NATIONAL NEWS , Monday, December 7, 2015 3

ABOUT THE DEAL Museveni The deal represents one of the hails China on largest privately-funded mining sector investments in infrastructure By Andante Okanya By Taddeo Bwambale The Tororo-based Sukulu phosphate mining project has received $240m (sh739b)from China’s infrastructure projects in Africa are the Industrial and Commercial Bank of China a healthier focus for the continent’s ties with (ICBC). the Asian power, President Yoweri Museveni On Friday, the financial closure agreement said on Saturday during the China-Africa was signed at the China-Africa Investment roundtable meeting in Johannesburg, South and Financing Forum held in South Africa. Africa. The Ministry of Energy and Mineral The discussion, held at the Sandton Development has since released a press International Conference Centre was co- statement through its spokesperson, Ibrahim chaired by President Jacob Zuma of South Kasita, detailing the agreement. Africa. L. V Weidong, the president of Guangzhou Museveni, who attended the two-day event, DongSong Energy Group Company and Lie President Museveni shaking hands with Dr. L.V Weidong at the ground-breaking addressed the meeting on China’s relations Jianchang, the ICBC deputy general manager ceremony of the Sukulu Phosphate Project in in August last year with Africa and the continent’s development for Global Banking Department, signed the aspirations. deal. “Electricity, roads, the railways and The permanent secretary of the energy information technology are the primary ministry, Fred Kabagambe-Kaliisa, and the internal systems of a modern economy. I salute state minister for minerals, Peter Lokeris, Sukulu phosphate the Chinese for seeing eye to eye with us on witnessed the signing of the agreement. this very crucial point,” he said. ICBC, in co-operation with the Standard Museveni hailed China’s relations with Africa, Bank Group, will disburse the money in saying the Chinese and Africans have a shared tranches to Guangzhou DongSong Energy history, manifested through heroic struggles to Group Company Ltd, which is the project project gets $240m regain their sovereignty. developer. Both races, Museveni observed, endured The deal represents one of the largest imperial aggression from western countries, privately-funded mining sector investments which imposed unequal treaties on them. in Uganda and sets a unique precedent for He said China and Africa are in a position form of a mining lease for 21 years and other and improved the project economics by to support each other for the mutual benefit of exploration licences to finalise additional exempting the project construction and their people’s prosperity, according to a State Jobs galore exploration work. development phase from value addition on House press release. The Government has provided 600 acres tax and import duty. Museveni was accompanied by several of land to facilitate development of the The Tororo-based project is also one of the government officials, including foreign affairs It is estimated that more that industrial complex, construction of staff four flagship projects aimed at developing minister Sam Kutesa and works minister Eng. residences and the administration block. the energy and mineral resources for John Byabagambi. 1,200 local people will get jobs, Kabagambe- Kaliisa noted that the support Uganda’s social and economic development. The President also held talks with Chinese will reduce the displacement effect, as more Other projects are the development of the president Xi Jinping on the construction of the thanks to the deal people would have been displaced if land refinery, Karuma hydropower project and Standard Gauge Railway that will link Uganda in the licence area were to be used for this the iron and steel industry. with , Rwanda South Sudan and the public-private partnerships. purpose. Project launch Democratic Republic of Congo. “The project will boost agriculture He said the Government provided Museveni saluted Xi Jinping for the support production through the provision of fertilisers, technical support in the compensation and Last year, on August 17, President Yoweri Museveni launched the China is giving to Uganda in building two support infrastructure development through resettlement of project-affected persons in hydro-power dams, constructing the - the iron and steel production, offer jobs to the the initial mining area. construction of the project. He urged the residents to take advantage of Entebbe Expressway and modernising Entebbe region, support other industries and boost our The permanent secretary noted that the Airport. export earnings through value addition of the resettlement process had stalled for over the opportunity and produce more primary commodities,” Kabagambe-Kaliisa eight years, when mineral rights were in food to sell to a big population. Museveni later addressed a huge China offers Africa $60b noted. possession of the previous holder.” Chinese President Xi Jinping announced $60b The developer plans to invest and establish The Government executed a Mineral gathering of residents at the Osukuru Primary School play grounds and in assistance and loans to Africa at the summit, a mine and a plant with an annual capacity Agreement, where it agreed, among other with $5b in zero interest loans and $35b in of two million tonnes, a phosphate fertiliser things, to stabilise the project Net Present explained that minerals that the mining of minerals would strengthen preferential facility and export credit loans and plant of annual production of 300,000 tonnes, Value, permit the project developer to concessional loans. a sulfuric acid plant of 400,000 annual use the mineral rights as security for durable infrastructure, as well as enhance education. China also extended $156m worth of production, a 12MW waste heat-based power debt financing, submit all disputes, emergency food aid for countries affected by generation plant and a steel mill of annual except tax and environmental matters, to The President explained that when the minerals are exhausted, poor harvest, caused by the El Nino rains. production of 300,000 tonnes. expert determination and international President Xi Jinping told African leaders It is estimated that more that 1,200 local arbitration, grant all necessary permits another source of wealth, intellect, is exploited for benefit. Museveni at the summit that “crucial elements for people will get jobs. The developer has and authorisations that are necessary to our mutual prosperity are infrastructure also pledged to adhere to corporate social implement the project. This support has alluded to Japan, that has exploited its intellectual capacity to create development, market access and human responsibility, like investing in schools, helped to improve bankability of the project. resource development”. hospitals and other public welfare projects. In addition, the Government has put in wealth by manufacturing vehicles, among others. The meeting, attended by representatives of Kabagambe-Kaliisa explained that the place a favourable fiscal regime, which has 50 countries, vowed to push for homegrown company has been granted mining rights in reduced the project capital expenditure solutions for Africa’s peace and security woes.