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Oil & Gas: Handover Of Kabalega International Airport Pushed To September Next Year

Kabalega international Airport in Kabaale village, Kabaale sub county in Hoima. The handover of the airport has been pushed to September 2025.

The handover of the Kabalega International Airport in Hoima district has again been pushed to September 2025.

The contractor, a joint venture of Israeli-British firms, Shikun and Binui International-SBI/Colas Limited, had initially planned to hand over the airport to the government last month.

However, Buchbut Sharly the managing director for SBI International which is currently undertaking the construction works noted that they are seeking more months to allow for the completion of crucial works, such as the construction of the control tower, installation of electricity, Installation of CCTV Cameras, fibre optic cables and other operations at the airport.

Initially, the airport was designed to have a mobile control tower, however, the design was changed, and the airport will have a fixed control tower.

According to SBC, the change in the design of the control tower impacted a lot on the progress of the construction of the airport hence causing delays.

The contractor is currently seeking for additional 76 billion Shillings to have the remaining work fully completed.

Fred Byamukama, Minister of State for Works and Transport said that currently the government has so far spent 1.08 trillion shillings out of the 1.188 trillion budgeted for the airport construction works.

Byamukama said that the airport is expected to be commissioned in September next year since most of the major facilities have already been installed.

Byamukama further stated that the airport once finished will boost the oil and gas industry as well as agriculture and tourism industries in the Albertine region and the country at large.

He has appealed to the people of Bunyoro to prepare and tap into opportunities that will accrue from the construction of the airport.

Kabalega International Airport, financed by Standard Chartered Bank with a budget of USD 309 million, will have the capacity to accommodate four cargo planes simultaneously.

The Airport is one of the key support infrastructures for the next course of the fast-paced activities leading to commercial oil production.

The airport will feature a fire station, apron, control tower, accommodation facilities, parallel runways, taxiway, air rescue firefighting house, power substation house, communications and navigation systems, perimeter fence, and air-ground illumination system, among other facilities.

The runway, measuring 3.5 kilometres in length and 45 meters in width, is 99 percent complete.

The cargo terminal building, limited-capacity passenger terminal building, air rescue firefighting house, power substation house, and air-ground lighting system are all complete.

Currently, work at the airport stands at 95 percent.

In February 2023, the contractor halted the construction works at the airport following the government’s failure to allocate more than 126 billion Shillings to complete the remaining works.

The contractor then said that the funds were needed to complete the control tower and other operations at the airport.

During a field visit at the airport then, Byamukama said that the government was investigating the contractor for allegedly exaggerating prices for some construction materials meant for the construction of the airport.

He said the contractor is suspected to be conniving with some top government officials to swindle money meant for the construction of the airport.

He added that the contractor under unclear circumstances demanded an extra 126 billion Shillings from the government to complete works at the airport yet the government had cleared two hundred sixty-four million Euros needed by the contractor for the entire project.

Byamukama said that the government was negotiating with the contractor but would consider terminating the contract if negotiations did not yield.

However, in April 2023, the contractor resumed construction work after they reached a consensus with the government.

-URN

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