Gen Wamala urged the contractors to not only do quality work but hoped that the project would be completed within the three-year timeline, to fast-track the country’s bid to be a modern regional logistics hub.
The government has contacted Tecnovia SA, a South African-based construction group, for the construction of the 97-kilometre Lusalira-Sembabule road.
The is supported to a tune of 126 million euros (about 497 billion shillings), with Citi group as lead arranger, with others in the syndicate including Absa Bank and the Development Bank of Southern Africa, and supported by the African Trade and Investment Development Insurance (ATIDI).
Tecnovia SA, which will handle the project in a joint venture with Tecnovia Angola, says they are ready to commence anytime the government hands over the project.
General Edward Katumba Wamala, the Minister of Works and Transport says the land acquisition process, which is the responsibility of the government, is almost complete.
He urged the contractors to not only do quality work but hoped that the project would be completed within the three-year timeline, to fast-track the country’s bid to be a modern regional logistics hub.
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The road runs from the Fort Portal-Mubende road to the Sembabule-Masaka road, through a region whose transport network is highly affected during heavy rains, and therefore, paving it is expected to go a long way to mitigate the climate effects.
While unveiling the project on Friday, Henry Musasizi, the Minister of State for Finance, Panning and Economic Development, showed concerns about the delays in the execution of public projects which leads to an increase in costs through inflation, accumulation of interest loans, among others.
Musasizi urged the Ministry of Works to ensure it plays its part of the bargain effectively including handling any issues that may otherwise lead to project delays.
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This is the first infrastructure project to be financed by Citi in the country, but the lender has already entered into agreements with the government on other projects.
Ebru Pakcan, the Chief Executive Officer and Banking Head for the Middle East and Africa Citi Bank, the bank will continue to look out for critical areas in need of government investment for help.
She noted that this road project is important to the local farming communities as well as connecting the area to the rest of the central and southern region and the country as a whole.
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Citi has also entered into negotiations with other infrastructure projects and has already been mandated to mobilise financing for some, according to Minister Musasizi.
These include 50 percent for the Standard Gauge Railway project, the Design and Build of Jinja-Mbulamuti-Kamuli, Bukungu 127km Road and the Enhancing Agricultural Production, Quality and Standards to Market Access Project.
Others are the rehabilitation and upgrade of urban roads and construction of flyovers and pedestrian bridges; construction and upgrading four roads, which are, Bubulo-Bududa Road, Mbale-Nkonkonjeru Road, Lugazi-Buikwe-Kiyindi Road and Kampala-Gayaza-Kalagi Road); and the construction of the Hamurwa-Kerere-Kanungu (47km) and Kanyantorogo-Butogota-Ruhija (32km) Road Project.
