amber house Quadrangle. This was aimed at checking on the eyes of the staff members and also provide medical advice as well as providing spectacles for those found with eye problems. A total of 59 members of staff were checked and advised on the necessary action to be taken in order to improve on their sight.

Figure 110: Members of staff at the eye checkups conducted during the two days celebration of the Health Week, 2019 at Amber house

The Ministry of Energy and Mineral Development in conjunction with Kiruddu Hospital and TASO Uganda also conducted free medical checkups and offered advice (Blood Pressure, sugar level, Body Mass Index among others) at Amber house Quadrangle. This was aimed at enabling the staff members know more about their medical health and what measures can be taken to address health problems. The team was headed by professional Senior Consultant Physician Dr. Kyalimpa Kepha. A total of 187 members of staff were medically checked during the two days activities.

Figure 111: Staff at the general medical checkup 137

The Ministry together with TASO Uganda also conducted free HIV Counseling and Testing (HCT) at the Ministry Headquarters in Room C305. A total of 127 members of staff and other stakeholders were counselled and tested for HIV/AIDS during the three-day exercise.

Figure 112: Members of staff undergoing the HCT exercise at Amber house

The Ministry of Energy and Mineral Development together with Norvik Hospital also conducted Hepatitis B screening and vaccination at Amber house. A total of 97 staff members were screened and vaccinated during the two days.

Figure 113: Members of staff undergoing Hepatitis B screening and vaccination

The Ministry of Energy and Mineral Development also conducted HIV/AIDS sensitization through Inspirational talks by Dr. Watiti Stephen, Rev. Canon Gideon Byamugisha and Doctor Daniel Byamukama of Uganda Aids Commission (UAC).

Figure 114: Doctor Daniel Byamukama giving inspirational talk 138

The Ministry of Energy and Mineral Development also conducted monthly monitoring of HIV/AIDS and Gender activities being implemented by the Sinohydro Company at Karuma hydropower project and China International Water and Electric Corporation (CWE) at Isimba hydropower project as well as in the Oil and Gas project areas.

The Ministry of Energy and Mineral Development continued to provide financial support to staff living positively on a quarterly basis.

The Ministry of Energy and Mineral Development distributed 12 cartons of condoms using different dispensers around the Ministry’s Amber House premises and in the two Directorates in Entebbe.

Contract staff

Indicated below is the list of Contract Staff in the Ministry as at June, 2019 under different Directorates, Departments, projects and programmes:

i. Finance and Administration Department

NO NAME TITLE 1 Sam Gizamba Gibuzui Personal Assistant (Hon. Minister EMD) 2 Kyazze Paul Hans Communication Specialist (Electronic Media) 3 Warren Mubangizi Systems Administrator 4 Kaddu Kizza Disan Information Technology Officer 5 Nabukenya Winnie Administrative Assistant 6 Bashaija Nicholas Assistant Estate Engineer 7 Doryne Nabukonde Personal Secretary 8 Nadunga Christine Secretary 9 Ham Masiko Mubinga Accountant 10 Ssebowa Simon Economist 11 Annet Asasiirwe Economist 12 Lisa Katrina Atukunda Planner (Petroleum) 13 Nigiwani Timothy Economist 14 Mwesigwa Tony Economist 15 Elepu Simon Peter Accountant 16 Adroner Mary Assistant Procurement Officer 17 Najjuka Carol Assistant Procurement Officer 18 Tomson Karangira Accounts Assistant 19 Opuwa Frank Zion Library Assistant 20 Henry Ovona Human Resource Officer 21 Monica Anichan Secretary 22 Joanita Nalwanga Assistant Procurement Officer 23 Fred Mpira Mail Runner 24 Bigabwa M. John Driver 25 Jalmoro C. Rodians Driver 26 Banda Scanlen Driver 27 Mwambu Simon Driver 28 Kusemererwa Frank Driver 29 Doreen Mugisha Office Attendant

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30 Muyama Sophie Office Attendant 31 Jacklean B. Berocan Office Attendant 32 Ikiring Ziporah Office Attendant 33 Fred Kiwanuka Office Attendant

ii. Directorate of Energy Resources Development a) Energy for Rural Transformation (ERT Phase III) Project No. Name Title 1 Emmanuel Buringuriza Coordination Manager 2 Oketayot Samuel Project Accountant 3 Keefa Odongo Monitoring Officer 4 Ivan Senfuma Communications Officer 5 Sherifah Atugonza Assistant Accountant 6 Asiya Naagula Assistant Procurement Officer 7 Stephen Waiswa Driver 8 Charles Musana Driver 9 Rachael Basirika Office Attendant 10 Abbey Wabaye Office Attendant b) Promotion of Renewable Energy and Energy Efficiency (PREEEP) No. Name Title 1 Augustine M. Tsongo Energy Officer 2 Keisy Irene Atim Energy Officer 3 Ochieng Julius Energy Officer 4 Pamella Nsubuga Administrator 5 Suzan Nalwoga Communications Officer 6 Alinaitwe Prossy GIS Officer 7 Sabiiti Tom Assistant Procurement Officer 8 Robert Karunga Driver 9 Lubowa Alex Kintu Driver 10 Godfrey Mwebe Driver 11 Barbara Kyobutungi Office Attendant 12 Vicky Lubandi Office Attendant c) Nuclear Energy Unit No. Name Title 1 Wamala Emmanuel Nuclear Engineer 2 Baguma Sabbiti Nuclear Safety Engineer 3 Kimanywenda Zeridah Trainee - Civil Engineering 4 Cheriberi Derrick Trainee - Science and Technology 5 Kilyowa Robert Trainee - Environment 6 Nabugosiri Caroline Office Attendant 7 Nalima Emmanuel Driver

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d) Grid Expansion and Reinforcement Project (GERP) No. Name Title 1 Okama Zion Socio – Economist 2 Kisembo Dinah Administrator-GERP 3 Nakiyingi Diana Administrator 4 Brenda Mary Owomugisha Trainee - Safeguards 5 Nakato Hellen Statistician 6 Kemigisha Paskazia Social Worker 7 Namungo Patience Brendah Social Worker 8 Nakabiri Grace Assistant Health Counselor 9 Bewayo Richard Driver 10 Lukwago Martin Information Center Coordinator 11 Kababiito Sheila Information Center System Administrator 12 Nannono Rose Information Center Clerk 13 Francis Xavier Ochandi Sociologist e) Karuma and Isimba Hydro power Projects No. Name Title 1 Amuge Susan Sociologist 2 James Yiga Mechanical Engineer 3 Semujju Evarest Electrical Engineer 4 Nabatanzi Anita Electrical Engineer 5 Karubanga Adolf Civil Engineer 6 Mwase Godfrey Jesser Sociologist 7 Maganda Shaban Sociologist 8 Wakesa Fredrick Sociologist 9 Kagoya Racheal Sociologist 10 Mwesigwa Bruce Environmentalist 11 Karungi Ann Lylean Environmentalist 12 Uwere Ronald Environmentalist 13 Mwima Yoweri Office Attendant 14 Balisanyuka John Driver 15 Sengooba Mudasir Driver 16 Nyengo Robert Driver 17 Mugaya Rogers Sosi Driver 18 Dhikusooka Abu Driver 19 Mwesigwa Peter Construction Engineer iii. Directorate of Geological Survey and Mines No. Name Title 1 Martin Nganda IT Officer 2 Geraldine Paula Babirye Geophysicist 3 Wepukhulu David Archivist 4 Nabatanzi Mariam Receptionist 5 Dennis Mbehewereize Security Guard (Hoima Station) 6 Paul Ndawula Driver

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7 Justus Mwesigwa Driver 8 Nsereko Robert Driver 9 James Makumbi Driver 10 Prossy Namulindwa Office Attendant 11 Berna Nassiwa Records Assistant 12 Kellen Kiaya Office Attendant 13 John Kikutte Office Attendant 14 Bernadette Kenyange Office Attendant 15 Dorecah Kabarungi Office Attendant

Geothermal Project No. Name Title 1 Kisembo Peter Geophysical Technician 2 Mukaikulu Emilly Office Attendant 3 Luwaga Angel Driver 4 Silver Ntegyereize Driver 5 Ruth Mugenyi Office Attendant 6 Atukwase Doreen Office Attendant 7 Ayorikire Bruce Office Attendant 8 Nasaazi Martha Office Attendant 9 Tawainia Robert Security Guard 10 Damiano Ssemyalo Cleaner 11 Mukwaya Achileo Cleaner 12 Naggingo Noeline Cleaner 13 Namasonga Sarah Cleaner 14 Nankumba Regina Cleaner 15 Ntumwa David Cleaner

Mineral Wealth and Mining Infrastructure Development Project No. Name Title 1 Magoola Nathan Driver 2 Bukenya Patrick Driver 3 Aimana Geoffrey Security Guard 4 Akello Florence Office Attendant 5 Atukunda Moses Security Guard 6 Balyejusa Jones Office Attendant 7 Kabagenyi Annet Office Attendant 8 Kakooza Rovinsa Office Attendant 9 Muhumuza Keleb Security Guard 10 Mukimba Annet Office Attendant 11 Akankunda Sharon Office Attendant 12 Nantume Damalie Office Attendant 13 Saphirah Natuhwera Office Attendant 142

iv. Directorate of Petroleum

Strengthening the Management of the Oil and Gas Sector in Uganda – Phase II NO NAME TITLE 1 Susan Kateme Programme Administrator 2 Emmanuel Odea Accountant 3 Michael Aparoku Procurement Officer 4 Paul Rubondo Senior Accountant 5 Katusabe Fred Accountant 6 Goboola Ronald National Content and Capacity Building Officer 7 Okema James Henry Civil Engineer 8 Daniel Muzoora Legal Officer 9 Agwai Chris Records and Information Officer 10 Mugume Raymond Systems Administrator 11 Joan Jakajex Nyesiga National Content Officer 12 Atugonza Thimothy National Content Officer 13 Kawooya Ibrahim Procurement Officer 14 Nakasumba Annet Secretary 15 Joyce Mbabazi Records Assistant 16 Akwila Moses Fleet Officer 17 Elvis Bongomin Office Attendant 18 Mutebi Eric Brian Office Attendant 19 Christine Nakasi Office Attendant 20 Rose Namatovu Office Attendant 21 Stella Anguezaru Office Attendant 22 Aguandia Innocent Office Attendant 23 Tacia Robina Office Attendant 24 Doreen Atukwatse Watchwoman 25 William Maate Watchman 26 Madilu Jamali Watchman 27 Higenyi Kulaira Security Guard 28 Florence Ayikoru Washroom Cleaner 29 Solomon Eriaka Washroom Cleaner 30 Eunice Maturu Washroom Cleaner 31 Stellah Ariyo Compound Cleaner 32 Ekisoferi Mubajje Compound Cleaner 33 Benard Ogua Compound Cleaner

Refinery Development Project (RDP) No. Name Title 1 Joyce Lanyero Atube Personal Secretary 2 Keirungi Nyangoma Agnes Office Attendant 3 Kizza Jane Office Attendant 143

Petroleum Supply and Distribution Department (Downstream) No. Name Title 1 Sembatya Ahmed Driver 2 Kasadha Peter Driver 3 Fred Kiwalabye Driver 4 Ayebazibwe Peruth Office Attendant

Technical Planning Division (Fuel Efficiency Initiative Project) No. Name Title 1 Busingye Beatrice Project Officer - Fiscal 2 Linda Ahimbisibwe Research Assistant 3 Mercy Kanyesigye Project Officer (Non-Fiscal) 4 Nakhumitsa Farida Office Attendant 5 Natwijuka Higius Driver

5.3 Supplies, Facilities Management and Welfare The Ministry Procurement and Disposal Unit and the Contracts Committee handled the supplies and procurement activities in the Ministry in liaison with the User Departments. Various procurements were handled on the Integrated Financial Management System to ensure timely delivery of goods and services. The Procurement and Disposal Unit prepared and submitted to the Public Procurement and Disposal of Public Assets Authority (PPDA) monthly reports on Macro and Micro procurements. The procurements that were handled over the reporting period are summarised as below: i. Macro procurements worth UGX 135,471,661,153 ii. Framework contracts worth UGX 394,281,646 iii. Micro procurements worth UGX 953,740,273

5.4 Resource Centre The Resource centre supports the Ministry’s mission and goals by ensuring that strategic information sources are collected, processed, stored and disseminated to staff and authorised members of the general public to guide decisions they make in the course of execution of duties. During the year under review, the Resource Centre received printed books in varying numbers of copies, industry specific journals particularly in the fields of hydropower, oil and gas as well as nuclear energy. The licence to access research4life.org databases was renewed and staff access to full-text journal articles and e-books at: http: www.research4life.org and at https://www.iaea.org/resources/databases/inis has continued uninterrupted during the year. The Research4life resources are username (UGA508) and password (30049) protected. Other publications received regularity are the Daily Monitor and New Vision newspapers and the weekly Independent magazine. Ministry staff were made aware of the availability of the resources received through internal mails and by promptly responding to enquiries for information as was specified by the users. A number of items were also lent to users to consult them in their respective offices. During the year under review, the Resource Centre acquired furniture and a computer. These have eased pressure for sitting space and work processing for the number of students who we hosted during their internship in the Ministry.

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Despite the successes, documents processing (cataloguing and indexing), has remained basic with staff having to come to Resource Centre to browse shelf collection instead of viewing the electronic versions online from their offices and beyond.

5.5 Sector Planning and Policy Analysis

5.5.1 Budgeting and Budget Estimates i) Budget Framework Paper 2018/19 The Ministry, in response to the 1st Budget Call Circular (BCC) dated 14th September 2018, through the Sector Planning and Policy Analysis Department (SPPAD) commenced on the process of preparing the Budget Framework Paper (BFP) for the Fiscal Year 2019/20. This was due for submission to MoFPED by 15th November 2018. The Medium-Term Expenditure Framework (MTEF) ceiling for the Ministry included financial resources for the approved projects. ii) Background to the Budget and the Budget Speech 2019/20 The Ministry’s contribution to the Background to the Budget chapter and the Budget speech for the FY2019/20 were compiled and submitted to the Ministry of Finance, Planning and Economic Development in the required time. The contributions reflected summaries of the Ministry’s major achievements for the FY 2018/19 and the forecast for FY 2019/20. iii) Ministerial Policy Statement (MPS) 2019/20 The Ministerial Policy Statement (MPS) for FY 2019/20 was prepared and submitted to Parliament as required and the Budget was subsequently approved by Parliament. The MPS also reflected achievements of the Ministry in the FY 2018/19 and the forecast for the FY 2019/20. iv) Public Investment Plan (PIP) Profiles of the new and old Government Development Projects and Programmes under the Ministry were updated in preparation for the FY 2019/20. These are: Code Project Name 1023 Promotion of Renewable Energy & Energy Efficiency 1137 Mbarara-Nkenda/Tororo-LiraTransmission Lines 1143 Isimba HPP 1183 Karuma Hydoelectricity Power Project 1184 Construction of Oil Refinery 1199 Uganda Geothermal Resources Development 1221 Opuyo-Moroto Interconnection Project 1222 Electrification of Industrial Parks Project 1223 Institutional Support to Ministry of Energy and Mineral Development 1259 Kampala-Entebbe Expansion Project 1350 Muzizi Hydro Power Project 1351 Nyagak III Hydro Power Project 1352 Midstream Petroleum Infrastructure Development Project 1353 Mineral Wealth and Mining Infrastructure Development 1355 Strengthening the Development and Production Phases of Oil 1387 2*220KV Kawanda Line Bays at Bujagali 220/132/33KV Substation 1388 Mbale-Bulambuli (Atari) 132KV transmission line and Associated Substation 1390 Network Manager System (SCADA/EMS) upgrade at the National Control Center and Installation of an Emergency Control Center 1391 Lira-Gulu-Agago 132KV transmission project 1392 Design, Construction and Installation of Uganda National Infrasound Network (DCIIN) 145

1407 Nuclear Power Infrastructure Development Project 1409 Mirama - Kabale 132kv Transmission Project 1410 Skills for Oil and Gas Africa (SOGA) 1426 Grid Expansion and Reinforcement Project -Lira, Gulu, Nebbi to Arua Transmission Line 1428 Energy for Rural Transformation (ERT) Phase III 1429 ORIO Mini Hydro Power and Rural Electrification Project 1492 Kampala Metropolitan Transmission System Improvement Project 1497 Masaka-Mbarara Grid Expansion Line 1505 Minerals Laboratories Equipping & Systems Development 1542 Airborne geophysical surveys and Geological Mapping of Karamoja v) Implementation Plans During the period under review, the Ministry continued to compile Quarterly Implementation Plans (QIPs) of the different development projects under the Ministry and subsequently the 2019/20 Annual Implementation Plans (AIPs) for all the Projects/Programmes were produced and submitted to the Office of the Prime Minister (OPM) in the required time. vi) Performance Contract FY2019/20 The Annual Performance Contracts and the Quarterly Implementation Plans for the FY2019/20 were prepared and submitted to MoFPED. In addition, the Annual Performance Targets for FY2019/20 for the Ministry were produced and submitted to the Office of the Prime Minister (OPM).

5.5.2 Monitoring and Reporting i) Annual Report: July 2017 – June 2018 During the FY 2018/19, the Ministry’s Annual Report for the period July 2017 – June 2018 was finalized and published. This was the Ministry’s 18th consolidated report that gives details of the Ministry’s achievements for that financial year. ii) Quarterly Progress Reports (QPR) During the period under review, the Ministry submitted the Quarterly Progress Reports (QPRs) by the 15th day after the quarter to the Office of the Prime Minister and to the Ministry of Finance, Planning and Economic Development. iii) Energy and Mineral Development Sector Strategic Plan for Statistics (EMDSSPS) The Ministry continued to participate in the implementation of the Plan for National Statistical Development (PNSD), spearheaded by the Uganda Bureau of Statistics (UBOS). The Plan is intended to strengthen the statistics activities in the Ministry. The Vision of the Plan is ‘the proposed Statistics Unit to become a one stop centre for the country’s statistics in the Sector’. During the period under review, the implementation of the Ministry Sector Strategic Plan for Statistics continued to be implemented. iv) Statistical Abstract 2017 During the period under review, the Statistical Abstract for the calendar year 2017 was finalized and published. The cope of statistics published focused on generation, transmission and distribution of electric power; biomass resources; petroleum products and their prices; market shares of oil marketing companies; licensing in the oil and gas subsector; mineral production, imports and exports as well as Non-Tax Revenue accruing from these transactions.

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v) The Energy and Mineral Development Sector Working Group (EMD-SWG) The Sector Planning and Policy Analysis Department coordinates the secretariat for the EMD-SWG. The Sector Working Group (SWG) oversaw the publication of a Sector Performance Report (SPR) for the FY 2017/18. The Secretariat successfully organised the 8th Energy and Mineral Development Joint Sector Review Conference that took place from 27th - 28th September 2018at Speke Resort Munyonyo, Kampala. A key output of the Conference was the agreement upon sector undertakings for the Financial Year 2019/20.

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6.0 CHALLENGES AND MITIGATION MEASURES

6.1 Challenges

Challenges and constraints during the period under review are outlined below: i. Land Acquisition for infrastructure projects: This delays project works hence affecting the original time schedule. ii. High turnover of Staff: This has mainly affected the Petroleum Directorate’s manpower capacity as majority of its staff members have gone to the better paying UNOC and PAU. iii. Inadequate Funding: Insufficient release of funds impacts on service delivery activities and institutional capacity building. iv. Vandalism: Power transmission infrastructure and other sector installations are vandalized.

6.2 Mitigation Measures

• Addressing Land Acquisition for government projects by community involvement and sensitization about the project. • Timely release coupled with Increasing funding in general for energy and mineral development infrastructure projects. • Enhancement of capacity of inspection and supervision in the mineral sub sector and implementation of Power Projects. • There is need to allow for expedited recruitment in regard to the vacant positions. • Enforcement of law and order by police and local leaders to curb the rampant cases of vandalism on Government projects. As well the local communities should be empowered to investigate and report public infrastructure vandals.

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APPENDICES

Appendix 1: The Ministry Organization Structure

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Appendix 2: Capacity Building

i. Directorate of Petroleum

a. One (1) staff member completed a Masters’ degree in Information Technology systems. b. Four (4) staff members concluded Bachelor’s degree programmes in Electrical Engineering; Records and Information Management as well as Library and Information Science at different Universities in Uganda. c. Two (2) officials participated in the NEMA arranged four-day training activity for senior editors in partnership with ACME. d. Three (3) drivers participated in the professional drivers training launched by GIZ e. In promoting the development of skills in Uganda’s oil and gas s u b sector, PEDPD provided internship training opportunities for twenty-one (21) Bachelor’s degree students from Makerere University, Kyambogo University, Kampala International University, Uganda Christian University, Ufa State Petroleum Technological University, Mbarara University of Science and Technology. f. Ms. Kisakye Gift Jean – National Content Officer continued pursuing a Masters of Science Degree in Advanced Process Integration and Design at University of Manchester in United Kingdom. ii. Directorate of Energy Resources Development

Staff who are pursuing and those who completed Masters Studies during the reporting period Name Title Course Title Venue Comment Masters of On–going Science Degree Ajou Emmer Rava Energy Officer in Energy Science University, Musiime and Policy South Korea

Niwemuhwezi Trainee – Science Master of Korea Completed Anselm and Technology Science in Advanced Nuclear and Institute of Quantum Science and Engineering Technology

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Rukundo Faith Trainee - Master of KEPCO On–going Environment Science Degree International in Nuclear Power Nuclear Plant Engineering Graduate School, South Korea Cheriberi Trainee – Science Master of KEPCO On–going Derrick and Technology Science in International Nuclear Power Nuclear Engineering Graduate School (KINGS), Republic of Korea. Robert Kilyowa Graduate Trainee MSc. Nuclear University of On - going – Environment Science and Sheffield, UK. Technology iii. Directorate of Geological Survey and Mines

Long-term training i) Mr. Henry Onyege, Chemist completed a Master of Science in Analytical Chemistry at the Kingston University in the United Kingdom. He returned in January 2019 and resumed his duties as a Chemist. ii) Mr. Isaac Moses Ajule, Laboratory Technician continues to pursue a Master of Science in Analytical Chemistry at Kingston University in London, United Kingdom. iii) Ms. Erios Naiga, Documentation Officer continues with a three (3) years MSc. Degree in Informatics at Gyeongsang National University in South Korea. She is expected to complete the course on August 31st, 2020. iv) Mr. John Kennedy Okewling is pursuing master’s degree in mining engineering at the University of Exeter, United Kingdon. He is expected to return at the end of 2019. v) Mr. Eria Kaahwa – Geologist is pursuing a three (3) year M.Sc. degree in Earth Resources Engineering at Kyushu University in Japan. vi) Ms. Jacinta Achieng – Chemist is pursuing a three (3) year M.Sc. degree in Earth Resources Engineering at Kyushu University in Japan. The training which started in August 2018 is sponsored by the Japanese Government. vii) Mr. Sudan Unity Birungi – Geologist is pursuing a Master of Science (Geology Engineering) at University of Kabansaan in Malaysia.

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Short term training i) Mr. Henry Ngada – Ag. Assistant Commissioner (geodata) attended two certificate courses in project planning and Management, and Project Monitoring and Evaluation in September and October 2018 at the Uganda Management Institute (UMI) Kampala. ii) Mr. Joseph Nyago (Ag. Senior Seismologist) participated in a one-week Field Testing of OSI Geophysical Techniques (Equipment) for Shallow Applications between 10th and 14th September 2018 at the Austrian Defense Base in Tritolwerk, Vienna. The exercise was by invitation of CTBTO On-Site Inspection (OSI) Division in Vienna, Austria. iii) The geophysics team was trained on use of Geotools software for processing Magnetotellurics and Transient Domain Electromagnetic data for five days 21 September to 2 October 2018. The training was delivered via web conferencing by CGG staff. The training coincided with EAGER visit to mentor the team under EAGER assignment U43. iv) Mr. Birungi Nelson undertook a training in Leapfrog Geothermal software from 3-9th March 2019 in Naivasha, Kenya. v) Mr. Joseph Nyago (Ag. Senior Seismologist) attended Technical Training Programme for waveform station operators of Joint International Monitoring Stations (IMS) and International Deployment of Accelerometers (IDA) stations from 15th – 19th October 2018 Vienna, Austria. vi) Three (3) students from Kyambogo University and one (1) from Makerere University underwent industrial training in the laboratories. The students whose years of study vary from 1 to 3 are pursuing qualifications of Bachelor of Science in Chemical Engineering, Bachelor of Technology in Chemistry, and Bachelor of Science in Laboratory Technology.

Conferences Mr. Fred Tugume (Assistant Commissioner, Geophysics and Seismology), Mr. Isaiah Tumwikirize (Principal Geophysicist) and Mr. Joseph Nyago (Ag. Senior Seismologist) participated in the Eastern and Southern Africa Regional Seismological Working Group (ESARSWG) Conference in Dar es Salaam, Tanzania from 8th to 10th October 2018, to commemorate 25 years of existence of ESARSWG.

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Appendix 3: List of Energy Week 2018 Exhibitors

S/N Exhibitor Items to Exhibit Biomass 1. BM Energy saving equipment Briquettes, Stoves and Ovens 2. Best of Waste Briquettes 3. Up Energy Uganda Limited Charcoal and Wood stoves 4. ECO GROUP Co. Ltd EcoStove systems 5. GOOD FIRE Ltd Branded Briquettes 6. AES STOVE Biomass products 7. ECO STOVE Biomass products 8. Envirofit Biomass products 9. CEFA Uganda Limited Biomass products 10. SEFA Uganda Biomass products 11. Green BioEnergy Briquettes 12. EUF Initiatives Biomass products 13. UgasStove Biomass products 14. MASUPA Biomass products 15. Energy Uganda Foundation Energy saving charcoal and Rocket Stoves 16. Josa Green Technologies Stoves, Briquettes 17. Raising Ghabdo Stoves, Briquettes 18. Kiweewa Stoves Briquettes, energy saving stoves and machinery 19. Humura Investments Institutional Stoves, Domestic charcoal stoves 20. Save Energy Uganda Biogas 21. Smart home Biogas 22. SESSA Stove Cook stoves 23. African Energy Enviroment Saving Cook stoves stoves 24. Potential Energy Biomass products 25. BAC Biomass and Solar prodcuts 26. Lubowa stoves Biomass products 27. Sima Renewables Biomass products 28. International Life Line Fund Biomass products 29. Enviro Wise (U) Biomass products 30. Ebenezzer Energy saving Biomass products

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31. United Innovations Biomass products 32. Awamu Biomass Energy Biomass products 33. AREM clean Energy Biomass products 34. Divine Bamboo Biomass products 35. Biogas solutions Biomass products Energy Consulting 36. Energy Monitoring Ltd Energy Consulting Solar 37. Solar way Solar products 38. SBM Investments (U) Ltd Solar Products 39. K&G Solar Power Ltd Solar products 40. Sunny Money/Solar Aid Solar products 41. Solar Now Services Uganda Ltd Solar PV 42. Great Seas Uganda Solar products 43. Solar Wave (U) Ltd Solar products 44. Solar Point (U) Ltd Solar products 45. BAREFOOT Power Ltd Solar PV 46. Battery Masters Solar Batteries 47. ULTRATEC Solar PV 48. E- POWER SOLUTIONS Solar PV 49. Kirchner Solar Uganda Solar products 50. Power Trust (U) Ltd Solar products 51. Davis and Shirtliff Solar Pumps, Solar Water Heaters 52. M- KOPA Solar Solar PV 53. Kiboko Enterprises Ltd Lighting appliances 54. Ecotrust Solar products 55. Solantis Solar products 56. Ready Solar Solar products 57. Sunking Solar products 58. Village Energy Solar products 59. Aptec Solar Solar products 60. Solar Connect Solar products 61. Vumiliya Uganda Limited Solar products 62. Stay bright Solar products 63. Brazafric Ent Ltd Solar products 64. International Energy Technik Solar products

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65. Fenix international Solar products 66. Chloride Exide U Ltd Solar products 67. D light Design Uganda Solar products 68. Effica Energy Ltd Solar products 69. Solo grid Solar products 70. MENTE Engineering Solar products 71. Adritex u ltd Solar products 72. Water Power engineering Solar products 73. Energy systems ltd Solar products 74. Village power Solar products 75. LUK solar Solar products 76. Kombasio technilogies Solar products 77. Longi new energy Solar products 78. Innovation Africa Ltd Solar products 79. Bright life Solar Solar products 80. Mwafrika Solar Solar products Government Agencies and Development Partners 81. Ministry of Energy and Mineral Development 82. GIZ PREEEP 83. Electricity Regulatory Authority 84. Rural Electrification Agency 85. UETCL 86. UEGCL 87. UEDCL 88. Uganda Energy Credit Capitalization Company 89. UMEME 90. ESKOM Uganda 91. UNCDF 92. Atomic Energy Council 93. Nuclear Energy Unit 94. Power Africa LPG 95. Total gas

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96. C gas 97. Libya Oil Uganda 98. Oryx Oil (U) Ltd 99. WES Gas 100. Abbachi gas Academia 101. CRE EEC 102. Ndejje University Civil Society 103. WWF 104. UNACC 105. Environmental Alert 106. LWF Others 107. Spouts of Water 108. Bujagali Energy Limited Associations 109. UNREEA 110. USEA 111. BEETA 112. UNB S

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