The Government of Uganda is planning to use tax payment from Tullow oil to finance the construction of the much awaited Karuma Dam in northern Uganda.

Keith Muhakanizi

Kaith Muhakanizi, the deputy secretary to the treasury while addressing journalist said that the government’s position is to use the money to build the proposed Dam that has had funding challenges for a nearly a decade.

Last week Tollow Oil paid Uganda 37 million US dollar in capital gains Tax after it earned 2.9 billion shillings for selling part of its shares to Total S.A., a French extractives company, and another one-third of its shares to the China National Offshore Oil Company (CNOOC).

Last month, Tullow Oil also paid Uganda over 300 million dollar in tax bill from the purchase of stakes of Heltage Oil last year which had created a dispute with the government of Uganda and threatened to stall developments in the oil industry.

Speaking to journalist Muhakanizi says the position to use Tulllow money for constructing Karuma Dam had not changed.

Muhakanize said, on the completion, the Dam will be connected to the national Grid and is expected to boost the Uganda’s electricity supply.

BY MUGISA ISAAC MATHIAS