Roads: What the trillion has done
Mar 25, 2009
What can a trillion shillings do? If you divided it among Uganda’s 30 million people, each would get sh33,300. But this financial year, the Government chose a different approach to spend the trillion.
By Frank Sserwaniko
What can a trillion shillings do? If you divided it among Uganda’s 30 million people, each would get sh33,300. But this financial year, the Government chose a different approach to spend the trillion.
It was allocated to the transport sector for upgrading and maintenance of the country’s road network. The newly established Uganda National Roads Authority (UNRA) got sh948b, about 95% of the Fund, for national road maintenance and construction. The rest of the kitty went to the Ministry of Works and Transport, Kampala City Council and other urban authorities.
However, with three months to the next financial year, when another trillion could be added, questions are being asked as to whether any significant improvement has been done on the national roads.
“It may be too early for some ordinary eyes to judge given the sorry state in which our roads have been over the last few years, but most people who travel around the country must have seen a significant difference on our national road network†says Dan Alinange the UNRA spokesperson.
Concern is, however, being voiced that with a lot of money allocated to the sector, implementation is still slow.
At the recent mid-term budget performance review meeting, Finance Minister, Syda Bbumba, doubted the transport sector’s capacity to absorb the money after it emerged that it had spent only 53% of the funds that were allocated for the first half of the financial year.
Alinange says this was because a lot of time was spent on procurement processes, studies and designs. They inherited only two ready projects. “For awarded contracts, firms spent much time mobilising, but many of them have now started construction work. Of course we cannot pay them 100% when they have completed 30% of the work.†However, Bbumba says the release of funds is pegged on activity plans and capacity to implement them during a particular period.
“We are not responsible for organising the procurement for them, so if procurement is slow, that is their problem,†she said. But Alinange says UNRA could have a cash squeeze in the next financial year if the same or less money is allocated to it, because all the awarded contracts will be active in addition to new ones to be signed.
Edga Agaba, the Executive Director, of the Public Procurement and Disposal Authority (PPDA) said it was crucial that proper long term planning is carried out, other than “trying to finish roads in one year.â€
“When planning for a road, you have to put into consideration that the procurement process takes between six to 12 months. If a road is to be built this year, the designs and procurement should have started last year, but the sector planners seem not to have considered this,†Agaba said.
He said in special circumstances, a procuring entity can apply to PPDA for permission to reduce the tendering period, but this is not ideal since longer periods would enable closer scrutiny of bidders and safeguard public resources.
Current PPDA procedures require that a minimum of 30 days, from the time of advertising, be given for submission in case of domestic bids, while for international bids 45 days.
After submission, evaluation procedure taking about 60 days follows. Contract negotiations would come next before the awards and signing.
Alinange agrees, but says UNRA has done the best it could during the last eight months.
“Just like other major construction projects, roads take time to build, but since UNRA started in July 2008, over 50 road maintenance contracts have been awarded. Another 20 will be signed before the end of March,†he said, adding: “You can now drive from Kampala to Mbale or Kampala to Gulu without finding potholes.â€
Alinange says major development projects like Mutagga-Semuto, Kampala-Masaka, Mbarara-Ntugamo and Kampala-Gayaza-Zirobwe have started, while contracts for Kampala-Mityana and Fort Portal-Bundibugyo would be awarded in the following few weeks.
“Completion of major projects like Jinja-Bugiri and Kampala Bypass that were already ongoing is on schedule,†hesaid.
UNRA became operational on July 1, 2008, taking over the mandate to develop and maintain the national road network from RAFU and the Ministry of Works and Transport. The ministry’s role now remains policy formulation and supervision. The national road network currently stands at 10,500 kilometers.
With over 9,000 kilometers of former district roads to be added this financial year, the authority will be in charge of some 20,000 kilometers. It is also responsible for the associated drainage systems, bridges, axle load management and ferry services.
According to the institution’s 2008/9 budget, administrative expenses were allocated sh7.25b, road maintenance sh166b, while construction takes the lion’s share at sh775billion. About 40% of this budget is donor funded.
Alinange says road maintenance works commenced with “Operation no pothole†on tarmac roads, which started in August last year, patching over 40,000 square meters of potholes by the end of December. And this is where another question is being asked.
With a trillion shillings at your disposal, why are you patching up instead of complete reconstruction? “It is not either or,†he explains, “reconstruction is the long term plan, but in the short run, roads have to continue being used. If you take the example of Kampala - Masaka Road, it was almost impassable because of the numerous potholes. We have since sealed these potholes, but the contract for complete reconstruction has been awarded and the contractor has started. The project will take three years to complete, but it has to remain motorable.â€
Ongoing road upgrading projects, according to the UNRA project document include Kabale-Kisoro-Bunagana, Soroti - Dokolo, Dokolo-Lira, Kampala-Gayaza-Zirobwe, Kampala Northern By-Pass and Matuga-Semuto-Kapeeka.
Rehabilitation and maintenance works include Masaka-Mbarara, Kampala-Masaka, Jinja-Bugiri, Kawempe-Luwero, Luwero-Kafu and Jinja- Kampala (accident black spots) Hoima–Kaiso–Tonya and Hoima-Kizirafumbi are being rehabilitated under an emergency program to facilitate early production scheme of oil, while for Aswa and Mpondwe bridges, procurement of contractors is ongoing. UNRA has grouped backlog maintenance projects into six packages, for which contractors can bid separately.
Alinange says more than 50 contracts have already been awarded to local firms. He says it costs them an estimated $500,000 to $800,000 to upgrade a kilometer of road from maram to tarmac, depending on design, width, terrain and traffic volume
Economic analysts have recently commended government’s increased spending on infrastructure. Standard Chartered Bank Managing Director Lamin Manjang told Business Vision this month that the move would cushion the country against shocks of the global economic crisis by boosting jobs and spending power.
However, with Uganda Revenue Authority registering revenue shortfalls in the first half of the year. The Finance ministry would be looking for possible cuts on government spending, and if decision is based on past absorption records, infrastructure spending may not register significant growth if it survives a reduction.
What can a trillion shillings do? If you divided it among Uganda’s 30 million people, each would get sh33,300. But this financial year, the Government chose a different approach to spend the trillion.
It was allocated to the transport sector for upgrading and maintenance of the country’s road network. The newly established Uganda National Roads Authority (UNRA) got sh948b, about 95% of the Fund, for national road maintenance and construction. The rest of the kitty went to the Ministry of Works and Transport, Kampala City Council and other urban authorities.
However, with three months to the next financial year, when another trillion could be added, questions are being asked as to whether any significant improvement has been done on the national roads.
“It may be too early for some ordinary eyes to judge given the sorry state in which our roads have been over the last few years, but most people who travel around the country must have seen a significant difference on our national road network†says Dan Alinange the UNRA spokesperson.
Concern is, however, being voiced that with a lot of money allocated to the sector, implementation is still slow.
At the recent mid-term budget performance review meeting, Finance Minister, Syda Bbumba, doubted the transport sector’s capacity to absorb the money after it emerged that it had spent only 53% of the funds that were allocated for the first half of the financial year.
Alinange says this was because a lot of time was spent on procurement processes, studies and designs. They inherited only two ready projects. “For awarded contracts, firms spent much time mobilising, but many of them have now started construction work. Of course we cannot pay them 100% when they have completed 30% of the work.†However, Bbumba says the release of funds is pegged on activity plans and capacity to implement them during a particular period.
“We are not responsible for organising the procurement for them, so if procurement is slow, that is their problem,†she said. But Alinange says UNRA could have a cash squeeze in the next financial year if the same or less money is allocated to it, because all the awarded contracts will be active in addition to new ones to be signed.
Edga Agaba, the Executive Director, of the Public Procurement and Disposal Authority (PPDA) said it was crucial that proper long term planning is carried out, other than “trying to finish roads in one year.â€
“When planning for a road, you have to put into consideration that the procurement process takes between six to 12 months. If a road is to be built this year, the designs and procurement should have started last year, but the sector planners seem not to have considered this,†Agaba said.
He said in special circumstances, a procuring entity can apply to PPDA for permission to reduce the tendering period, but this is not ideal since longer periods would enable closer scrutiny of bidders and safeguard public resources.
Current PPDA procedures require that a minimum of 30 days, from the time of advertising, be given for submission in case of domestic bids, while for international bids 45 days.
After submission, evaluation procedure taking about 60 days follows. Contract negotiations would come next before the awards and signing.
Alinange agrees, but says UNRA has done the best it could during the last eight months.
“Just like other major construction projects, roads take time to build, but since UNRA started in July 2008, over 50 road maintenance contracts have been awarded. Another 20 will be signed before the end of March,†he said, adding: “You can now drive from Kampala to Mbale or Kampala to Gulu without finding potholes.â€
Alinange says major development projects like Mutagga-Semuto, Kampala-Masaka, Mbarara-Ntugamo and Kampala-Gayaza-Zirobwe have started, while contracts for Kampala-Mityana and Fort Portal-Bundibugyo would be awarded in the following few weeks.
“Completion of major projects like Jinja-Bugiri and Kampala Bypass that were already ongoing is on schedule,†hesaid.
UNRA became operational on July 1, 2008, taking over the mandate to develop and maintain the national road network from RAFU and the Ministry of Works and Transport. The ministry’s role now remains policy formulation and supervision. The national road network currently stands at 10,500 kilometers.
With over 9,000 kilometers of former district roads to be added this financial year, the authority will be in charge of some 20,000 kilometers. It is also responsible for the associated drainage systems, bridges, axle load management and ferry services.
According to the institution’s 2008/9 budget, administrative expenses were allocated sh7.25b, road maintenance sh166b, while construction takes the lion’s share at sh775billion. About 40% of this budget is donor funded.
Alinange says road maintenance works commenced with “Operation no pothole†on tarmac roads, which started in August last year, patching over 40,000 square meters of potholes by the end of December. And this is where another question is being asked.
With a trillion shillings at your disposal, why are you patching up instead of complete reconstruction? “It is not either or,†he explains, “reconstruction is the long term plan, but in the short run, roads have to continue being used. If you take the example of Kampala - Masaka Road, it was almost impassable because of the numerous potholes. We have since sealed these potholes, but the contract for complete reconstruction has been awarded and the contractor has started. The project will take three years to complete, but it has to remain motorable.â€
Ongoing road upgrading projects, according to the UNRA project document include Kabale-Kisoro-Bunagana, Soroti - Dokolo, Dokolo-Lira, Kampala-Gayaza-Zirobwe, Kampala Northern By-Pass and Matuga-Semuto-Kapeeka.
Rehabilitation and maintenance works include Masaka-Mbarara, Kampala-Masaka, Jinja-Bugiri, Kawempe-Luwero, Luwero-Kafu and Jinja- Kampala (accident black spots) Hoima–Kaiso–Tonya and Hoima-Kizirafumbi are being rehabilitated under an emergency program to facilitate early production scheme of oil, while for Aswa and Mpondwe bridges, procurement of contractors is ongoing. UNRA has grouped backlog maintenance projects into six packages, for which contractors can bid separately.
Alinange says more than 50 contracts have already been awarded to local firms. He says it costs them an estimated $500,000 to $800,000 to upgrade a kilometer of road from maram to tarmac, depending on design, width, terrain and traffic volume
Economic analysts have recently commended government’s increased spending on infrastructure. Standard Chartered Bank Managing Director Lamin Manjang told Business Vision this month that the move would cushion the country against shocks of the global economic crisis by boosting jobs and spending power.
However, with Uganda Revenue Authority registering revenue shortfalls in the first half of the year. The Finance ministry would be looking for possible cuts on government spending, and if decision is based on past absorption records, infrastructure spending may not register significant growth if it survives a reduction.