Partnerships between Local and International Contractors deemed to win Uganda Oil Tenders

Thursday January 13, 2011

AS Uganda’s nascent oil sector prepares itself for commercial oil production next year, it presents a lot of business opportunities to local contractors and individuals.

It will need suppliers to sustain systems in the construction, transport, insurance, banking, communication, consultancy, catering and marketing sectors.

That is why local firms must improve the human and capital competencies to be involved in the sector’s development process. That is, more local content, a situation where local firms and and individuals are involved in the sector, should be encouraged.

This will forestall the pessimism about the low competence levels of local firms in oil-related development technology.

Brian Glover, the Tullow Uganda country manager, agrees that some local firms do not have the competencies required for executing some projects, but said this was a short-term problem.

He advised local firms to partner with established multinationals to compete for tenders that need high technical skills.

The Government and Tullow say ensuring local participation is key for the sector’s sustainability. “Local content is important for job-creation and value-addition. To operators, a well developed local content can greatly reduce costs and project time.

“It is, therefore, vital that the Government, operators and contractors to work together to raise a competent local supply base of human and material resources for the oil sector,” said the energy minister Simon D’Ujanga.

This was at the inaugural oil sector logistics suppliers open day organised by Tullow at the the Commonwealth Resort Munyonyo on Tuesday. Over 100 construction firms and service providers attended.

The day was aimed at sensitising local companies about the available opportunities in the sector and how they could be involved.


By David Ssempijja - The New Vision