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Dfcu Unveils Funding Opportunities for Ugandan Players in Oil and Gas Sector

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Dfcu Bank has unveiled a number of funding opportunities that it said will be enjoyed by Ugandan companies which would like to participate in the oil and gas sector.

While opening an oil sector engagement event in Kampala today, Mathias Katamba, the Dfcu Chief Executive Officer said the bank will make sure that Ugandans are helped to finance their projects as long as they get their contracts legally.

He said these opportunities will start from the construction of the East African Crude Oil Pipeline till the commencement of the oil extraction to its transportation.

“The country prepares to benefit from the 20% possibilities in the EACOP project, since 80% of the construction works shall be done in Tanzania. Dfcu will make sure that it assists Ugandans to write their oil success stories,” he said

EACOP alone will create employment for 14000 people by the companies, 45000 indirect jobs by the contractors and an induced employment of about 10500 people as a result of the utilization of other services by the oil and gas sector, according to government.

Katamba noted that when the Final Investment Decision has been made by the International Oil Companies (IOCs) which include Total E&P Uganda (TEPU) and China National Offshore Oil Company (CNOOC), another $15bn to $20bn project will flow in which gives Ugandan companies and individuals chances to benefit from it.

Ugandan companies and individuals who cannot afford to finance bigger projects which are for example $40m capital and above were catered for in other sectors or can be sub contracted or enter into a joint venture partnership with their foreign counterparts to benefit from these sectors.

The government has however ring fenced some opportunities for only Uganda companies to save them from foreign competition and among these are; Transport and storage, construction, information and communication, Real Estate, Human Health and Social Works activities, Water supply, sewerage and waste management, accommodation and food services among others.

Giving his key note address, Jimmy Mugerwa, the Chairperson Board of Directors of dfcu bank noted that Ugandan companies having gotten the protection from the government should come out and grab these opportunities before it is too late.

“For example in Transport in King Fisher there will be need for over 950 trucks to transport seven million tonnes every month, and the study that was conducted by these companies indicates that there is shortage in this area which is there for grabs. We need to invest now,” he said.

He also tipped them to invest in security, tourism and hotel, construction—pre-drilling civil works, oil field infrastructure, distribution of construction materials among others.

Mugerwa however urged Ugandans to seek more knowledge on how oil companies operate in terms of giving out Bids, procurement, winning proposals and more about the National Oil Content.

“There is a lot of contracts in the oil business and the thing I would like you to do as customers of the bank is use consultants, legal teams and transaction advisors. These are big projects and because you are going to be dealing with international companies which have for example an over 1000 lawyer backing in their homes,” he said.

“We understand the service and we are ready to help you as our customer of the bank. Register on the National Supplier’s Database (NSD) to be accepted to provide any oil services in Uganda, most companies will be kicked out because of only that,” he said.

DFCU’s Opportunities

In the mid-stream of oil activities, there will be three categories of contractors; Tier (01), Tier (02) and Tier (03). Tier (01) shall include the bigger companies that are contracted to offer multibillion dollar services. Chimpreports understands that the Petroleum Authority of Uganda is already approving companies on this stage.

The second Tier will be sub-contracted by firms in Tier one who will also subsequently sub-contract firms in Tier (03). Ugandan companies will fall in Tier II and III.

James Musherure Rujoki, the Senior Content Officer at the Petroleum Authority of Uganda confirmed to the Chimpreports that some contracts out of the 45 in Tier one are under-going approval at the PAU.

“Most of Ugandan companies as I said are under Tier I and I but we cater mostly on National Content that’s why some opportunities have been ring fenced to Ugandan companies and where they fail to have capacity to supply, we encourage joint ventures, where Ugandans companies will participate 48%,” he said.

“In fact while bidding, we cater for both National and Community content asking what these companies are planning to do for the communities where they will work from. Opportunities are there what Ugandan companies need to do is to register of the NSD,” he said

DFCU Bank’s Head of Corporate Banking, Mr. Godfrey Mundua unveiled a number of opportunities in the Bank that can be utilized by the Ugandan Companies in these Tiers to benefit from the sector without even losing anything.

You first of all before thinking about anything else have to be ready legally, in the position of cash flows, the ability to perform in times of financial preparedness,” he said.

He said that the bank will be able to raise for such a prepared company capital through debt, project/contract financing, Bank Guarantees and Unsecured Personal Overdraft (UPO) financially.

“For the requirements for local Ugandans, DFCU has a very available position and has been working with the real Estate etc. The bank will help you and cover all those requirements because the issue of capital is very critical for financing of these projects,” he said

“If you have seen our financial statements in the last financial years, we are sufficiently capitalized and very ready to fund most of these projects, as long as the project meets the terms and conditions,” he said.

“If you want to do a big project or expand or like set up an industry in the place, the bank can come in and help we shall be very happy to talk about that, the second thing is Asset financing for people who would like to participate in the transport sector, waste management, such equipments can be acquired under DFCU’s arrangement of Asset Financing where you provide 20% of the Capital and the Bank covers the 80% and the most interesting Bid with this is that we also cover taxes and insurance which you pay later as we agree,” he noted

In Asset Financing he said companies or individuals will be able to save capital since the bank will have catered for almost everything

Dfcu Bank has unveiled a number of funding opportunities that it said will be enjoyed by Ugandan companies which would like to participate in the oil and gas sector.

While opening an oil sector engagement event in Kampala today, Mathias Katamba, the Dfcu Chief Executive Officer said the bank will make sure that Ugandans are helped to finance their projects as long as they get their contracts legally.

He said these opportunities will start from the construction of the East African Crude Oil Pipeline till the commencement of the oil extraction to its transportation.

“The country prepares to benefit from the 20% possibilities in the EACOP project, since 80% of the construction works shall be done in Tanzania. Dfcu will make sure that it assists Ugandans to write their oil success stories,” he said

EACOP alone will create employment for 14000 people by the companies, 45000 indirect jobs by the contractors and an induced employment of about 10500 people as a result of the utilization of other services by the oil and gas sector, according to government.

Katamba noted that when the Final Investment Decision has been made by the International Oil Companies (IOCs) which include Total E&P Uganda (TEPU) and China National Offshore Oil Company (CNOOC), another $15bn to $20bn project will flow in which gives Ugandan companies and individuals chances to benefit from it.

Ugandan companies and individuals who cannot afford to finance bigger projects which are for example $40m capital and above were catered for in other sectors or can be sub contracted or enter into a joint venture partnership with their foreign counterparts to benefit from these sectors.

The government has however ring fenced some opportunities for only Uganda companies to save them from foreign competition and among these are; Transport and storage, construction, information and communication, Real Estate, Human Health and Social Works activities, Water supply, sewerage and waste management, accommodation and food services among others.

Giving his key note address,

Jimmy Mugerwa, the Chairperson Board of Directors of dfcu bank

noted that Ugandan companies having gotten the protection from the government should come out and grab these opportunities before it is too late.

“For example in Transport in King Fisher there will be need for over 950 trucks to transport seven million tonnes every month, and the study that was conducted by these companies indicates that there is shortage in this area which is there for grabs. We need to invest now,” he said.

He also tipped them to invest in security, tourism and hotel, construction—pre-drilling civil works, oil field infrastructure, distribution of construction materials among others.

Mugerwa however urged Ugandans to seek more knowledge on how oil companies operate in terms of giving out Bids, procurement, winning proposals and more about the National Oil Content.

“There is a lot of contracts in the oil business and the thing I would like you to do as customers of the bank is use consultants, legal teams and transaction advisors. These are big projects and because you are going to be dealing with international companies which have for example an over 1000 lawyer backing in their homes,” he said.

“We understand the service and we are ready to help you as our customer of the bank. Register on the National Supplier’s Database (NSD) to be accepted to provide any oil services in Uganda, most companies will be kicked out because of only that,” he said.

DFCU’s Opportunities

In the mid-stream of oil activities, there will be three categories of contractors; Tier (01), Tier (02) and Tier (03). Tier (01) shall include the bigger companies that are contracted to offer multibillion dollar services. Chimpreports understands that the Petroleum Authority of Uganda is already approving companies on this stage.

The second Tier will be sub-contracted by firms in Tier one who will also subsequently sub-contract firms in Tier (03). Ugandan companies will fall in Tier II and III.

James Musherure Rujoki, the Senior Content Officer at the Petroleum Authority of Uganda confirmed to the Chimpreports that some contracts out of the 45 in Tier one are under-going approval at the PAU.

“Most of Ugandan companies as I said are under Tier I and I but we cater mostly on National Content that’s why some opportunities have been ring fenced to Ugandan companies and where they fail to have capacity to supply, we encourage joint ventures, where Ugandans companies will participate 48%,” he said.

“In fact while bidding, we cater for both National and Community content asking what these companies are planning to do for the communities where they will work from. Opportunities are there what Ugandan companies need to do is to register of the NSD,” he said

DFCU Bank’s Head of Corporate Banking, Mr. Godfrey Mundua unveiled a number of opportunities in the Bank that can be utilized by the Ugandan Companies in these Tiers to benefit from the sector without even losing anything.

DFCU Bank’s Head of Corporate Banking, Mr. Godfrey Mundua

You first of all before thinking about anything else have to be ready legally, in the position of cash flows, the ability to perform in times of financial preparedness,” he said.

He said that the bank will be able to raise for such a prepared company capital through debt, project/contract financing, Bank Guarantees and Unsecured Personal Overdraft (UPO) financially.

“For the requirements for local Ugandans, DFCU has a very available position and has been working with the real Estate etc. The bank will help you and cover all those requirements because the issue of capital is very critical for financing of these projects,” he said

“If you have seen our financial statements in the last financial years, we are sufficiently capitalized and very ready to fund most of these projects, as long as the project meets the terms and conditions,” he said.

“If you want to do a big project or expand or like set up an industry in the place, the bank can come in and help we shall be very happy to talk about that, the second thing is Asset financing for people who would like to participate in the transport sector, waste management, such equipments can be acquired under DFCU’s arrangement of Asset Financing where you provide 20% of the Capital and the Bank covers the 80% and the most interesting Bid with this is that we also cover taxes and insurance which you pay later as we agree,” he noted

In Asset Financing he said companies or individuals will be able to save capital since the bank will have catered for almost everything



Source – ChimpReports

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