Uganda pledges not to waste oil money

KAMPALA – President Yoweri Museveni pledged on Tuesday not to fritter away Uganda’s prospective oil wealth on luxury goods or public sector pay, but to invest it in long-term projects that benefit future generations.

Oil exploration at Lake Albert in western Uganda has sparked public excitement over the prospect of imminent wealth. But critics fear the money may be wasted in corrupt deals or on populist policies, as in many oil-producing nations.London-based Tullow Oil owns three concessions in western Uganda, two of them in 50-50 partnership with Canada’s Heritage Oil.Though still at an exploratory stage, both companies found oil in the areas of their concessions they drilled.They estimate hundreds of millions of barrels but say they cannot be sure until they drill more wells.If Tullow and Heritage find enough oil, they plan to export it through a pipeline to the Kenyan coast.”Oil is finite,” Muse­veni told his countrymen at a rally to mark 45 years of independence from Britain.”Therefore our oil and gas revenues will not be exhausted in things like paying wages, importing luxuries and providing subsidies to inefficient sectors of the economy.”But analysts say few leaders of oil-exporting nations manage to resist the urge to lavish petrodollars on themselves or on short-term public spending.Norway is held up as a notable exception, investing most of its royalties from the 3 million barrels of oil it pumps out daily into a state pension fund for all its citizens.Uganda says Norwegian consultants are helping put institutions in place to deal with any future oil money.”These revenues will only be used to create durable capacity for the present and future generations …constructing more dams to generate cheap electricity, industrialising Uganda, conducting scientific research,” Museveni said.Corruption and militant attacks against oil workers in Nigeria, the world’s eighth biggest exporter, have sparked a debate over the “curse of oil” in Africa and elsewhere.Critics say successive Nigerian dictators, presidents and corrupt local governors have siphoned off money for private jets and shopping trips while most Nigerians remain poor.Nampa-ReutersBut critics fear the money may be wasted in corrupt deals or on populist policies, as in many oil-producing nations.London-based Tullow Oil owns three concessions in western Uganda, two of them in 50-50 partnership with Canada’s Heritage Oil.Though still at an exploratory stage, both companies found oil in the areas of their concessions they drilled.They estimate hundreds of millions of barrels but say they cannot be sure until they drill more wells.If Tullow and Heritage find enough oil, they plan to export it through a pipeline to the Kenyan coast.”Oil is finite,” Muse­veni told his countrymen at a rally to mark 45 years of independence from Britain.”Therefore our oil and gas revenues will not be exhausted in things like paying wages, importing luxuries and providing subsidies to inefficient sectors of the economy.”But analysts say few leaders of oil-exporting nations manage to resist the urge to lavish petrodollars on themselves or on short-term public spending.Norway is held up as a notable exception, investing most of its royalties from the 3 million barrels of oil it pumps out daily into a state pension fund for all its citizens.Uganda says Norwegian consultants are helping put institutions in place to deal with any future oil money.”These revenues will only be used to create durable capacity for the present and future generations …constructing more dams to generate cheap electricity, industrialising Uganda, conducting scientific research,” Museveni said.Corruption and militant attacks against oil workers in Nigeria, the world’s eighth biggest exporter, have sparked a debate over the “curse of oil” in Africa and elsewhere.Critics say successive Nigerian dictators, presidents and corrupt local governors have siphoned off money for private jets and shopping trips while most Nigerians remain poor.Nampa-Reuters