The Uganda Government has announced the selection of Russia's RT Global Resources as the preferred bidder for a multi-billion dollar Oil Refinery project.
RT Global is a subsidiary of Russian defence company Rostec. The tender is the first such achievement by a Russian company in Africa.
Michael Baleke reports from Kampala
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DUR: 50secsUganda's energy minister said in a statement that the process of selecting a lead investor for Uganda's refinery project was highly competitive.
The negotiations to select a lead Investor had been a dead heat between Russia's RT Global and South Korea's SK group.
The project will now be developed under a public private partnership arrangement with the government of Uganda holding 40% equity.
The 3 billion dollar project involves the development of a refinery with a capacity of 60,000 barrels per day, development of crude oil and product storage facilities on site as well as a 200 kilometre pipeline to a terminal near the capital - Kampala.
The first phase of the refinery is expected to be in place in 2018
Am Michael Baleke reporting from Kampala.