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Add to Preferred SourcesThe African Development Bank has approved a sovereign loan of US$229.5 million to the Republic of Uganda to finance phase one of the Kampala-Jinja Expressway project. The financing will reinforce Uganda’s position as a regional transit hub, supporting its ambition to propel its economy into middle-income status by 2020.
Approved by the Board of the African Development Bank on October 31, 2018, the loan supports the Government’s Vision 2040 agenda. It will co-finance, with the European Union and Agence Francaise de Developpment, $400 million which will pave the way for private sector financing of the remaining $800 million.
The financing will support Uganda’s second National Development Plan 2015-2020, which aims to strengthen the country’s competitiveness for sustainable wealth creation, inclusive growth, and jobs creation. Uganda’s road rehabilitation plans are anchored on its 15-year National Transport Master Plan (NTMP 2008-2023), aimed at facilitating the efficient movement of passengers and freight across the country to support growth objectives.
The total project cost is estimated at US$1.55 billion, with financing from sovereign and non- sovereign facilities. The facility will finance infrastructure development, project implementation support and community livelihoods improvement activities along the proposed 95-kilometer expressway. Over 2,000 direct and indirect jobs will be created during the construction and operational phases of the project. When completed, the Kampala-Jinja Expressway will boost national economic productivity, competitiveness, regional trade, and integration. It will also alleviate congestion in and around Ugandan’s capital, Kampala and reduce travel time between the country’s two main economic hubs.
Scheduled to be managed over the next 30 years under a concession-based Public Private Partnership (PPP) arrangement, the project comprises of two phases: the Kampala-Jinja Mainline Expressway and Kampala Southern Urban Bypass (KSB), collectively known as the Kampala-Jinja Expressway PPP Project.
Uganda’s road network is the country’s predominant mode of transport and a key enabler of her trade and economic activities within the East African Community.
The project aligns with the Bank’s Ten-Year Strategy (2013-2022) and Uganda Country Strategy Paper 2017–2021, under its “Infrastructure Development for Industrialization” pillar. It is consistent with three of the Bank’s High 5 priorities: “Integrate Africa”, “Industrialize Africa” and “Improve the quality of life of the people of Africa.”
The African Development Bank is one of the leading Development Partners in the country’s transport sector, coordinated by the Uganda Transport Sector Development Partners Group (UTSDPG).
Original source: AfDB
Published on 5 November 2018