Project need

The project being proposed by UNRA is the construction of a Greenfield limited access tolled expressway between Kampala and Jinja to relieve the current congestion on the existing Kampala Jinja highway and to cater for future growth. The Project is referred to as the Kampala Jinja Expressway PPP Project (“KJE”).  UNRA will therefore be seeking bids from the private sector to design, build, finance, operate and transfer a limited access tolled expressway with a design speed of up to 120kph between Kampala and Jinja. The Project will comprise a 77km mainline (the “Kampala Jinja Mainline”) and an 18km bypass to the south of Kampala city (the “Kampala Southern Bypass”).

Below is the summary of the Need for the Kampala‐Jinja Expressway Project:  

• There has been sustained economic growth over the last 30 years which has resulted in significant growth in vehicle numbers (average 3.6% per annum).  Investment in road infrastructure has lagged behind and capacity on certain sections of the national road network like the Kampala Jinja highway is now critical;  

• The development of Mukono into a hub of economic activity has led to a net effect of concentrated traffic on the section to Kampala, resulting in very high usage of the highway. This has led to severe congestion and capacity constraints during  peak times which also suffer from many incidents; 

• The combination of high road demand, lack of capacity and incidents leads to  severe current problems for the travelling public and businesses, with long delays,  unpredictable journey times, high accident rates and hence high travelling costs;  

• Expanding the existing highway is a very expensive option because of high value developments along the corridor as well as the high cost of resettlement that would be required to clear the right of way. In addition, any expansion of the  existing road would significantly affect the Mabira forest, a sensitive ecosystem;  

• In the context of these current issues, change is required. However when the future growth plans for Kampala and its importance in the future development of Uganda and the number of planned developments, as a whole is taken into account the case for implementation of the Kampala‐Jinja expressway is even stronger.  

• Analysis shows that the numbers travelling by private vehicle continues to grow due to population growth, while demand for freight movement in Uganda will continue to increase over the medium to long term as will the trend in the use of matatus for commuting.

Based on the available evidence, the problem identified is that the existing Kampala –  Jinja highway does not cater adequately for current road traffic movement; the road  is at or over operational capacity and there are severe resilience problems causing  congestion and delays, particularly on the approach to   Kampala. The existing Jinja road is also not able to handle the anticipated future traffic whilst rail based transport may well pick up, majority of travel will remain road based.    A solution to relieve congestion and improve resilience along the highway is needed now and to ensure that the substantial growth planned in the area can be catered for and supported. The principal reasons for increasing capacity are therefore to resolve issues concerning the following:  

(i) Current congestion, delays and unreliable journey times across the network diversely affecting traffic, business and freight travel in particular as well as  bus and matatu services. It will also address local political, business and resident concerns about traffic congestion and poor journey time reliability.   

(ii) Future  capacity  requirements  to  cater  for  economic  development  of  the  eastern part of Uganda. Providing extra capacity and achieving more reliable  journey  times  will  help  facilitate  additional  housing  and  commercial  development.   

(iii) Lower  the  cost  of  doing  business,  improve  the  investment  climate  and  competitiveness through quality infrastructure;  

(iv) Contribution  to  urban  Development,  inducement  of  new  land  use,  and  betterment of developments along the corridor;  

(v) Decentralization of business activities currently centralised in the Kampala  Central Business District (CBD) and provide opportunities to develop outskirts  of Kampala CBD;  

(vi) Improvement of traffic conditions through reduction of traffic congestion, air  pollution, noise, accidents etc; and  

(vii) Reduction in Travel time and costs. The project is expected to result in faster travel times and reduced vehicle operating costs between Kampala city and the neighboring urban areas.

Projected policy outcomes of the project

The project has a vital role to play in achieving UNRA’s vision as set out in the UNRA Strategic Plan. The project is also aligned with the Uganda Vision 2040 to:

(i) Accumulate  a  critical  mass  of  transport  infrastructure  network  to  spur  economic  growth;  

(ii) Lower  the  cost  of  doing  business,  improve  the  investment  climate  and  competitiveness through quality infrastructure; 

(iii) Urgently  attain  an  integrated  transport  infrastructure  network  to  spur  economic growth;  

(iv) Develop road infrastructure to improve transport connectivity, effectiveness  and efficiency to comparable levels of the developed countries; and  

(v) Build multilane Expressways and superhighways connecting major cities, exit  ports and economic zones.

Further, the project is a key project in the National Development Plan, and forms part of the wider Northern Corridor transport route which is an important trade enabler within the East African Community.    

In addition, the project, forms part of the national network of expressways that are currently being developed by UNRA aimed at facilitating an efficient movement of both  passengers and freight across the country to support the growth objectives as identified in the National Development Plan. The network of expressways supports regional trade particularly along the Northern Corridor and equitably serves all regions in the country. 

The overall objective of the proposed project is to contribute to sustainable and inclusive economic development in Uganda and enhance regional integration. By implementing identified viable road projects such as Kampala-Jinja expressway through PPPs, the economic growth of the country will not only be sustained but increased (the identified roads connect industrial towns in the North, West and Jinja to the trade corridor through to the seaport), level of serious and fatal accidents will be reduced, level of service on the roads will be  improved  and  pollution  reduced  through  smoother  and  more  efficient  vehicle  journeys.    

The Kampala-Jinja expressway Project forms a critical part of the Ugandan backbone  network  and  a  critical  section  of  the  East  African  Community  (EAC)  Northern  Corridor. As such, the road is expected to provide the following:  

(i) Alleviate congestion in and around Kampala,   

(ii) Enhance road safety, and  

(iii) Enhance Regional Integration as part of the Northern Corridor. 

Description of assets and services to be provided

The Kampala Jinja is projected as a limited access 95km tolled expressway comprising;  

77km of the Kampala-Jinja mainline expressway of 4+4 lanes for the first 3km,  3+3 lanes for the next 17 km then 2+2 lanes for the remaining 57 km with a design  speed of up to 120kph; and,   

18km Kampala Southern Bypass (Urban Expressway) of 2+2 lanes for the entire  length with a design speed of up to 100kph.     

The Kampala Jinja Mainline and the Kampala Southern Bypass collectively form the  Kampala Jinja expressway Public Private Partnership Project (KJE).    

The Project is located in the central part of Uganda.  The Kampala-Jinja mainline is  on the southern side of the existing Kampala‐Jinja highway starting at the outskirts  of the Kampala Central Business District (Lugogo) and ending at Jinja at the interface  with the New Nile Bridge and is approx.77km. This road link is along the Northern  Corridor route linking Uganda to the neighbouring countries of Kenya, Rwanda,  Burundi and DRC and a major gateway for all imports and exports into and out of the  country.      

The Kampala Southern Bypass (KSB) on the other hand provides a bypass to the Capital City Kampala, and is an 18km greenfield alignment starting at Butabika and ending at Munyonyo. The KSB links the Kampala Northern bypass, the new KampalaJinja Expressway and KampalaEntebbe expressway and together with Kampala Northern Bypass and Kampala – Entebbe Expressway will form a complete city ring road. The KSB will complete the ring road around the Kampala City which will provide a bypass and lateral connections between the existing radial roads in the city as well as ease the flow of traffic to and from the Kampala‐Jinja Mainline. 

Rationale for selection of the project for development as PPP

Procuring this project as a PPP through a project finance arrangement is expected to offer GoU the following benefits:

(i) Long term value for money is achieved over a publicly procured option.

(ii) Optimal transfer of risk

(iii) Promoting innovation in implementing future national road projects