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PARI,IAMENT OF UGANDA

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REPORT OF THE 6oMMITTEE oN NA'l'ItiNAL ECoNoMY .. oN


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THE PROPOSAL BY GOVERNMENT TO BOimOW UA 64,440,000


MILLION . (USD_$
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9.1,000,000)

FROM

THE.

AFRICAN

. DEYEL_OPlV(ENT BANK (ADB) ~~D UA 42,500,000 (60,000,000)


. FROlVl: THE A}4'RICAN DEVELQPMENT FUN]) (ADF) OF THE

oEVELo~MENT

. . AFRICA.N
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BANK GROUP (AI>B) FOR FINA~CING

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DECEMBER 2016
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1.0 .INTRODUCTION:

Rt. Hen~. Sp~aker, J-lon. Members; the Committee on .N~tionaL Economy

C6Asi4et~d

the feq]_lestby GbvernipeAt to borrow

JA

64,440,600 1 {USD$

9k,OOO~OC)0) fro1n the African: Developii1ent Bank (Al)B) and UA42,500,000

.~African . Dev~lopment ,Fl.lnc1 (AD F) of the .African


Development Bank. Group (ADB) for.. financing toe Busega~-Mpigi Express

. (60, ()()o ,000) . from . the

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high~ay Project,: inaccordanc~with Rule

166 (2) .(bl

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~fthe Parliamentary R.tiies.

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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scrutiniz~d the request arid now: begs to report.


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.'fhe:corn.rnittee held.m.eehngs with;


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.The M,inistry.~f Finance,.Plain1ihg and Economic Development;

n. The )viinistry for. Works and 'transport;


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UgandaNatiql1al Roads Authority (UNRA)

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The Comtriittee StudieCl


artd made reference
to the following J:)otuments;
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The ::Mi11isterbfFinance, Planning.and. Ecdnomic'Developmenfs brief.


on the ,loan request;

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The Busega-Mpigi and Kagitumba-Kayonza-Rusoma Roads Project

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1'}1e draft loan agreernent between the Republic

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6f Uganda and the

African.E>evelopment Fund (l\.IDB) ofthe.African Development Bank.

Gr~up (AP B) ...

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also undertook a field inspection visit to a section of the

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iln:pleme.t1tation site of the proposec:ltoad project starting at Busega:: in the


district_ or' Kampala. . . .

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BACKGROUND

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The provision of an efficient road network has been an important focusand a

in the development efforts


of. African governments
and the: dohor
.key ingredient
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6omt111.lnity 1ti .the.rec~l1t years.. : Government has therefore accorded significant


importance to' the provision .. of

sqund ~nd well-coordinated transportation .

_system. . .
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Trartsport'inftastructure has been considered .as a_ pfe-reql!isite for ensuring

~ociq-econorn:ic developril~nt

.. s1_lstainable

~~curity

.unity ancl

and. consolidation of. both.

natio~al

of:the courttry .. The linkages:()f transport. to. poverty.

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.reductio~- and to lon.gterm economic growth ate significant arid

need not to

be:

. emphasized
..Road Infrastructure development is .a priority in the government's
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. ..eo m prehensive development .strategy

and

its benefits are anticipated . t()

r~.flected.in<bett~~ iricoriles and higher.. economic growth~


The Busega:.Mpig;l Expresswayproject_islocated in.Central Uga11da ~nd form~
part. ofthe Northern :corridor. .The existing Busegae-Mpigi road is

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

: also support et(_)nomic co~operation between Uganda to


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COUNT~YSTRATEGY

. ALIGNMENT.
OF TilE PROJECT
TO
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R~ancla.

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.Tlje interv~ution :ofthi~ :road projecti~ ip line. with; .


The Uganda Vision 2040; .

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Th~.. Second N.ational Development Plan (NDPII20:l5/ 16-2019 /20);;

. Transport Strategy
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Eastern .Africa

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of th~ EAc;and
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Regio~ar' I11tegratiol). Strategy. Paper .(EA-RISP),' which

: sppports. qevelopment

~f. infrastructure which has :an impact on regional

transport. and integration.

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PROJECT.OBJECTIVE
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The sector:goaloftheprojectis to contribute tosocio~economic development,

~e~uction

int~gration through an , improved .and


stistainable transport system.thatlink~ ce11ters of economic ~cthrity .. ..

.poverty

and regional

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. Jhe projecr.obj~ctive~ .a.re: ...


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Td contribl.l te>to improving road. transportc:ttion and. trade fa2ili tation


alortg the N()rtherri and: Ce~ traJ. Corridors; and

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T<J stimtllat.e arid. suppqrt local 'economic activities. by reducing transport


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~XPECTED

PROJ.ECT OUTCO

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traveled K~u;r~pcila~ M pigi road section~.


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estiori on the heavily .

.cOsts and travel time, and decreasing traffic

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Indicator

. _!arg~___ _:_ __ ;._,~~-~


USD$ -1,039. in
. :2020

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GDP per capita


~cC>nomic
socicli. welfare; of .
.pGrsons in th~ . . .
zone. of-influence .

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.g!~~!!:_~20ttl.4<?E_::~. ~_.__--'.C:.:_:_..:.~~-- _ . , ...- --~::_-''~----"--~-' : ,___,______ L___,_,__~~.:-c._
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)

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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

.Source: _P.roject Appra,is~l Docum.e,..t(Mciy,20 16)


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PROJECT ]):EscRIPTION" -AND coMPONENT$,

Bu~eg<i ~- Mpigi r~ad projectco~prises

Busega~~ M pigi expres~ highwa~

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civil works for the construction of

(23 .7-km) plus

20k~

of two lan~ link/ service

.roads; 12):{m of interchange l9ops a!ld. ~km of auxili~ry Janes all totalling

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.Construction of a new four-latl_e expressway/ .


motorway of approximately .. 23. 7km length
r1ew alignment;
.construction . of. 4 Major interchange~
facilitate . inter~c>nnection ... .with .. roads .
. . designated lo~ations (N abbirigo, Nsangi, Maya
& Lungala);
Construction. of. 20km of. link/serVice r(.)ads.
(7m wide carriageway, 2xl.5m shoulders);.
Construction of 8km o( auxiliary lan~s
.(deceleration &acc~letatiori);2x3;5m wide;.and
. Gonstn.iction .<of 12krtl _of irtterchange . loops .
. (4.0in wicie catfiageway, 2x2:om shoulders)~
... Construction of 5 1,.1nder1overpasses
facilitate closed access system;
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Lighting for the entire . length of
expressway;
12.6km of swamp treatment (i.~ between
km4.5-12.5, kml3 . .1~15.7 & kml9.l~2Ll).

' . constn.iction
. . Busega ~~lY.Ipigi
expre~~ ...highway
(23.7km) in on~ lot

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and 2.35
(L73/o)

:Financial arid 'rech~icai audits. _ ___..,_____._____________,--!

Ten Year Road Sector Development


Program: 3 . study. to clearly derive
priority list ~ 6f . road ii1veE;tment.
progtamtne . qVer a period .of 10 yeaxs;
Study to prepare . . candidqte I pipeline
road upgrading projects;

. Capacity building for MoWT to support


the Update of the rbad and bridge
design manuals, setting performance
indicators, . monitoring . . and :reporting
the
pt;rfor!p.ance
of UNRA 1n
accordance .. , with the Performance
Agreemen.t;i. and strengthening material
testing and'research Junction.
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Training and capacity. b:uilciin,g fot
cross border women traders at Mitruna
Hills. and. vepdors (rriatt11Y ..WOIIleii and
- - - - " - - ' - - - . , . . . ..\-'jl-o_u_t;._h)
a~_12-~sega M~ket ~n Kamp~a;

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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_.-'"""--------'-'------'--

. Compensation of Project . Afiected


.Persons._-_ Payrr1ent .of cornpensatiort _to
ba~ed ori estimated. verified values
.. . by UNRA and thii Chief Government
Vahier

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$ource: ProjectAppraisal Report, N.[ay 2016 & DRS Computdtions-.---------~~.

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Busega~ Mpigi ex~ress

.. TheCivilworks for the construction of a new fourcla11e

.:. l:iighW,ayarid compensatidn of Project Affected Persons (PAPs)-- compqnGnts~ i.will


. tak~the::largest share.of'thetotar project costs ,with ea_ch taking 72.14/o and
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'2J.44o/o respe.ctively---of:the totaJ project costs. Th~ other corhponents i.e


. SUpervision Co~sUltancyand Studies and InStihitional Support will each take
. 4\69/o and '1. 73/o ofthe 'total project costs/
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(:OS~AND FINANCING ARRAN~~MENTS

6.1 : Pr.ojeC:t cost:

. The costestirnate (net oftaxes) ofthe Busega- Mpigi road 'project is

uA 136.13

. - million (f;quivalent to UQX 629.65 billion). The :proJect cost by components .

ctndsourceof.Finance.q.reshownbelowin Tables

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Table 2: Project cost-Estimates by Component (l.)"A Million-nefoftaxes)3

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Price Contingency to cover price variations


6.50.
2nd inflat~on (5.4o/o) ..
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TotalProject Cost-
source.: .Ptojecf}\ppraisal.Report, May 20 16

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The MpiiHJu~ega Road prbjict will be financed by the AfricanDevelopiilent

. Bank {ADBff African Development Fund _(ADF):.and the ;Governrhent .of :ugantla. . ., . . ..

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-The:firianci!lgfrornADBofUA 64.44 million (equiv.alent.to US.$.9l.millionJ:is-

.-.to- cove~47.34o/o-ofthe total . project costs. The financihg from ADF.resource


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ullder the ADF Performance Based Allocation and the APF Regional ()peration
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envelope,ofuA. 42.5:00 million (eq~ivalent to US$. 60- ntillion)- is-to cover .


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31.22 /o _ofthe t()tal:prpject cost. GOQ will finance -21;44. /o of th.e total prpject0

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:amounting
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UA .2.9.19 million :(E~uivalent tp -~S$ 41-milliqll). Table 3


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_Table 3: .SQurce

ofFinanc~

(UA Million - net of taxes)


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Total ....

64.44

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_ 22~50
29;19
136;13 .

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Total
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16.~$3:
21~44

100.00

Source: Project Appraisal Report, -May 2016


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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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Gov~l'nment6f ugailda Will provide counterpart funds

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
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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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.7 .0 . . LOAN TERMS AND CONDITIONS


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l Loa_n Terms

'l'heterrns of

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A~B and Ar)F Loatis me as foll()ws:

. .. Table 4: Loan Terms

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Base

Rate 4

+ F\lnding
Lending
, .M:a1urity Premium7
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rylargin s

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annti,m . on
'undisbursed loan amount

Source: Draft LoC1n. Financing ~greements


Loan .Conditions
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agreement~ the following

. In <idditioh'tq the entry in .to force of the loan

c~rtditions. are attached. to the loan;


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a) SUbmission to the B3.nk of the

cettify:i~g fuat

Atto~tiyy:

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General':? legal Opb,1iClri

the. Firiancihg Agreiments.have been duly executed

-a:nd'ratified,and are legallybinding onthe..Republic~of Uga#da;


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.b) The sub.l11ission of an upd~ted Resettlement Action Plan:(RAP) to


the Furid, together with a Works and Compensation. Schedule

.secti~ns intO which the works will be divided arid~ a


iiinefr~fue for th~ compens3.tion a'Ud/or relocqtio~ J reSettlement

. detailing the

.... of~llProject Affected Persons (PAP~) in.each section;::


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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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. all F.i_s.cal'(eqrs WhGn<the >Project isunderc:IIl1plernentation;


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. loating Base R~tebased_oh 6~1llonth 1JB~OR


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The Funding Gost Margin. shall. be determined twice per'. year orL L January for the
. semester ending ort 31 December and on. 1 July for the seii1ester ending ort. 30 June.
6 60 basis points (0.60Wo) .
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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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. adopted for the safetyoftheProjectroa.d;


f) --Government to submit to the Bank half-yearly reports on the
i~plementation of the RAP. and the I-IIV/AIJ)S, STI, Nl_alaria, 'I'B
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aWareness: ;;l!ld prevention prograiTl;


g) Governffient-_-shEill.provicie. 'the Bank

v\rith .a- c.ommittnent :letter

confirming that an Operations and Maintenance Contessior1.will be_ .


procured hbt later than six (6) mohthS prior. t() the date of
complcti()rl 9 <;onStruction of theu'ganda comportent of the
P~ojett~

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a:nd the_ .Current Debt ~it}lation of t}).e co\lnt~y.

The Loa11

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TheJoali -will no-- doubt increase. our total nominal :public. debt .that is
currently.
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~t US$

7.4 l:Jmioh as at the ehd


of.June 20 15 .. Exterllal
.debt .
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contribUtes 59;2/o of the total debt while 40.~0/o is domestic_ debt.: The
.

last DSA was upder takGn in December 2015 to assess the: :Country's
. ability

J:d.servi6~ its currentandfuture debt.

T~e. DS~

review . revealed. that.

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both the medium . arid lortgcterm,

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stress tests~ .. with


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the Present value (PV) ofPubllc J)ebt-to-GDP rfltio of

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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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.'The DSA 20,1 Sresults show that both the solv~ncy and liquidity ratios all

fail belo~ their indic~tive thresholds througho~tthei projeGtion period.


While th~ PV of.extetnal.publ~C, and publicly< gu;:tranteed (PPO) debt to

:onP -doubles from

10;7/o ih 2014/15

to

a pea:~pf. 23.2% irt2019/20,

this indicator is well below the Public Debt Management Framework


.. threshold o( 30o,/o. The,. PV of external public ancl publicly guaranteed
(PPG) debtt~ GDPredlicesto
5:5%> . at the cndof'thc
projection . period.
.
.

.-.,

. . The PVoLpublic'de.bt
.
..
- ._

,,

... _.

_.,

..

to GDP incre~ses Jrom. 24~1 /o in 2014/15 to peak


.

'

...

'

__

..

at 33.9/o n 2ors;019 and 2or9.f2o but stin remaining below the P11blic
.

'.

'

..

..

Debt :Managem~rit Framework .and theEAC convergence.thresholds of . .

~xternal debf tO GDP which .


. qqu~les ._between:2018/19 and .2Ql9/20 while J~ePV Ofdornestic. debt to.
.. tmP iS at jts flighe~t in 2014fl5 and declim~s. throughqut the nledium
. 50/o. The

increa~e.

is driven by: the PVof

term ..

. 8.0 . IMPLEIVIEN.TATJON.ARRANGEMENTS

b~ impl~merited withi!l a five year period begi!fning 2Q 17.. The

The ptojectwill

. . .;Ugand~ National. i<().ads Authority (UNRA) will be the

impl~merttirig

agency. .

uNRA. through the .nominated project: coordinator and desrgnated: project

.engineers and dhrer~e team. of. professionals within UNRA:: comprising of


procvrcment,
enyironm:ental
scicial a!ld.. .finance experts, vvill he responsible
for
.
: ...
.
.
.
...
.
.
.

.. . :_.. _ . ~ -~

.'

. . :.

. : .:

. : . .

. ..

the oveian activities<ofthe :project.

~uri~g the execution of the project, UNRA shall be responsible for the following~ _
amongst others:

./.

--

~ ~6,"

:.

. . ..........
.

.'

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.
..

.~.:.
........
.

..

..

,.

\;J

.. '

.#9......
. . :

_,

~.;.-~-'!~

-~~~~~T

(\....

_ .

. .

. :~ :
..4 ..

<)

Project rrtonito:dng; reporting and evaluation as well as liaison with


l\4oB~PED and AfOB;

..

Cbhtractual relati()nshipswith the Corttractor for ihc project;.and


.

Financialtnal}agef11ent and record. keeping, a~cot1nts and clisbursemet!ts.


.

. ~-

'

..

'

.The. Executive
Director ..of'UNRA . . will'be . the accounting
officer fortheproject,
.
.. .
.

..

. as.~tuning overall.respons1bilityfor.8.cco1.uitingfor the funds and relating to the

proje~t.

Any payrrie~ts. to . the cOntractor . will be paid . by AinB, howevet,

.Goverrin)ent of: Uganda accounting regulations will. be follcnved. regarding.

'

.sigrtatofiesJor withdraw requests.


..

....

'":

'_

'

..

. . ..

. -._

. .. . . .

":

'

. .. The projecfwili be implerriented over. a period qf 3 Years. beginning

..

~0 18: .Once

completed~ Uganda will have. added 23.7km of super highway/ .Express


.

..

. highway, .with 4 grade :separat~d interchanges, 20kni.of.link' roads. and lighting

for the. entire length of the

~xpress highway. UNRA.hasbeen tasked to putin

pletce Gl robust inspecftcni.regirne to ensure timely maintenance ..


UNRA .will . also ensure... tha-t the operation of. the . road includes traffic

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
.

_.

road~.

,.

:"

..

U~RA 'Yill pursue .one. ~f1:he f(}llowing strategies to manage the road f8.cilit}':
.

..

. (i) Procure :an qperatof under Public-Private Partrtership (PPP): .:under this .
. arrartgernent:the:operatorWill.collec(on
behalf of.Goverl1mcnttoll.fees
.over
.
:
.
.

...

._

-.

:..

,..

.:

the duration ofthec(Jtlcession :whichwill beusedfot loanr~payment . and to


pay. for . rhairttenarce

w~~ks.

The operator .wiH . be

respol1~ibl~ for

111aintaining tl1e facility and collecting all revenues ncluding tolls from the

... .

. .
.
..
.
~
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.
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'

.............

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. ..... .. ... . . .
.

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.

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.....

.. . ....... . ...
. .
.
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'

:
.

.. (ii) Term. man.agement agent where the.agent wouldbehired.tlndera.contract'

~ould.

to m_anage the JaciHty on UNRA's behalf. The agent

be. paid a . .

. rtlaJ:lggernent feefor collecting revenue and generarcare of the f?cilit)T; and,


reiw()ursed :according to an agreed schedule of rates for carrying out specific ..
rtlaintenancearrd
.

~epair

\Vorks. The residualsfrom. the.'toll revetJue .after

r~trlitted

offsetting the facility mahagernent wsts would then. bk


.

... ..

. .

toward$

loan.rep~Yrn~nL.
.

.,

(iii)UNRA will manage. the facility with toll collections ~nd maintenance
..operatfon,s executed di~ectly by UNRA .

. . .UNRA>wiUcollduCt a Value

f()~ Money assessrnent ~f ~ach oftM abOve options

. . . arid adopt:.th_e op~ion that deriyes better value to government.


9~0.. O:B.SERVATIONS
.

..

: .

AND 'RECOMMENDATIONS.
.

..

..

. . . '

''

'

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'

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(i) .th~ committee: observed that the runctio~~lity. and operation of

. Busega~Mpigi Expressway appears to be. heavily depend~nt on the


.. availability:()f the Kibuye-Busega section of the road otherwise no
.

tr~ffic

Busega-Mpi~i

will be able to access the

'

expressway. since tlu~

.. existing Kibuy~~Natete-Busega ,road is:heavilycongested.

..

...

.. ................

..

..

....

..

'

.......

.....

..

. . .

...

..

.. .

jl'he Conu:nittee recommenfis that the Kibriye-Busega sectio.n of


.

the Express
Highway be fast tracked
to ensu~e that
.the two road
.
.
.
~

'

'

' sections are completed at the same time to derive the b~.nefits' o:r .. .
the
..

high .. capacity
Busega~Mplgi : Expl'es~ '.:Jiighwat

'_

..

and

.: . deco:ngesti~riofth~ city.

~~~~~~--~I
~

-fy~

.'

..
. The
Co:ntm.ittee recommendsthat the willingnes.s- to~. .pa.y
study.
.
...
.
.

'..

',

'

'

'

. .be .expedited t() provide .guidance to us~rs' .willingn~ss to. pay and ..
.

-..

'

:.

'

..

how n1ucb u~ers are willing to pay to enabl~ proper structurir1g of

th~>o:p~ratior1and
.

. .

nuintenance arrangements and locationoftoll .

.: .

. .

'

..

.'

(iii)The.C~pmtpitte~_~bseryed.that \7\lherea~ .it is proposed.to.toll . the..proj~ct.

nO legal framework .for tolling in the :country which is .


..:likely .to cteate~challenges irt.operating_ ancltl~u~ _newexpress~,highway .
road, .th~re is

:.

'

..:

. . ...

..

...

. .

...... .

.....

..

.......

. .

The Committee recoDJ.mends that the . Ministry .. of Works a.n,d


. 'frans~port fast tracks the. preparati9n and approval of the tolling. .
. . Policy .~n4 toUing legislation to be brought to 'Parliament for
consicleratio.n.

Government should

~o.me up .wltb

tQll pay

;J.

legi~~~~~~~-t~. ~e co~~idere,ci_.JJY Parliamelit_e~pediti~usly..


. (iv) TheC()tnmittee observed that like

Kaiilpala-Ertt~bbe E~press highway;


tq be

. progress of 'Yorks 'for this partic1.1lar project was very likely


..

-.

'

. . affected by J~nd. acquisition iSSl1eS in the .road corri~or rclatiJ:ig: .to_


. delays_ih-corhpensati()n of landowners.
.

.
.

.
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._;,..

:_:

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._..

...

The . ~oritrnittee. recommend~ that the strategies


for
tilnely
and.
. .
':.
.:
.

"

ex;peditious la~fi _compensation/ .relocation of utilities/project

aff~cted perso.ns

: . expet1itio11sl~lJ1

()n

sectio.Ii,s of the road: project be bandied

acl~ance .of the const~uction. w9rlts to

pre-e01pt

to.

:~:.any contl'a,~tor claims fQr . costs. and . tiiD.e . due

ll\ck> of

unhindered access to the site. Furthermore, the committee

:r~mmends

person~

that all valuations for project affected

. ~uld be done before the loan requests are made to parliament .. ~_;

..y
. . . . .. . ..~.-.
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,..

. . .., . : . - ..
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~~~~~~~
'If" . .
~:.~
'(l~ .. :

.......

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. )~I

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Furthermore:

the

committee

recomDJ.ends that all future

. Va.luations for. proje~t affected persons should

. _' req\lests. ar~. rn8.de .to Parliam~nt.


.

be d~.,_e before loan

(v) The Committee ol)served that currently, t~ere is Weak local contractor
.

. . . capacity. which 1-esults in: all the .projects .being executed by f()reign

firins an(i construction materials being smircedfrom foreign Countries


with the result being loss of jobs _and increased unemployment in the.

.
.

..

T~e coritmitte~

tr~n,sp~rt

th~

recommendS that

-should: . put in

place

miriistry of workS a.nd

poli(!Y

.. developn1en.t. of .the . local construction


..

. ..

:resenratiori .schemes a11dlor

. .... ,.

..

prescriptions

avail~ble tnat-~rials be sourced locally.

to promote
:

.the

ind~stry ' through


th~t

all

locally:

..

The... committee
recommends that th~_ lVl~nistry of works and
. . ..
,

transport s:ftould _put

iii

pl~ce

d.~velopttu~nt. : of . the local

policy

to . pro111ote . the

:construction . industry :th~o~gh

f~~ervatio:n :sc.hemes and/or presc~iptions that all . _locally .


available. materials be sour~ed locally.
.

..

..

=. . .

::

<. .

<. ..

. ..

. .

..

...

Furtbet tJ"airling 9f ~ Ugand~n Engineers and


.

...

..:

:.

nurtu~ing them . in
.

ethics of the business to reduce reliance :9n eJ{te.'tnally

sourc~d

consultancy services should be emphasised.


Sohl'ces . of .. Otorig term financing to<

f~cilitate<

acquisition. of

. e'l~dp!Ilent. sh6~td bif explot".ed. .

"The Committee noted th<lt there was. a pr()blem oflack.ofcentrali;-:eii

. . plal1nitig . . _where . differeri t infr(lstructure ' developmeht initiatives c..!:::b~__,.,."---~

..

_.,...

-~

. .

'.~

:, ...-. :

executed
independently without central 'coordination.
The .result being .
..
...

.._.

':

.. .cOnflicts in ctes!gns .and duplicatecosts ror 1a.tict acquisition~


The ~orrxrn.itt~e recommends
..

..

. . ...

..

..

...

the following;
.

.....

. :

..

VNR.\ should. COQiplete way leaves aCqllisition proce~s .before


. erigageme~t of the coiltractors.

T~~s: will minimize

redundancy.

dr the ~'lllipJ:IleDt on site and possible httere$1: <:barges on the


idle equiprn.ent.
.

Government should consider acquiring a centtal co:rridor: for.


infrastructure projects t~ reduce oli .repeated compe1isation
. . .

: whenever . infrastructure

projects

_are

implemented
.

to

_-

aCC()IllDl()date

aJ]long

others

poWer

:lines, water pipes, .

...cokiinuni~~-tion infrastructure .and road reserves~

. 'l'lu~ Ministry of Lands Housing and Urban Developlll.en:t s:hould .

.. expedite the' rolt: out of. the Wo~ltl

Ballk .funded.

project on

electr9nic.land registry. and preparat:i()n .of stall.dardvaluati.ons

. As a
..

. matter of. urgency the Ministry of. Lands Housil1g _and

'.,

. Urban Development:' should enhanc" :

t~~

capacity

..

of .the

YariJ.a:ti()Ji dePartl:liexi.t wldCh>is now tOO thintr manned tQ cope

. \Vlth' '. 'the demand for . land valuation


infrastrucl:~re development prOjects~.
.

..

for.

~bat ~appen~d when the GOvernMent. Chief 'Vlil11er

F()lloWing .
,'

especially

'

'.

: ~a#d.: tJN"RA. dis8.gre~d

..

on

vaJuation amount a,long . Entebbe<

. xpress. highway.that led- to diversion . . ofthe

road~ Go'\T~rnment

(\~

.~
.

&.

...

Lrf'

should consider setting .up a land Ombud.sman. to atbitrate in


.

cases whe.retherels disagreement .inland valuation .

. . Th~ Committee . recommends tllat the National


A11thor~ty

should

coordinate . infrastructure

Plan~ing

development

ac:ross tl:te country to ensure :that ~tll planned infrastructure


develojnntnlt

initiatives

are well. harmonized

to . avoid

. qoV'ernm~~tlncu,rring unnecessary. costs.


co~mjtte~ .r~commends

The

.. .

foll~wing;

the
.

.;-q:N~ s~ri_uld. complete.'W~tY leaves llCquisition process before.


Cingl!.geJIUlJlt of th~ cont~actors. This will mininlize redundancy
..c>fth~ equipment on site a.nd possibl~ interest charges on the
.

.:

. >" '

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.:

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. '

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'

. '. '

'

.. . Govetnnienf
sh<>Uld consider acquirihg ll central c()rddol' for
..
.

.;_

..

';

infra~tr\lcture p-rojects_

to

Infrastructure
accommodate.
.

.. . .

reduce on. re,peated colltpensatio_n


projects are

among
'others . power
..
..

'

iniplemente.cl. to

lines, . water.

pipes,

"

~ommu.nieation -infrastructure and rCI~d reserves.:


.

'

The.Mlnistryofta.nds Housing and Urban Development-should


expedite. the. roll out

()t the

World .sank funded project 011

.. e.ectr~llic:land registry. and preparatio:n of sta.ndard valuations


.

'

for dif(erellt parts of the (:ountry.

:As a- . matter: of . urgency the Ministry:ot:~ands H()using


.

'

'

. n .. Develop~~nt sh<iuld

of
---~-

".

..

.. '

valuation departlJ1ent which is now to() thinly man11ed to cope


'\vith . the
.

..

:demand
.

for
.

..

valuation especially , for

land
.

infrastructure development projects. -


.. ........ ..

..

. . . . . . . . .

...

....... .

..

.. .

...

..... Following-,;vbat happene-d when the .Government Chief Valuer


~nd:

11NftA disagreed on valuation .an1ount along . Entebbe


.

. ...

. .-.

. ~xpr~s!l hig;hwayt~at leclto diversion ofth.e road,Govern111ent


.shou~d chnstder_ :~etting\lp

a l~ttd

OJJ1.budsuiall. to arbitrate.in.

.cases wb~'re'there: is disagreement in

l~rtd val~ation ..

Committee recommends that the: .-National. Plallning


.

coorc:J.lnate . infrastructur~ . deyelc>.P.II!~nt

should

..... acrOss. the. COUJltrY to .. ensure that llll pl~Jlned . infrastrJiCtQre


.d.evelop:rnent initiatives' are . well liarmonbied . to. . avoid.
'

.. Goveintn~nt incurring unnecessary co~ts ..


-

The

..-

..

.:

. .

Committee also.- noted. that where~s land is acquired . f()I":

..... ~ariOUs

infrastt}ictur~ project~, it appeal-s that there was go ope


takirig-~e~n i.hterest. in. safeg~arding (}ove~:n!l1ent prop~rtyresultiTlgin

. people encroaching
.on Government property and being Go1llpensa.tion
.
.

. .

"

when Governme!lt
.'.

ne~ds to .expand infrastructure:

:Tb~.- Committee . recommends

that. all

land .acquired

by

.. . qoverllnient:be: titl~d to refte.cf that laildbelongs to Governme_nt

. an'd 'th~: 8,cquired land fott infr~structure. corrido.:rs 'be tnoriitored:'

.. : :~ p event encroachment.

.
.
.

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CONCLUSION
.
.

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. :

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-,

Rt.. Hori. Speaket, .Hon.

..

.:

. .

Meinb~rs;

....

..

'

..

the CoiiUilittee

~:

.. .

h~s

'

.
.

'

noted Goverhtnent

: continued develo~ment of Uganda's infrastructu:re with :more focus on the

roa.d~ il1fraStnicfure. Th~

statlls of t.Jganda.'s road

IitfraSt;~cture stilL requires

to meet the aspiration~ of . Visio11 . 2040 .. Governmehf has .

irnprovernGnt.

Sl1b~sector<whi~h: are expected to .lead to .


.improvementh1lhe. sfate. . ofn~ti~nalroads and ~etf~r utilizatiop of.r~S01JfCCS

. .underfaken . refon:ns', iri' the top.d$

. allocated.:td
.the.... .sector. Tbe construction of the Busega-Mpigi
.
-_

.,

Exp;ess~ayJor
:

...

which this financing is Sought will .erihance regional conriectivity, decongest


l{ampala': city_ (lnd. 'accelerate CGOnprhic growth. The Committee. therefore

.recorrimerids "1:hat .. tpe tequesf by . Government to borrow borrow . lJA


64 ,4l0 ,odos

({;~D$ 91;ooo ,OQO) from the African DeJe~oprh2nt Bhk: (ADB). and

UA. 4~,S00,000.(60,QOQ,OOO) :from thef\frican ~Dev~~opmentFurtd (J\DF):()f the


. Africaq_.Dev~l()pment

B~nk

.Group(A:DB) for financing tpe :Bpsega""l\llpigi.

Express. highway ProjeCt be approved subject to the a]:)ove re(;ommendations.

-~
.. . ..... . ...

:.... i . . .

. .

. ..

zotP.a ge.

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'

'

. REPORT .. Of TH~ COMMI'fTEE ()N .NATIONAL ECONOMY.ON .THE


PROP()SAL BY GOVERNMENT TO BORROW UA 64,440,000 MILLION (USD$

. 9l,OOO,OOO)FROM THE AFRICANDEVELOPME:NT B.AN'K (ADBJAN]): UA.


42,500,000 (60,000,0()0) FROM THE AFRICAN . DEVELO~MENT FUND
. (ADF)~ <lF. THE AF'RICAN

DEVELOPMENT BANK

... :FINJ\NCING .THE BUSEGA-MPIGl ROAD PROJECT

Tororo South County

'fb''. .
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.. .. ..

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..... ~,

GROUP. (J\DB) F()R

~ t~
l(

)4.

'V'

. f'.

~~--:--------,-:....;-"-----',-

.CONSTITUENCY

Katerera County

Ntoroko Woman Rep


Buhweju Woman Rep

..

.
. .

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28. Ho11. J~ckwamangaWlUllai. ...

Mh~e Municipality_

Busongora North_ ..
:.:.:.____. ~~i . --.--~-'-:-.~-~~---,.i~_i_-=--~~--~.~..;.._.--~----

Soroti MunicipalitY

SIGNA"l"URE

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