Kabalega Industrial Park

The Government of Uganda acquired 29.57 sq. km of land to be developed into an oil and gas industrial park, in Kabaale, Hoima District.

On January 15, 2018, the project was handed over to UNOC to lead the development, operationalization and management of the industrial park with a strategic joint venture partner.

The park will comprise of Uganda’s 2nd International Airport, Crude Oil Export hub, Uganda Refinery and Petrochemical & Fertilizer Industries, among others.

UNOC and the JV Strategic Partner will form the KIP Holding Company responsible for Management, Promoting National Participation, Direct Investments, and Promotion and Attraction of External Investments.

In the Joint Venture (JV), UNOC will provide the project assets and leadership on project stakeholder engagement, secure government pre-investment in some enabling infrastructure, provide technical expertise in Upstream & Refinery operations, and National Content leadership.

On the other hand, the JV partner will make Direct Investments into the enabling infrastructure, provide pre-built warehouses and offices, undertake well-structured marketing and promotion activities, and provide Facility Management services.

There will be a land allocation plan and guidelines. An MoU will be signed with Uganda Investment Authority to assist in the promotion of the project indicating investment, business and employment opportunities, and development of appropriate incentives to attract investors.

The development of Hoima International Airport, the Upstream field projects, the East African Crude Oil Pipeline, and associated critical oil road infrastructure provide immediate KIP development opportunities.

UNOC is committed to ensuring lasting benefits to Ugandans and the country at large in this project.

PROJECT PROGRESS

29.57 km2 oil & gas industrial park to host Uganda’s 2nd International Airport, Crude Oil Export Hub & Uganda Refinery < anchor projects >; polymer, fertilizer, mixed industries, agro-processors, warehousing & logistics. UNOC’s role is to lead the development, operationalization, & management of the Kabaale Industrial Park (KIP) with a strategic JV partner.

Status:

• KIP Masterplan was developed and approved by Physical Planning Board- MLHUD.
• The Airport is 90% complete
• A proposal from a  JV partner for KIP  was received on the 20th March and is being evaluated
• Engagements with key infrastructure MDAs and IOCs– UNRA, MoWT, UETCL & MWE , EACOP , CNOOC , AGEC, Total Energies are ongoing
• Land Allocation Guidelines were approved by the UNOC Board and are awaiting  Cabinet consent for UNOC to charge rates for land.
• UNOC site Office  design was completed and is going into the procurement/construction phase.
• The Contracts for the design of phase 1 roads and updating the KIP master plan, the Fencing of the KIP,  the design of the power reticulation ,and, for conducting the strategic ESIA are on going and are about half done . The Contract for the design, of water and wastewater  Reticulation in KIP is planned for signing Early June 2023.
• Funding from EKF Danish Funding( 120MUSD) for additional design and the construction of the Phase 1 infrastructure in KIP has been approved by Cabinet to proceed

Next steps:

• Execute the design of phase 1 roads , water  and wastewater reticulation, Power reticulation , IT reticulation , the Fencing of the KIP,  and conduct the strategic ESIA for the next year using local consultants and incorporating national content for the works contracts.
• Construct the UNOC site Office in Kabaale with Local Contractors, for UNOC to have a physical presence in the Park
• Update the KIP Masterplan.
• Acquire a JV partner for KIP , to enhance Local management capacity and sourcing of finance for KIP
• Continue engagements with key infrastructure MDAs  and IOCs– UNRA, MoWT, UETCL & MWE, EACOP, TOTAL Energies, CNOOC , AGEC to provide the vital coordination.
• Allocation of Land to Potential Investors  with a provision for employing and training Ugandans and start generating  income.
• Promote linkages between Agro based value addition Investors with local farmer groups.
• Conclude the funding acquisition from Danish  Export Credit Financing for   additional design  and construction of Phase 1 infrastructure in KIP and commence with the design and construction.