Govt defends Entebbe Airport deal
Jul 23, 2009
THE Government has defended a proposal by an Arab company to redevelop and manage Entebbe Airport.
By Herbert Ssempogo
THE Government has defended a proposal by an Arab company to redevelop and manage Entebbe Airport.
The finance and investment state minister, Aston Kajara, yesterday said Dodsal Infrastructure Development would elevate the airport to international standards.
“As government, we have to ensure that whatever is done is beneficial to all Ugandans,†Kajara told journalists in Kampala.
The Government, he stressed, wanted to develop the airport but did not have the money.
“If there is a better player who can bring in money and do a good job, why shouldn’t we study the proposal?†he asked.
“The Civil Aviation Authority did some work before the Commonwealth Heads of Government Meeting (CHOGM), but that is not enough.â€
Kajara cited a free export zone for agricultural products as one of the benefits, should the project be approved.
Dodsal, based in the United Arab Emirates (UAE), but registered in British Virgin Islands, wants to acquire a concession to run the airport.
There have been reports that the Government had already sold the airport.
Kajara, however, denied the claims.
He said a technical committee that started work on July 13 was studying Dodsal’s capacity, locations, its other business ventures and the proposal.
Kajara disclosed that the process started in September when Dodsal appointed Changi from Singapore as the consultants for a feasibility study.
Dodsal, Changi and the Government afterwards signed a memorandum of understanding that paved way for the study, which did not cost Ugandans any money, said the minister.
Reacting to queries on why Dodsal was based in UAE, but registered in the islands, Kajara insisted it was a common occurrence, particularly for offshore companies.
“A company can be registered in one country and operate in another,†he said, adding that the deal would not be signed before consulting all stakeholders.
The transport state minister, Simon Ejua, said there was no cover-up.
“There should be no cause for alarm,†he noted.
MPs on Wednesday expressed concern over the matter.
Addressing journalists, Hussein Kyanjo (JEEMA), Theodore Ssekikubo (NRM) and Latif Ssebagala (DP) questioned the modalities of the sale, saying the investor could easily turn the airport into a shopping mall.
“What is the guarantee that this investor will not turn out to be like other biccupuli (fake) investors that have turned most of our good places into shopping malls? Look at what is happening to Shimoni land,†Kyanjo said.
“What if the investor turns round and says, ‘I am turning the place into a mall because the airplane business is not profitable’?â€
The MPs were angry that despite spending a lot of money to rehabilitate the airport during CHOGM, the Government never informed them of the deal.
They demanded that the Saudi and UAE ambassadors provide information about the investor. Ssekikubo said it was wrong for the Government to sell the airport, Uganda being a land-locked country.
“What if we get problems with our neighbours and they close all the borders. Which route will we use?†he asked.
“The airport is our only lifeline.â€
Kyanjo tasked the Government to explain the arrangement under which the deal was initiated.
Ssebagala called upon Parliament to reject the idea.
Entebbe Airport was constructed in 1981
(Addition reporting by Mary Karugaba and Madinah Tebajjukira)
THE Government has defended a proposal by an Arab company to redevelop and manage Entebbe Airport.
The finance and investment state minister, Aston Kajara, yesterday said Dodsal Infrastructure Development would elevate the airport to international standards.
“As government, we have to ensure that whatever is done is beneficial to all Ugandans,†Kajara told journalists in Kampala.
The Government, he stressed, wanted to develop the airport but did not have the money.
“If there is a better player who can bring in money and do a good job, why shouldn’t we study the proposal?†he asked.
“The Civil Aviation Authority did some work before the Commonwealth Heads of Government Meeting (CHOGM), but that is not enough.â€
Kajara cited a free export zone for agricultural products as one of the benefits, should the project be approved.
Dodsal, based in the United Arab Emirates (UAE), but registered in British Virgin Islands, wants to acquire a concession to run the airport.
There have been reports that the Government had already sold the airport.
Kajara, however, denied the claims.
He said a technical committee that started work on July 13 was studying Dodsal’s capacity, locations, its other business ventures and the proposal.
Kajara disclosed that the process started in September when Dodsal appointed Changi from Singapore as the consultants for a feasibility study.
Dodsal, Changi and the Government afterwards signed a memorandum of understanding that paved way for the study, which did not cost Ugandans any money, said the minister.
Reacting to queries on why Dodsal was based in UAE, but registered in the islands, Kajara insisted it was a common occurrence, particularly for offshore companies.
“A company can be registered in one country and operate in another,†he said, adding that the deal would not be signed before consulting all stakeholders.
The transport state minister, Simon Ejua, said there was no cover-up.
“There should be no cause for alarm,†he noted.
MPs on Wednesday expressed concern over the matter.
Addressing journalists, Hussein Kyanjo (JEEMA), Theodore Ssekikubo (NRM) and Latif Ssebagala (DP) questioned the modalities of the sale, saying the investor could easily turn the airport into a shopping mall.
“What is the guarantee that this investor will not turn out to be like other biccupuli (fake) investors that have turned most of our good places into shopping malls? Look at what is happening to Shimoni land,†Kyanjo said.
“What if the investor turns round and says, ‘I am turning the place into a mall because the airplane business is not profitable’?â€
The MPs were angry that despite spending a lot of money to rehabilitate the airport during CHOGM, the Government never informed them of the deal.
They demanded that the Saudi and UAE ambassadors provide information about the investor. Ssekikubo said it was wrong for the Government to sell the airport, Uganda being a land-locked country.
“What if we get problems with our neighbours and they close all the borders. Which route will we use?†he asked.
“The airport is our only lifeline.â€
Kyanjo tasked the Government to explain the arrangement under which the deal was initiated.
Ssebagala called upon Parliament to reject the idea.
Entebbe Airport was constructed in 1981
(Addition reporting by Mary Karugaba and Madinah Tebajjukira)