Uganda wants $30.2 million for oil refinery compensation

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Story by New Vision

The construction of the oil refinery is likely to delay, if the Government does not provide sh73b to enable the compensation and resettlement of 7,118 residents to be evicted to create space for the 29 sq.km site in Hoima district, energy state minister Simon D’Ujanga has warned.

He sounded the warning yesterday while considering the ministry’s 2014/15 national budget framework paper with the parliamentary committee on natural resources and some of his technical officials. D’Ujanga noted that out of the total amount of sh73b required for compensating the residents with 1,221 households, only sh44b has been provided,
leaving a gap of sh29b.

“This will cause a shortfall and delay the construction since some of the affected persons cannot be compensated. We, therefore, need this money in order to conclude the process to avoid anxiety among the affected residents who are yet to receive their compensation,” he told the committee chaired by the Bungokho South MP, Michael Werikhe.

The minister said by the end of December 2013, the first batch of 244 affected persons had received their compensation packages.

“Grievances within families regarding rightful ownership of property between spouses, which have at times caused delays in signing agreements, have been handled in accordance with the grievance handling mechanism enshrined in the resettlement action plan,” D’Ujanga stated.

He said there are households that have not yet signed the compensation agreements, but the issue is being handled.

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