The construction of Uganda’s multibillion Fuel Storage and transport system is well underway at 70 percent complete and is expected to be up and running by 2020.
Mahathi Infra Uganda Limited, an Engineering, Procurement & Construction (EPC) Company established for execution of projects, primarily in Oil and Gas sector is the contractor of the fuel storage terminal and Lake Victoria fuel transport system at Bugiri-Bukasa village in Uganda.
The project, which was recently commissioned by President Yoweri Museveni will enable the transportation of fuel from Kenya through the Kisumu port on Lake Victoria to kampala, Uganda using Oil Tanker ships.
“This will reduce the cost of fuel and its transportation by over 50 percent,” said Capt. Mike Mukula, the chairman of Mahathi Infra Uganda Limited. He added that the tanks are complete, while the jetties and ships are near completion.
Upon completion, the 14-tank storage project will store up to 70 million litres of fuel making it one of the largest fuel terminals in East and Central Africa. With a 10 nautical miles speed, the 220 meters long jetty at Bugiri-Bukasa is estimated to deliver fuel in 16 hours.
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 L.Victoria which is the biggest water resource in Uganda, this fuel terminal will ease transportation of fuel between Kenya and Uganda considering that Kenya Pipeline Company has a fuel terminal at Kisumu on L.Victoria.
According to the chairman, the project will also store Fuels and load trucks for supplying in Uganda and to neighboring countries. This project is expected to kick off mid next year as Uganda finalizes preparation for its first oil production.
The completion of the project will ensure reliability in supplies as well as see citizens of Kenya and Uganda get employed directly and indirectly.
Uganda has always suffered a shortage in strategic oil tank reserves and it is projected that this US$270m investment will address this challenge as one ship will be able to carry about 200 trailers.
Kenya on the other hand has been very pivotal in rebuilding Kisumu port and it is not a coincidence that the Bugiri-Bukasa fuel terminal will contain a pipeline from Mombasa to Kisumu.
Mahathi Infra has successfully executed projects in Mozambique, India, Liberia and Kenya with an excellent working experience in Africa.
The Uganda project was hatched in March 2016 in a meeting between President Museveni and Mahathi Infra Services Pvt Ltd directors led by Ravi Sankar Yandapalli, Kalyan Swaroop and Mike Mukula where they discussed issues pertaining to the proposed development of fuel transportation from Kenya to Uganda through Lake Victoria.