U g anda investment forum 2013
This presentation is the property of its rightful owner.
Sponsored Links
1 / 15

U g anda Investment Forum 2013 PowerPoint PPT Presentation


  • 43 Views
  • Uploaded on
  • Presentation posted in: General

U g anda Investment Forum 2013. April 11, 2013 Sheraton Hotel Kampala. Public Private Partnerships: “Stimulating, Modernizing and Growing Uganda’s Economy” by Hon. Aston Kajara Minister of State for Finance (Privatization). Introduction.

Download Presentation

U g anda Investment Forum 2013

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


U g anda investment forum 2013

UgandaInvestment Forum 2013

April 11, 2013

Sheraton Hotel Kampala

Public Private Partnerships:

“Stimulating, Modernizing and Growing Uganda’s Economy”

by

Hon. Aston Kajara

Minister of State for Finance (Privatization)


Introduction

Introduction

  • Provision of infrastructure and related services is traditionally a role performed by Government

    • finance, build, maintain and operate

    • procured through works procurement

    • all risks on government

  • Untenable due to inefficiencies, mismanagement, competing needs, limited budgets

  • PPPs - alternative to stimulate, modernize and grow Uganda's economy


What are ppps

What are PPPs?

  • Private sector involvement in providing infrastructure related services

  • Emphasis on economic and social infrastructure

  • Long term contracts that stress service delivery rather than asset creation

  • Several Types – Design, Build, Finance, Operate

    – Concession

    – BOT, etc.


Why ppps

Why PPPs?

  • Infrastructure requirements outstrip budget allocation

  • Private sector financing - increased infrastructure investment without Gov't borrowing

  • Private sector management and innovation - increased efficiency and productivity

  • Risk sharing – Gov’t remains with residual risks

  • Scope for user charges – less cost to Gov't


Success factors

Success Factors

  • Service specified in output terms

  • Competitive tender process

  • Optimal risk transfer

  • Institutional framework:

    • political commitment and good governance

    • legal system to assure private sector

    • appropriate capacity in managing a PPP program, project selection and appraisal, negotiations, contracting, etc.

  • Not burdened by uneconomic objectives


The case for uganda

The Case for Uganda?

  • Vision 2040 – To transform the economy to middle income in 30 years

  • National Development Plan designed to incrementally achieve this vision (5 year plan)

  • NDP 2010/11 – 2014/15 recognizes engagement of private sector in service delivery (PPPs) as a key strategy

  • Government commitment to infrastructure dev’t


Investment priorities

Investment Priorities

  • Increase stock of physical infrastructure

    • Energy

    • Transport – rail, road and water

    • ICT

    • Tourism, trade and agriculture infrastructure

  • Others

    • Improve quality of Human Resource

    • Promote science and technology


Infrastructure funding gap

Infrastructure Funding Gap

  • Infrastructure requirements – approx US$ 30bn

    (in the next 5 years)

    • Of which National Core Projects – US$ 8.5bn

    • Approx 50% unfunded

  • Balance social infrastructure, services and Human Resource capacity building


Core projects

Core Projects

  • Oil and Gas

    • Oil Refinery

    • EAC Inter-state distribution pipeline

  • Energy – Large Hydros (Isimba, Ayago)

  • Transport

    • BRT for Kampala

    • Water on Lake Victoria

    • Standard Rail Gauge (Malaba – Kampala)


Core projects cont d

Core Projects Cont’d…

  • ICT - IT Business Parks

  • Trade and Industrial Development

    • Phosphate industry

    • Iron Ore

    • Science Parks/Technology Incubation Centres


Social infrastructure ppps

Social Infrastructure PPPs

  • Education and Sports

    • Public Universities overcrowded, opportunity for PPP

    • Skills Development – private schools

  • Health

    • Health infrastructure and equipment

    • Training

  • Water and sanitation

    • Rural water supply

    • Solid waste management


Challenges

Challenges

  • Limited resource envelop so Gov’t has opted to embrace PPPs

  • Capacity constraints to implement PPPs

    • Institutional

    • Resources – local capital

  • Inadequate legal/regulatory framework

  • Public awareness/expectations

  • Ad-hoc selection of projects for PPPs


Government interventions

Government Interventions

To provide a conducive environment,

  • PPP Policy has been passed

  • Pipeline of PPP projects has been prepared

  • PPP Bill has been tabled in Parliament

  • PPP Unit or Department – to be established

  • Limited number of ongoing projects

    • Roads (Kampala – Entebbe highway)

    • Energy (Bujagali and Eskom hydro projects)

    • Office Accommodation and Housing


Conclusion

Conclusion

  • PPPs can provide a viable mechanism to execute strategic projects for national development.

  • Government wishes to partner with the Private Sector to provide solutions to meet Uganda’s infrastructure and social services needs through PPPs mechanisms.

  • Government is prepared to address the key challenges identified as major hindrances in PPP project implementation.


Uganda investment forum 2013

THANK YOU !


  • Login