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Article

27 Aug 2020

Author:
Martin Kitubi, New Vision (Uganda)

Uganda: New plan to hold oil companies liable for spills, requiring them to compensate affected communities

‘Oil spills: Government drafts stringent contingency plan’ 26 August 2020

The government is in the final stages of developing an oil spills contingency plan, which will introduce stringent guidelines for concerned oil companies. The plan says the oil companies will be held responsible for any kind of spills and damage, as well as compensating all the affected entities. According to the plan, the move should ensure that the companies involved in the oil activities take extra care to protect the environment and the people in the affected area. "A licensee, operator, or other responsible person is liable for pollution damage caused by the escape or discharge of oil during an oil spill incident, regardless of fault," the draft contingency plan states.

It adds that: "The cost of oil spill response operations, including clean-up and restoration cost, shall be borne by the licensee or operator." Where Government assists the companies in managing oil spills, the contingency plan says, the costs incurred during the Government involvement too shall be borne by the companies, not the government. In circumstances where financial security is required from the oil companies, the spills plan proposes, the Government may use that security to recover costs incurred in oil spill response operations.

…The plan creates proper mechanisms for the protection of the sensitive ecosystem including land and water bodies. The plan will also be used to ensure the health and safety of oil spill responders and the public during oil spill response operations. The contingency plan will also be used to establish a coordination mechanism for preparedness and response from licensees and operators, local governments, government, and other stakeholders, in order to counter the threat posed by oil spills on human health and the environment.