Our 12 Government Asks

What is it that civil society would like government and the private sector to do to ensure petroleum development creates lasting value to Ugandas society?
Preamble: The development of Ugandas petroleum resources presents our nation with a great opportunity and a significant challenge. The World Bank observes that if Ugandas petroleum revenues are managed well they could double the national revenue within six to ten years and at the peak will constitute nearly 1 of every 4 parts of the total market value of all final goods and services produced in Uganda (gross domestic product) every year.1 On the other hand, if not managed well, petroleum development could be associated with economic instability, social conflict and lasting environmental damage. A group of 27 Albertine Rift based civil society organizations (CSOs) convened by WWF Uganda Country Office (UCO) have developed and agreed on the following government asks (key issues) or needs required of government and private sector in petroleum development. These issues communicate CSOs shared concerns to the petroleum industry, government and the affected communities. If these issues are well addressed, a firm basis will be laid to achieve Ugandas aspirations from petroleum development as nicely summarized in the goal of the National Oil and Gas Policy, which aims to use the countrys oil and gas resources to contribute to early achievement of poverty eradication and create lasting value to society.

World Bank, Country Assistance Strategy for the Period FY 2011-2015, 2010, p.60.

These issues were generated during a series of consultative meetings (in Kasese, Hoima and Nebbi) with 27 organizations (representing over 15 districts) acting on behalf of the three regional civil society networks on environment and petroleum operating in the Albertine Rift. WWF UCO convened the meetings between 21st and 26th February, 2011. The issues will also continuously guide CSO members and their partners towards constructive engagement to facilitate safe, environmentally sustainable, socially responsible and economically viable petroleum development practices. The specific issues/concerns are specified as follows;

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Regular and easy access to relevant information from decision-makers should be provided in relation to petroleum development in Uganda. Such information should be communicated using popular media channels such as community meetings and radio and must be translated into local languages. This would enable the management of public perceptions. Transparency and accountability are important for government and private sector to secure the social license to operate. Without addressing these two important issues, CSOs and the communities are left to speculate which could lead to negative perceptions that will be hard to reverse in the end. Government should make public the contents of Production Sharing Agreements public so that civil society and the Ugandan public can hold them accountable to the commitments they made therein regarding social, environmental and economic aspects associated with petroleum development. Equitable compensation regimes should be formulated to ensure that affected communities seek alternative livelihoods incase of affected assets and properties. Current regimes based on local government compensation rates are disadvantageous and leave affected local communities worse off. We recommend that since petroleum development is only expected to last for two decades (20 years), local communities should not be dispossessed of their land but instead land should be leased from them and decent monthly/annual premiums be paid to them until such a time when petroleum development activities are finished. Where individuals or communities seek to sale their properties,

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compensation mechanisms should take into the long-term nature of land assets and decent compensation remunerations should be paid out, whenever possible, house for better house, land for better land should be the basis for such compensation.

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Proper management of environmental and social impacts associated with petroleum is a prerequisite to sustainable development of the affected areas. Compliance certificates, which are issued to private companies upon approving Environmental Impact Assessments, should be made accessible to CSOs to enable better compliance monitoring and reporting to the lead agencies. On the other hand, oil companies must be encouraged to offset their negative impacts in the Albertine Rift by restoring degraded ecosystems such as wetlands, forests, and agricultural lands. Problem animals and compensation regimes associated with such incidents must also be managed. Members would also like to urge government to expedite the necessary policies, legislations and institutional frameworkrequired for effective management of environmental and social impacts from petroleum development. Balance environmental, economic and social factors for sustainability. Deliberate measures must be undertaken to ensure a sustainable balance between environmental, economic and social outcomes of petroleum development in the Albertine Rift. Urgent measures must be put in place to manage political interference and corruption within the petroleum sector and other arms of government. CSOs are concerned about the growing political interference in the development process of Uganda. In recent times Uganda has witnessed some of the most gross abuses of public offices and unparallel levels of corruption. For example the Ushs 5 million ( USD$2500) which was paid to each member of parliament (MP) ahead of the parliamentary decision to remove presidential term limits; the embezzlement of the Global and GAVI Funds, the Temangalo saga and the CHOGM Scandal and perhaps more recently the questionable deposit of Ushs 20 Million (approx. USD$10,000) into the accounts of all Members of Parliament ahead of the February 2011 presidential and parliamentary elections. This corruption trend sets a very worrying precedent for the management of petroleum proceeds. Political ambitions and aspirations must be separated from technical decisions made in the petroleum development. Government must seek to establish institutions, develop policies and legislations that will outlast any given political regime or establishment of the day. This can be done achieved through ensuring the establishment of greater transparency, accountability and in-building

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mechanism for wider public consultation in all decision-making processes associated with petroleum development in Uganda.

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I) Proper revenue sharing and management of proceeds from petroleum development. Government must come up clearly with revenue sharing arrangements between all the stakeholders involved. Equitable sharing arrangements must accrue to central and local government entities, host communities, cultural institutions and other stakeholders with a direct stake on the resource. Overall petroleum revenues must be used to spur development by reinvesting in infrastructure and sustainable production sectors such as agriculture, renewable energy (e.g. hydro-power, solar and geothermal) and human capital development (schools, health centres, and technical skills development among others). ii) Intergenerational equity must guide the use of petroleum proceeds. Civil socie ty recognize that Ugandans of this generation have a right and an obligation to use Ugandas petroleum resources in ways that benefit them but without compromising the capacity of future generations to benefit from Ugandas natural resources. Government must therefore manage petroleum proceeds cognizant of this fact and set aside some of the proceeds to, through a Future Fund to benefit the future generation of Ugandans. Community/civil society participation and consultation should be enhanced. We acknowledge the ongoing process of developing a Communication Strategy for petroleum by the Ministry of Energy and Mineral Development. However we note that the document as is reflected by previous government actions does not sufficiently recognize the importance of community participation and consultation in the petroleum development process. We call upon government to ensure that community views are sought early in the decision-making process and that government provides adequate and widespread feedback on how community views and opinions have been integrated into the final decisions. This will strengthen the level of trust and avoid unnecessary mistrust of government intentions regarding petroleum development. Use Strategic Environmental Assessments to ensure minimal impacts of petroleum development on the Albertine Rift. We note that Ugandas petroleum development is taking place in the Albertine Rift which is Africas most pristine and most important biologically diverse area. The area also contains nearly 70% of Ugandas protected areas and has been supporting the livelihood of many poor communities for thousands of years. Within the planned 20 years of petroleum development, we must ensure that it does not compromise the integrity of this important area. A Strategic Environment Assessment is an important high-level decision-making tool to ensuring that petroleum development activities do not undermine socio-economic and biodiversity conservation activities. Government must ensure that this process is undertaken to ensure that it plays its rightful role in guiding petroleum development; establishing no-go areas. Create an enabling environment for effective CSOs engagement: CSO representatives call on government to integrate civil society partners in the development and implementation of

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social, environmental and economic policies related to petroleum development in Uganda. Government should include CSOs in their ongoing capacity building plans and activities associated with petroleum development. This will enable civil society organizations to effectively serve as credible and useful partners in the successful development of petroleum development in Uganda.

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There is an urgent need to strengthen the policy, legal and institutional framework especially at the local government level. We do commend the government efforts to halt any new licensing until the Petroleum Resource Law has been approved and passed. Nonetheless, we observe that the pace of petroleum development seems to have outrun the capacity of mandated institutions to respond to the whole suite of issues, challenges and opportunities that petroleum development presents. While national institutions are relatively better placed to handle these issues, local governments and local communities on the other hand are not properly prepared to address these issues. The planned Extended Well Testing (EWT), refinery and field development activities are coming into a context of weak district local government institutions and local communities, which are not well informed of how they will benefit, lose or otherwise be affected by such developments. Local government institutions, civil society and grass-root communities must be prioritized in any planned capacity building work relating to petroleum development. Civil society also observe the low levels of coordination amongst government agencies marked by the low participation of key government actors such as Ministry of Gender, Labour and Social Development, Wetlands Management Department among others. Government and private sector should seek to harmonize Corporate Social Responsibility (CSR) activities with communities development priorities. We commend the various CSR efforts by various petroleum companies. While recognizing that CSR is not obligatory, we acknowledge that it is an important vehicle for the petroleum private sector to secure a social license to operate. As such CSR practice should contribute to the long-term development aspirations of the affected communities. We recommend that government closely works with the private sector to ensure that any CSR decisions/activities implemented are done in consultation with local communities and civil society organizations affected.

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The following civil society organizations generated and jointly subscribe to these 12 Government Asks as specified above; SOUTH ALBERTINE CIVIL SOCIETY COALITION ON OIL AND GAS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Organization Name New Eden Christian Foundation (NECF) Goodhope Foundation For Rural Development (GHFRD) Karambi Action For Life Improvement (KALI) Rukungiri Gender And Development Association (RUGADA) Bunyaruguru Community Based Trainers Association ( BOCOBATA) Kicwamba Conservation Farmersassociation (KICOFA) Kinkiizi Integrated Rural Development Programme (KIRDP) Kanungu District NGO/CBO Forum Literacy Action And Development Agency (LADA) Rwenkuba Hills Conservation Association (RHCA) District Kasese Kasese Kasese Rukungiri Rubirizi Rubirizi Kanungu Kanungu Rukungiri Rukungiri

NORTHERN ALBERTINE CIVIL SOCIETY NETWORK ON ENVIRONMENT AND PETROLEUM

11. 12. 13. 14. 15. 16. 17. 18. 19. Organization Name The African PACT Rural Initiative for Community Empowerment (RICE) Life Concern (LICO) Nebbi NGO forum Arua District NGO Network (ADINGON) Yumbe NGO Forum PRAFORD (Write them in full) MAYANK (Write them in full) Anti-Corruption Network Nwoya District Local Government District Amuru/Nwoya Arua Zombo Nebbi Arua Yumbe Yumbe Arua Nwoya

BUNYORO ALBERTINE PETROLEUM NETWORK ON ENVIRONMENT CONSERVATION:

Organization Name District

20. 21. 22. 23. 24. 25. 26. 27.

Buliisa Catholic Womens Association (BUCAWA) Community Development and Conservation Agency (CODECA) KIbaale Civil Society Network (KCSON) Lake Albert Children/Women Advocacy and Development Organization (LACWADO) Masindi District NGO Forum (MDNF) Mid-Western Region Anti-Corruption Coalition (MIRAC) Mid-Western Region Center for Democracy and Human Rights (MICOD) Uganda Rural Development and Training Programme (URDT)

Buliisa Masindi Kibaale Buliisa Masindi Hoima Hoima Kibaale

Disclaimer:
The views expressed in this 12 Government asks document are published in good faith and for general information purposes and do not necessarily reflect those of WWF Uganda or WWF International, unless stated to be so. They are published in the interest of promoting dialogue, awareness and meaningful exchanges among stakeholders involved.

Compiled by
WWF Uganda Country Office, P. O. Box, 8758, Kampala, Plot 2 Sturrock Road Kololo - Tel: +256 (0) 414 540064/65, Fax: +256 (0) 414 531 166, Email: kampala@wwfuganda.org; Web: www.panda.org/earpo

Why we are here: To stop the degradation of the planets natural environment and to build a future in which humans live in harmony with nature