IN SUMMARY
[ul]
[li]Officials familiar with the matter said the Russian consortium, which had been selected to negotiate the principal agreements had “failed to negotiate in good faith” and had “failed to execute” a shareholders’ agreement.[/li][li]The plant, which Kenya had agreed to acquire a 2.5 per cent stake in last year before a pipeline deal with Uganda fell through recently, was expected to process 60,000 barrels of oil per day as well as most of Uganda’s projected crude output, but those plans will now have to be re-examined. [/li][/ul]
A Russian consortium RT Global Resources, which was announced as the best preferred bidder for the financing and construction of the $4 billion greenfield oil refinery in Hoima in western Uganda, has walked away from the deal in unclear circumstances. The plant, which Kenya had agreed to acquire a 2.5 per cent stake in last year before a pipeline deal with Uganda fell through recently, is expected to process 60,000 barrels of oil per day as well as most of Uganda’s projected crude output. Ugandan had previously invited both Kenya and Rwanda to buy shares in the refinery as part of a commitment among East African Community (EAC) bloc members to get involved in joint infrastructure projects.
Sources in Uganda’s Energy Ministry confirmed on Thursday that the Russian consortium which had been selected to negotiate the principal agreements had “failed to negotiate in good faith” and had “failed to execute” a shareholders’ agreement. The sources also said Uganda had cashed in a $2 million bid bond which RT Global Resources consortium had executed with a local bank. The consortium was a surprising choice when the announcement was first made in February 2015. Led by Rostec, a Russian defence and technology corporation whose businesses include manufacturing of weapons such as the AK-47/Kalashnikov rifles, it also included Russian oil producer Tatneft and VTB Capital, the investment banking unit of Russia’s second-largest lender VTB. Others partners included GS and Telconet Capital Partnership from South Korea.
M7 should just stop making strategic decisions during elections time when people come with suitcases full of $$$$cash. In 2011 the Russians came calling during elections, they got the refinery deal and Uganda got Su-30 jets. In 2017 Total came calling and they got the pipeline heading to their preferred route of Tz. Now both have failed.
It seems like he’s getting reckless day by day, just as he grows older. He never blundered more in his entire life than he blundered with the pipeline deal! Costs and convenience notwithstanding, this pipeline should have gone through Kenya by pure merit!
His word, not that of Total or whoever else, was supposed to be final, which it was finally! Now he’s about to leave the stage and what legacy is he about to leave behind?
M7 took the oil refinery deal to Putin on a more or less personal basis without any procurement protocols.I remember the American envoy warning that ‘choices have consequences’ Global Resources’ (Putin & a henchman) were placed under sanctions and the company lost value by 22billion dollars overnight.Losing this bid was the inevitable conclusion.Soon he’ll go drying.
Na vile tumeringiwa hapa na Kenyan self-haters vile pipeline zinatuponyoka, na Magufuli ametunyang’anya maendeleo. Zao bado blueprints na sisi tunajenga zetu mos mos.