Uganda’s Construction Sector:  Overview and Opportunities

The inflow of foreign direct investments into the infrastructure industries fluctuated over the last five years and amounted for around two billion U.S. dollars in financial year 2020. GDP from Construction in Uganda increased to 2247.04 UGX Billion in the second quarter of 2021 from 2120.40 UGX Billion in the first quarter of 2021. The construction industry in Uganda has registered great achievements in the social-economic transformation of Uganda. The sector is contributing to attainment of Uganda Vision 2040 and the United Nations Sustainable development Goals (UN SDGs).

Public Opinions is therefore conducting a countrywide survey to determine the best performing construction companies in Uganda and recognize them with the Uganda Economic Development Mark of Excellence Award and to be ranked on the list of the Uganda GREAT50 Economic Stakeholders while their corporate logos and profiles will be published in the 2021/2022 Uganda Economic Stakeholders Book of Records. NOMINATE a construction company you think has made tremendous contribution to attainment of Uganda Vision 2040 and United Nations Sustainable Development Goals through offering high quality services and products, paying taxes, employing Ugandans, supporting productive corporate social Responsibility, environmental protection,etc.

Uganda’s infrastructure needs remain substantial.  With a 10% annual growth rate in car ownership, Uganda’s road network is seriously overburdened, especially in and around cities.  Furthermore, Uganda’s roads are poorly maintained, making transportation costly and dangerous.  The government expects to complete its expansion of Entebbe International Airport by May 2022.

The Kabaale International Airport in the oil rich Albertine Graben, which will be the country’s second international airport, is about 55% complete as of July 2021.  Uganda also faces an eight million unit housing shortage according to the Uganda National Planning Authority.

With an estimated 300,000 housing units needed per year, commercial construction and residential construction in Uganda are booming.  The government allocated 16.2% of its 2020/2021 budget to road infrastructure, the largest allocation of any sector.  Uganda has no domestic production of the equipment needed to develop large-scale infrastructure projects.  Additionally, Uganda’s growing industries and service providers badly need larger and more modern sites, such as industrial zones, in which to operate.

Opportunities in the Construction Sector

Uganda is in need of effective project management services.  The Uganda National Oil Company (UNOC) is also seeking investors for its 30-square kilometer Kabaale Industrial Park, which will include the 60,000 barrel per day oil refinery, upstream crude oil export hub, and Kabaale International Airport.  All of these projects will be developed as independent projects.  The government is seeking strategic partnerships with investors to offer managerial, technical, and financial services required for the development of Kabaale Industrial Park.  For more information please visit: https://www.unoc.co.ug/midstream/kabaale-industry-park.

The Ministry of Works and Transportation also is seeking investors in the following construction projects:

• Public-Private-Partnership construction of the following national roads: Kampala – Busunju (50 km); Kampala – Bombo (30 km); Kampala outer beltway (120 km); suspension toll-bridge between Buwaya Landing Site and Nakiwogo
• Construction of One-Stop Border Posts at: Ishasha (to DRC); Yei (South Sudan);and Musingo (to South Sudan)
• Public-private partnership for construction material factories

KEY PROJECTS IN THE INFRUSTRUCTURE

BUS RAPID TRANSIT PROJECT IN THE GREATER KAMPALA METROPOLITAN AREA.
Investment Amount Required: USD 424.4 Million (Four Hundred Twenty-Four Million Four Hundred Thousand dollars)

Ministry of Works seeks a partner to develop the ‘Pilot’ Bus Rapid Transit project (BRT) project forming part of an overall planned integrated BRT network for Kampala city, which in turn will be part of the wider integrated land-use and transport planning for the Greater Kampala Metropolitan Area (GKMA). The Pilot BRT will cover the 25km in total on three major routes exiting the city.The Projects involves construction of Bus lanes with a median and exclusive rights to the BRT Buses. The mixed traffic will utilize the outer lanes of the carriage way. All roundabouts along the BRT routes will be replaced by traffic signalling. A total of 26 stations will be built with an average carriage way width of 23m to 26m.

DEVELOPMENT OF THE GREATER KAMPALA LIGHT RAIL MASS TRANSIT (GK LRT) SYSTEM. COVERING DISTRICTS OF KAMPALA CITY, MUKONO, WAKISO AND MPIGI
Investment Amount Required: USD 1.044 Billion (One Billion Forty Four Million Dollars) Phase 1, 45Km

Ministry of Works seeks a partner to develop the provide affordable, reliable, convenient, environmentally friendly and safe public mass transport especially for the low-income population of the Greater Kampala Metropolitan Area (GKMA).The Greater Kampala Light Rail Mass Transit (GK LRT) system plan developed by Government of Uganda, is proposed to move along the major transport corridors of the Greater Kampala Metropolitan Area (GKMA) in line with the Greater Kampala Multi-modal Transport Masterplan. The GMKA comprises the districts of Kampala, Wakiso, Mpigi and Mukono. It is envisaged that the GK LRT will relieve congestion, improve safety, reduce greenhouse gas emissions and improve air quality.The plan is to develop a total of 240Km of GK LRT system in a phased manner starting with 45Km in the phase one. In order to ensure integration of the main SGR project, the GK LRT and other transport infrastructure and systems, the

Ministry of works and Transport has reserved the Kampala Railway Station to be designed and developed as a multimodal transport hub.Pre-feasibility studies have been conducted and the project has been earmarked by the Ministry of Finance, Planning and Economic Development (Moped) to be implemented through the Public Private Partnership (PPP) framework.

LARGE SCALE PRODUCTION AND SUPPLY OF CONSTRUCTION MATERIALS IN UGANDA THROUGH PUBLIC PRIVATE PARTNERSHIPS (PPP)
Investment Amount Required: USD $100 Million (One hundred million dollars)

Ministry of Works and Transport (MW&T) seeks a private partner under a PPP framework to finance, equip and manage the production and supply of significant quantities of materials required for prioritized infrastructure development needs for the standard gauge railway, inland ports, expressways and a refinery among others. MW&T will provide the land for quarries and materials depots.

KAMPALA – BOMBO – WOBULENZI EXPRESSWAY
Required amount: USD $ 655 Million (Six hundred Fifty Five Million dollars)
Uganda National Roads Authority seeks an investor to design, build and operate a 65.5km of a tolled expressway on a Public Private – Partnership arrangement. The proposed Kampala – Bombo expressway will have a total of 5 interchanges as follows:

• Kyebando Roundabout (systems interchange)
• Gayaza Road Interchange (access interchange)
• Outer Beltway crossing (a systems interchange)
• Bombo interchange (grade separated interchange)
• Wobulenzi inter-change

 KAMPALA – BUSUNJU – HOIMA EXPRESSWAY
Investment Amount Required: USD $ 2 Billion (Two Billion dollars)

Uganda National Roads Authority seeks an investor to design, build and operate a 200km of a Tolled Expressway on a Public-Private Partnership arrangement. The proposed investment is the new Kampala-Busunju-Hoima Expressway, that will form part of the proposed Kampala-Hoima Expressway. It starts at the Namungoona roundabout on the Kampala Northern Bypass and proceeds through Nansana, Kakiri, Busunju,Kibonga, ending in Hoima. The Expressway links Kampala with the towns of Nansana, Busuju, Kiboga and Hoima City in the Albertine Region, “the Oil Area”.

JINJA – MALABA EXPRESSWAY
Investment Amount Required: USD $1 Billion (One Billion dollars)

Uganda National Roads Authority seeks an investor to design, build and operate 100km of a tolled Expressway on a Public – Private Partnership arrangement. The proposed investment is the Jinja – Malaba Expressway which links Jinja with the towns of Iganga, Bugiri and the border town of Malaba. It will form part of the Northern Corridor linking the port of Mombasa to Kampala in Uganda.

KAMPALA OUTER BELT WAY
Investment Amount Required: USD $1.7 Billion (One Billion Seven Hundred Million dollars).

Uganda National Roads Authority seeks an investor to design, build and operate 115.52 km Tolled Expressway and on a Public Private Partnership arrangement. The Kampala – Outer Beltway is a four – lane divided Expressway with several large interchanges built as grade separated junctions. Kampala- Outer Belt Expressway comprises a two – lane / two-way main Expressway with radial Links connecting to the Northern Bypass and at alignment near Ggaba to Kampala – Entebbe and Southern Bypass Expressways.

ESTABLISHMENT OF A PORT AND SHIPPING NETWORK AT LAKE VICTORIA
Investment Amount Required: USD $18 Million (Eighteen Million Dollars)

The port and shipping network investor seeks a partner to establish a port and shipping network at Lake Victoria to strengthen inter-regional transport chain links and positively propel the economic activities through regional integration. The majority of countries in East African region including Uganda are land locked and hampered by expensive road transportation and logistics that have generally impacted on their economic opportunities.

Efforts under the African Union and regional economic communities have resulted in improved road interconnections. However, the transport and trade links between Northern Corridor (Kigali – Kampala –Mombasa) and the Central Corridor (Dar es Salaam – Tabora – Mwanza) still remain weak and represent a considerable opportunity for regional integration.

The economic development in the region, combined with prospective mineral resources, fossil fuels, and agricultural potential, justify the investment in bulk cargo transport infrastructure on Lake Victoria.

DEVELOPMENT OF IT/BPO PARK LUNYO – ENTEBBE, UGANDA
Investment Amount Required (US$): USD $180 Million (One Hundred Eighty Million Dollars) in which  development / Financing Partner contribute (90%) and Government of Uganda contribute Government of Uganda  funding (10%)

The government of Uganda has adopted an ICT led Socio-economic Policy for accelerated development with focus on ICT Entrepreneurship Development, rejuvenation of the private sector and wealth creation in the National Development Plan (NDP) III 2020/21 – 2024/25. In this regard seventeen (17) acres of land are available for the development of an Information Technology (IT)-Business Process Outsourcing (BPO) Park that will act as a catalyst for shifting the country from a raw material based economy to a knowledge based economy.

 REHABILITATION OF GULU – PACKWACH RAILWAY LINE.
Investment Amount Required: USD 29.8 Million (Twenty Nine Million Eight Hundred Thousand dollars)

Uganda Railways Corporation is seeking a partner to rehabilitate Tororo – Gulu – Pakwach railway line (also called the “Northern Uganda Railway”) which is a 312-mile (500 km) meter-gauge railway line.This project will start in Tororo near Uganda’s South Eastern frontier with Kenya and ends at Pakwach in Northern Uganda. The terms of the project will be build, operate and transfer under a 20-year operation and maintenance starting in 2023 and ending in 2043.

INLAND PORTS PROJECT ON LAKES IN UGANDA
The Investment amount required is estimated at USD 444 Million (Four Hundred and Forty Four Million dollars).

Uganda Railways Corporation is seeking a partner to expand inland ports services to less advantaged rural communities in order to enhance mobility and foster development. In its initial stages, the project considers the critical need to restore the port services at two existing inland ports of Port Bell and Jinja which are currently operating at a low level. The demand for the port services is growing exponentially with huge potential.

TANK WAGONS-PURCHASE OF TWO (2) CRRC LOCOMOTIVES AND REHABILITATION OF 165 TANK-WAGONS
Investment Amount Required: USD 8.8 Million (Eight Million Eight Hundred Thousand dollars)

Uganda Railways Corporation is seeking a partner to purchase locomotives and rehabilitate tank wagons under a build own operate and transfer arrangement. The project requirements are listed below:

• Procurement of two locomotives (2000HP) and their spares,
• Rehabilitation of 165 tank wagons, and
• Procurement of 4 forklifts (2-5 tons)

 PROCUREMENT OF TWO (02) WAGON FERRIES (ROLL-ON ROLL-OFF)
Investment Amount Required: USD 8.3 Million (Eight Million Three Hundred Thousand dollars)

Uganda Railways Corporation is seeking a partner to procure and manage the wagon ferries to operate on Lake Victoria. The demand for freight services is growing exponentially between Uganda, Dar es salaam and Kisumu port.

• It is estimated that the demand for freight services will grow to an average of 40,000MT per year in the next ten years.
• Expanding the current fleet of wagons ferries will enhance the capacity to move cargo on Lake Victoria thereby promoting inter and intra-regional trade, opportunity exists in procurement and management of two new wagon ferries. The wagon ferries should have capacity for Meter Gauge Rail and Standard Gauge Rail as well as road truck roll on and roll off facilities.

URC GREEN PROJECT- ALONG THE RAILWAY LINE
Investment Amount Required: USD 41.09 Million (Forty One Million Ninety Thousand dollars)

Uganda Railways Corporation is seeking a partner to invest in URC green project. The project seeks to intervene in the climatic changes through mitigating greenhouse emissions from the trains. It involves planting trees to enhance afforestation on the railway land while stopping encroachment by people living nearby the rail line. The project starts with the active line of Kampala-Malaba and will later spread to other areas i.e., Tororo-Malaba, Tororo-Packwach, Nalukolongo-Kasese and Busoga.

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ABOUT PUBLIC OPINIONS
Public Opinions was founded by Makerere University students in 2004 in Lumumba Hall Makerere University and it operated as a study group on students welfare as well as Networking.

In 2008 it was incorporated as a company Limited by Guarantee by the Uganda Registration Services Bureau (URSB).

Public Opinions work towards attainment of Uganda Vision 2040 and the  United Nations Sustainable Development Goals (UN SDGs).

CORE SERVICES

• Issues Research
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MILESTONES/SOME ACHIEVEMENTS OF PUBLIC OPINIONS 

1. In 2009, Public Opinions organised a High Level United NATIONS Millennium Development Goals Dialogue at Hotel Africa Kampala and it attracted stakeholders from the Public and Private Sector, Religious Leaders and Diplomats.
2. In 2009, Public Opinions organised 5 Small and Medium Enterprises Sessions for Youth Leaders such as at Gretton Hotel in Masaka which was addressed by Brig David Muhoozi who was commander of the Armoury Brigade in Masaka. Others Speakers included Prof Maggie Kigozi, Ambassador of ICELAND to UGANDA, Dr Kassim Omar who was Director of East Africa Business Council,etc. The Luwero SMEs Sessions for Youth Leaders organised by Public Opinions was presided over by Katikiro of Buganda JB Walusimbi and Hajji Abdul Nadduli.
3. In 2010, Public Opinions organised the Buganda Youth Leaders Conference on wealth Creation. The conference was held at Katikomu Country Hotel in Kayunga and it was presided over by the Rt Hon Amama Mbabazi who was the minister for Security and Secretary General of the National Resistance Movement (NRM).It was attended by youth leaders from Central Region. Key speakers were from Uganda Investment Authority and Presidential Initiative on Banana Industrial Development (PIBID).
4. In 2011,Public Opinions organised a Kampala Wealth Creation Awareness Conference for Youth Leaders
5. In 2012,Public Opinions organised the 2012 Uganda Responsible Investment Summit and Award Ceremony which was presided over by Rt Hon Amama Mbabazi Prime Minister of the Republic of Uganda
6. In 2012,Public Opinions organised the Uganda Who is Who Summit at imperial Royale Hotel and launched a book titled Uganda Who is Who Book of Records launched by Prime Minister Amama Mbabazi
7. In 2013, Public Opinions organised the Pearl of Africa Lfetime Achievement Award (PALITA Award) in which over 80 High Profile Personalities were awarded and inducted in the Uganda Who is who Book of Records. Rt Hon Amama Mbabazi Prime Minister of the Republic of Uganda Presided over.
8. In 2014, Public Opinions organised the 2014 High Level Uganda Responsible Investmen Summit and Award Ceremony in which 50 Responsible Investments were awarded. The Ceremony was presided over by H.E Yoweri Kaguta Museveni President of the Republic of Uganda, Rt Hon Amama Mbababazi Prime Minister of the Republic of Uganda and Prof Emmanuel Mutebile Governor Bank of Uganda.
9. In 2017,Public Opinions recognised the Embassy of Italy to Uganda with the 2017 Uganda Transformation Award. The Award was received by the Ambassador of Italy .
10. In 2017, Public Opinions recognised the European Union Delegation to Uganda with the 2017 Uganda Transformation award. The Award was received by the Ambassador of European Union Delegation to Uganda
11. In November 2017,Public Opinions recognised the University of Bologna in Italy with the Global Sustainable Development Award as the oldest continuing University in the world. The Award was received by the Rector University of Bologna in his Office in the city of Bologna in Italy. This was followed with a meeting between Rector University of Bologna and Luzindana adam Buyinza Team Leader of Public Opinions.
12. In 2018,Public Opinions in partnership with the Asia Africa Development Council in new Delhi India organised the Asia Africa Development Summit in New Delhi Republic of India.
13. In 2016, Public Opinions and Computer Society of India together with Asia Africa development Council organised the India-Africa ICT Summit. The summit was held in New Delhi Capital of the Republic of India.
14. On 22^nd November 2019, Public Opinions held a High Level Uganda Responsible Investment Summit and Award Ceremony which was presided over by H.E Yoweri Kaguta Museveni and Hon Evelyn Anite Minister of State for Investment and Privatisation. During the Summit, H.E Yoweri Kaguta Museveni was declared the Uganda Peace and Development Champion by Public Opinions and 62 Uganda Responsible Investments were recognised with the 2019 Uganda Responsible Investment Award (URI Award).
15. With the Outbreak of the Global Pandemic the COVID 19, Public Opinions participated in mass social media and field based Public Awareness and Advisory service to senstise the people of Uganda on COVID 19,How its transmitted and how Ugandans can stay Safe.

Since its founding in 2004, Public Opinions as been involved in mass information dissemination across the country,Public Awareness,Research,Training and mentorship of young people and in communities, Business Advisory services to small and medium enterprises in trading centres, etc.

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