PARI,IAMENT OF UGANDA
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9.1,000,000)
FROM
THE.
AFRICAN
oEVELo~MENT
. . AFRICA.N
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DECEMBER 2016
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1.0 .INTRODUCTION:
C6Asi4et~d
JA
64,440,600 1 {USD$
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qfProceclute. :
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The request. was presented to this House by the Hori. Minister of Finance,
.Planning and:Economic Development on 20th September,.:20l6 and accordingly
referred to. thecqrnmitt6e: for . cdnsideration.
.The Cornmit~ee consiclered and.
2.0. . METHODOLOGY
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BACKGROUND
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~ociq-econorn:ic developril~nt
.. s1_lstainable
~~curity
.unity ancl
natio~al
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need not to
be:
. emphasized
..Road Infrastructure development is .a priority in the government's
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and
curr~ntly a
two lane tarmac Toad (one leine in ea.ch. direction) and is highly tongested
especially.at Busega with over26,000vehicles:per.day. The:road links Uganda
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to Rwanda and T<:uizania and will entail the construction ofa new.four~lane
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~~press l}ighway (23 .7klll} plus 20km of two lane iinkj service
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roa(is, 12krh of
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. This roa.d, is a vital missing 1i1lk which will support the regional integration
obje~t~ve ot.partner states ofthe EAC and Great L~kes Region. This road will
COUNT~YSTRATEGY
. ALIGNMENT.
OF TilE PROJECT
TO
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. Transport Strategy
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Eastern .Africa
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: sppports. qevelopment
s.o.
PROJECT.OBJECTIVE
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~e~uction
.poverty
and regional
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ii.
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~XPECTED
PROJ.ECT OUTCO
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IJ_
Indicator
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Enhanced trade Uganda0.66 ' m.illion To Increase to
atid . regi()nal .Rwarida . . trade tons. (Uganda~ 2.27
. _million
it1tegratiort
Rwat1da)
. tons . (Uganda.
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. RwCU1da)
2020.
by
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~-----~--~--~~----~--~--------+-----------~-USD$~0~
2020
USD$0:303
. '2018.
0.3hrin-2020
1,60Q
.traders
:.efonomit .
.Rwanda border
border
tr~ned, (Uganda.
-~+-~~~~--~~---~~~--~~S_t~d~_~}~~~~~
Uganda~
.empowerment. of
.~
20k~
.roads; 12):{m of interchange l9ops a!ld. ~km of auxili~ry Janes all totalling
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--.---"----+.,----.,.,.._._
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' . constn.iction
. . Busega ~~lY.Ipigi
expre~~ ...highway
(23.7km) in on~ lot
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and 2.35
(L73/o)
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ReView
and . . construction
Design
supervision; >
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Quality Assurance; .
Contract . management; and Baseline
collection; .
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and
Road safet)Taudit_.-'"""--------'-'------'--
.. be
f TQtal
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uA 136.13
ctndsourceof.Finance.q.reshownbelowin Tables
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. Bank {ADBff African Development Fund _(ADF):.and the ;Governrhent .of :ugantla. . ., . . ..
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ullder the ADF Performance Based Allocation and the APF Regional ()peration
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31.22 /o _ofthe t()tal:prpject cost. GOQ will finance -21;44. /o of th.e total prpject0
' qosts
:amounting
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_Table 3: .SQurce
ofFinanc~
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Total ....
64.44
. 20:00 ...
_ 22~50
29;19
136;13 .
GOU--
Total
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14;69 . ... . .
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16.~$3:
21~44
100.00
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. The constructionof the new four-lan~B\lsega- Mpigi eXpress highway takes the
_ .highest:share._oft~e .t(Jtalproj_ect--cost. (61.25%)-am~urttin~.to UA 83-.38 million
: (Appro){ lJgx:G85.66 Billion).This -will entail the cot1struction.-of Busega~Mpigi
- . Express highway .on a ~ew alignment with four grade~ separated interchanges
plus 20k:rh oftwolane. link/ service roads, :12km ofinterchahge1oops and 8km
ofauxiliEuy lanes.
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equivillentto DA29.19
'on ~(21.440fo of--the t.otal project c~st) (ApproxUgx 135.02 ._.billion) .for
.imp em~ntaii~n of~he ~p in ~rder :implement the entire construction_of the
Busega- _pigi express highway. -
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Consvlta1lcy services will take 4.69% of the total project cost. equivalent to UA
6.38 million (Approx Ugx 29.51 billiop), and will JinahGetheacqui~itionof
consulting setvices; tqwards design review ancl . constructioh supervision,
quality assl:lra!lce,. contract. management, baseline data. collection, .financial
and technical
audits.
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.and
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Capacity bvilding .will take L73o/o of the .tothl proj(:ct cost
equivalent to UA .2. 35 million (Approx UGx . 10.87. billion), .and willfinanCe .the
vndertakingqfa tenYem Road Sector Development Progl"am 3 study, dtCtailed
engineering design studies of c!indidate/pipeline r()!i-d sec: tor projects, capaCity
. building for lVIoWT, <training p.nd. capacity buildin.g for . cross. border w6mer1
traders at NJira11la Jiills and vendor~ . (mainly women and yo{ith) .in Kampala
(Busega . Market) in collaboration with UWEAL (Ugand~ Worrien Entrepreneurs .
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. Association Limited); and Road safety audit.
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To .cater for 1111foresee~ phy~ical and price variations, 6~9o/o (l_nd 5.4/o of the
baSe. cost of the. projcc;t are provided in .. the total. project cost to c.ater. for the
.physiqaJ .and
c()J1tingency :respectively~
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'l'heterrns of
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Base
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+ F\lnding
Lending
, .M:a1urity Premium7
+
rylargin s
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annti,m . on
'undisbursed loan amount
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cettify:i~g fuat
Atto~tiyy:
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. detailing the
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c) Proyision of: c9un terp~rt financing for the Project in its three year$
Mid-Term Expenditure Framework and. in its ann.ual budgets. for
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T.The 11aturity Premium:is based on the Average L,oan Maturity, wlli~h is.defined as
the weigf.tted~ average tim.etq repay a loan, calculated as th,e av~rage number ofTear.s
.. up.til each piincipa.l.repayment amol.lnt of the loa.Il is ciue) ~eighted by th.e. princip
. :repayment amounts; Loar1s with~ an Average Loan .Maturity less than or equal Jo
._ 12.75 year~ willincur n(j (Nil) M(;lturity Premium;an Ayerage LoanMaturity.greater
.than 12.75 years and up tolS 'years will incur 10 bps (0.-10/o) Ma~urity Premhim; an
Average Loan Maturity greater than 15 years and up to 17 years Win incur 20 bps
(0.20%) Matu.rit:Pr~uj;.
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!";) Governrrie'Ui: to
pro"\Tide th~ Barik with
art):lual reportS
oh measures
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The Loa11
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TheJoali -will no-- doubt increase. our total nominal :public. debt .that is
currently.
-
~t US$
contribUtes 59;2/o of the total debt while 40.~0/o is domestic_ debt.: The
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last DSA was upder takGn in December 2015 to assess the: :Country's
. ability
T~e. DS~
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24.1 per cen.t as: oferid of June 2015. This is :relatively below the Public
Debt Mancigemei1fFrall1ework threshold ofSOper cent ..
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10;7/o ih 2014/15
to
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at 33.9/o n 2ors;019 and 2or9.f2o but stin remaining below the P11blic
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increa~e.
term ..
. 8.0 . IMPLEIVIEN.TATJON.ARRANGEMENTS
The ptojectwill
impl~merttirig
agency. .
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~uri~g the execution of the project, UNRA shall be responsible for the following~ _
amongst others:
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.The. Executive
Director ..of'UNRA . . will'be . the accounting
officer fortheproject,
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management: aT1d: toll operation in . otd~r to maintain .srhooth and safe traffic.
flo~ at all times. This wiltbe. very vital for the proj.ect's overall viability as the
. toll r~veriue Will very. mUch depend qri the confic}ehc!'l use;s haye jn th~
reliability ofmovernenf:. along the
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U~RA 'Yill pursue .one. ~f1:he f(}llowing strategies to manage the road f8.cilit}':
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. (i) Procure :an qperatof under Public-Private Partrtership (PPP): .:under this .
. arrartgernent:the:operatorWill.collec(on
behalf of.Goverl1mcnttoll.fees
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respol1~ibl~ for
111aintaining tl1e facility and collecting all revenues ncluding tolls from the
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~ould.
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loan.rep~Yrn~nL.
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(iii)UNRA will manage. the facility with toll collections ~nd maintenance
..operatfon,s executed di~ectly by UNRA .
. . .UNRA>wiUcollduCt a Value
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AND 'RECOMMENDATIONS.
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tr~ffic
Busega-Mpi~i
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the Express
Highway be fast tracked
to ensu~e that
.the two road
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the
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high .. capacity
Busega~Mplgi : Expl'es~ '.:Jiighwat
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and
.: . deco:ngesti~riofth~ city.
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Co:ntm.ittee recommendsthat the willingnes.s- to~. .pa.y
study.
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. .be .expedited t() provide .guidance to us~rs' .willingn~ss to. pay and ..
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Government should
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tQll pay
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aff~cted perso.ns
: . expet1itio11sl~lJ1
()n
pre-e01pt
to.
ll\ck> of
:r~mmends
person~
. ~uld be done before the loan requests are made to parliament .. ~_;
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Furthermore:
the
committee
(v) The Committee ol)served that currently, t~ere is Weak local contractor
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. . . capacity. which 1-esults in: all the .projects .being executed by f()reign
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T~e coritmitte~
tr~n,sp~rt
th~
recommendS that
-should: . put in
place
poli(!Y
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prescriptions
to promote
:
.the
all
locally:
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The... committee
recommends that th~_ lVl~nistry of works and
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pl~ce
policy
to . pro111ote . the
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nurtu~ing them . in
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sourc~d
f~cilitate<
acquisition. of
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executed
independently without central 'coordination.
The .result being .
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redundancy.
: whenever . infrastructure
projects
_are
implemented
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to
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aCC()IllDl()date
aJ]long
others
poWer
Ballk .funded.
project on
. As a
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t~~
capacity
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for.
F()lloWing .
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road~ Go'\T~rnment
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should
coordinate . infrastructure
Plan~ing
development
initiatives
to . avoid
The
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the
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sh<>Uld consider acquirihg ll central c()rddol' for
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infra~tr\lcture p-rojects_
to
Infrastructure
accommodate.
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among
'others . power
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iniplemente.cl. to
lines, . water.
pipes,
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()t the
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. n .. Develop~~nt sh<iuld
of
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for
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land
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a l~ttd
OJJ1.budsuiall. to arbitrate.in.
l~rtd val~ation ..
should
The
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. people encroaching
.on Government property and being Go1llpensa.tion
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when Governme!lt
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that. all
land .acquired
by
.. : :~ p event encroachment.
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CONCLUSION
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the CoiiUilittee
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noted Goverhtnent
irnprovernGnt.
. allocated.:td
.the.... .sector. Tbe construction of the Busega-Mpigi
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Exp;ess~ayJor
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({;~D$ 91;ooo ,OQO) from the African DeJe~oprh2nt Bhk: (ADB). and
B~nk
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DEVELOPMENT BANK
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.CONSTITUENCY
Katerera County
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Mh~e Municipality_
Busongora North_ ..
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Soroti MunicipalitY
SIGNA"l"URE