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CABINET APPROVES BORROWING USD 175 MILLION FOREXPANDING AND IMPROVING INFRASTRUCTURE IN KAMPALA CITY

May 8th 2014
PRESS STATEMENT

Cabinet yesterday approved the borrowing of US$ 175 Million from the International Development Associationof the World Bank Group, to facilitate implementation of the Second Kampala Institutional and Infrastructure Development Project (KIIDP II).

The projected is intended to improve service delivery in Kampala, with enhanced focus on up-grading and expanding the road network in the city.

An expanded and improved road network under the project is envisaged to improve linkages between city suburbs, reduce congestion, ease movement of people andbusiness and stimulate investment and job creation.

Under the project’s infrastructure enhancement, Kampala Capital City Authority (KCCA) willupgrade road designs with better pedestrian walkways and street-lighting. More equipment will be installed to increase the number of automated signaled junctions and elevated crossing facilitiesto reduce pedestrian fatalities in the city.

Further infrastructural enhancements willinclude improving inter-linkages between city roads for better traffic flow and improved drainage systems to address flooding in Kampala city.Faster connectivity and mobility in the city will reduce costs related to chronic traffic jamsvehicle repairs due to breakages caused by pot-holes.

Government is also aiming towards having a safer city with reduction of health hazards and accidents associated with poor drainage, flooding and pollution.
Implementation of the Second Kampala Institutional and Infrastructure Development Project is timely, considering that Kampala is still grappling with infrastructural challenges. For instance, out of the city’s over-all 1,200km road network,only about 360km (30%) are paved and 840km (70%) are unpaved, in murram or gravel state.

This is a dilemma for KCCA because it is becoming increasingly expensive and unsustainable to maintain the numerous murram and gravel roads, particularly in the city’s emerging suburbs. This pauses a broader challenge considering that Kampala is also Uganda’s capital city and the nucleus of business activity.

Government feels that the need urgently improving and expanding infrastructure in Kampala is necessitated by an increasing population with complex needs and a growing number of vehicles on the city’s roads.

In a broader sense, the Kampala Institutional and Infrastructure Development Project isanchored in the Government’s strategic focus on over-all accelerated socio-economic transformation in Uganda. Thus, the project is synchronised with the National Development Plan (NDP) which is our blue-print for attaining a modern society status by within the next 30 years.

Indeed, addressing infrastructure gaps is among the major pillars of the NDP, as a pre-requisite for faster and sustainable economic growth in Uganda.Accordingly, the Ministry of Finance has been cleared by Cabinet to seek authorization from Parliament, to borrow the said 175 million from the International Development Association of the World Bank Group.

Since Kampala is Uganda’s main cosmopolitan city, the seat of Government and business hub, Cabinet hopes that Parliament will support borrowing of the said funds to enable the commencement of the Kampala Institutional and Infrastructure Development Project, as soon as possible.

Rose NamayanjaNsereko
MINISTER OF INFORMATION AND NATIONAL GUIDANCE