Uganda Oil Money to Finance Karuma Power Project

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In short
The government of Uganda plans to invest the money accruing from taxes paid by oil exploration companies to finance the construction of the proposed multimillion dollar power generation plant at Karuma falls.The 750 megawatts Karuma power project is expected to become the single highest power generation capacity in Uganda upon completion.

Government plans to invest the money accrued from taxes paid by oil exploration companies to finance the construction of the proposed multimillion dollar power generation plant at Karuma falls.

The 750 megawatts Karuma power project is expected to become the single highest power generation capacity in Uganda upon completion.

Government has reportedly earned over 900 million dollars from the tax levied on the sales of assets by Heritage and Tullow oil companies. Uganda earned 473 million dollars in taxes after Exploration Compan, Tullow Oil sold its stakes in its Ugandan operations to France's Total and the China National Offshore Oil Corporation for 2.9 billion dollars (£1.8bn). Previously, government reportedly earned 435 million dollars after Heritage sold its stakes to Tullow Oil Company.

President Yoweri Museveni reportedly told NRM MPs during a meeting at Kyankwanzi that money from the proceeds of oil tax would be used to finance the construction of the Karuma power project.

Richard Todwong, the MP for Nwoya County who attended the meeting confirmed the pledge by the president. Todwong who represents an area where some of the oil wells are located said the president committed himself and said the money had already been earmarked for the power project. He said they were anxious to see the project begin.

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The MP however rejected claims that NRM MPs were bribed with 5 million shillings to abandon their hard stance of demanding for transparency in the oil deals in which key cabinet ministers Amama Mbabazi, Hillary Onek and Sam Kutesa are implicated.

Todwong said they were only given 250,000 shillings each and not 5 million shillings. He said the 250,000 shillings was meant to facilitate their transport, a move he described as normal and said it was too little to influence any of them to take a specific stance.

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The Uganda parliament has lately gain attention of the public after a series of events beginning with when some MPs signed petitions to recall the parliament and the subsequent heated debates about alleged corruption in the oil deals among the government ministers and some of the oil companies.

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