By KT Reporter
Investors wishing to establish factories and related facilities at the Kabalega Petrol-Based Industrial Park will have to pay 1.5 dollars (5,560 shillings) per square metre of land per year.
The figure, referred to by the government as a service fee, was approved by the cabinet sitting on Monday for those who will be establishing general industries and commercial premises.
The government intends to establish a petrol-based industrial park at Kabaale in Hoima District, next to Kabalega International Airport, where the government oil refinery will be the major project.
Chris Baryomunsi, the Minister for ICT and National Guidance, said the fee was proposed by the Ministry of Energy and Mineral Development and approved by the cabinet.
“And this figure was arrived at by benchmarking exercises in various countries where there are industrial parks that have been established, and the figure compares favorably with what is charged elsewhere,” he said.
The park, to be managed by the Uganda National Oil Company (UNOC), is expected to attract investments in different petroleum products and byproducts as well as other industries that will feed the petrochemical factories.
The government acquired 29.57 square kilometers of land to be developed into an oil and gas industrial park, which was handed over to UNOC in 2018 to lead the development, operationalization and management of the industrial park with a strategic joint venture partner.
The park will comprise Uganda’s 2nd International Airport, Crude Oil Export hub, Uganda Refinery and Petrochemical & Fertilizer Industries, among others.
In the Joint Venture, 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 and 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, according to UNOC.
The development of Hoima International Airport, the Upstream field projects, the East African Crude Oil Pipeline, and associated critical oil road infrastructure provide immediate development opportunities at the Park.
Uganda Electricity Transmission Company Ltd is developing the Kabaale Substation located in the Industrial Park to facilitate the supply of bulk power to support the oil and gas infrastructure, including the East African Crude Oil Pipeline (EACOP), the Airport, and the planned oil refinery. This substation is scheduled for completion by December 2025-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
