Project Number: T.05.3.15 Project Title: Status: Jinja – Kampala Road Upgrading Countries | Region Project Location Sector | Sub-Sector Project description S2 Feasibility and needs assessment Uganda | East Africa Kampala - Jinja Transport | Road  Kampala - Jinja Road Capacity Improvement, part of the Northern Corridor Diagnostic Study  It is a 75 km dual carriageway road; will have 2 lanes  Part of the Northern Multimodal Corridor PIDA Project Objectives,  Improvement of the traffic capacity of Kampala - Jinja road corridor by Economic Sustainability and expected adopting a dual carriageway road configuration with the number of lanes in benefits each direction ranging from 2 to 4  As part of the overall PIDA project, as a result of a more efficient transport system, it will be simpler for people and goods to cross the borders of the countries involved. This will save costs and speed up regional integration and tradIt is expected that this project will contribute USD 1.5 million to the national output during construction  Projected financial internal rate of return: 12.8%  NPV: USD 47, 840, 000 REC EAC, COMESA, IGAD Project Sponsors Government of Uganda (GoU) Implementing Authority Lead Agency: Uganda National Roads Authority Project Status  Contract type: Build  Expected construction duration is 4 years  Design studies for upgrading the road are on-going with planned completion in December 2013 and will either recommend upgrade of the existing road or the provision of a new 3 - 4 lane dual carriageway with access control  Issue of operations and maintenance funding: Resolved  Technical studies: Partially completed Total estimated Project Value USD 67.5 million Preparation Costs Approx. USD 6 million (USD 5,967,087.91) 100% of which is secured Financing Obtained USD 2 million from the GoU Way Forward  Prepare financing plan, check PPP feasibility  Obtain financing for the project  Preliminary risk assessment done; need to prepare risk mitigation plans  Government policy and legislative decisions to be taken  Governance, management and structure needs to be identified Political Support GoU made allocation for the project as part of the Ministeral Budget Policy Statement Funding Gap USD 65.475 million Background The Northern Multimodal Corridor involves the modernisation of East Africa’s highest priority multimodal corridor and the roll-out of a smart corridor system. This corridor is the highest priority multimodal corridor in East Africa and will speed up the ease of access for people and goods across the borders of the Democratic Republic of Congo, Kenya, Uganda, Rwanda and Burundi. As a result of a more efficient transport system, it will be simpler for people and goods to cross the borders of the countries involved. This will save costs and speed up regional integration and trade. The project involves the modernisation of East Africa’s highest priority multimodal corridor and the roll-out of a smart corridor system (six modules). This includes the modernisation of a 129 kilometre stretch of road and the upgrading of 602 kilometres of road; the modernisation of six lake ports; and the creation of four one-stop border posts. The East African Community and Common Market for Eastern and Southern Africa will play a key role in this project, with the Northern Corridor Transit Transport Co-ordination Authority (NCTTCA) as the implementation agency. The NCTTCA was established to co-ordinate the implementation of the Northern Corridor Transit Agreement and to carry out decisions and resolutions reached by its policy organs. The NCTTCA has been appointed as the implementation agency, and a public-private partnership structure and toll system is envisioned for the project. The norms and standards still need to be harmonised and the financing plan has to be defined. This programme includes a large number of individual construction/upgrading projects, and may need future extension due to capacity shortages and increasing traffic. The total project value is estimated to be about USD 1 billion. The Jinja - Kampala Project is a sub – project, and the certain details of the project preparation status are presented below. Preliminary Road Up-gradation Details Description Unit Costs for constructing the road (US$/km) 9,00,000.00 Unit Costs for Routine Maintenance (US$/frequency/km) 1,700.00 Unit Costs for Periodic Maintenance (US$/frequency/km) 94.50 Unit Costs for Rehabilitation (US$/frequency/km) 770.00 Unit VOC for light vehicles (US$/veh-km) 0.30 Unit VOC for heavy vehicles (US$/veh-km) 1.06 LV Traffic Growth Rate (%) 6.00 HV Traffic Growth Rate (%) 6.00 Frequency of Routine Maintenance - Every x years e.g. 1 (Number) Frequency of Periodic Maintenance - Every x years e.g. 5 (Number) Frequency of Rehabilitation Every x years e.g. 20 (Number) 1.00 7.00 15.00