“Uganda-UK Business Forum 6-7 May 2014” - PowerPoint PPT Presentation

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

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  1. “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

  2. 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.

  3. 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.

  4. 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

  5. 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.

  6. 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

  7. 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.

  8. 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

  9. 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

  10. 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.

  11. 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.

  12. 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.

  13. Priority Road PPP Projects

  14. 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

  15. 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

  16. 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

  17. (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.

  18. 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

  19. (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)

  20. (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).

  21. 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

  22. 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.