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Uganda plans road to link between Kampala and Jinja

Infra News - Published on Fri, 11 Jan 2019

Image Source: Construction Review Online
The Star reported that Uganda expects to select a company to build a new major road between the capital, Kampala, and Jinja by the end of year. The GBP 1.5 billion (GBP 1.17 billionn) highway project, which will form part of a regional transport link in East Africa, will be constructed in a public-private partnership. Uganda will consider four bids, including submissions from Strabag of Germany and China's Communications Construction Company.

The 95km (59-mile) road will be the first built in the country using a public-private partnership (PPP) model, which means the contractor awarded the contract, will design, build and operate the route for 30 years, earning profits by charging tolls before handing it back to the state.

The highway will connect Kampala with Jinja, an industrial town in the east. But it will also be part of a regional transport route connecting the coast of Kenya to landlocked Uganda, Rwanda, Burundi and South Sudan, as well as the eastern Democratic Republic of Congo.

The Ugandan government has said construction of the road would cost about USD 1 billion, with the contractor paying $600m and the state contributing USD 400 million.

An additional USD 500 million will be needed to fund acquisition of land, debt financing and operating costs.

Projects financed through PPP have run into problems in the region in the past, over government guarantees and arrangements to share revenues.

Source :

Posted By : Joykumar Irom on Fri, 11 Jan 2019
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