Uganda uk business forum 6 7 may 2014
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“Uganda-UK Business Forum 6-7 May 2014”. Investment Opportunities In the Works and Transport Sector A Presentation by: Hon. Abraham Byandala  Minister of Works and Transport of Uganda 6 th -7 th May 2014. Background.

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Uganda uk business forum 6 7 may 2014

“Uganda-UK Business Forum 6-7 May 2014”

Investment Opportunities In the Works and Transport Sector

A Presentation by:

Hon. Abraham Byandala 

Minister of Works and Transport of Uganda

6th-7th May 2014


Background

Background

  • Africa still has a great need for basic infrastructure as connectivity between regions is lacking;

  • With the current efforts for East African region integration, there is a great need for regional infrastructure projects;

  • Access to Transport, Energy, and Water in East Africa is still inadequate;

  • Transport infrastructure is the least developed yet it is Vital for Economic Growth.


Current strategies

Current Strategies

  • Sound planning is the key to effective implementation;

  • Government policy is for private sector to lead;

  • New technologies will deliver cost savings;

  • Focus on major regional/ trading corridors;

  • Continue management reforms that have been underway since the late 1990’s;

  • Provide specially focussed support to the Primary Growth Sectors of Oil and Gas, Agriculture and Tourism.


Oil sector 3 main production areas

Oil Sector3 Main production areas

  • A reliable Transport system is required to support:-

  • Import of Oil Production Plant and Equipment – from seaport(s);

  • Movement of materials for construction – from Uganda and Region;

  • Movement of workers;

  • Movement of consumables for workforce.

Buliisa

Kaiso/Tonya

Kingfisher


Agriculture sector

Agriculture Sector

  • Contributes 20% of GDP;

  • Accounts for 48% of exports;

  • Employs 73% of country’s population.

  • Investment in Transport will:

  • Increase productivity in productive areas;

  • Open up new areas for production;

  • Improve export competitiveness.


Tourism sector

  • Investment in Roads to:

  • Access Parks from Kampala/Entebbe

  • Link Parks with each other

  • Provide access within parks (unpaved)

Tourism Sector

Improved Local

Access

Improved ‘Circuit’

Tourist Road Projects


Key projects in the transport sector

Key Projects in the Transport Sector

  • Construction of the Standard Railway Gauge on regional corridor routes;

  • Increasing capacity of Air Transport;

  • Revitalisation of Lake transport (Construction of Bukasa Port);

  • Development of Regional Road Transport corridors and Bankable PPP Road Projects;

  • Development of Public Transport System.


1 priority rail corridors northern central corridors

1. Priority Rail Corridors (Northern & Central Corridors)

Packwach

Tororo/ Malaba

Nimule

Kampala

Nakuru

Kasese/ DRC Border

Gulu

Kisumu

Bukasa Port

Port Bell

Mombasa

Kabale/ Kigezi Iron Ore

Mwanza

Rwanda/ Burundi

Tabora

Legend:

Northern Corridor

Central Corridor

Dar Es Salaam


Uganda priority rail projects

Uganda Priority Rail Projects

  • Kampala – Malaba Standard Gauge, 250km ($1.1 Bn)

  • Tororo-Packwach/Gulu-Nimule, 600km ($2.4 Bn),

  • Kampala-Kasese, 340km ($1.2 Bn)

  • Bihanga-Mirama Hills, 180km ($800m),

  • Pakwach-Kasese, 300km ($1.2 Bn).

2

5

1

3

4


2 priority air transport projects

2. Priority Air Transport Projects

a) Rehabilitation of Entebbe International Airport;

  • New Cargo Centre;

  • Expansion of Passenger terminal building;

  • New fuel farm;

  • Expansion of Apron 1;

  • Strengthening the Runway;

  • Construction of domestic terminal;

  • Expansion of car park;

  • Construction of aircraft maintenance facility;

  • Project cost: US$ 173 million.


2 priority air transport projects1

2. Priority Air Transport Projects

b) New Airport at Kabaale (Hoima) to facilitate Oil Industry

  • New Runway;

  • New Terminal Building;

  • New Cargo Centre;

  • Project cost: US$ 200 million.


3 priority lake transport projects

3. Priority Lake Transport Projects

Development of New Kampala Port at Bukasa

  • Civil Works & Dredging;

  • Three terminals and Oil Jetty;

  • Cargo Handling Equipment;

  • Container handling equipment;

  • Container Yard/Container storage;

  • Marshal Area, Office facilities;

  • Parking Yard & Clearing facilities;

  • Railway sidings, Road and railway access;

  • Estimated project cost: $322 m.


Priority road ppp projects

Priority Road PPP Projects


Key priority road ppp projects

Key Priority Road PPP Projects

  • Dual Carriageway (2-4 lanes each direction) ;

  • 95Km long Greenfield project traversing swamps and marshland;

  • Estimated Project Cost US$1.09 Billion;

  • EIRR = 26.4%, NPV=US$ 1.05 Billion;

  • Readiness to tender: 6 Months;

  • Proposed Financing Mechanism: Public Private Partnership (PPP).

(i). Kampala-Jinja Expressway & Kampala Southern Bypass


Uganda uk business forum 6 7 may 2014

  • Dual Carriageway (2-3 lanes each direction);

  • Project length: 35 km;

  • Greenfield project traversing swamps and marshland;

  • Estimated Project Cost US$ 350 million;

  • EIRR = 19.6%, NPV=US$ 200 million;

  • Readiness to tender: 1 year;

  • Proposed financing Mechanism: Public Private Partnership (PPP).

Key Priority Road PPP Projects (Cont’d)

(ii). Kampala-Mpigi Expressway


Uganda uk business forum 6 7 may 2014

  • 4(b) Priority Road Corridor Projects

  • Northern Corridor (Kampala-Malaba);

  • Gulu-Kisangani (Goli);

  • Gulu to Nairobi (Tororo/Malaba);

  • Gulu to Juba (Nimule);

  • Gulu to Mbarara;

  • Northern Eastern Corridor (Tororo-Kamdini).

Kampala and Guluwill become regional hubs as a result


Uganda uk business forum 6 7 may 2014

(i). Kampala-Nairobi via Malaba Corridor

  • 10 year Design-Build-Maintain-Operate-Transfer (Asset Management) Contract;

  • Upgrading sections of road to dual carriageway;

  • Rehabilitation and upgrading of sections of the road corridor;

  • Routine and periodic maintenance of the whole corridor;

  • Road safety and traffic management and axle overload control;

  • Project length: 221km (Uganda section only);

  • Estimated Project Cost US$ 740 million;

  • Readiness to tender: 1 year.


Uganda uk business forum 6 7 may 2014

  • Conventional Design-Bid-Build contracts for corridor sections;

  • Upgrading to Class I paved roads;

  • Rehabilitation and upgrading of sections of the road corridor;

  • Routine and periodic maintenance of the whole corridor;

  • Road safety and traffic management and vehicle load control;

  • Project length: 185 km (Uganda section only);

  • Estimated Project Cost US$ 140 million;

  • Readiness to tender: 1 year.

(ii). Gulu-Kisangani via Goli Corridor


Uganda uk business forum 6 7 may 2014

(iii). Tororo/Malaba-Juba via Gulu Corridor

  • 10 year Design – Build – Maintain – Operate – Transfer (Asset Management ) Contract;

  • Rehabilitation and upgrading of sections of the road corridor;

  • Routine and periodic maintenance of the whole corridor;

  • Road safety, traffic management & vehicle load control;

  • Project length: 340 km; Estimated Project Cost US$ 300m;

  • Project preparation supported by the World Bank;

  • General Procurement Notice (GPN) advertised in April 2014;

  • Request for Expression of Interest for Supervision services to be advertised by June 2014.

- Tororo-Kamdini Section (340km)


I bus rapid transit brt

(i) Bus Rapid Transit (BRT)

5. Priority Public Transport Projects

Main characteristics

  • Infrastructure Capital - $220m

  • Buses - $55m;

  • Total Cost – $275m;

  • High-frequent mass transport with Large buses, Separate bus lanes;

  • High speed, Safe & High quality

  • Affordable, & Cost-effective;

  • High capacity vehicles: 18m long articulated buses, with a capacity 150 passengers (60 seated + 90 standing);

  • High frequencies: up to 10 vehicles per hour (one way).


Uganda uk business forum 6 7 may 2014

5. Priority Public Transport Projects (Cont’d)

  • Links from Mukono Railway Station to Bujuuko Railway Station via Kampala (City Centre) Railway Station (54km) and Port Bell to Kampala (City Centre) Railway Station (8km);

  • Project length: 62km;

  • Estimated Project Cost US$ 69 million;

  • Financing mechanism: Private investment in rolling stock and operations. Public investment in infrastructure;

  • Readiness to tender: 2 years.

Project Details

  • Upgrading of railway infrastructure;

  • Procurement of rolling stock for passenger rail services;

(ii) Urban Rail Project


Conclusions

Conclusions

  • Investment and business opportunities are available in the works and transport sector as highlighted;

  • There is predictable investment environment;

  • Fully liberalised economy, good market access;

  • Enabling legislation such as PPP Policy has been approved by Cabinet and will soon be approved by Parliament;

  • There is strong natural resource base; and

  • Government will support the private sector.


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