uganda, page-13

This article may be of interest......blackscorpion posted it at the start of the month.......


IndianOil to bid for Kenya-Uganda oil pipeline.

By Lola Nayar, New Delhi: Indian Oil Corporation (IndianOil) is preparing to bid to build a 320 km pipeline that will take oil products from Kenya to Uganda.


Besides IndianOil, a Mumbai-based consortium of eight energy and construction majors named Petroleum India International is among those chosen to submit bids for the build-own-operate-transfer (BOOT) project between the Kenyan port of Mombasa and Eldoret in Uganda.


"We are preparing to submit the bid for the project by Oct 31, which is the last date," A.M. Uplenchwar, IndianOil director's for pipelines, told IANS.


"We are studying retail markets in both countries to tie up with local retailers as it is a requisite for the bidders."


A tie-up at the retail end is essential due to the nature of the project wherein the company would have to make its own business plan to recoup its investment.


The project comprises construction of a 320-km pipeline to Uganda's capital Kampala as an extension of the existing pipeline up to Eldoret to take petroleum products into Uganda to serve domestic markets and beyond.


International consultant Penspen had submitted its feasibility study for the project, funded by the European Investment Bank (EIB), in May 1999.


A complementary study was undertaken in 2001 to update the earlier study. Both studies found the project technically feasible and financially and economically viable.


"The project is being promoted as a public-private partnership (PPP) with the private investment partner playing a leading role," a source said.


The Kenyan and Ugandan governments would have 24.5 percent stake in the project with the private sector holding majority stake of at least 51 percent.


The process of selecting a private investment partner is expected to be completed by the yearend, with the pipeline targeted for commissioning by August 2007.


India's exploration major ONGC Videsh has just completed a 714-km petroleum products pipeline in Sudan ahead of schedule.


IndianOil recently won a contract worth $600,000 for conducting a training programme on pipeline operations in Sudan. The programme will last around six months.


"We will soon send our officials to Sudan to conduct the programme which is set to start this month," said Uplenchwar.

Web site.................
http://www.newkerala.com/news.php?action=fullnews&id=30807