Multiplex contract by KCCA lies in balance

May 25, 2013

Multiplex Uganda Limited, which manages city street parking, may soon lose its contract with the Kampala Capital City authority (KCCA).

By Brian Mayanja

KAMPALA - Multiplex Uganda Limited, which manages city street parking, may soon lose its contract with the Kampala Capital City authority (KCCA).

The Government is in the process of signing a concession agreement with Pioneer Easy Bus, which is likely to see the parking lanes allocated to the bus company.

The agreement is being reviewed by Pioneer Easy Bus company, KCCA and the ministries of transport and local government.

According to the Government, the agreement aims at streamlining the operations of the bus company. Part of the agreement states that the current parking spots on Jinja Road, Kampala Road and Bombo Road must be converted into the bus lanes.

According to the agreement, Multiplex will be compensated for the loss of income for the remaining part of its contract.

Sources in KCCA’s directorate of works and engineering told Saturday Vision the authority is considering terminating the contract before the end of this year.

“Multiplex remits little revenue to KCCA. On top of that, there is a plan to decongest the city,” a senior KCCA official said.

The official added that if Multiplex’s contract was terminated, motorists would be banned from parking on the streets and building owners would have to create parking space.

KCCA also plans to introduce a dual line system so that more than three vehicles can use one road, revealed the official.

But KCCA legal officer Charles Ouma said such a decision would only be taken by all the stakeholders.

“Converting parking spots into special lanes is a decision that has to be taken by all the stakeholders, especially the ministry of transport, which is supposed to harmonise the concession agreement,” Ouma explained.

When Saturday Vision contacted Eldad Kasiime, Multiplex’s director in charge of street parking, he said they were aware of the new changes.

He said they would meet KCCA so that their contract is amended to allow them to operate in areas outside bus lanes.

Kasiime, however, said banning motorists from parking on the streets would cripple businesses.

“Don’t expect someone going to deposit billions of shillings in the bank to use buses. The first victim to be affected will be the banking sector,” he explained.

The defunct KCC awarded Multiplex a contract to manage city street parking in 2003. Kasiime declined to reveal how much revenue the firm remits to KCCA.

However, former Kampala mayor Nasser Sebagaala said Multiplex was supposed to remit sh150m every month to the defunct KCC, adding that the firm’s contract is renewed after two years.

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