Part of the results of the feasibility study for the Kampala-Jinja Express Way was revealed by the Uganda Nat ional Roads Authority in an effort to attract bidders from whom the company to construct the vital transportation route will be chosen. According to UNRA, the feasibility study showed that the proposed highway has a favorable rate of return on investment. “Now, at the end of these studies which were completed in 2015, we were able to establish; number one, that the project was economically viable with a high economic internal rate of return of about 35% which is very high by any means.” Said, Eng. Patrick Muleme – Head of Design, UNRA.
The 95 km Kampala-Jinja Express Highway will become the gateway for imported goods from Kenya into Uganda and other neighboring countries. With the increasing need to save time, save fuel, and promote economic growth, issues such as traffic jam will become issues of the past.
At least 3 million USD was invested in the feasibility study to attract quality bidders for the public-private partnership which has already seen donors contribute a financing grant of 400 million USD without land compensation. However, the representatives of the donor agencies said they will only commit the finances only when the environmental feasibility studies are complete and the private debt funding had been secured. “We will not be able to commit when we are sure that from the environment and social side. And the development takes really this challenge with high profile, with high standard and of course when the whole project will be funded. Because as I was saying in the beginning that it is a joint funding project by public and private, if there is no private, there is no need of the public.” Said, Virgine Leroy – Representation, French Development Agency.
While the total cost of the project was projected to reach 1 billion USD, some experts predicted that it may be a little less with the alternative financing options available to the contractor such debt and long-term bonds generated through domestic currencies. However, the potential contractors were warned that there will be major penalties for failing to meet deadlines or delivering substandard work. “This road must be available for 30 years, so how do you ensure that there are no potholes? That’s entirely up to you. If there are potholes, you will be penalized if you don’t meet certain requirements you will be penalized.” Said, Christopher Olobo – Investment Officer, International Finance Corporation.
“I would like just to emphasize about the Road Bill. The Road Bill is actually in advanced stages, very soon it is going to be gazetted and then it will go through the process. We don’t expect to have any hitches, we think in the next 2 or 3 months it should be out.” Said, Gen. Katumba Wamala – Minister of State for Works. After completion, users of the Kampala-Jinja Expressway will be expected to pay a road toll but the details of how much this will be shall be subject for cabinet approval.
