Friday, 6 May 2011

World Bank to enhance monitoring in Uganda

The World Bank is set to empower a group of Ugandans with contract monitoring skills to improve procurement in a number of Uganda’s economic sectors including the oil and gas sector. The group will receive the training in Kampala in June 2011 and will be facilitated by the World Bank Institute and the World Bank Africa Region. The meeting is aimed at promoting good governance of procurement processes in the extractives (minerals), constructive and pharmaceutical industries. Creating a level playing field with transparent and fair processes for the award and implementation of contracts in these industries is thus critical for all sectors of society. The bank is focusing on these industries because they have potential to shape Uganda’s development plan since they attract large investments. The oil and gas industry is expected to attract USD 10bn (UGX 23.6trn) to the country for the establishment of an oil refinery by Tullow Oil, Total and the China National Offshore Oil Corporation. About USD 1bn (UGX 2.3trn) has already been spent on exploration activities by companies including; Tullow Oil, Heritage Oil and Gas as well as Dominion Petroleum. In June last year, the World Bank Institute and the World Bank Africa Region and other key stakeholders discussed procurement monitoring with a particular focus on oil and mining which prompted a number of organisations to commit to look further at the issue. The result was the launch of a first pilot program in West Africa in December 2010 and the establishment of a global working group looking at developing tools for contract monitoring.

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