FINAL INVESTMENT DECISION FOR THE US $4.5 BILLION EAST AFRICA ENERGY SECURITY AND TRANSITION INVESTMENT PROJECT IN UGANDA CONFIRMED

FINAL INVESTMENT DECISION FOR THE US $4.5 BILLION EAST

AFRICA ENERGY SECURITY AND TRANSITION INVESTMENT

PROJECT IN UGANDA CONFIRMED TO TAKE PLACE IN 2023

ON Friday , as a follow up to at the US-Africa Leaders’ Summit, U.S. group

Albertine Graben Energy Consortium Partners (AGEC) agreed with the

Government of Uganda that the Final Investment Decision (FID) for the

estimated US $4.5 billion East African Energy Security Transition

Investment project will be taken in 2023.

The Government of Uganda’s delegation was led by His Excellency

President Yoweri Museveni and AGEC Representatives was led by

Rajakumari Jandhyala- President and CEO of YAATRA Africa, and included

Presidents and Chief Executive Officers of Africa Finance Corporation

(AFC), Eastern and Southern Trade and Development Bank (TDB),

Honeywell, Baker Hughes.

The East Africa Energy Security and Transition Project is an estimated US$

4.5 billion energy project that will add value to natural resources supplied

by Uganda’s domestic oil resources in order to establish a regional energy

facility producing finished fuels and associated storage, product

transportation pipeline and market distribution infrastructure. It is being

developed and financed as a joint venture (JV) between the Government of

Uganda with its East Africa partners and AGEC with its private sector

partners. The project brings together US private sector companies, African

vision, leadership and capacity with global expert and investment partners

for the implementation of strategic economic investment for the benefit of

the Uganda and the East Africa region.

The Final Investment Decision is the confirmation by all investors in the

deal of their commitment under a shareholders’ agreement to invest equity.

It is based on concluding the ongoing talks to, amongst other things, ensure

committed feedstock from Government of Uganda Upstream Joint Venture

Partners (Total Energies, CNOOC, UNOC) and Implementation

Agreements with the Government, as well as key ongoing work required for

establishing operations of a commercially viable energy company receiving

financing via capital markets.

The project supports import substitution policy by establishing a production

facility to support the domestic regional fuel market. It also assists the

introduction and adoption of LPGs at the household level, given nearly 90%

of households rely on charcoal, supporting the Government of Uganda’s

Nationally Determined Contributions committed within the Paris Agreement.

The project will also supply fuel to support regional industries including

transportation, aviation, agriculture, and manufacturing. It will be critical

contribution towards for energy security, the alleviation of poverty, and the

creation of approximately 40,000 direct and indirect jobs during its lifetime.

Commenting on the deal, President and Chief Executive Officer of Africa

Finance Corporation, Mr. Samaila Zubairu stated:

“AFC as one of the early-stage investors and is committed to investing and

supporting the mobilization of capital from partners for this economically

transformative project in Uganda and the East Africa region. This project

supports sustainable industrialisation, provide employment to one of the

youngest populations on the planet and help achieve a more equitable

energy transition in Africa.”

Highlighting its leadership role in the region, Eastern and Southern Africa

Trade and Development Bank (TDB Group) President & MD stated:

“TDB, we have a duty to support downstream regional energy security

projects such as this which will reduce carbon emissions through smart US

technologies and less carbon intensive logistics as well as reduce the

current harmful reliance on charcoal and chopped wood for household

cooking. It will also enable the east Africa region to pool investments,

industrialize and enhance trade, while conserving scarce foreign exchange

which can be diverted to investment in health and agricultural sectors”

Ugandan President Yoweri Museveni added:

“The announcement today brings Uganda and the region one step closer to

a long-held dream: to add value to our resources, and achieve energy

security and economic prosperity for all its citizens.”