Donors slam BIDCO deal
By Mary Karugaba
PRIVATE Sector Donor Group has written to parliament criticising the BIDCO palm oil project and warning that it could deter future investments.
The group said in a report, attracting foreign direct investment requires the existence of a level playing field, one characterised by transparent and consistent public sector incentives.
�If the incentives offered to foreign investors, are perceived to be a function of �who you are and who you know� rather than a function of the net benefit brought to the local or national economy, then the impact will be to stifle foreign direct investment and thereby undermine Uganda�s economic development,� reads the report.
�The bestowal of such concessions to later arrivals could be very detrimental to the original investor. It is clear from the agreement between Government and Bidco that the incentives being offered by the Government will not be accorded to the other companies unless they make investment of equal or greater value, to that of Bidco,� the report said.
It said Uganda was not large enough to aid another $120m investment.
Published on: Thursday, 22nd April, 2004
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WHO owns BIDCO and who are the major share holders?
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