President Museveni has pledged full support to Indian investors who are set to the construct a fuel storage terminal and transport system along L. Victoria.
Speaking during the ground breaking ceremony for the new facility at Bugiri-Bukasa village, drug Katabi Town Council in Wakiso district, cheap Museveni expressed delight at the plant’s prospects to transform the country through lowering of costs for fuel.
“It is going to be good business for the investors but also help the country at large,” Museveni said.
“The country will now be able to save 50% of the costs we incur in using the road to transport fuel from Kenya to Kampala.”
The project will see Uganda transport fuel from Kenya using tankers on the waters of Lake Victoria.
Museveni said the Indian investors are in the right place at the right time as the country prepares to start exploration of its oil from the Albertine region.
The president was however quick to warn the locals against vandalizing the property of the investor.
The 440$ Million fuel storage terminal and transport system project is being undertaken by Mahathi Infra Uganda Limited.
Speaking at the function, the company Managing Director Ravi Sankar Yandapalli said the facility will be used to transport products of oil to Uganda using tanker ships.
He revealed that the 4 tanker ships to be used will be constructed from Uganda, each with a capacity of 4.4 million litres which is approximately 150 road trucks.
Each of the fuel tanker ship will be 118 metres long and 23 metres wide whereas the storage terminal to be constructed near Lake Victoria according to the investor will have a capacity of 70 million litres of fuel.
“The facility will reverse its use to transport refined oil from Uganda’s storage centre to nearby countries when the country starts exploring its own oil,” Yandapalli said.
Uganda is set to construct an oil storage facility in Buloba,along Kampala- Mityana road in Wakiso district.
According to former Soroti Municipality MP, Mike Mukula, who also doubles as the chairman Mahathi Infra Uganda Limited, the facility will help lower inflation because of reduction on fuel transportation costs.
“Reduced fuel prices will lower transport and then food prices will also go down. Inflation will soon follow suit,” Mukula argued.
The facility in Kawuku sits on 30 acres near Lake Victoria.
Uganda has crude oil reserves of 6.5 billion barrels, about 2.2 billion of which is recoverable and according to International Monetary Fund,these are the fourth largest reserves in the Sub –Saharan Africa, only below Nigeria,Angola and SouthSudan.