Uganda National Roads Authority (UNRA) has revealed that collections on Entebbe Expressway toll levy will continue for more than 18 years until government completes the payment of the $476million (shs1.853Trillion) loan acquired from Exim Bank of China to construct the road.
UNRA’s Director for Network Planning and Engineering, Isaac Wani, said that the additional revenue will be for maintenance of the Expressway among other activities.
“That money has to be paid within 13 years however the breakeven because of the optimum that we determined will go up to 18 years. So, the Ministry of Finance has to complete that payment and then the breakeven to recoup the investment will take us up to 18 years and thereafter, we will be collecting additional revenue to finance road maintenance activities including on maintenance of that road,” said Wani.
This followed a question raised by Medard Lubega, Chairperson of the House Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), asking UNRA officials to explain the formula used to arrive at the charge of shs5000 as toll fee on Kampala-Entebbe Expressway.
UNRA officials led by Allen Kagina, Executive Director were appearing before the COSASE to respond to queries raised in the Auditor General’s report for the financial year ending June 30, 2023.
Ssegona, MP Busiro East, also asked UNRA to explain the logic behind closing two lanes of the Expressway whenever President Museveni is using the road, which ends up inconveniencing road users who pay a toll fee, yet his convoy is not among those that pay.
“How much do we collect, how much as our percentage and how much does the Exim Bank take and based on what formula? It is a limited access road, why would it be a limited exit road? Part of the need for the road was to offload the traffic around Kampala, now, by closing the exit at Kyengera? he asked.
“When the President thinks of leaving his home to Kampala, you mean you have no mechanism of knowing when to close the road? He doesn’t pay in the first place, now you inconvenience people who pay and that isn’t to say that the President is less important. I personally appreciate the value of the President’s security. That is why I have no quarrel with lining up his soldiers along the entire route but the President is using one lane, you close even the next one, does it make sense to you whether economic or social sense? Instead, it endangers his security because somehow, he is going to be entangled with people who have been locked up in a particular area and congested.”
Workers MP, Charles Bakabulundi also weighed in on the matter of the formula used to arrive at the levy charged by UNRA, wondering whether the toll fee of shs5000 per route was in the contract.
My understanding is that once the contract is signed, and before the opening of the Entebbe Expressway, whatever share that UNRA was supposed to retain, or finance, whatever share Exim Bank was supposed to take, it is supposed to be imbedded in the contract, who came up with the fee of shs5000 per vehicle per route which has taken more than 4 years. How much does UNRA get as a percentage and Exim Bank as a percentage? asked Bakabulindi.
Kagina told MPs that she cannot answer for the security agencies on why part of the road is closed whenever the President is using the Expressway.
“We can work together with security to provide a response but it isn’t abnormal that when the president is going to a location that his security is present in advance to secure his passage. Some questions I can’t answer but what we are working on is that the time when that road is closed is reduced, said Kigina.
Meanwhile, Wani informed the Committee that UNRA developed an Expressway Master Plan which saw the Authority undertake a study on the willingness to pay and the traffic on the road.
He said that also, UNRA determined how many vehicles will use the road if there is payment and based on that data, it was realised that most motorists had indicated they would manage to pay shs5000.
However, Ssegona contested this explanation, saying that it may not be possible for UNRA to parade any road user who suggested he or she would pay shs5000 per route on the Expressway.
Masaka-Mutukula road
UNRA officials also revealed that the contract for the rehabilitation of the Masaka-Mutukula Road will be signed this week following the approval of the contract by the Solicitor General.
The rehabilitation of Masaka-Mutukula Road was cleared last week by the Solicitor General, we are due to sign the contract this week. We should see works begin in about a month or so. The cause of the delay was basically funding, said Kagina.
Kagina was responding to Bakabulindi who said that it is a shame that Tanzanians who drive on good roads from their country are welcome by potholes the moment they cross to Uganda via the Mutukula border point.
I was there with the former Vice President up to Kasesero (landing site), the potholes are the ones welcoming us. Is that the performance we should praise in UNRA? he asked.
Wani explained that the Masaka-Mutukula Road, was identified as a regional road and although the African Development Bank had committed to finance this project, the on-set of the COVID-19 pandemic dragged contract negotiations between government and the financier, prompting government to take up the project. He said that shortly after taking that decision, also the resources dwindled, prompting the Ministry of Finance to opt for a pre-financing model that was later approved by Parliament.
In December 2023, Parliament approved a pre-financing arrangement for the reconstruction of Masaka-Mutukula Road (89.5Km) and rehabilitation of Nyendo-Villa Maria Road (11Km), upgrading of 3.5Km access road to the UPDF barracks in Masaka, 3.5Km access road to Masaka Industrial Park & additional scope of 28.5Km for Kikagati-Kafunjo Road at a cost of shs691.680 billion.
The Ministry of Finance informed Parliament that Chinese firm, Chongqing International Construction Corporation (CICO) would undertake these works and the Government would be required to pay back the money within 2 years of the implementation of the project.
