WHAT DOES FINAL INVESTMENT DECISSION (FID) MEAN TO THE VULNERABLE UGANDANS?
By: Twongirwe Ireen
Worth Noting:
- Oil activities have increased the level of prostitution in the communities where oil is exploited. This is because it will attract more investors with different intentions, it has also increased on family breakdown since most of the men will leave their families and go to work in oil fields, Oil activities has increased on gender based violence in communities. Men will abandon their families leading to sexual harassments and sexual abuses. More so, it will also cause community imbalance. Some communities will benefit from oil while others are going to lose out hence causing country imbalances.
- In addition, the signing of FID will increase pressure on environmental destruction hence increasing on climate change impacts which will affect mostly vulnerable women, girls, disability, and elderly, among others.
Final investment decision is where the international oil companies, Total Energies and the China National Offshore Oil Corporation (CNOOC) announced they are ready to produce oil in Uganda. This is where the Ugandan and Tanzanian government come to a decision with international oil companies to invest in 10 US dollars in construction of Tilenga, Kingfisher and EACOP projects from Hoima to port Tanga.
It’s important to note that the first oil deposit in Uganda was discovered in 2006 and Ugandans were all excited on the oil exploitation and how it will boost their economy. During the ceremony on Tuesday, Honorable Ruth Nankabirwa the minister for energy and mineral development thanked God who has seen Uganda and its partners walk the journey to the FID. She again said Uganda is now on the path to achieving first oil in 2025” which is asign that Ugandan government is over excited on starting the exploitation of oil activities.
In addition, oil journey has been delayed for 15 years since viable deposits were first discovered. The announcement of FID ended the wave of negotiations between governments of Uganda, Tanzania as well as oil companies.
Furthermore, the signing of FID has made parliament to pass the EACOP Act (special provision) Public Finance management Act (amendment bill), the income tax (amendment bill). All these amendments were necessary for the FID to be signed.
However, it important to note that East African crude oil pipeline (EACOP) Bill which was amended by the parliament had gaps that does not protect the environment and human rights.
Effects of Oil exploitation
Oil activities have increased the level of prostitution in the communities where oil is exploited. This is because it will attract more investors with different intentions, it has also increased on family breakdown since most of the men will leave their families and go to work in oil fields, Oil activities has increased on gender based violence in communities. Men will abandon their families leading to sexual harassments and sexual abuses. More so, it will also cause community imbalance. Some communities will benefit from oil while others are going to lose out hence causing country imbalances.
In addition, the signing of FID will increase pressure on environmental destruction hence increasing on climate change impacts which will affect mostly vulnerable women, girls, disability, and elderly, among others. It will also increase on land grabbing of host communities by oil companies, and food insecurity due to negative impacts of climate change.
In my opinion, I therefore call upon government of Uganda and Tanzania and the oil companies to compensate oil-affected communities whose livelihoods have been disrupted, I continue calling upon financial institutions and development partners to support the Ugandan government and private sector to invest in green economic activities to address poverty while promoting environmental conservation. Lastly, Ugandan government and private sector should invest in the green economic sectors of tourism, agriculture, fisheries and clean energy instead of investing in a sector that remains responsible for the worsening climate change impact across the world,
The government of Uganda and Tanzania together with oil companies should also consider the effects of oil activities that will cause great impact on human lives and the environment at large.
For God and my country,
Twongirwe Ireen
Executive Director, Women for Green Economy Movement Uganda.
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