NEC and UNOC Sign Contract For Construction Of Road Infrastructure At Kabalega Industrial Park, Hoima.

The National Enterprise Corporation (NEC) and the Uganda National Oil Company (UNOC) have signed a contract for the construction of road infrastructure at the Kabalega Industrial Park in Hoima, marking the commencement of the initial phase of a UGX 10.3 billion investment.

The agreement marks the official start of the park’s first phase of infrastructure development, a critical milestone expected to unlock investment, improve connectivity and prepare the industrial city for major oil, petrochemical and manufacturing projects.

The contract was signed by UNOC Chief Executive Officer Ms Proscovia Nabbanja and NEC Managing Director Lt Gen James Mugira, with UNOC formally handing over the project to NEC Construction Works and Engineering Limited, a subsidiary of the National Enterprise Corporation for execution.

The works, scheduled to run for 15 months, will include bush clearing, removal of topsoil, construction of internal roads and installation of shoulder drainage systems, essential infrastructure that will pave the way for factories, logistics center’s and petroleum-related industries within the park. Speaking during the signing ceremony, Ms Nabbanja challenged the project teams to deliver work that reflects the highest standards of engineering excellence. She stressed the importance of quality workmanship, strict adherence to safety and environmental standards, transparency in project implementation and continuous collaboration between NEC and UNOC technical teams. Ms Nabbanja said the partnership should serve as a model of how government institutions can successfully work together to deliver strategic national projects that drive economic transformation and create opportunities for Ugandans.

Lt Gen Mugira welcomed the partnership, describing it as another important chapter in the growing collaboration between NEC and UNOC. He noted that the relationship is built on a Memorandum of Understanding signed on June 28, 2024, covering cooperation in engineering and construction, logistics, oil waste management, fertilizer manufacturing, feasibility studies and security services. He assured UNOC that NEC would execute the road project to the highest professional standards, noting the strategic importance the Corporation attached to Uganda’s oil and industrial future.

He noted that further areas of partnership are under consideration, including unmanned aerial vehicle (UAV) manufacturing at Nakasongola, and highlighted NEC’s existing footprint in the oil and gas sector, including its partnership with the China Petroleum Pipeline Engineering Co. Ltd (CPP) and the provision of security services to the East African Crude Oil Pipeline (EACOP) by NEC Security Services Limited (NSSL). He assured UNOC, and the country at large, of the highest quality standards in executing the project, noting the strategic importance NEC attaches to it.

The Kabalega Industrial Park spans 29.57 square kilometer’s of planned industrial and logistics space and is expected to attract more than 31 investors, generate over 35,000 jobs, and add value to Uganda’s domestic petroleum resources. The park will host Uganda’s second international airport, a crude oil export hub, the Uganda Refinery, and petrochemical and fertilizer industries, among other facilities. It will comprise three development zones: Heavy and Petrochemical Industries; Light Manufacturing and Agro-Processing; and Logistics and Business Centre’s, encompassing warehousing, real estate, and a one-stop administrative center for investors.