Uganda kicks off $390 million Kabalega Oil Industrial Park development, targeting 35,000 jobs

By George Niyonzima

The Government of Uganda is moving forward with the construction of the ambitious Kabalega Oil and Gas Industrial Park in Hoima District, an expansive project covering 29.57 square kilometers intended to be the central hub for the nation’s petroleum industry.

The Uganda National Oil Company (UNOC) confirms the development is estimated to cost slightly below $390 million for initial phase one and two construction works, and is projected to create nearly 35,000 jobs upon completion.

The industrial park, located in Kabaale Sub-County, will host critical national infrastructure, including Uganda’s second International Airport (Kabalega International Airport) and the planned Uganda Refinery.

It will also anchor a vast chain of secondary industries such as polymer manufacturing, fertilizer production, mixed industries, agro-processors, logistics, warehousing, and data centers.

Speaking during a high-level visit to the oil and gas operation areas, Proscovia Nabbanja, the Chief Executive Officer of UNOC, detailed the financial and developmental roadmap.

“The construction of Kabalega Industrial Park will cost slightly below 390 million US Dollars for both phase one and two construction works,” Nabbanja stated. She noted that UNOC is collaborating closely with the Ministry of Finance to secure funds for essential supportive infrastructure, including roads, ICT connectivity, and water sources, which are critical to aiding the massive construction effort.

Infrastructure and Investment Attraction

Initial steps on the ground are already visible, with 11 kilometers of access roads having been opened to allow investors entry into the park. Nabbanja revealed that by January next year, major construction will commence on a total of 98 kilometers of roads that have been contracted out.

The project has already garnered significant interest, with UNOC having attracted 31 investors across various market segments.

“We are currently trying to attract investors into the park, and so far we have 31 investors across different segments,” Nabbanja explained, adding that the goal is to zone the industrial park to accommodate diverse industries, from petrochemicals and agro-based firms to crucial logistics and data centers.

Successful Land Acquisition Confirmed

Accompanying the UNOC CEO during the visit were Lucy Nakyobe, the Head of Public Service, Irene Batebe, the Permanent Secretary (PS) Ministry of Energy and Mineral Development, and the Permanent Secretary Ministry of ICT.

PS Irene Batebe delivered a vital update on the land tenure status, assuring the public that the government had successfully concluded all compensation processes.

“Government fully compensated all the project affected persons on the land for the Industrial Park, and there is no remnant PAP that is to be compensated as of now,” Batebe confirmed, adding that the resettlement action plan had been highly successful.

First Oil on Track for Next July

The government delegation also inspected progress at the Kingfisher Oil Development Area in Kyangwali Sub-County, Kikuube District, where significant milestones have been achieved.

PS Batebe expressed satisfaction with the pace of work, noting that three out of the four required well pads are already completed, alongside encouraging progress on the Central Processing Facility (CPF).

Batebe confidently projected that the upstream project remains on schedule, allowing the country to deliver “first oil” in July next year.

In response to the progress witnessed across the visited sites—which included Kingfisher, Luweero Industries, Kabalega Industrial Park, and Kabalega International Airport—Head of Public Service Lucy Nakyobe commended the agencies involved.

“We are now waiting for the final product to come next year in July and commend the Ministry of Energy plus other agencies for the work well done,” Nakyobe concluded.