The Independent Uganda: You get the Truth we Pay the Price
And in a rejoinder, Patrick Mweheire, the Chief Executive Officer of Stanbic Bank, said one of the ways of lowering the cost of borrowing from banks would be by bringing big oil and gas players such as Total, Fluor or CNOOC on the table to act as credit enhancers when the local SMEs are negotiating for credit with the banks.
“If you are an SME with a contract with Total or CNOOC, we could sit around the table, get into a tripartite agreement that says that the SME will supply a number of goods to Total but Total gets to pay the Bank first before they pay the SME contractor.”
This new development comes at the time the FEED for Tilenga project is nearing completion to pave way for the engineering, procurement and construction phase and the final investment decision (FID).
“We expect that the operators will specify their national content plans and the contractors have to show how much value they are bringing into the country,” Kasande said.
Uganda is looking at developing a $3.55 billion crude oil export pipeline and a $ 4 billion oil refinery in the next few months ahead of oil production scheduled for end of 2020.
