Section 10: Project authorisations

(1) Where the project company or a project participant has applied for an extension, renewal or re-issuance of a project authorisation within the period specified under the terms and conditions of the project authorisation and Ugandan law, the project authorisation shall be deemed to continue in force and shall not expire or terminate, until the end of the period during which the relevant state authority is reviewing the application. (2) A bond, security, guarantee or other credit support shall not be required for the issuance of any project authorisation, except that in relation to an application for a licence to construct and a licence to operate a pipeline under section 10 (6) (a) of the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013, the undertakings by the project company under the Host Government Agreement shall constitute the only form of security or bond required. (3) The renewal of a project authorisation shall not be refused on the ground that, at the time of the renewal, the project company or other project participant has violated any Ugandan law or any condition in the project authorisation, except where, at the time of renewal, the applicant has and continues to violate Ugandan law under which the project authorisation is issued or any condition in the project authorisation and has not corrected or taken reasonable steps to correct the violation after notification by the relevant state authority. (4) A project authorisation shall not be subject to termination, lapse, revocation or suspension for any reason other than a reason specified in the Host Government Agreement, the relevant project authorisation or Ugandan law including- (a) an occurrence of force majeure; (b) any granting or enforcement of any security interest in relation to the EACOP project in favour of any finance party or any agent or trustee of the finance party; or (c) any transfer of any direct or indirect ownership interests in the project company which does not contravene section 41 and the Host Government Agreement. (5) Where the State or a state authority believes that there may be grounds for the termination or suspension of a project authorisation, the State or relevant state authority shall not commence any procedure or take any action potentially leading to the termination or suspension, including sending any notice for termination or suspension, unless- (a) the State or the relevant state authority has given the holder of that project authorisation and the project company, a notice describing the situation and the grounds for the action, at least thirty business days prior to taking the procedure or action; and (b) following the issue of the notice referred to in paragraph (a), the holder of the project authorisation and the project company have been provided a period of at least thirty business days in which- (i) to rectify the grounds specified in the notice or provide reasonable evidence that there are no grounds; (ii) to conduct bona fide discussions with the relevant state authority with a view of avoiding the termination or suspension; and (c) notwithstanding subsection (4), in case of a licence to construct or operate the EACOP system in Uganda, the licence is being suspended for a known and persistent failure or refusal by the project company to respect the terms of the Host Government Agreement or Ugandan law, causing danger to persons, property or the environment or being terminated for circumstances that would entitle the State to terminate the Host Government Agreement. (6) In relation to an application for a construction licence, the only consents and permits to be submitted by the project company under section 10 (6) (ab) of the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013 are those listed in Form 4, item 7 of Schedule 1 to the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Regulations 2016. (7) The project company shall not be required to obtain a licence under section 8 of the Trade Licensing Act when it acquires or disposes of petroleum in kind and no permit, consent, licence, authorisation, approval or registration shall be required for that purpose. (8) Notwithstanding section 15 (2) of the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013 and regulation 60 (4) and 82 (1) of the Petroleum (Refining, Conversion, Transmission and Midstream Storage) Regulations, 2016- (a) any alteration or deviation to the approved pipeline route, which is not of a substantial nature shall not require the approval of the Authority; and (b) any change or modification to the pipeline installations, which is not of a substantial nature shall not require the approval of the Minister.