AGODA SECRETARIAT - The Albertine Graben oil and Gas Districts ...

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AGODA SECRETARIAT
                       AGODA ANNUAL REPORT – NARRATIVE

BY THE EXECUTIVE DIRECTOR PRESENTED TO THE GENERAL ASSEMBLY
FOR THE AGODA MEMBERS ON FRIDAY 11TH JANUARY 2019 AT GRAND
IMPERIAL HOTEL

1      INTRODUCTION

1.1    AGODA Offices
During the year, AGODA Secretariat was established in April 2018 with an office at POVA
House, in Kigowa, Ntinda, a Kampala suburb.

1.2     Sub-Grant management from MYJ
AGODA received a sub-grant from MYJ after a series of activities which included the following:
1) Developing and approving policy documents which were a precondition for the sub-grant and
    also for use in the day to day running of the affairs of the organisation.
2) Undertaking internal assessments to ensure the required internal controls were put in place
    for compliancy on minimum requirements for the management of the Grants.

1.3    Operating a Financial Year instead of a calendar year
Arising from the amendments of the MEMARTS at the last General Assembly and with
guidance from the legal team, the organisation has started operating a Financial Year away from
the Calendar Year. Therefore, the report being presented is aligned to the Financial Year
2018/2019.

2 PLANNED ACTIVITIES DURING THE FINANCIAL YEAR 2018/2019
The following is the outline of the major planned activities for the year 2018:
1) Conduct at least four meetings for the members of the Board of Directors
2) Conduct visits to AGODA member districts to identify issues related to the Petroleum
    Sector that requires redress.
3) Conduct Technical Working Group workshop(s) to deliberate and generate issues for
    attention by the board and other stakeholders.
4) Attend and present at the Joint Venture Partners (JVPs) quarterly engagement meetings on
    Oil and Gas developments in Uganda.
5) Develop concept papers and project proposals for fund raising
6) Engage the legal services for any technical actions that warrant such services.
7) Utilise the services of the External Auditors for the organisational books of accounts.
8) Engage Central Government (Departments, Ministries and Agencies - MDAs) at various
    fora and levels on O&G issues.
9) Engage and participate with other relevant stakeholders in the industry at different levels on
    issues of oil and gas.
10) Increase the visibility of AGODA across the major stakeholders in the Industry.
11) Conduct one Annual General Assembly.

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3      ACHIEVEMENTS
1)        SUMMARY OF THE ACHIEVEMENTS IN LINE WITH THE DGF TARGETS
During the year the following outputs were achieved in line with the DGF targets reflected in the
sub-grant agreement with AGODA.
(i) One study was conducted on the perceptions and current activities of the LGs in the Oil and
     Gas Industry and the extent of awareness of the developments in the Industry. The analysis of
     the data is being done for use in informed decision making with/by the respective Local
     Governments in the member districts.
(ii) 375 individuals (270 males and 105 females) were involved (or participated) in DGF
     activities.
(iii)Two (2) issue based initiatives were spearheaded with other partners (i.e. on the PFMA 2015
     and the Mines Policies).
(iv) Four (4) cases affecting communities were taken up by AGODA leadership at different levels
     for redress. The cases were:
      a. The compensation rates for the CPF in Ngwedo Sub-county in Buliisa district where the
           leadership has lobbied with PAU and other government agencies for better rates in
           payment of the citizens.
      b. The involvement of the AGODA member districts in an engagement meeting with the
           Anti-corruption Agencies in Uganda where corruption related issues affecting citizens in
           the Oil exploration and Production districts were raised with specific reference or
           examples of the affected people.
      c. AGODA leadership is taking up a matter to address cases of wildlife attacks to humans
           in Nwoya district following outrage and outcry by the affected communities.
      d. In Mubende, AGODA team is intervening in a community demand to access information
           on the routing of the pipeline to allow adequate preparedness for any effects in the area.
(v) Two public Forums were conducted by CSOs where AGODA participated and made
     contributions for policy reviews. The two Forums were on the review of part VIII of the
     PFMA 2015 and review of the Mines Industry policies in Uganda.
(vi) One issue was raised to the Local Governments that are members of AGODA – this was on
     the integration of the O&G issues in the District Development Plans for the FY 2018/2019 (a
     reminder letter was written to the LGs).
(vii) A total of 342 individuals (247 males and 99 females) participated in DGF supported
     events in the member districts.
(viii) Four (4) engagements with four (4) CSOs and Government agencies on planning related
     issues:
        a. The CSOs were Global Rights Alert (GRA) planning for interventions in LGs on
             supporting human rights and governance in the O&G sector.
        b. Action Aid International planning for strengthening governance structures in the LGs
             through AGODA.
        c. Natural Resources Governance Institute (NRGI) planning for O&G resources
             expenditures (royalties) and tapping into the opportunities for the planned investment
             of $20bn into the sector over the medium term.
        d. Petroleum Authority of Uganda (PAU) planning on engagements with Local
             Governments through AGODA to collect relevant data on performance of the sector in
             the districts and the communities.

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(ix) The total number of citizens reached from the communities that represented the marginalized
     people or groups were 342 people. The citizens were from the following areas: Moyo District
     (27); Arua District (15); Yumbe District (93); Nebbi District (45); Pakwach district (32);
     Nwoya district (30); Buliisa district (79) and Hoima district (21).
(x) AGODA worked with three (3) groups from the communities. The three groups were in
     Buliisa district (Bunyoro Coalition on Oil and Sustainable Livelihoods (BUCOSA)); Hoima
     district (Hoima Oil and Gas Community Association, HOGACA) and Arua district (Olwo
     Madi Constituency Association in Arua district covering five (5) sub-counties although it
     was by then dormant).

2)        ACHIEVEMENTS ON THE GENERIC OUTPUTS OF THE SUB-GRANT
     i.   Conducted four (4) Technical Working Group workshops involving Technical Officers
          from AGODA members and pipeline districts of Buliisa, Hoima, Nwoya, Moyo, Gulu,
          Rukungiri, Kanungu, Ntoroko, Nebbi, Pakwach, Mubende, Wakiso, Mpigi and Gomba:

          o Held a TWG workshop to capture various areas and issues which were presented at
              the JVPs engagement on 6/7/2018.
          o Held a TWG to discuss the regulations for Part VIII of the PFMA 2015 held on
              2/8/2018.
          o Held a TWG on 07/9/2018 to identify issues of corruption in the O&G Industry and
              generating a presentation to the stakeholder organised by IGG’s and AG’s Offices.
          o Held a TWG to prepare for a presentation to the Executive Director of Petroleum
              Authority of Uganda (PAU) at a meeting held on 19/9/2018. The meeting yielded
              good insights and a way forward in dealing with PAU.
 ii.      AGODA team (BODs, TWG members and other member districts) attended and
          participated in the JVPs quarterly field visits co-ordinated by Petroleum Authority of
          Uganda (PAU) on 27-29/9/2018 to O&G exploration and Production areas of Hoima and
          Buliisa - KingFisher Production Area, Refinery and Airport Projects and the Tilenga
          Project in Buliisa. A total of 25 members attended this exposure visit.
 iii.     Attended a capacity building training on roles and involvement of Accountants in the
          Petroleum sector.
 iv.      Conducted field visits to the member districts to address some of the issues concerning
          AGODA.
           o From 22/7/2018 – 29/7/2018, AGODA team visited Hoima, Buliisa and Nwoya
                districts. The team was able to address members of DIRCO (District Resettlement
                Committee) for Buliisa District and communities in Ngwedo sub-county in Buliisa
                district.
           o From 12/8/2018 – 19/8/2018, AGODA Secretariat team visited Pakwach, Nebbi,
                Yumbe, Moyo, Adjuman and Arua.

  v.      Conducted a quick survey to assess the Local Governments on their perceptions about the
          Petroleum Sector in the country.
           o Conducted four (4) Focus Groups Discussions in Hoima, Bulisa, Arua Nebbi,
               Nwoya, Pakwach, Moyo
           o Administered 29 questionnaires capturing the same subject.
           o Analysis of the data is being carried out and findings will be validated in the next
               quarter (October – December 2018) before dissemination is done to the recipient
               Local Governments and other stakeholders.
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vi.    The entire BOD of 12 members and AGODA Secretariat participated in a workshop to
        generate regulations for Part VIII of the PFMA 2015 with support from ULGA/NRGI on
        7/8/2018.
vii.    Participated in training workshop for data collection from communities using the CCA
        methodology. The data collection exercise from the communities from selected O&G
        districts is part of the activities on a project titled “elevating local priorities in Uganda’s
        Petroleum Development” being implemented by MYJ. Data collection was taking place
        in Yumbe, Moyo, Nwoya, Buliisa, Hoima, Ntoroko, Kanungu, Rukungiri, Mubende,
        Mpigi and Gomba.
viii.   AGODA being represented by the Chairperson participated in the stakeholder
        engagement meeting on 12/9/2018 on corruption related issues in the O&G industry
        (Petroleum Sector) which was organised by IGG and AG. AGODA contributed greatly
        and enriched the discussions.
 ix.    AGODA participated in the National Dialogue on the Proposed Regulations for Section
        VIII of the Public Finance Management Act (PFMA), 2015 organised by ULGA,
        ACODE and NRGI held at Sheraton Hotel on 6/09/2018. AGODA was put on the select
        committee to develop issues and ideas for the review of the main law (i.e. the PFMA,
        2015) together with representatives of ACODE, NRGI, ULGA and Office of the Solicitor
        General.
  x.    AGODA represented by AGODA Chairperson and Executive Director, attended and
        participated in a workshop for thirty (30) Civil Society Organisations (CSOs) organised
        by Global Rights Alert (GRA) held on 6-7/09/2018 at Essela Hotel in Kampala on a topic
        entitled “CSO Reflection and strengthening meeting on the East Africa Crude Oil Pipeline
        Project (EACOP)”. AGODA presented a paper entitled “AGODA perspectives on
        working with CSOs-successes and challenges”.
 xi.    AGODA was represented by Four (4) District Chairpersons from Hoima, Buliisa, Nwoya
        and Masindi at the 4th Uganda International Oil and Gas Summit held at Serena Hotel in
        Kampala on 19-20/9/2018.
xii.    AGODA was represented by the District Chairperson Nwoya (Hon. Patrick Oryema
        Okello) and the Focal Point Officer (Axuma Godfrey) at the meeting of the West Nile
        Development Association (WENDO).
xiii.   AGODA represented by the Executive Director and Operations Manager interacted with
        the Manager in charge of Extractives and Governance at the Action Aid International
        Uganda at their Offices in Kabalagala, a Kampala suburb.

3)      INCREASED INFLUENCE AND VISIBILITY OF AGODA IN CLAIMING ITS
        SPACE IN THE OIL AND GAS INDUSTRY

3.1     Direct funding for AGODA to participate in decision making processes

3.1.1 Contributions by AGODA member districts:
During the Financial year, AGODA member districts contributed the mandatory funds in form of
registrations and subscriptions. The status is attached in appendix……

3.1.2 Contributions by member districts
(i)   District Chairpersons’ attendance of meeting at AGODA Secretariat in Kampala
The District Chairpersons spend funds to attend meetings and other engagements in Kampala.
However, this expenditure is being computed.
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(ii)   Focal Point Persons’ commitments on AGODA activities in the districts and
attendance of meeting at AGODA Secretariat in Kampala
This has not been computed but there is an expenditure on such activities.

3.2    Indirect funding for AGODA to participate in decision making processes

AGODA has been able to attract support to the leadership and structures of the organisation from
government agencies and development partners. An estimated total of Ug. Shs. 107.425m was
attracted to the organisation during the quarter in a period of three (3) months.
i)      Exposure tour for AGODA member districts to visit the on-going oil and gas activities in
Hoima and Buliisa with support from Oil companies. This exposure visit attracted indirect
funding close to about Ug. Shs. 16.75m.
(ii)    The training of the AGODA BOD by ACODE/NGRI in Hoima on the Public Finance and
Management Act 2015 attracted indirect funding close to about Ug. Shs. 9.55m.
(iii) AGODA attracted financial support for selected District Chairpersons (LCVs) to
participate in the International Summit on Oil and Gas held in Kampala, Uganda with an
estimated funding of Ug. Shs. 17.135m.
(iv)    Support to other engagements where AGODA participated – i.e. dialogues and other
meetings/engagements attracting 10.1m.

3.3    Recognition of AGODA as a major stakeholder in the oil and gas industry

AGODA has been able to start attracting considerable recognition by different partners as an
important stakeholder in the Oil and Gas Industry in Uganda.

i)       AGODA has been put on the National Committee to participate in the final review of the
Part VIII of the PFMA 2015; but also on a similar committee to initiate a process for reviewing
the whole PFMA 2015.
ii)      AGODA was given platform to interface with the Executive Director for AGODA to
highlight the dire need for its participation in the Oil and Gas Industry.
iii)     AGODA leadership was invited and participated in the second Uganda International Oil
and Gas Summit held in Kampala – Uganda.
iv)      Some international and local Civil Society Organisations and government organisations
in Uganda have started expressing a lot of interest to deal with AGODA on issues of Oil and Gas
in Uganda. These organisations include Global Rights Alert (GRA), Action Aid International,
Natural Governance Resources Institute (NRGI), Uganda Local Governments Association
(ULGA), Petroleum Authority of Uganda (PAU) and Inspectorate General of Government
(IGG). These organisations are equally potential donors for support of the different programs and
activities being spearheaded by AGODA on Oil and Gas Industry in Uganda.
v)       The participation of some AGODA members in the International Summit on Oil and Gas
held in Kampala, Uganda was a demonstration of the growing recognition of the likely role of
AGODA in the industry.
vi)      The participation of AGODA in the National Dialogue and peoples’ conference on
Minerals and Oil in Uganda provided recognition for its anticipated role in the mining industry in
Uganda.

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viii) AGODA participated and featured on the National Television for the Economic week for
Uganda sponsored by NTV Uganda. Issues discussed by the Executive Director on the TV
included Local Content Development in the Albertine Graben.

4      CONSTRAINTS AND CHALLENGES
The following constraints were noted during the quarter:
1) There is inadequate commitment by some stakeholders (at national and sub-national levels)
   in the implementation of some outputs for which AGODA is also making a contribution.
2) Inadequate or lack of funding for selected activities in the Local Governments such as local
   content development.
3) Poor registration or subscription status by the Local Governments.
4) Inadequate participation of some Focal Point Officers on AGODA issues related to Oil and
   Gas for some Local Governments. In some cases, there are conflicts among the staff.

Compiled by:

………………
Kwizera Godie
Executive Director

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