US Agency Funds Uganda Bio-Fuels Initiative

Text of report by Anthony Bugembe entitled “US trade agency funds bio fuel study” published by state-owned, mass-circulation Ugandan daily The New Vision website on 30 August

The US Trade and Development Agency has extended a 572,000- dollar (932m-shilling) grant to the Ministry of Energy and Mineral Development to analyse the potential for a bio-fuels market in Uganda.

The grant is expected to provide cost-benefit analysis on potential bio-fuel resources and technologies. It will also recommend appropriate industry regulations and potential incentives for the development of safe and responsible fuel production.

“This grant supports Uganda’s renewable energy policy and enhances the government’s efforts to design a regulatory framework that will increase energy security without jeopardising the country’s food supply,” said US Ambassador Steven Browning.

Fred Kabagambe-Kaliisa, the permanent secretary, signed the agreement on behalf of the government of Uganda.

Although Uganda’s demand for energy is growing rapidly, the country has experienced prolonged drought, reducing production at its hydroelectric power plants. If new energy investments are not made, Uganda’s economic growth could suffer.

The government recently passed the renewable energy policy to encourage the development of the country’s abundant renewable energy resources, especially bio-fuels.

Originally published by The New Vision website, Kampala, in English 30 Aug 08.

(c) 2008 BBC Monitoring Africa. Provided by ProQuest LLC. All rights Reserved.