Question One
Question One
Question One
Discuss the financing options for infrastructure projects, stating the advantages and disadvantages for
their use and, the conditions and which they are favourable for the client and/or contractor.
1. Introduction
A public private partnership (PPP or P3) is a method of procuring different kinds of government
service through a partnership with the private business sector (Allan Ashworth, 2012).
The Kampala Jinja Expressway (KJE) is the first project to be registered under the Unit. The project
entails construction of a Greenfield limited access tolled expressway between Kampala and Jinja to
relieve the current congestion on the existing Kampala - Jinja highway; to provide a fast, efficient and
alternative transit route out of the city and to cater for future growth. The road will be built on a new
alignment starting from Ntinda/Kyambogo, through Namagunga, Namataba to Jinja.
The project will comprise of a 77km mainline and an 18km bypass to the south of Kampala City. The
PPP modal used will be the design, build, finance, operate and transfer thus the Uganda National
Roads Authority (UNRA) will be seeking bids from the private sector for this project. A feasibility
study carried out by International Financial Corporation (IFC) was approved by the PPP Committee in
December 2017. The estimated cost of the project is USD 1.2 Billion with government contributing a
viability gap funding of approximately USD 400 Million.
A Request for Qualification was launched on 18th May 2017 and bids from eight firms were received
on third September 2017 (Ministry of Finance, Planning and Economic Development, 2021).
The Mulago National Referral Car Parking project aims at developing a modern car parking facility
for the Hospital. The proposal covers costs for the execution of works to construct a car park covering
a total of 26.331 square meters features such parking blocks, automatic pay stations, automated entry
and exit check points, lifts and emergency stairs, elevated pedestrian walkways, a Police Station and
shopping center, grocery store, pharmacy and space for restaurants.
Mulago Hospital is currently in the process of procuring the services of a Transaction Advisor to
support management in carrying out a detailed feasibility study report and procurement of a private
party to implement the project.
Waste management in and around Kampala City continues to be a challenge. Kampala Capital City
Authority (KCCA) at the moment directly runs the collection and disposal of waste around the city.
There is however need for more efficient mechanisms of waste collection, recycling and energy
production out of the waste thus justification for a PPP to attain this.
KCCA has thus acquired 135 acres of land located in Dundu, Mukono district to undertake a PPP
project seeking to establish a state-of-the-art integrated waste disposal, treatment, materials and
resource recovery facility to optimize the waste management value chain. The estimated cost of the
project is approximately USD 20 million and a feasibility study for the project is ongoing.
The project comprises of redevelopment of UNCC’s prime property located at the National Theatre
and Nommo Gallery into an ultra-modern cultural centre with three theatres, resource centre, crafts
centre, recreation centre, art gallery, office space and a 5-star hotel. The estimated project cost is USD
200 Million.
The Project comprises of redevelopment of the existing sports facilities and construction of new state
of the art sports facilities, health club, shopping centers, restaurants, etc. The estimated project cost is
USD 19 Million.
1.3.1.5. Redevelopment of Uganda Post Limited Properties.
The Project involves redevelopment of the existing properties of Uganda Post Limited at a projected
cost of USD 400 Million. A feasibility study for the Project is ongoing.
2. the advantages and disadvantages for the use of PPP financing