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TERMS OF REFERENCE

FOR A STRATEGIC ENVIRONMENTAL ASSESSMENT FOR POLICIES

SUSTAINABLE DEVELOPMENT OPPORTUNITIES ARISING FROM UGANDA OIL

DEPOSIT EXPLOITATION

Name

Institution

Professor

Date
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BACKGROUND

Uganda has discovered oil deposits in the Albertine Graben region in 1920s, and it is has

continued with the process of oil production fully since the year 2006. These oil deposits as

presented significant opportunities for the country's economic development with high potential to

transform its economy. Furthermore, they have provided opportunities for sustainable

development, such as job creation, improved infrastructure, and increased revenues for the

government. However, they have also posed a threat to the environment and social well-being of

the communities in the region as there is growing concerns about the environmental and social

impacts of continued fossil fuel exploitation, which has to greenhouse gas emissions and led to

other negative effects such as land degradation and pollution1. These concerns have led to a

debate on whether or not oil exploitation should continue and, if so, under what conditions.

Importance of Uganda Oil Deposit Exploitation

The exploitation of Uganda's oil deposits has provided significant economic benefits for

the country as it has generated revenue for the government, created employment opportunities,

and stimulate economic growth. Nevertheless, the development of infrastructure to support oil

extraction, such as roads and ports, has also provided benefits for other sectors of the economy.

Therefore, it is essential to ensure that the exploitation of oil deposits is carried out in a

sustainable and responsible manner, taking into account the potential social and environmental

impacts.

Controversy Surrounding Fossil Fuel Exploitation

1
Netherlands Commission for Environmental Assessment, “Strategic Environmental Assessment of Oil and Gas
Activities in Albertime Graben, Uganda,” Netherland Commission for Environmental Assessment, 2012,
https://www.commissiemer.nl/docs/cms/Key%20sheet%20SEA%20Albertine%20Graben,%20Uganda.pdf.
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The continued exploitation of fossil fuels, including oil, is a controversial issue due to its

contribution to greenhouse gas emissions and climate change. The scientific consensus is that

human activities, including the burning of fossil fuels, are a significant contributor to global

warming and climate change. This has led to a growing movement that advocates for leaving

fossil fuels in the ground and transitioning to renewable energy sources. However, some argue

that developing countries like Uganda should be able to exploit their fossil fuel reserves to pay

for sustainable development, while developed countries have a greater responsibility to reduce

their emissions. This principle of differentiated responsibility is recognized in the United Nations

Framework Convention on Climate Change (UNFCCC).

Technologically, Under the United Nations Framework Convention on Climate Change

(UNFCCC), technology transfer is an important aspect of promoting sustainable development

and addressing climate change. The Convention recognizes that developing countries often lack

the technology and expertise necessary to address climate change and that technology transfer

can help bridge this gap2. For instance, in the context of Uganda's oil exploitation, revenue

generated from the sale of oil can be used to fund the acquisition and implementation of new

technologies that promote sustainable development and address climate change. This could

include technologies related to renewable energy, energy efficiency, and carbon capture and

storage. However, by investing in these technologies, Uganda can reduce its greenhouse gas

emissions and transition to a more sustainable and low-carbon economy.

Furthermore, technology transfer can promote economic and social sustainability by

creating new job opportunities and promoting the development of local industries. By investing

2
Ben Shephard, “International Lessons for Success,” February 2013,
https://www.chathamhouse.org/sites/default/files/public/Research/Africa/0113pr_ugandaoil.pdf.
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in new technologies, Uganda can develop new industries and create new employment

opportunities, particularly in rural areas where poverty is most prevalent.

With all these, there is a need for a Strategic Environment Assessment (SEA) of policies

for sustainable development opportunities arising from the exploitation of the oil deposits.

OBJECTIVE OF THE STUDY

The objective of this SEA will be to assess the potential environmental and social impacts

of the oil exploitation and identify sustainable development opportunities that can be leveraged

from the oil industry. It will provide recommendations for policies that promote sustainable

development, minimize adverse environmental and social impacts, and ensure that the benefits of

oil exploitation are equitably distributed. Furthermore, it will aim to achieve the following key

component;

a. Design a policy that will increases access to affordable modern clean energy, a

component which requires addressing the issue of energy poverty in Uganda and

designing policies that increase access to affordable, reliable, and modern clean energy

for all. Furthermore, this component will deep into assessing the current energy mix in

Uganda, identifying barriers to the adoption of clean energy technologies, identifying

promising clean energy technologies that are appropriate for Uganda's context, and

designing policies that promote the adoption of these technologies.

b. The study will also put in place policies that promotes social justice by making policies

that promote social justice and ensure that the benefits of oil exploitation are shared

equitably among all Ugandans. However, it will also be assessing the current distribution

of wealth and resources in Uganda, identifying vulnerable and marginalized groups,

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designing policies that promote the inclusion of these groups and promote equitable

sharing of the benefits of oil exploitation.

c. Have a policy that takes due consideration of the environment that will requires designing

policies that take into account the environmental impacts of oil exploitation and promote

sustainable development. This policy will also provide an assessment to the

environmental impacts of oil exploitation, identifying measures to mitigate these impacts,

designing policies that promote the use of clean technologies and energy efficiency, and

designing policies that promote the conservation of natural resources and biodiversity.

Basically, the study aims to design policies that promote sustainable development, reduce

greenhouse gas emissions, and contribute to achieving the sustainable development goals while

taking into account the social, economic, and environmental context of Uganda. The study will

require a multidisciplinary approach that involves stakeholders from government, civil society,

and the private sector.

SCOPE OF WORK

First task: Assessing and analyzing environmental the situation

The situation analysis and assessment of environmental effects will involve a

multidisciplinary team of experts, including environmentalists, social scientists, economists, and

other relevant stakeholders. The team will begin with a comprehensive review of existing

literature, policies, and regulations related to the oil industry in Uganda. At large it will consider

the impacts of oil exploration and exploitation on both the natural and social environment,

including emission of greenhouse gases and water quality, soil, flora, fauna, and human health.

A field study will be conducted by the team to collect primary data on the environmental

and social conditions in the area surrounding the oil deposit, including the impact of existing
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activities such as agriculture, mining, and other industrial activities and also identify the potential

environmental and social impacts of proposed policies and strategies, including greenhouse gas

emissions, land use changes, and impacts on biodiversity and ecosystem services. Furthermore, it

will consider both the direct and indirect impacts of oil exploration and exploitation, such as the

impacts on local communities and the wider Ugandan society not forgetting the potential long-

term effects of the proposed policies and strategies, including the impact of climate change on

the environment and society.

However, it will also identify the key environmental and social concerns associated with

the proposed policies and strategies and develop proposals for addressing these concerns

including identifying measures to mitigate adverse impacts, such as the use of best available

technology, environmental monitoring, and restoration programs. Lastly the assessment will

consider the economic and financial aspects of the proposed policies and strategies and identify

the institutional and governance for arrangements necessary to implement the proposed policies

and strategies effectively. This will include identifying the potential costs and benefits of the

proposed policies and strategies, as well as the sources of funding and financing mechanisms and

also identifying the relevant regulatory and policy frameworks and assessing their adequacy in

addressing the environmental and social concerns identified in the assessment respectively.

Second Task: Stakeholder Analysis

The team will then carry out stakeholder analysis by involve engaging with various

stakeholders, including government agencies, civil society organizations, private sector actors,

and community members. The stakeholder consultation process will aim to understand the

various perspectives, priorities, and concerns of different groups and to ensure that their voices

are heard in the policy development process. However, the consultation process will require a
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variety of methods, including public meetings, workshops, focus group discussions, and surveys.

It will then inform on what Strategic Environmental Assessment (SEA) explores, including;

ways to deal with conservation of biodiversity, and most valuable and sensitive areas and also

developing proposals for improving capacity of different stakeholders to enforce law and deal

with negative consequences of oil and gas development.

Third Task: Institutional Assessment including gaps

Another important activity in designing good policies is conducting an institutional

assessment. This activity involves assessing the capacity of institutions and organizations to

implement and enforce policies related to sustainable development. The team carrying out this

will look at the existing policies, laws, regulations, and administrative structures related to the

three components mentioned earlier in the objective of study. Moreover, the assessment will

identify gaps in the current institutional setup and propose ways to address these gaps.

Fourth Task: Governance and Financial Assessment

Governance assessment will involves evaluating the political, social, and economic

factors that affect the implementation of policies related to sustainable development. The

concerned team will look at issues such as corruption, political stability, and public participation

in decision-making which will help identify the key challenges and opportunities for designing

and implementing policies that promote sustainable development. On the other hand, in addition

to stakeholder consultation, institutional and governance assessments, financial assessment will

evaluate the financial resources available for implementing policies related to sustainable

development. However, the assessors will identify potential sources of funding and financing

mechanisms that can be used to support the implementation of policies. They will also consider
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the potential costs and benefits of implementing different policies related to sustainable

development.

Task Five: Developing Proposals for Addressing Environmental and Social Concerns

The proposals will include specific policy recommendations for promoting sustainable

development in Uganda. These policy recommendations should be based on evidence and best

practices and should take into account the needs and priorities of different stakeholders 3. The

team will make sure that proposals are accompanied by implementation plans that outline the

steps needed to implement the policies, the roles and responsibilities of different stakeholders,

and the resources required.

After all the assessment have been done, the group will then;

 Identify sustainable development opportunities arising from the Uganda oil industry.

These activities will involve identifying ways in which the oil industry can contribute to

sustainable development in Uganda and to the Uganda Citizens at large, such as job

creation to many people and community, Reduction in poverty rates, reduced crime rates,

local content development, and infrastructure development. This will help to ensure that

the benefits of oil exploitation are maximized and distributed equitably.

 Develop recommendations for policies that promote sustainable development, minimize

adverse environmental and social impacts, and ensure that the benefits of oil exploitation

are equitably distributed: This task involves using the findings from the previous tasks to

develop a set of policy recommendations that promote sustainable development,

minimize negative impacts on the environment and society, and ensure that the benefits

3
Christoph Schwarte, “Public Participation and Oil Exploitation in Uganda,” JSTOR, 2008,
https://www.jstor.org/stable/resrep01353.
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of oil exploitation are distributed fairly. These recommendations should be practical and

feasible.

Deliverables

The deliverables section will specify the three key documents that the group conducting this

strategic environmental assessment will produce;

 Inception Report which will provide an overview of the methodology, work plan, and

timeline for the SEA. It will outline how the group plans to undertake the tasks outlined

in the scope of work.

 Draft SEA Report. This report will present the findings of the SEA and the proposed

policy recommendations. It will be circulated for feedback from stakeholders.

 Final SEA Report. This report will incorporate feedback from stakeholders and present

the final set of policy recommendations.

The final report should be written in clear and accessible language, and recommendations should

be practical and actionable.

Duration and Budget

The duration and budget section will specify the time frame and budget for the entire project.

The project is expected to last six months and the budget is capped at a certain amount.

Reporting and Coordination

The reporting and coordination section will specify who the group conducting the SEA will

report to and outlines the communication and reporting requirements. This ensures that the

contracting authority can monitor progress and ensure that the project stays on track.
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Bibliography

Netherlands Commission for Environmental Assessment. “Strategic Environmental Assessment

of Oil and Gas Activities in Albertime Graben, Uganda.” Netherland Commission for
Environmental Assessment, 2012. https://www.commissiemer.nl/docs/cms/Key%20sheet
%20SEA%20Albertine%20Graben,%20Uganda.pdf.
Shephard, Ben. “International Lessons for Success,” February 2013.
https://www.chathamhouse.org/sites/default/files/public/Research/Africa/
0113pr_ugandaoil.pdf.
Schwarte, Christoph. “Public Participation and Oil Exploitation in Uganda.” JSTOR, 2008.
https://www.jstor.org/stable/resrep01353.