AfDB approves financing for US$1.55 billion expressway PPP in Uganda

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AfDB approves financing for US$1.55 billion expressway PPP in Uganda

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The African Development Bank (AfDB) 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. Total project cost is estimated at US$1.55 billion, with financing from sovereign and non- sovereign facilities.

Scheduled to be managed over the next 30 years (including an five-year construction period) 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.

The Uganda National Roads Authority (UNRA) issued a Request for Qualifications (RFQ) for the project in May this year. The selected private partner will design, construct, operate and maintain the 95km limited access tolled expressway, financing US$800 million of the total cost.

As we reported last month, eight companies and consortia have submitted pre-qualification applications. These include  prolific international infrastructure developers Vinci, Strabag and China Communications Construction Company. The UNRA expects the assessment and approval process to take approximately two months.

The schedule outlined when the RFQ was published envisaged the submission of final bids in May 2019, with the aim of achieving commercial close with the successful bidder in November 2019.

The AfDB loan will finance infrastructure development, project implementation support and community livelihoods improvement activities along the expressway. It is co-financed with the European Union and Agence Francaise de Developpment, with total co-financing amounting to US$400 million.

The expressway is located along Uganda’s Northern Corridor, a strategic route within the East African Community, linking Uganda, Rwanda, Burundi, Democratic Republic of Congo and South Sudan with Kenya’s Mombasa maritime port. It is easily the most important route on the national road network, taking 30% of international traffic to Burundi, 60% to Rwanda and almost 100% to Uganda. It also carries over 90% of Uganda’s imports and exports.

The Kampala-Jinja corridor has experienced accelerated development over the last 20 years, and currently experiences traffic overload, registering over 1,000 vehicles per hour per lane, with consistent breakdown of traffic flows, according to a 2017 study conducted by the UNRA.

List of country news

Country news

  • September 05, 2018

    Eight groups bid to prequalify for US$1 billion expressway PPP in Uganda

    The Uganda National Roads Authority (UNRA) has received eight pre-qualification applications for the Kampala-Jinja Expressway PPP project. This involves the construction of a 77km expressway linking the capital of Uganda to Jinja, in the south-east. The total estimated investment required is over US$1 billion.

    Read more
  • May 21, 2018

    RFQ issued for 77km expressway in Uganda

    The Uganda National Roads Authority (UNRA) has issued a Request for Qualification (RFQ) for the Kampala-Jinja Expressway PPP project. This involves the design, construction, financing, operation and maintenance of a limited access tolled expressway between the cities of Kampala, the capital, and Jinja.

    Read more
  • January 20, 2017

    Uganda seeks transaction advisors for a housing PPP project

    Uganda has announced it has launched a tender process to seek transaction advisors for a housing PPP project.

    Read more
  • January 12, 2017

    AfDB to finance Uganda-Rwanda highway

    Uganda’s Minister of Finance Planning and Economic Development, Matia Kasaija, and Gabriel Negatu, East Africa Regional Development and Business Delivery Office Director General, signed African Development Bank and African Development Fund loan agreements of US$151 million for the Multinational Uganda-Rwanda Busega-Mpigi express highway project.

    Read more
  • September 02, 2016

    Information Memorandum released for Jinja-Kampala PPP

    The International Finance Corporation (IFC) has prepared a Preliminary Information Memorandum (PIM), Read more

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