The Uganda National Oil Company (UNOC) has officially handed over a UGX 10.3 billion road infrastructure contract to National Enterprise Corporation (NEC) Construction, Works and Engineering Ltd for works at Kabalega Industrial Park (KIP) in Hoima District.

The project will involve opening 86 kilometres of roads within the industrial park, creating critical access infrastructure for investors, contractors, security agencies and future industrial developments.

The road works are expected to support the growth of Kabalega Industrial Park as Uganda advances plans to develop oil and gas-related industries, manufacturing facilities, logistics centres and other commercial activities in the Albertine region.

Under the contract, NEC Construction, Works and Engineering Ltd will undertake bush clearing, removal of topsoil, construction of internal roads and installation of shoulder drainage works.

NEC said implementation will begin immediately, with the works scheduled to run for 15 months.

The completed road network will provide the foundation for movement of equipment, goods and personnel within the industrial park while preparing the area for future factories and petroleum-related investments.

During the handover ceremony, UNOC Chief Executive Officer Proscovia Nabbanja urged both teams involved in the project to maintain high standards of quality, safety and accountability throughout implementation.

Nabbanja said infrastructure development remains essential in creating an environment that supports investors and accelerates industrial growth within Kabalega Industrial Park.

NEC Managing Director Lt Gen James Mugira said the corporation was ready to mobilise resources and deliver the project according to the required standards.

He described the contract as another milestone in strengthening local participation in major national development projects.

According to NEC, the project builds on the partnership between NEC and UNOC established through a June 2024 memorandum of understanding covering cooperation areas including engineering services, logistics, oil waste management, fertilizer manufacturing and security services.

Kabalega Industrial Park is part of Uganda’s broader strategy to develop industrial capacity around the country’s oil and gas sector.

Located in Hoima, the park is positioned to support businesses involved in petroleum services, manufacturing, logistics and related industries as Uganda develops projects in the Albertine Graben.

The opening of internal roads is expected to improve accessibility and create conditions for investors and industries to establish operations within the park.

The UGX 10.3 billion road project represents one of the early infrastructure steps aimed at preparing Kabalega Industrial Park for long-term commercial and industrial activity.

As Uganda continues developing its oil and gas sector, infrastructure such as roads, drainage systems and industrial facilities will play a key role in attracting investment and supporting economic growth.