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Shs400b to be injected in Mbale industrial park roads
Mr Tayebwa (centre), Mr Zhang (second left), former Energy Minister Irene Muloni (left) and other officials conduct a ground-breaking ceremony for the second phase of the UniSteel plant in Mbale District at the weekend. PHOTO / COURTESY
What you need to know:
- The 619-acre park, which was commissioned in 2018, currently grosses an investment portfolio of more than $600m (Shs2.2 trillion) from over 58 companies
Deputy Speaker of Parliament Thomas Tayebwa has said government has already contracted China Railway Number 3 Group to design and build key infrastructure in the Sino-Uganda Mbale Industrial Park.
The 619-acre park, which was commissioned in 2018, currently grosses an investment portfolio of more than $600m (Shs2.2 trillion) from over 58 companies, thus requiring improved roads, water and sewer systems.
Speaking at the launch of UniSteel first phase of steel rolling trial and ground-breaking for the second phase of production in Mbale at the weekend, Mr Tayebwa said Parliament and government as a whole are committed to seeing that the challenge of flooding due a poor road and drainage network in the park is mitigated to support the fast-paced growth the industrial park has witnessed since it was commissioned.
“Government has already approved Shs400b for infrastructure in this park. I think you have seen some work going on. Government contracted China Railway Number 3 Group and as the leadership of Parliament, we want to make sure that money is allocated to this project every financial year,” he said, noting that Parliament wants to get involved in the development of Uganda by prioritising key sectors of the economy.
However, Mr Tayebwa challenged investors to enhance investment in agro-processing noting that Uganda was exporting a lot of raw materials, thus losing billions in raw exports.
Earlier, Mr Paul Zhang, the Tian Tang Group and Sino-Uganda Mbale Industrial Park chairman had implored Parliament and government to expedite budget approvals to fund infrastructure works as scheduled.
He also informed Mr Tayebwa that there were challenges related to electricity supply, noting that the development of the park was dependent on sufficient and stable power supply.
“The first phase of UniSteel, which has an annual capacity of 700,000 tonnes of steel, requires 70MVA. However, there is currently only one 50MW mobile substation in the park. Government had promised to build a 240MW substation, but construction is yet to begin. I implore government to honour its commitment,” he said.
On Friday UniSteel launched the second phase of its $100m (Shs366b) plant, adding to the more than 58 companies operating in the Sino-Uganda Mbale Industrial Park.
UniSteel is one of the new entrants in the steel sector, which, according to Uganda Manufacturers Association, contributes more than Shs1.5 trillion ($413m) to the economy.
Mr Xu Shicun, the UniSteel chairman, said they will initially produce rebar, wire round, and other steel products to fill the gap in refined steelmaking, noting that the first phase of the project, which sits on 50,000 square metres, had been completed in just a year.
“Today, we held the trial production ... our project is the first large-scale investment implemented in East Africa after the Beijing Summit of the Forum on China-Africa Cooperation 2024 … this is another milestone for [Mbale Industrial Park] ,” he said.
