NATIONAL NEWS , Monday, January 9, 2017 3

President Museveni (wearing white shirt) with the China Harbour Engineering Company Ltd delegation and government officials at State House, Entebbe on Friday. PPU photo WHY THE PARK? An industrial park is necessary Railway contractor to build for increasing cargo and triggering industrialisation By Pascal Kwesiga industrial park in Mukono The Government has agreed to a proposal by a Chinese firm to set up an industrial park in one of the areas near the Standard Gauge Railway (SGR) corridor to generate Government in clearing obstacles delaying the will stretch from Mombasa through Nairobi cargo for the railway line and support release of funds (loan) for the railway project EASE OF TRANSPORT to Malaba, on the Kenya- border. industrialisation. from Exim Bank. The $2.3b Malaba- Uganda will build the 273km Malaba- President Yoweri Museveni gave the SGR project will be funded by the Government The trains will be expected to move Kampala section (eastern route). greenlight to the proposal by the China and Exim Bank. There are plans to establish SGR branch Harbour Engineering Company Limited at a speed of between 100km and lines to Kigali through Mirama hills, (CHEC), a company hired to build SGR, Industrial park is key Democratic Republic of Congo through during a meeting with the Chinese firm The sources said the Government and Chinese 120km per hour Bihanga-- (western) route and government officials at State House, agreed that an industrial park is necessary for and South Sudan via Mbale-Soroti-Lira- Entebbe on Thursday. increasing cargo and triggering industrialisation, Gulu-Nimule (northern route During the meeting attended by finance as well as enabling the China to recover the loan. Government will provide land and take part in The northern route is expected to have a minister Matia Kasaija, the Minister of Works According to a State House statement, the design and development of the industrial connection line from Gulu, through Pakwach and Transport, Eng. Monica Ntege Azuba, Museveni also welcomed the CHEC’s investment park, with the CHEC’s business arm as one to Vurra on the Uganda-DRC border. The the Attorney General, William Byaruhanga plans, including a plan to establish a new town of the ‘investors’ operating factories in the railway network is expected to increase and the secretary to the treasury, Keith between Mukono and Kampala to decongest the (industrial) zone. the region’s competitiveness for the foreign Muhakanizi, the President received a city. The company will also build a college in “It is our duty to give the investor concessions direct investment and access to high-end progress report on the SGR project from a Rubongi in Tororo district as part of the railway for example, land and other things,” Azuba markets. CHEC team, led by the firm’s president in project to train Ugandans in railway and road stated. The trains will be expected to move at a Africa, Lin Yichong. construction as well as maintenance technology. speed of between 100km and 120km per According to sources, a position was taken “There is a lot of infrastructure deficit in Government assurance hour. One train wagon is expected to carry during the meeting that Government looks Uganda. If we start on a clean slate, we can The Government, Muhakanizi said, reassured freight of about 4,000 tonnes. The SGR for the land near the SGR line where an more projects,” Museveni said, noting that the Chinese delegation of its unflinching interest railway line, which will be powered by industrial park will be established. the SGR will lower transport costs and spark to receive the loan and get the SGR project off electricity, is expected to have a width of An industrial park is significant for the industrialisation in the region. the ground. 1.5 metres. Although the Government and successful operation of the SGR system Yichong said CHEC will deliver the As part of the SGR, Kenya is establishing new Chinese agreed to fast-track the SGR project, being designed for 80% cargo and 20% infrastructure project for the country’s industrial parks at Mombasa and Naivasha to it is not clear when actual construction will passenger movement. transformation, using local materials and increase cargo and promote the industrialisation begin since funding has not yet been secured. Museveni and the Chinese also discussed Ugandan labour. drive. But preliminary activities, including land the cause of delays on the part of the Azuba told New Vision on Saturday that the The SGR, a regional infrastructure project, acquisition for the SGR line, are underway. Uganda, Tanzania launch study for $3.5b crude oil pipeline By John Agaba the CNOOC president and Tullow and Kabaale in Hoima district in Uganda last year that Uganda and Tanzania Total senior executives, are expected to Tanga in Tanzania) will traverse were working with oil companies Uganda and Tanzania will today at the function at the ministry’s head eight districts, including Hoima, CNOOC, Tullow and Total to fast- launch the Front-End Engineering office in Kampala. Kibaale, Kyankwanzi, Mubende, track the project, expected to cost Design (FEED) study for the East The energy ministry on Saturday Gomba, Ssembabule, Lwego and $3.55b. African Crude Oil Pipeline (EACOP) explained that the FEED study (which Rakai, before reaching the Tanzania Uganda has so far discovered more after completion of initial conceptual will be launched today) will develop border. But out of the 1,443 kilometres than 6.5 billion barrels of crude designs. the EACOP project basic engineering of the pipeline, more than 1,100km oil reserves from about 40% of the Construction of the 1,443km and form the basis for detailed will be on the Tanzanian side. Albertine basin in western Uganda. pipeline, which is meant to link engineering and final investment “After the FEED, we shall conduct Uganda’s new round of oil exploration Ugandan crude oil to international decisions. It will lead to the project a series of studies, including a licensing may see the country increase markets, is planned to start in a execution. resettlement action plan (RAP), to its petroleum reserves, if the surveys year’s time — after completion of the “The FEED activities are critical to identify persons and properties that prove positive. FEED and other resettlement action the implementation of the project and will be affected and compensate Uganda and Tanzania political plans and environmental impact are estimated to last for a period of them,” Kasita said. leaders and technocrats agreed to assessments. Completion of the giant eight months, involving a composite Energy minister Irene Muloni They also have to assess the pipeline’s name the pipeline project reflecting project is expected by 2020. team of engineers and relevant likely impact on environment and the East African Community and the Ibrahim Kasita, a communications discipline specialists from the FEED the energy ministry’s permanent come up with strategies to mitigate second ministerial meeting endorsed, specialist at the energy ministry, said contractor and EACOP project secretary, said in a statement. negative effects, if any. “East African crude oil pipeline high-ranking executives, including participants,” Stephen Isabalija, Kasita said the pipeline (from Energy minister Irene Muloni said (EACOP)”.