Public Management

Uganda opts for a public-private partnership to construct a $1.5 billion highway

Wednesday, 09 January 2019 17:36
Uganda opts for a public-private partnership to construct a $1.5 billion highway

(Ecofin Agency) - Uganda has chosen a public-private partnership for the construction and exploitation of a $1.5 billion highway, Reuters reported on January 8, 2019, citing the Uganda National Roads Authority (UNRA).

"The 95 km highway will link the capital Kampala to Jinja (in the East). It is the first road project that will be realized in the framework of a public-private partnership in Uganda”, said Patrick Muleme, the head of design at the UNRA.

He also explained that the partner (which will build and operate the road for 30 years) would be selected by the end of 2019.  "We expect that by end of the year we would have selected the final preferred bidder," he added indicating that the construction work should begin in 2020.

In December 2018, the UNRA published a shortlist of four candidates who bidded for the tender call issued in the framework of that project. There was a consortium led by German-based Strabag AG and another led by China Communications Construction Company (CCCC).

The prefered bidder will invest $600 million, the government will provide $400 million and $500 million will be raised in the financial market.

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