UGANDA

1. GENERAL OPERATING ENVIRONMENT

2. ENERGY AND RENEWABLE ENERGY

3. ENVIRONMENTAL GOVERNANCE

4. ORGANIZATIONS, SOURCES, REFERENCES

UGANDA report 2 (27)

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GENERAL OPERATING ENVIRONMENT

1.1 Basic Facts & Geography

1.2 People & Society

1.3 Culture & Business Culture

1.4 Infrastructure & Logistics

1.5 Government & Legislation

1.6 Economy & Trade

1.7 Uganda & Finland

1.8 Education

1.9 General Operating Environment - Summary

UGANDA report 3 (27)

1.1 BASIC FACTS & GEOGRAPHY Location East-Central Africa Area 241 550 km2 (82 % land, 18 % water)

Borders

West: Democratic Republic of Congo (765 km) North: South Sudan (435 km) East: Kenya (933 km) South: Tanzania (396 km), Rwanda (169 km)

Climate Tropical Terrain Mostly plateau with rim of mountains Source: CIA, World Bank

The country is located on the East African plateau. It averages about 1,100 metres above sea level, and this

slopes very steadily downwards to the Sudanese Plain to the north. However, much of the south is poorly

drained, while the centre is dominated by Lake Kyoga, which is also surrounded by extensive marshy areas.

Uganda lies almost completely within the Nile basin. The Victoria Nile drains from the lake into Lake Kyoga

and thence into Lake Albert on the Congolese border. It then runs northwards into South Sudan. One small

area on the eastern edge of Uganda is drained by the Turkwel River, part of the internal drainage basin of

Lake Turkana (Wikipedia.)

Although generally equatorial, the climate is not uniform as the altitude modifies the climate. Southern

Uganda is wetter with rain generally spread throughout the year.

Uganda has substantial natural resources, including fertile soils, regular rainfall, small deposits of copper,

gold, and other minerals, and recently discovered oil (World Bank).

Agriculture is the most important sector of the economy, employing over 80% of the work force.

1.2 PEOPLE & SOCIETY 2009 2010 2011 Population, total 32,37 mill 33,42 mill 34,51 mill Population, growth 3 % 3 % 3 % Population, density 162/ km2 167/ km2 … Urban population 15 % 15 % 16 % Rural population 85 % 85 % 84 % Population (0-14 years) 49 % 48 % 48 % Population (15-64 years) 49 % 49 % 49 % Population (65 years and above) 2 % 3 % 3 % Life expectancy at birth 53 54 54

Major cities(2009) Capital: Kampala (1,5 mil ) Other: Gulu ( 0,2 mil), Lira (0,1 mil)

Source: CIA, World Bank

Population of Uganda is about 33 million and it is growing by approx. 3,5 % every year (CIA World Fact Book)

Population growth rate is among the highest in the world.

Uganda has the second highest total fertility rate in the world, at 6.65 children born/woman (2012 estimates)

(Wikipedia).

UGANDA report 4 (27)

Labour force of population covers 16 million people.

The average age in Uganda is relatively low – almost 50% of Ugandans are under 15 years. Life expectancy at

birth was 53 years in 2011 (World Bank ).

Uganda is one of the poorest nations in the world. 35 % of population lives below poverty line (CIA World

Fact Book).

Most of the people live on rural areas. Only about 13 % of total population lives in urban areas.

Uganda is at the same level as the average for Sub-Saharan Africa in political rights and civil liberty but fares

worse in political stability (World Bank).

1.3 CULTURE & BUSINESS CULTURE

Language Official: English Other: Ganda or Luganda, other Niger-Congo languages, Nilo-Saharan languages, Swahili, Arabic

Ethnic groups

Baganda (17%) Banyakole (10%) Basoga (8%) Bakiga (7 %) Iteso ( 6 %) Langi (6 %) Other small ethnic groups (46 %)

Religion Christian (84%) Muslim (12%) Other (4%)

Source: CIA, World Bank, OECD

Uganda is home to many different ethnic groups, none of whom forms a majority of the population.

Around forty different languages are regularly and currently in use in the country.

English became the official language of Uganda after independence.

Swahili, a widely used language throughout eastern and central East Africa, was approved as the country's

second official national language in 2005,[45] though this is somewhat politically sensitive (Wikipedia).

Ugandan business decisions are often made by a group within the company and there is a premium on

consensus. Many Ugandans like to discuss business extensively, and usually seek external advice, before

making decisions.

When negotiating, companies will respond to your approach in an equal manner. Therefore, if a potential

partner demonstrates flexibility and willingness to commit, they will gladly put the same effort into the

partnership. Personal contact with potential and existing partners/clients and regular visits to the market

therefore of the utmost importance and it is natural for the business relationship to be built with time

(Ugandan UK Convention 2012).

UGANDA report 5 (27)

1.4 INFRASTRUCTURE & LOGISTICS Railways: 1 244 km Roads: 71 000 km (total)

13 300 km (maintained – 33%) Waterways: Rivers: There are no long navigable stretches of

river in Uganda Ports: Entebbe, Jinja, Port Bell

Airports: Total: 46 (5 paved) Source: CIA, World Bank, OECD

The country‘s infrastructure—including energy, roads, and telecommunication—lags behind that of its

neighbours and has been identified as a major binding constraint requiring immediate remedy.

With regard to road transport, the focus will be on the construction, upgrading, rehabilitation and

maintenance of critical roads that are important to promote production, competitiveness and regional trade.

The road infrastructure provides for over 90% of passenger and freight traffic.

Only about 25% of national roads are paved.

This is further aggravated by the dilapidated status of the rail network of which only 26% is functional.

Access to clean water and sanitation remains low in both urban and rural areas.

Access to electricity remains very low due to limited national power grid coverage and low generation

capacity.

With regard to social infrastructure, the focus will be on rehabilitation of health facilities in recognition that

the country has a high disease burden especially in communicable diseases.

Roads are most commonly used in transportation and they carry over 90% of all traffic. The road network is

about 70,750 kilometres, of which 16,300 kilometres is paved. Most roads radiate from Kampala. Uganda has

road and rail links to Mombasa, Kenya.

The country has over 1000 kilometres of railways which are rarely used. There are also 5 airports with paved

runways (Finpro).

UGANDA report 6 (27)

1.5 GOVERNMENT & LEGISLATION Official name Republic of Uganda Conventional short form Uganda Form of state Unitary presidential constitutional republic Regions and districts 112 districts

Government

President: Lt. Gen. Yoweri Kaguta MUSEVENI Cabinet: Appointed by the president among elected legislators Parties: a multi-party political system

Legal system Mixed (English common law/Customary law) Independence 9 October 1962 (from the UK) Corruption perception index (2011) 143 (out of 183 countries) Source: CIA, World Bank

Uganda is divided into districts, spread across four administrative regions: Northern, Eastern, Central

(Kingdom of Buganda) and Western

Uganda‘s institutional framework is characterized by several coordination failures, corruption in public

delivery system and generally endemic malaise in most of the public sector departments. These challenges

have constrained planning and budgeting processes leading to inefficient resource allocation and poor public

service delivery outcomes.

The President of Uganda, currently Yoweri Kaguta Museveni, is both head of state and head of government

(Wikipedia).

Uganda is rated among countries perceived as very corrupt by Transparency International. It is rated at 2.4

on a scale from 0 to 10 (0 stands for most corrupt, 10 for clean).

It is ranked as 143rd country out of other countries by Transparency International.

One should avoid travelling to the Karamoja-area and to use a plane if going to the Kidepo Valley.

Unnecessary travel to northern and north-eastern parts of the country should be avoided because the area

has been in the hands of the unstable Lord's Resistance Army’s (LRA) rebel group. Also eastern parts of

Uganda to the north from Mount Elgon are dangerous. One should also avoid the bordering regions of DRC

and Rwanda and the Semliki national park. Before travelling to Bundibugyo one should check the security

situation from local officials (Finpro).

UGANDA report 7 (27)

1.6 ECONOMY & TRADE World bank ranking Low income Currency Ugandan shilling (UGX)

2009 2010 2011 GDP (current US$) (billions) $ 15,80 $ 17,20 $ 16,81 Structure of the economy (% of GDP)

- Agriculture - Industry - Services

25 % 25 % 24 % 26 % 25 % 25 % 49 % 50 % 51 %

GDP growth (annual %) 7 % 6 % 7 % GNI per capita, PPP (current intl.) $ 1210 $ 1250 $ 1320 Inflation, consumer prices (annual %) 13 % 4 % 19 %

Ease of doing business ranking 111

(out of 181) 112

(out of 178) 122

(out of 183) Source: CIA, World Bank

Uganda has substantial natural resources, including fertile soils, regular rainfall and sizable mineral deposits

of copper and cobalt.

The country has largely untapped reserves of both crude oil and natural gas.

Agriculture is the most important sector of the economy, employing over 80 % of the work force.

The GDP per capita (US dollar) in Uganda was last reported at 508.93 in 2010 (World Bank Data).

Uganda is measured as low-income country by GNI: The GNI per capita; Atlas method (US dollar) in Uganda

was last reported at $500 in 2010 (World Bank).

As a landlocked country situated about 800 km from the Indian Ocean, the country has to rely on its

neighbours, particularly Kenya for critical access to the world markets for its exports and imports (CIA)

The gross public and private investment growth rates are both projected to increase. Moreover, economic

growth has been export-led with the share of exports to GDP rising steadily through the last two decades. But

the expanding regional market for Uganda‘s food has for the last five years boosted agriculture.

The industrial sector (manufacturing, construction and mining) has improved from the previous near collapse

during the turbulent 1980s and accounted for 25% of GDP in 2008/09.

The country is a member of the East African Community (EAC) and Common Market for Eastern and Southern

Africa (COMESA).

The authorities recognize foreign trade as an important stimulus for economic growth and its trade policies

aim to contribute to poverty reduction, promotion of employment and diversification and promotion of

exports particularly of non- traditional products.

These policy objectives have been pursued through continuing liberalization, deregulation, privatization and

participation in regional agreements, particularly the EAC.

In 2008/2009, Uganda‘s tax-to-GDP ratio was 12.2% of GDP, lower than the 20% average for Sub-Saharan

Africa and that of Tanzania and Kenya at 15% and 22%, respectively.

UGANDA report 8 (27)

Oil production is expected to commence in 2015 with the processing of up to 40,000 barrels of oil per day

into diesel, kerosene, and heavy fuel oil that can be used to generate electricity but limited production is

expected to start in 2010 mainly targeting power production from gas.

In 2011 the economy experienced a perceptible slowdown but real Gross Domestic Product (GDP) growth is

projected to improve in 2012 and 2013 (African Development Bank).

1.7 UGANDA & FINLAND

Finnish exports (2011) 1, 9 mill € (Machinery and equipment; paper and paper products)

Finnish imports (2010) 1, 4 mill € (Vegetables and fruit) Source: Finnish Customs

Trade between Finland and Uganda has been modest.

The biggest export products are electric machinery, office machines, telecommunication and sound

recording machines and paper and paper products.

Imported products from Uganda to Finland are mainly vegetables and fruit.

1.8 EDUCATION Literacy rate, % of people ages 15 and above, 2010 73 % Primary school enrolment, % net, 2009 94 % (95 % female, 93 % male) Higher education: Makere University in Kampala (biggest) Source: World Bank

Illiteracy is common in Uganda, particularly amongst females.

Adult total (% of people ages 15 and above) in Uganda was last reported at 73.21 % in 2010.

Public spending on education was at 5.2 % of the 2002–2005 GDP (World Bank Data).

The School enrolment; primary (% net) in Uganda was last reported at 90.87 in 2010, according to World

Bank.

The system of education in Uganda has a structure of 7 years of primary education, 6 years of secondary

education (divided into 4 years of lower secondary and 2 years of upper secondary school), and 3 to 5 years

of post-secondary education. The present system has existed since the early 1960s (Wikipedia).

Although 60,000-70,000 students per year leave school qualified to go on to higher education, only some 35%

of them (at most 25,000) are able to find places at the limited number of institutions.

Makerere University in Kampala (MUK) accepts some 95% of the total student population in Uganda's

universities (Wikipedia).

UGANDA report 9 (27)

1.9 GENERAL OPERATING ENVIRONMENT - SUMMARY

Instability in southern Sudan is a risk for the Ugandan economy in 2012 because Uganda's main export

partner is Sudan, and Uganda is a key destination for Sudanese refugees.

Uganda’s Human Development Index (health, education and income) value for 2011 is 0.446—in the low

human development category—positioning the country at 161 out of 187 countries and territories (United

Nations Development Programme)

Poverty levels have declined from 56% in 1991/92 to 31.3% in 2005/06 and Uganda is expected to meet the

Millennium Development Goal (MDG) target of halving the poverty rate by 2015.

The mineral wealth has the potential to generate increased private sector investments and lasting benefits to

the country.

The civil strife in Northern Uganda that was perpetrated by the rebel Lord‘s Resistance Army (LRA) seems to

have come to an end. This will allow for the re-integration of Northern Uganda with the rest of the economy,

and is expected to contribute significantly to economic growth particularly given this region‘s agricultural and

mineral potential.

UGANDA report 10 (27)

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ENERGY & RENEWABLE ENERGY

2.1 General Situation in Energy Sector

2.2 Energy Policy

2.3 Renewable & Fossil Energy Resources

2.4 Supply & Demand for Energy Solutions

UGANDA report 11 (27)

2.1 STATE OF ENERGY SECTOR 2009 1990 Total energy consumption: 130 TWh Energy consumption per capita: 4,02 MWh/capita Electricity consumption: 2,07 TWh 0,62 TWh (2000) Electricity consumption per capita: 68 kWh/capita Access to electricity: 9 % 5,6 % (1991) Access to electricity urban population 41,8 % (2006) Access to electricity rural population 2,9 % (2006) 2,7 % (2002) Energy imports (% of energy use) 6 % (all petroleum products) Electricity imports (% of electricity use) -8 % (180 GWh) -115 GWh (2000) Power production capacity: 573 MW 159 MW Hydro power production capacity: 395 MW 155 MW Electricity production: 2,19 TWh Hydro electricity production: 1,47 TWh 0,77 TWh Share of population using solid fuels: > 95 %

Fossil fuels % of total energy 5,94 % NA (IEA, World Bank, IRENA, UN data, indexmundi.com)

Major sources of commercial energy in Kenya are hydropower, petroleum and biomass based energy. Even 95 % of

population use traditional solid fuels such as fuel-wood and charcoal in residential sector for heating, light and

cooking. Further development of the use of biomass and extension of national electricity grid would reduce this

consumption greatly. The lack of diversity in energy sector makes Uganda vulnerable.

Self-sufficiency

Uganda imports all its petroleum products and there is, as yet, no production in the country; although some

local production is expected to begin soon. Petroleum sector is highly vulnerable to political conflicts that

may arise in neighbouring countries. Imports come primarily through Kenya (85%) and Tanzania (15%) via

trucks. These products account for a significant percentage of the country’s per capita income. Fuel imports

in 2009 were US$ 125 million, or 2.9% of total imports. This represents about 4.3% of the total export

earnings in 2008/2009.

In the beginning of 21st

century Uganda has been net exporter of electricity even though power cuts are

common within the country itself.

RE could be a sustainable option for a land-locked country with the 6th highest fuel import costs in the world.

Electricity availability

9 % of the population had access to electricity in 2009. Only 3% of rural people and 42% of urban people have

access to electricity.

The transmission network of the country consisted of 1,161.6 km of 132 kV lines, with the distribution

network operating at 33 kV. (Reegle Country Profile)

UGANDA report 12 (27)

Electricity capacity

Government prefers to use the BKS Acres Ltd electricity demand projections High case-scenario for 2002-

2025 as the planning tool for future development. Depending on scenario electricity consumption and peak

demand will be growing 4-9% annually. The Electricity Supply Situation in Uganda and Future Direction (link)

Uganda’s electricity supply depends mainly on hydropower from the Nile. Due to this dependence, the

country is facing severe climate change-related risks. Recent persistent droughts have reduced hydropower

production from 340 to 140 MW. According to the ERA, the country’s regulator, actual power generation

stands at around 400 MW, from an installed capacity of approximately 550 MW. Power shortages have been

compensated by installing numerous off-grid systems, and recently a 150 MW grid thermal power system, at

the exceptionally high cost of 0.27 US$/ kWh. Commercial losses are at roughly 35% due to poorly-

maintained lines. The highly-centralised nature of the country’s electricity infrastructure and the continuing

high costs of investment in the large-scale power sector for low population outreach, are hampering further

development.

Uganda produces small amount of electricity from biomass in sugar industry co-generating of electricity and

heat from bagasse.

Where the grid is unavailable electricity is generated with diesel generators, batteries and solar photovoltaic

systems (PV) run by individuals and businesses. In addition to privately owned generators, government

operates diesel generators to meet the energy needs of some rural towns not connected to the grid.

There is a need to broaden and diversify power production in Uganda, and to design systems that will provide

power to local communities.

(Reegle Country Profile), (MBendi), (Helio - Energy Systems)

Source: IEA Country Energy Balance, 2009

UGANDA report 13 (27)

2.2 ENERGY POLICY Energy policy publications The National Energy Policy 2002, Renewable

Energy Policy 2007 Organizations responsible for energy policies The Ministry of Energy and Mineral

Development Targets to increase use of renewable energy increase modern renewable energy share from

4 % (2007) to 61 % (2017) Subsidies/ Incentives for Renewable Energy Feed-in Tariffs for renewables

The Electricity Act 1999 (link)

This act enabled private participation in the electricity sector, and established the Electricity Regulatory

Authority (ERA) as the energy regulator for the country. The Act legislated for the unbundling of the former

UEB into the three utility groups operating today.

The National Energy Policy 2002 (link)

The policy goal in the energy sector is to meet the energy needs of the Ugandan population for social and

economic development in an environmentally sustainable manner. Specific objectives under the energy

policy include assessing the availability and demand of energy resources in the country, improving energy

service access to reduce poverty, improve governance in the energy sector and institute improved

administrative procedures, and stimulate the economic development of the energy sector, whilst minimising

environmental impacts.

Renewable Energy Policy 2007 (link)

Uganda’s renewable energy policy published by the Ministry for Energy, Minerals and Development (MEMD)

in 2007 goal is: “To increase the use of modern renewable energy, from the current 4% to 61% of the total

energy consumption by the year 2017”. Its objectives include affordable and reliable energy services as a

contribution to poverty eradication. One area is enhancing the modernisation of biomass conversion

technologies.

The RE Policy establishes a Standardised Power Purchase Agreement and FiT for RE generation projects.

Renewable Energy and Energy Efficiency Policy acknowledges a number of key areas for energy efficiency

improvements by 2017 including increasing solar water heater installations to 30,000 m2, and implementing

industrial energy auditing and the dissemination of efficient equipment to industries.

Subsidies/Incentives for Renewable Energy

Energy planning is guided by The Rural Electrification Strategy and Plan (link) covering the period 2005 to

2011. The objectives of the plan are to achieve equitable regional distribution of energy, maximise the

economic, social and environmental benefits of rural electrification subsidies, promote expansion of the grid

and development of off-grid electrification, and stimulate innovation within electricity suppliers. Specific

objectives of the plan over the previous 2010 plan are to increase the financial resource base available for

UGANDA report 14 (27)

rural electrification by US$ 40 million per annum, as well as increasing new grid connections by 40,000-

50,000 per annum.

The Renewable Energy Policy establishes a Standardised Power Purchase Agreement and Feed-in Tariffs for

renewable energy generation projects. It introduces favourable financial and fiscal regimes for renewable

energy technologies, including: preferential tax treatment or tax exemption, accelerated depreciation,

provision of risk mitigation mechanisms and credit enhancement instruments, credit mechanisms for

renewable energy consumers.

In 2011 Uganda announced sophisticated Feed-in-Tariff Program (link)

Other

The Promotion of Renewable Energy and Energy Efficiency Programme (PREEEP) (link) is a key project by

the Ministry of Energy and Mines in collaboration with the German Development Cooperation (GTZ), now the

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), to promote energy efficiency and renewable

energy. The government is also promoting the use of energy saving bulbs by distributing approximately

800,000 of them to low-income households.

Uganda was included in the 2005 Energy, Environment and Development Network for Africa

(AFREPREN/FWD) and Heinrich Böll Stiftung (HBF) study.

Uganda, as of September 2011, is also a potential member targeted to join the Eastern African Power Pool

(EAPP) (link). Specific objectives of the organisation include optimization of the usage of energy resources

available in the COMESA region, increasing power supply in the region, the reduction of electricity production

costs and the creation of an environment that is conducive for investment.

Energy for Rural Transformation APL-2 (GEF) (link). Objective of the Second Energy for Rural Transformation

(ERT II) Project is to increase access to energy and ICTs in rural Uganda.

Uganda Power Sector Development Project (link); in 2007, the World Bank approved funding for the Power

Sector Development Operation Project at a cost of US$ 304 million. Its primary objectives are reducing short-

term power shortages and financial imbalances, and longer-term expansion of electricity service.

National Development Plan 2010-2014/15; The current NDP sets forth a number of development objectives

for the energy sector, in terms of generation facility construction, transmission network extension, the

promotion of energy efficiency in the supply side, the strengthening of the institutional and regulatory

framework for energy, and the promotion of renewable and atomic energies. Specific areas of action within

the Plan include the construction/study and design of the Bujagali, Karuma, Ayago and Arianga large

hydropower projects, with a potential capacity of 2,050 MW; the construction of 150 MW of small-hydro

capacity, the expansion of the transmission grid to 2,750 km with support for 220 kV and 400 kV operation,

the reduction of commercial and technical power losses to 16%, and strengthening of the institutional and

human capacity of the energy sector.

National Oil and Gas Policy for Uganda (link). The policy goal is to use the country’s oil and gas resources to

contribute to early achievement of poverty eradication and create lasting value to society.

(Reegle Country Profile)

UGANDA report 15 (27)

2.3 RENEWABLE AND FOSSIL ENERGY RESOURCES Significant renewable energy resources Wide renewable energy resources Proven oil reserves 1 000 mil BBL (est. 2011)

OPEC

Solar energy

Uganda has an average of 5-6 kWh/m2/day of solar insolation, with an average of 8 sunshine hours per day,

yearly, indicating an excellent potential for solar energy use. Solar energy is currently used primarily for off-

grid electrification for rural communities, as well as for solar cooking, and providing water heating and power

to public buildings, for example hospitals. An estimated 200 MW of potential electrical capacity are available

in Uganda, and currently, a 50MW solar thermal plant, at Namugoga in Wakiso District outside of Kampala, is

being investigated by a private firm, Solar Energy for Africa. Solar cooking also holds a significant potential in

the country, with a large number of the population living in well-insolated areas, without access to energy

services.

Currently a solar unit that can be used for lighting and probably to run a radio set costs about US $ 550; a

price that is unaffordable to many Ugandans whose annual per capita income is estimated to be less than

US$ 350. Moreover, because most of the solar businesses are located in Kampala (the capital) rural towns

have a problem accessing solar technologies. Activities in up country districts are on and off with very few

programmes in place to disseminate solar energy countrywide.

(Reegle Country Profile), (Helio - Energy Systems)

Wind energy

The average wind speed in Uganda is about 3 metres per second. Wind energy is promising in Uganda,

especially along lake shores, hills and the northern flatter parts of Uganda that experience wind speeds of

more than 6 m/s that can operate wind turbines. Pereira da Silva et al. (1999) noted that analysis that have

been conducted in the country indicate that there are areas where wind speeds could support power

generation. But on the whole, wind energy has not been widely used, possibly because of the limited

awareness on the way wind energy could be used to produce electricity.

A recent study, conducted in conjunction with the ERA, has confirmed that electricity generation through

wind is feasible, especially in small industries and in rural areas.

(Reegle Country Profile, Uganda Solar Energy Study, Developing Renewables: Uganda Country Study)

Biomass energy

Bioenergy, apart from hydropower, is considered to be the second significant pillar to secure energy supply,

particularly in rural areas. The transition from traditional biomass, which is often perceived as inefficient, to

modern biomass and biofuel production and consumption is a main focal area of the government. Kakira

Sugar Works (1985) Limited and Kinyara Sugar Limited are both licensed to generate electricity for sale to the

national grid from bagasse, providing 12 MW and 5 MW respectively in 2010. Biomass cogeneration from

agricultural wastes is seen to hold particular promise as a technology for the country, and a significant peat

UGANDA report 16 (27)

resource also exists, of which approximately 25 million tonnes is feasibly available for power generation,

equivalent to 800 MW of potential capacity for 50 years. A limited program of biogas digester distribution

was undertaken in the 1990s, and 50 digesters were installed in five districts in the country by 2004.

(Reegle Country Profile)

Geothermal energy

Uganda has an estimated geothermal resource potential of 450 MW, mainly located in the Western Rift

valley part of the country (Katwe Kikorongo, Buranga and Kibiro). Feasibility studies are recommended to

improve confidence in the resource and promote development.

(Reegle Country Profile, Microearthquake Survey at the Buranga Geothermal Prospect, Geothermal Energy in

the Development of Uganda)

Hydropower

Despite Uganda’s vast hydropower potential, estimated at 3000 MW, less than 10% is currently exploited.

Bujagali, the third large hydropower plant on the Nile River is currently under construction, with an

anticipated capacity of 250MW. Numerous other hydropower ventures are being investigated by both

Ugandan and Japanese contractors, as well as the government. A number of small hydropower plants, with

total installed capacity of slightly over 15MW, are in operation in various parts of the country, with a further

60 MW of projects in the development stage. An estimated 1,300 MW of large hydropower and 51.7 MW of

small-hydro capacity are yet to be developed in Uganda. (Reegle Country Profile)

2.4 SUPPLY & DEMAND FOR ENERGY SOLUTIONS

Households

Heat for cooking and warm water

Power for lighting, communication and electronics

Commercial and public services - including healthcare, education, administration, business

Power, heat and cooling

Infrastructure - including water supply, sanitation, communication, waste management

Power, heat and fuels

Traffic and transportation

Fuels and power for vehicles

UGANDA report 17 (27)

Agriculture

fuels for vehicles

Fertilizer

Power and heat for processing crop

Industry

Heat, cooling and power

Tourism - including resorts, lodges etc.

Heat, cooling, electricity, warm water

Competition

Feed-in Tariffs for renewable energy generation projects supports implementation of renewable energy

solutions

After unbundling, the government proceeded with the process of privatisation. The generation concession

license was competed for and won by Eskom Ltd. (link), which took over in April 2003. Umeme Ltd. (link) won

the distribution concession, and took over in March 2005. UETCL is the System Operator, the bulk supplier

and single buyer of power for the national grid in Uganda. It is the purchaser of all independently generated

power in the country that is fed into the national grid.

Under the contractual fiscal regime currently operated in the oil and gas sectors, the ownership of the

petroleum resource remains with the Government, and the international oil and gas companies are simply

contracted as well as licensed by the Government to extract and develop the resource on the Government's

behalf, under a production sharing agreement (PSA).

(Reegle Country Profile)

UGANDA report 18 (27)

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ENVIRONMENTAL GOVERNANCE

3.1 Description of Environmental Governance

3.2 Environmental & Social Requirements for Projects

UGANDA report 19 (27)

3.1 DESCRIPTION OF ENVIRONMENTAL GOVERNANCE

The Ministry of Environment and Water has an overall responsibility for environmental issues in Uganda. The Ministry

has also a Climate Change Unit that facilitates Uganda’s participation in the UNFCC Clean Development Mechanism.

The National Environment Management Authority (NEMA) is responsible for coordinating, monitoring, regulating and

supervising environmental management in the country. They also supervise EIA activities.

Environmental governance has been decentralised in Uganda to the local (regional) level. Uganda has been praised for

the decentralisation aimed at empowering local populations, but according to Oosterveer and Van Vliet (2009, 286)

the decentralization also has its problems. Three specific tensions are identified:

1. The tension between technical staff and locally elected officials who legitimately claim they represent their

constituents. These constituents do not always support the introduction and implementation of

environmental protection measures.

2. The tension between different levels of government, particularly between the district level and the national

level.

3. The tension between environmental and natural resource management and other policy domains such as

health, education, agriculture, and economic development. Environmental considerations must become a

part of mainstream local policies and must compete for limited financial resources.

In case of environmental impact assessments the decentralization has been executed in the form of privatization. The

execution of environmental impact assessments and environmental impact studies are undertaken by developers

themselves or by private consulting firms hired by these developers. (Oosterveer & Van Vliet 2010, 288).

Uganda has participated in CDM projects, and more are under validation. According to Pöyry evaluation (2009), there

are, however, few active CDM project developers and a lack of capability and financial resources to carry projects

through the project cycle. This has resulted in projects getting stuck in the CDM process and only two being registered

with the UNFCCC.

3.2 ENVIRONMENTAL & SOCIAL REQUIREMENTS FOR PROJECTS

The National Environment Impact Assessments Regulations from 1998 include, among other things, terms of

reference for EIAs, requirements for public participation, description of the review process and information on post-

assessment audits. The National Environment (Audit) Regulations state the requirements for persons performing

audits. Environmental auditors must be certified and registered at National Environment Management Authority

(NEMA) (link).

UGANDA report 20 (27)

Projects requiring an EIA are listed in the National Environmental Act (link). The most relevant ones from the point of

view of renewable energy are:

General

an activity out of character with its surroundings;

any structure of a scale not in keeping with its surroundings;

Major changes in land use.

Forestry-related activities

timber harvesting;

clearance of forest areas;

reforestation and afforestation,

Agriculture

large-scale agriculture;

use of new pesticides;

introduction of new crops and animals;

Use of fertilizers.

Electrical infrastructure

electricity generation stations;

electrical transmission lines;

electrical substations;

Pumped-storage schemes.

Waste disposal

sites for solid waste disposal;

sites for hazardous waste disposal;

sewage disposal works;

major atmospheric emissions;

offensive odours.

UGANDA report 21 (27)

- 4 -

ORANIZATIONS, SOURCES, REFERENCES

4.1 Organizations & Funding Possibilities

4.2 Sources of Information, References & Links

UGANDA report 22 (27)

4.1 ORGANIZATIONS & FUNDING POSSIBILITIES

ENERGY

The Ministry of Energy and Mineral Development (MEMD) (link)

Responsible for overall management of the country’s energy sector, dealing with policy formulation,

implementation and monitoring.

Rural Electrification Agency (REA) (link)

Facilitates provision of electricity in rural areas. The REA was established as a semi-autonomous Agency by

the Minister of Energy and Mineral Development through Statutory Instrument 2001 no. 75, to institute the

Government's rural electrification function under a public-private partnership. It functions as the secretariat

of the Rural Electrification Board (REB), which carries out the Minister's rural electrification responsibilities,

as defined in the Electricity Act of 1999.

National Environment Management Authority (NEMA) (link)

Principal agency in Uganda charged with the responsibility of coordinating, monitoring, regulating and

supervising environmental management in the country.

Other key actors

Directorate of Water Resources Development

Private Sector Foundation Uganda

Uganda Investment Authority

Uganda Manufacturer’s Association

Uganda Renewable Energy Association

Uganda Small Scale Industries Association

Other Government Ministries, including District Local Governments

The electricity sector was unbundled in 2001 and the responsibilities, previously solely carried out by Uganda Electricity

Board (UEB), transferred to various companies:

Uganda Electricity Generation Company Ltd (UEGCL)

Responsible for the majority of all generation in the country at two stations: the Nalubaale and Kiira Power

Stations. The business (and notably, not the assets) was privatised on concession terms for up to 20 years.

Private participants in the generation sector include sugar processing and mining companies, as well as by

endogenous firms such as Tronder Power Limited and South Asia Energy Management Systems Ltd.

UGANDA report 23 (27)

Uganda Electricity Transmission Company Ltd (UETCL) (link)

Uganda Electricity Transmission Company Ltd (UETCL, www.uetcl.com): The UETCL is responsible for power

transmission at 132kV and above including exports to Kenya and Tanzania, and is to buy most of the power

from power generators. It is to remain a government utility body for some time.

Uganda Electricity Distribution Company Ltd (UEDCL) (link)

The UEDCL exists mainly to distribute and sell power to end users. (Reegle)

The Electricity Regulatory Authority (ERA) (link)

Established following the enactment of the Electricity Act 1999.

The ERA is responsible for:

o Issuing licenses for electricity generation, transmission, distribution, supply, import and export,

o Reviewing and approving tariffs,

o Establishing and enforcing sector standards,

o Advising minister on matters affecting the electricity sector.

OTHER

The African Development Bank (AfDB) (link)

Has 18 on-going projects in Uganda. Projects are related to, for example infrastructure development and

agriculture. AfDB has a field office in Kampala.

The World Bank (link)

Is implementing 18 projects in Uganda. 5 of these are carbon offsetting projects. WB has a representation in

Kampala.

UNDP

Is active in Uganda, with an office in Kampala. The UNDP focuses in Uganda on poverty reduction, democratic

governance and crisis prevention and recovery. One of cross cutting themes is energy and the environment

with several projects.

UNEP

Has a regional office in Kenya with projects in Uganda.

GEF (Global Environment Facility)

Many of the projects are funded by GEF. GEF projects concentrate mainly on biodiversity, climate change and

land degradation.

UGANDA report 24 (27)

Nordic Development Fund

Supports projects in Uganda.

The Ministry for Foreign Affairs of Finland

Has a few projects in Uganda

The nearest Finnish embassy is in Kenya.

Clean Development Mechanism (CDM) (link) projects

Uganda has participated in UNDP’s capacity building programme for CDM projects, CD4CDM. The Ministry of

Water and Environment is the national focal point for CDM. Uganda Municipal Waste Compost Programme

and Uganda Nile Basin Reforestation Programme are the two currently approved projects.

The Uganda National Chamber of Commerce and Industry (link)

Is located in Kampala. The services of UNCCI include: maintaining structured forms of dialogue to promote

public-private partnerships, disseminating up-to-date Business Information and Opportunities, Business

Advisory Services, facilitation of Joint venture and Business matchmaking and inward and outward trade and

investment missions.

There are many NGOs in Uganda. Global Environment Facility (GEF) (link) has listed 23 NGOs accredited by the Facility.

NGOs seem to concentrate mostly on rural livelihoods and biodiversity.

UGANDA report 25 (27)

4.2 SOURCES OF INFORMATION, REFERENCES & LINKS

The Uganda National Chamber of

Commerce and Industry Business Link

National Board of Customs of

Finland Business Link

National Council of Education Education Link

World Bank General Link

The World Fact Book CIA General Link

Embassy of Finland General Link

Global Environment Facility NGO Information General Link

International Tax Deloitte Taxation highlights in Uganda 2012 Business Link

Country Energy Information Developing Renewables Business Link

Doing Business World Bank Business Link

Economic Outlook AfDB, UN, OECD Economy Link

Country Risk Classification Finnvera Economy Link

Corruption Perceptions Index Transparency International Society Link

Country BTI Transformation Level BTI Group BTI analyzes and evaluates the quality of

democracy, a market economy and political mgmt. in 128 developing and transition countries

Economy Link

International Energy Association General Link

Renewable Energy Country Profiles International Renewable Energy

Agency (IRENA) General Link

Open Energy Info Country profile, energy maps, tools, programs,

organizations & institutions General Link

Country Energy Profile & Information

Reegle Clean energy info portal General Link

Renewable Energies in Africa European Commission, Joint

Research Centre Government Link

Global Environment Facility The GEF unites 182 countries in partnership with intl. institutions, civil society organizations, and the private sector to address global env. issues

Environmental Governance

Link

Clean Development Mechanism United Nations Framework

Convention on Climate Change

Environmental Governance

Link

The Energy and Environment

Partnership Africa Project funding Business Link

MBendi Economy, Risks, Industry, Business, Energy and a

lot of other information Business Link

African Development Bank

(AfDB) Contains structured and analysed information on

economic, political and social status General Link

Directory of Development

Organizations Contains list of development organizations in the

country Society Link

UGANDA report 26 (27)

United Nations Development

Programme (UNDP) Un-political information on country's status on

environmental, social and financial situation General Link

Oil and Gas Profile A Barrel Full Business Link

The Electricity Supply Situation in Uganda and Future Direction

Rugumayo The Ministry of Energy and

Mineral Development General Link

Energy Systems: Vulnerability - Adaptation - Resilience (VAR) 2009

Byakola, Mukheibir

Helio General Link

The Electricity Act 1999 Electricity Regulatory Authority Government Link

The Energy Policy for Uganda 2002 Rural Electrification Agency Government Link

The Renewable Energy Policy for Uganda

Rural Electrification Agency Government Link

Strategic Plan 2005-2011 Rural Electrification Agency Government Link

Uganda launches sophisticated feed-in tariff program

Paul Gipe Renewable Energy World Article Government Link

Energy Programme Uganda Promotion of Renewable Energy and Energy

Efficiency Programme Business Link

Uganda: Energy for Rural Transformation APL-2 (GEF)

The World Bank Project Business Link

Electricity Sector Development Project

The World Bank Project Business Link

National Oil and Gas Policy for Uganda

The Ministry of Energy and

Mineral Development Government Link

Solar Energy Study The National Association of

Professional Environmentalists (NAPE)

Environmental

Governance Link

Uganda country study: Energy and Policy

Developing Renewables Government Link

Uganda: Micro-earthquake Survey at the Buranga Geothermal

Prospect

The Federal Institute for Geosciences and Natural

Resources (BGR) Business Link

Geothermal Energy in the Development of Uganda

Isabirye Mugadu Department of Geological Survey

and Mines General Link

National Environment

Management Authority (NEMA)

Environmental Governance

Link

The Ministry of Energy and

Mineral Development (MEMD) Government Link

Rural Electrification Agency Government Link

Uganda Electricity Transmission

Company (UETCL) Business Link

Uganda Electricity Distribution

Company (UEDCL) Business Link

Electricity Regulatory Authority Government Link

Environmental Systems and Local Actors: Decentralizing

Environmental Policy in Uganda

Oosterveer, Van Viet

Published: In Environmental Management 45: 284-

295, 2010 Environmental

Governance

Capacity Building for the CDM in Uganda

Pöyry Published: Econ Pöyry Report, Commissioned by

NORAD 2009 Environmental

Governance

Eskom South African company which won the energy

generating concession in Uganda in 2003 Business Link

UGANDA report 27 (27)

Umeme Electricity distribution Business Link

African Energy Supplying solar, wind and power backup

equipment on a wholesale basis Business Link

Alternative Energy Africa Information portal about alternative energy in

Africa Business Link

Inforse-Africa International network for sustainable energy Business Link

African Wind Energy Association Business Link

Renewable Energy World Conferences & Expo in Africa Business Link

Renewable Energy Africa Business Link

How We Made It in Africa Insight into business in Africa Business Link

Cleantech Knowledge Hub Business Link

The World Council for Renewable

Energy Business Link

International Network for

Sustainable Energy Business Link

Herana Gateway African higher education research Education Link

African Rural Energy Enterprise

Development Community-based organization developing a

strategy for improved access to energy Government Link

African Center for Economic

Transformation

An economic policy institute supporting the long-term growth with transformation of African

economies Government Link

Nordic Development Fund Project funding Business Link

Africa and Europe in Partnership Government Link

The Foundation for the Development of Africa

Non-profit organization supporting sustainable development

Government Link

European Biomass Industry

Association Business Link

Global Network on Energy for

Sustainable Development GNESD is a knowledge network facilitated by UN

Environmental Programme Government Link

Global Village Energy Partnership GVEP works with local businesses in developing countries to increase access to modern energy

Business Link

World Resources Institute WRI works with governments, companies, and civil society to build solutions to urgent env. Changes

Government Link

The World Bank Economy Link