The Final negotiations for the financing and construction of Uganda’s USD 4 billion domestic refinery has begun this month after Alpha MBM Investments from the United Arab Emirates was chosen by the government of Uganda as preferred bidder the country ministry announced.

Ms Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development made the breakthrough disclosure at the annual media briefing, giving up-to-date overview of the country’s transformative oil and gas project. After private sector partners had been considered for the refinery, she said that on 30 June 2023, President Yoweri Museveni directed public sector ownership be considered for the refinery.

“The Ministry of Energy and Mineral Development engaged stakeholders to develop a strategy for the refinery project and received Expressions of Interest (EOIs) from potential investors, including Alpha MBM Investments LLC, Africa Economic Aid Limited, Bakertilly Middle East Limited, and St. Ignatius Energy,’’ she said.

“After thorough consultations and evaluations by the government, a Memorandum of Understanding (MoU) was signed on 22nd December 2023 between the Government of Uganda and Alpha MBM Investments LLC from the United Arab Emirates, outlining cooperation and negotiation terms for the Refinery Project.

“Negotiation of the key commercial agreements between the Government and Alpha MBM Investments LLC commenced on 16th January 2024 and is currently underway.’’

Alpha MBM is a UAE-based investment house led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, the UAE’s Minister of Finance and a senior member of the Dubai Royal Family. Alpha MBM is a pioneering investment company and describes Uganda as “an untapped market with the power to create opportunities where none were perceived’’.

The refinery will also drive a key part of Uganda’s Energy Transition Plan, as it will produce the Liquefied Petroleum Gas that is a key component of the country’s ‘clean cooking’ initiative