Uganda has secured a major boost for its energy and logistics infrastructure after the Uganda National Oil Company (UNOC) finalised financing of up to $2 billion (about Shs7.6 trillion) to fast-track strategic petroleum projects.
The financing follows parliamentary approval allowing UNOC to borrow from Vitol Bahrain E.C. over a seven-year period. The agreements were executed this week, clearing the way for investment across the petroleum value chain.
The funds will support several flagship projects, including a new petroleum storage facility in Namwabula, Mpigi District, expansion of the Jinja petroleum terminal, extension of a petroleum products pipeline from Kenya, and refinery-related infrastructure.
Officials say the projects are aimed at improving fuel supply reliability, cutting logistics costs and positioning Uganda as a regional petroleum hub.
“This financing strengthens energy security and supports infrastructure required to unlock economic growth,” UNOC said in a statement.
The investment will also deepen UNOC’s role as the government’s commercial arm in the oil and gas sector, with responsibilities spanning fuel supply, infrastructure development and commercial participation across the value chain.
Energy analysts say the projects could reduce Uganda’s dependence on external storage and transit infrastructure while boosting regional fuel trade as demand grows across East and Central Africa.
Government has emphasised that the financing will be subject to strict oversight to ensure compliance with existing laws and regulations.
“The approved financing will be utilised prudently and in line with established governance frameworks,” UNOC said.
The deal marks a significant step in advancing Uganda’s infrastructure development goals and supports the government’s ambition of achieving ten-fold economic growth through strategic investment.
UNOC, which manages the state’s commercial interests in the oil and gas sector, said the financing is expected to catalyse further private sector participation and strengthen Uganda’s competitiveness in the regional energy market.
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