Following Parliamentary approval of the proposal for the Uganda National Oil Company (UNOC) to borrow up to US$ 2 billion( about shs7.5 trillion) financing over 7 years from Vitol Bahrain E.C to finance strategic national infrastructure projects and investments, the parties have executed the financing agreements.
The financing will unlock key projects across the petroleum value chain, including the greenfield storage in Namwabula- Mpigi District, expansion of petroleum terminal at Jinja, products pipeline extension from Kenya, refinery related developments, and other national and regional logistics infrastructure, in line with Government’s broader economic transformation agenda, to improve logistical efficiencies to further accelerate economic development.
This financing builds on the ongoing efforts by Government to strengthen energy security, enhance fuel supply reliability, and position Uganda as a regional petroleum hub, while supporting critical infrastructure required to unlock economic growth.
The funding strengthens the role of UNOC in implementing Government policy in the petroleum sector, including its mandate in petroleum products supply, infrastructure development and commercial participation across the oil and gas value chain.
Government reaffirms its commitment to ensuring that all approved financing is utilised prudently and in accordance with existing laws and regulations, with full oversight by the relevant authorities.
The approval and signing of the agreements marks an important step in advancing Uganda’s infrastructure development objectives in support of the 10-fold growth strategy for sustainable economic growth.
