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Government has signed a memorandum of understanding (MOU) with East of Eden (U) Ltd (EOE), a private company incorporated in Uganda to undertake a feasibility study to develop Arua Airport into an International Airport under build, operate, and transfer model.

Arua Airport is the second-busiest airport in Uganda, after Entebbe International Airport.

The Minister of Works and Transport Gen Katumba Wamala last week on February 28, 2024, signed a memorandum of understanding with the investor following approval by the Solicitor General.

Sandra Zawedde the EOE (U) Ltd Chairperson signed on behalf of the investor. The pact was witnessed by her company secretary Lydia Nakamalira Tamale, Ministry of Works and Transport Permanent Secretary, Waiswa Bageya, and Uganda Civil Aviation Authority (UCAA) director general, Fred Bamwesigye.

The Government intends to develop the Arua Aerodrome into an international airport to realize its objective as stipulated in Vision 2040 and the National Development Plan III, particularly the development of airport infrastructure, among others.

The overall purpose of the MOU is to establish a framework for cooperation and collaboration in exploring the possibility, viability, and feasibility of developing the Arua Aerodrome into an International Airport in accordance with the Public Private Partnership Act, 2015, and guidelines issued by the Ministry of Finance.

Why Arua Airport?

The Ministry of Works and Transport received a directive from President Yoweri Museveni dated November 13, 2023, to work with a private investor East of Eden to develop Arua Airport into an international airport.

In a letter addressed to the works minister Gen Katumba Wamala titled ‘Developing Arua Aerodrome into an international airport,’ President Museveni said, “On October 2023, I held a meeting with investors from East of the Eden Group, attended by officials from your ministry led by minister Fred Byamukama, the investors expressed interest in developing Arua aerodrome into an international airport.”

The President said that he was informed by the investors that together with their partners and funders, they were ready to invest $300m (sh1.1 trillion) into the project.

“The idea of an international Airport in Arua is a good one, given its strategic location and the huge interstate business potential, since it borders Democratic Republic of Congo, South Sudan, and Central African Republic.

Therefore, I direct you to immediately engage this group, working with the minister of finance and Attorney General to implement this project,” the President directed.

Contribution to GDP

According to the performance of the economy report for January 2024 released by the Ministry of Finance last week, Uganda in December 2023, traded at a surplus of $22.30 million with the rest of the East African Community partner States, a shift from a deficit of $22.67 million recorded the previous month.

This was mainly on account of the trade surpluses recorded with Democratic Republic of Congo, South Sudan, Rwanda, and Burundi which more than offset the deficits registered with Tanzania and Kenya.

The Minister of Works and Transport Gen Katumba Wamala last week on February 28, 2024, signed a memorandum of understanding with the investor following approval by the Solicitor General.

Economists have argued that developing Arua Airport to International standards would facilitate trade between Uganda and DRC.  Uganda constructed a total of 223km (138 miles) of roads to connect to the eastern Congo cities of Beni, Goma, and Butembo to boost trade between the two countries.

Details of the MOU 

According to the pact signed on Wednesday, the Government shall provide EOE with all available information relevant to the study within 30 days from the time of request.

Government will also assist EOE in obtaining necessary approvals, licenses, and work permits for her employees on the project, subject to EOE meeting the requirements under the applicable laws of Uganda.

The Government will form a technical team to assist EOE in carrying out the feasibility study including review and approval of periodic reports as well as providing EOE access to Arua Aerodrome for purposes of conducting the Feasibility study.

EOE is expected to submit to Government the implementation plan (schedule of activities) within two (2) months of execution of the MOU for approval.

The company would conduct and submit a detailed feasibility study for the development of Arua Aerodrome at her own costs and expenses (non-refundable) in accordance with the PPP Act, 2015 and guidelines.

It will also submit periodic reports and make presentations to Government in relation to the feasibility study and obtain relevant approvals including NEMA Certificate for the case of Environment and Social Impact Assessment.

It is expected to prepare and submit to Government a comprehensive technical and commercial proposal for the implementation of the project having acceptable conditions under the law and procedures in force in Uganda.

Location

Arua Airport is a civilian airport serving the city of Arua in the Northern region of Uganda.

Its strategic location makes Arua Airport an important center for passenger and cargo air traffic between Uganda and its two neighbors, the DRC and South Sudan.

The airport is 19 kilometres from Uganda's border with the Democratic Republic of the Congo (DRC) and about 32 kilometres from the border between Uganda and South Sudan. It is approximately 375 kilometres by air north-west of Entebbe International Airport.

Other airports projects

Government is developing Kabalega International Airport being undertaken by SBC (Uganda) Ltd, a joint venture of SBI International Holdings AG and Colas, UK. 

The project is financed 85% by UK Export Finance (UKEF) and 15% by Commercial Source-Standard Chartered Bank. The value of the Contract is €309,100,256 of which €264,077,144 is for Construction.

The facility, which is expected to become Uganda's second International Airport is located in Kabaale sub-county, Hoima district.

The construction works at the airport stand at 95 per cent with the most crucial facilities including the construction of the runway, which is 3.5 kilometres long and 45 metres wide, the cargo terminal building, the limited-capacity passenger terminal building, the air rescue firefighting house and the air-ground lighting system among others all completed. 

The airport is one of the key support infrastructures for the upcoming commercial oil and gas production activities in Uganda such as construction of the refinery.

Kabalega International Airport, have the capacity to accommodate four cargo planes simultaneously. 

Government is also constructing Entebbe International Airport's new terminal expected to be completed in July 2024.

The revelation followed the launch of a modified terminal building on Wednesday constructed by the UPDF Engineers Brigade.

“The pending project that China Communications Construction Company (CCCC) is working on is construction of a new terminal building next to the current terminal. That terminal will be completed in July 2024. It is different from the modified terminal that we opened yesterday (Wednesday), which was funded from internally generated resources,” Luggya told New Vision.

He explained that CCCC is working on the bigger project for the upgrade and expansion of Entebbe Airport, which includes all the other mentioned projects like the new cargo centre, resurfacing of runways and associated taxiways (all completed), and expansion of Aprons.

The upgrading and expansion of Entebbe International Airport is being undertaken by (CCCC).

The newly built 10,000-square-meter cargo center was commissioned in April and construction of a new terminal building covering an area of 20,000 square meters is halfway complete