Section 8: Payment-in-kind

(1) Notwithstanding sections 3, 57 (1) (5), (5a) and (6), 59(3) and 74 of the Public Finance Management Act, 2015, where the State or the Uganda National Oil Company is a shipper, they may pay the transportation tariff charged by the project company for the provision of transport and related services by way of paymentin-kind, the details of which will be agreed in agreements for the transport of petroleum. (2) The project company may- (a) acquire petroleum in connection with any payment-in- kind arrangements agreed with the State or the Uganda National Oil Company, in their capacity as shippers, for the payment of the transport tariff under the agreements for the transport of petroleum; and (b) sell the petroleum referred to in paragraph 2 (a) to other shippers or third party purchasers. in each case, without any gain or loss for the project company, the State or the Uganda National Oil Company which would not have been received, suffered or incurred if the transportation tariff had been settled in cash by the State and the Uganda National Oil Company and not by way of payment-in-kind. (3) The provision of guarantees or other assurances, including the creation of security over a shipper's assets, whether by operation of law or contract, may be agreed by the project company and the shippers other than in respect to the State for so long as the State and the Uganda National Oil Company are shippers and pay the transportation tariff by way of payment-in-kind or pursuant to other arrangements agreed with the project company in the applicable agreements for transport of petroleum.