KAMPALA — The 70m-litre fuel storage tanks, which are being constructed at Kawuku on the shores of Lake Victoria, are taking shape.
Uganda, through Mahathi Infra Uganda Limited, is constructing the storage tanks at a cost of $270m and they are expected to be commissioned in April.
The reserves are meant to act as the country’s reserve in case of a crisis. Whenever turmoil rocks the towns of Kenya especially through elections like the one in 2007, Uganda’s fuel prices spike.
Uganda still relies on fuel stocks from the 30 million-litre Jinja-based storage facility and other privately owned facilities for her fuel requirements.
Mr Paul Hansen, Executive Vice President of East and Southern Africa Vivo Energy, has welcomed the move to build the reserve tanks since Kenya Pipeline Company last year increased its capacity by opening another part of the pipeline which proves favorable to sector players.
Capt Mike Mukula, the chairman and one of the shareholders of Mahathi Infra Uganda Limited, an Engineering, Procurement & Construction (EPC) Company contracted to construct the fuel storage terminal and Lake Victoria fuel transport system said that the project will be a game-changer in the country.
“This project will be a game changer of the country because we shall be able to transport fuels on Lake Victoria from Kisumu, Kenya to Kampala using Oil Tanker ships,” he said adding that “this [project] will reduce the cost of fuel and its transportation by over 50%.
Presently, Petroleum products like Diesel, Gasoline, Kerosene and Jet A1 are transported by road making it costly, susceptible to adulteration, accidents and uncertain supplies.
Through Lake Victoria which is the biggest water resource in Uganda, this fuel terminal will ease transportation of fuel from Kampala to Kisumu considering that Kenya Pipeline Company has a fuel terminal at Kisumu on Lake Victoria.