17 January 2019

Uganda: Government Seeks Shs910b From UK to Develop Namanve Road Network

Photo: Daily News
Arusha-Musoma Highway Construction Kicks Off in Tanzania.

Government has applied for a $246m (Shs910b) loan from UK for the development of Kampala Industrial and Business Park in Namanve.

The loan is expected to end a decade long talk of the need to fully develop the Namanve-based industrial park.

Speaking in an interview Mr Basil Ajer, the Uganda Investment Authority (UIA) acting executive director, told Daily Monitor government had in December last year already approved the loan request to develop the park.

"Parliament, on December 18 approved the loan and government is getting a loan from UK Export Finance. All necessary parties are on board," he said explaining that prior to Parliament, Ministry of Finance had approved the loan request.

The loan, Mr Ajer said, is expected to be available by the end of January and a contract management team is being created to that effect.

The contract management team will consist of different technical staff from different ministries such as Works, Finance, UIA and Uganda Electricity Transmission Power Limited, among others to start implementation of the loan.

The loan will address infrastructural works within the park such as roads, information communication infrastructure, sewerage and waste management systems, drainage and high voltage power among others.

In 2017, sacked UIA executive director Jolly Kaguhangire, had said they were seeking a $151m from Chinese Exim Bank.

However, Mr Ajer clarified that they had at the time been looking at different options, explaining that after an examination of which bank offered better terms, UK Export Finance was agreed on.

Asked about the variance in loan figures from $151m to $246m, Mr Ajer said the previous figure was based on a 2008 World Bank survey while the new feasibility study was undertaken to arrive at the $246m figure.

The $246m will take into consideration a new fly over that will be constructed from Namanve North to go around Coca Cola, before connecting to the South Estates.

This, Mr Ajer said was incorporated to mitigate traffic congestion from the Park and Jinja road which would otherwise affect traffic flow.

In addition, a Small and Medium Enterprise space has been incorporated into the new cost. UIA expects to at least construct 500 spaces for small scale entrepreneurs.

Need for the money

In 2017, Mr Hamza Galiwango, the UIA director lands development, said they needed money to develop industrial roads of 45km and industrial power of a 132 kilovotts substation.

While the park already has a water booster, it still needs water reticulation so that it (water) can reach every other point.

However, the sewerage plant, he said then, would be one of the most expensive ventures costing $9m (Shs32.5b) as well as the railway extensions.

Because the park lacks a waste management system, UIA had hoped it would get into a partnership with Wakiso and Mukono districts to use their facilities.

This would involve using such districts' trucks to transport waste for disposal. The loan meant to develop the 2,200 acre park will benefit 290 investors both foreign and domestic that have been allocated land.

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