Infrastructure projects to look out for in 2025

Uganda is getting ready for a politically-volatile year, which could determine the fate of a number of key infrastructure projects.

For more than a decade, Uganda has focussed on building its infrastructure network by allocating the lion’s share of the national budget to this subsectors. The components around the roads and energy sectors have accounted for most of the money from the budget.

However, as Uganda heads into the general election season, with President Yoweri Museveni expected to seek a seventh term that could extend his rule beyond 40 years, a number of infrastructure projects will either be fast-tracked for political mileage, or delayed in anticipation of any violence that might erupt. In this story, TIMOTHY NSUBUGA looks at the projects that ill define the infrastructure outlook of Uganda in 2025

East African Crude Oil Pipeline

Perhaps no oil infrastructure project has faced global criticism from environmental activists such as the East African Crude Oil Pipeline – a 1,443km project that will run from Hoima in western Uganda to the port of Tanga in eastern Tanzania.

The $4 billion project has come under criticism from climate activists who claim the pipeline will emit toxic carbons into the environment and aggravate the effects of climate change, and that many people have been aggressively evicted from their land without compensation to pave way for the project.

Uganda’s government says these allegations could not be farther from the truth. As a result of these allegations, financial institutions have shied away from lending money to the project, delaying its construction. There was expectation that at least a loan of $1.2 billion would be sourced by December. It did not happen!

Now, the ministry of Finance, Planning and Economic Development says the debt financing for the project might be concluded in the first quarter of 2025. The EACOP is seen as a game-changer for Uganda’s economy as it will make the country an oil producer.

Kabalega International Airport

The Kabalega International Airport in Hoima district is one of the most important infrastructure projects within Uganda’s oil and gas industry. A lot of the equipment for the oil and gas project is expected to land at the $323 million airport.

Although much of the construction works for phase one of the airport are nearing completion, an amendment to the original design has seen a delay in the commissioning of the project. Now, the government says the launch of the airport is expected in September 2025.

Within the same year, government is expected to see the feasibility study for phase two for the expansion of the airport completed.

Kabwoya-Buhuka road upgrade

Many roads in the region surrounding the oil and gas areas in Uganda have been upgraded to bitumen as companies move equipment into the fields. The latest road that is due for an upgrade is the Kabwoya-Buhuka section, a 43km asphalt surface road which will connect the Kingfisher oil area at Kyangwali.

The Government of Uganda is funding the road works under a pre-financing arrangement with the Chinese government. This is being implemented as a design and build project by China Railway Seventh Group Co. Ltd. The scope of works will have a design life of 20 years.

Standard Gauge Railway

In the first week of December 2024, President Yoweri Museveni launched the construction works for the Standard Gauge Railway, a month after government signed a contract with Turkish firm M/s Yapi Merkezi.

The launch of the MalabaKampala route will set the stage for the construction of the Euro 2.7 billion (about Shs 10.8 trillion) project, which will lead to a huge drop in the cost of transportation for goods.

Transporting a 20-foot container from Mombasa to Kampala costs about $3,200 currently but with the SGR, that figure will drop by a half to about $1,600. Major construction works on the SGR are expected in 2025 as the contractors try to finish the job in under four years.

Koboko-Yumbe-Moyo road upgrade project

The Koboko-Yumbe-Moyo road is the longest on government’s plans, whose construction works are expected to start in 2025. The 103.08km road is expected to boost trade between Uganda and DRC and also support the South Sudan route.

The road, which is being funded by the World Bank to a tune of Shs 430.2 billion, will be upgraded to bituminous standard. Currently, the consultant, Intercontinental Consultants and Technocrats PvT Ltd, in joint venture with Gauff Consultants (U) Ltd, is supervising preparation works for the road.

The contractor is also mobilizing engineers’ and employers’ facilities, sourcing materials, and auxiliary sites. Stakeholder engagements within the communities are also in progress ahead of the start of construction works in 2025.

South Sudan – Uganda Power Transmission Network

The African Development Bank will seek approval from its board in early 2025 to fund the South Sudan – Uganda Power Transmission Network, which will consist of a 299km transmission line between the two countries.

Also under this project, two new 400/132/33kV substations will be constructed – one in South Sudan at Gumbo in the outskirts of the capital Juba, and another in Uganda at Bibia near the border with South Sudan, and integrating the surrounding 33kV distribution network.

While construction works for this project are expected to start in 2026, pre-construction activities are expected to start in 2025.

The entire project cost is estimated at close to $260 million. Uganda plans to export between 45MW and 260MW to South Sudan when the transmission network is commissioned. This electricity will be evacuated from the newly- commissioned Karuma hydropower project.