Lt. Gen. James Mugira Drives NEC's Expansion into Strategic Oil Infrastructure

The National Enterprise Corporation (NEC) and Uganda National Oil Company (UNOC) have signed a contract to commence critical infrastructure works at the Kabalega Industrial Park in Hoima, marking a major step towards establishing one of Uganda’s key industrial and petroleum hubs.

The agreement paves the way for the start of bush clearing, construction of internal roads, and drainage works within the industrial park, laying the foundation for future factories, logistics facilities, and petroleum-related industries.

The contract was signed by UNOC Chief Executive Officer Ms. Proscovia Nabbanja and NEC Managing Director Lt Gen James Mugira. Following the signing, UNOC formally handed over the project to NEC Construction Works and Engineering Ltd, a subsidiary of NEC, for implementation.

The infrastructure development works are expected to run for 15 months and will involve several activities, including bush clearing, removal of topsoil, construction of internal roads, and installation of shoulder drainage systems.

The project is aimed at preparing the industrial park for investment and industrial activities linked to Uganda’s oil and gas sector, as well as supporting broader economic development through improved infrastructure and industrial capacity.

Speaking at the contract signing ceremony, Lt Gen James Mugira described the development as another significant milestone in the growing partnership between NEC and UNOC.

He noted that the collaboration is anchored on a Memorandum of Understanding signed in June 2024, which provides a framework for cooperation in areas including engineering services, logistics, oil waste management, fertilizer manufacturing, and security services.

“This milestone demonstrates the commitment of both institutions to work together in delivering strategic projects that contribute to Uganda’s economic transformation,” Lt Gen Mugira said.

The Kabalega Industrial Park is expected to play a central role in supporting Uganda’s emerging oil and gas industry by providing facilities for manufacturing, processing, storage, and related services.

The project comes as Uganda continues preparations for commercial oil production, with industrial infrastructure development identified as a key requirement for maximizing local participation and value addition in the petroleum sector.

UNOC, as the country’s national oil company, has been spearheading strategic investments across the oil and gas value chain, while NEC continues to support national development through engineering, construction, and technical services.

The commencement of works at Kabalega Industrial Park is therefore viewed as a significant milestone in Uganda’s journey towards building a competitive industrial base and strengthening local capacity in the oil and petroleum sector.