By Silvia Nyambura
The Ministry of Energy has today opened the 5th Joint Sector Review (JSR) for the Energy and Mineral Development Sector. The 2 day event is being held at the Speke Resort Munyonyo under the theme ‘Energy and Mineral Resources Creating Opportunities for Sustainable Development and Social Transformation’.
Its main objectives include; to account to the stakeholders how government resources at the ministry’s disposal have been used; to agree on the Sector Priorities and solicit for support from stakeholders in order to achieve the set targets over the medium and long term; to inform stakeholders about the huge potential of energy and mineral resources in bringing about socio-economic transformation of the country; and to disseminate the Ministry’s programs and create awareness among stakeholders to trigger demand for services.
Speaking at the opening session, the Ministry’s Permanent Secretary (PS) Fred Kabagambe Kaliisa said, “Government of Uganda has identified the Energy and Mineral Development Sector as a key priority sector in the economy. We need the support of all stakeholders including development partners to achieve the set targets over the medium and long term. The JSR will examine past performance of the Financial Year 2014/15 and the first part of Financial Year 2015/16.”
He further explained the key output of the review therefore will be to jointly agree on undertakings for the Financial Year 2016/2017 based on the indicative budget.
Giving the keynote speech, Professor Tarsis Kabwegyere the Minister of General duties in the office of the Prime Minister said, “The government’s policy objective on energy is to ensure adequate and reliable supply as well as universal access to modern services. Investment cannot come into the country if there is no supporting infrastructure like electricity, roads and railways that lower the cost of doing business. We recognize that the energy and mineral development sector has great potential in creating employment in the country. In this regard, investment in energy, oil and gas and mineral sector remains a top Government priority.”
This financial year, government has set aside a total of Ushs 2.723 trillion for the sector. Kabwegyere however noted the current macro-economic environment is affecting the energy sector and threatening the sustainability. Government has however examined all available options to stabilize the sector.
“These include keeping the tariff at the existing level an option which leaves a shortfall that affects the ability of the country to pay for power generation. We could introduce a power generation subsidy which will affect the development of ongoing power infrastructure generation, transmission and distribution projects including rural electrification where the available resources are being put. The most feasible option for us therefore is to adjust the tariff as Government addresses the macroeconomic challenges at hand,” he concluded.