Winner for Uganda refinery

The Government of Uganda has awarded the oil refinery PPP to a Russian consortium.

 

The Russian consortium led by RT Global Resources won the tender for the construction of a refinery in Uganda.

 

RT Global Resources is a subsidiary of Russian state conglomerate Rostec, whose other divisions include the Kalashnikov Group.

 

The project will be located in the western part of the country near Alberta Lake.

 

The winning consortium will invest 60% of the equity, with the Government of Uganda holding up to 40% equity.

 

RT Global Resources, Tatneft and VTB Capital will be joined by Korean engineering firm GS and will receive support from South Korean export and credit organisations as well as international commercial banks. The investment including cost of equipment and financing organisation is over $3bn.

 

Six consortiums submitted bids on May 30 2014, including China Petroleum Pipeline Bureau, Marubeni Corporation, Petrofac, SK Energy and Vitol. The South Korean consortium led by SK Energy has been named ‘alternate preferred bidder’.

 

When fully operational the refinery will process 60,000 barrels per day. A 205km product pipeline will also be built to a terminal near Kampala. The refinery first phase is expected in place by 2018.