UK | UGANDA | INDUSTRIAL PARK

WAKISO - The United Kingdom (UK) has offered to lend Uganda £2b (about sh9.5 trillion) for industrial park development.

The £2b is in addition to the £500m that had earlier been earmarked by UK Export Finance (UKEF), which is UK’s export credit agency, UK trade envoy to Uganda Lord Dollar Popat said, Tuesday.

Popat and British High Commissioner Kate Airey were making their maiden visit to the Kampala Industrial and Business Park (KIBP),  Namanve in Wakiso district. 

The construction of KIBP is being funded through a loan from UK Export Finance.

Uganda Investment Authority Director General Robert Mukiza (left) talking to Lord Dollar Popat, United Kingdom Trade Envoy to Uganda after their Namanve Industrial Park infrastructure tour. (All Photos by Mpalanyi Ssentongo)

Investors to pay 

“We have the money available to lend to the Uganda government. It is not the Ugandan taxpayers paying for it, but the private investors,” Popat said.

He added that if the park is completed, it would contribute to Uganda’s Gross Domestic Product (GDP). 

“Already, there is demand for space by many companies and I am told you want to do five parks. We want to support Uganda in those five parks. Uganda Investment Authority (UIA) director-general accepts the fact that UIA is a  government agency, but it should be run as a business and we will support UIA,” Popat said.

He added that he was the transport minister in the House of Lords, but stepped down in 2013. “I am committed to Uganda,  my heart and soul is here and this is my place of birth,”  Popat, who was born in Butaleja district, said.

UIA director-general Robert Mukiza said the current physical progress of KIBP, stood at 17%, as opposed to the expected progress of about 28% and yet the time elapsed is 35%.

Jobs to be created 

Airey said upon completion, the park would create jobs which are important in terms of UK working with Uganda to develop economic growth for Ugandans and prosperity going forward.

UIA director-general Robert Mukiza said the current physical progress of KIBP,  stood at 17%, as opposed to the expected progress of about  28% and yet the time elapsed is 35%. 

“With road designs for the north and south A estates complete, construction commenced on May 1. 

However, it has been slow, mainly due to a number of contractual hurdles that have had to be navigated,  hindrances to mobilisation efforts occasioned by the COVID-19 pandemic,” Mukiza said. 

“These are, however, being handled and we expect the work progress to pick up shortly,” he added.

UIA Director General Robert Mukiza (extreme left), UK Trade Envoy to Uganda Lord Popat (third left), the British High Commissioner to Uganda H.E Kate Airey (centre) with other officials touring Namanve Industrial Park infrastructure to assess the work progress of the project on Tuesday, November 16, 2021.

Progress at 12.4%

Mukiza said the project’s financial progress stood at about 12.4% for Lagan Dott Namanve Ltd and only 10%  for the owners Engineer. 

Eng. Andrew Bamanya Chairman of the board of Lagan-Dott JV who are the main contractors of the project noted that they considered the project a flagship to one of the many other projects they will carry out in the country in future.

“We are committed to delivering a high-quality product that will be a world-class industrial park and a benchmarking example for other parks. During the delivery journey we are committed to improving local skills and employment and ensure the environmental issues in the park are managed and maintained,” he said.

He noted that the project was a design and build Engineering, Procurement and Construction (EPC) contract tapping into the strengths of the team and their experience in delivering similar projects.

“We are delighted to advise that after a number of months of intensive surveying, investigation and design activities, we started the physical works as of May 2021 this year,” Bamanya said.

H.E Kate Airey plants a tree at Namanve Industrial Park.

Bamanya said the project comprises improvements to the road network, sewage. Water, drainage, fiber optics backbone, solar street lighting, for the entire park, Small and Medium Enterprises workspaces and other amenities such as water hydrants which will all be completed within the 42 months’ period.

The KIBP covers an area of approximately 890 hectares (8.9 km2) and the Government of Uganda plans for it to become a model industrial park for the rest of the country.

Alex Nuwagira the KIPB Infrastructure Development Project Manager noted that they would speed up the construction works to ensure the project was completed within the designated time.

“We have the money available to lend to the Uganda government. It is not the Ugandan taxpayers paying for it, but the private investors,” Popat said.

Project details

Eng. Andrew Bamanya, the chairperson of the board of Lagan-Dott JV, said the project comprises improvements to the road network and the sewerage system. 

It also has water, drainage, fibre optics backbone,  solar street lighting, for the entire park, small and medium-sized enterprises workspaces and other amenities, such as water hydrants, which will all be completed within the 42-month period.

The park covers an area of about 890 hectares and the Government plans for it to become a model industrial park for the rest of the country.