1. UGANDA
INVESTMENT FORUM 2013
Public Private Partnerships:
“Stimulating, Modernizing and Growing Uganda’s Economy”
by
Hon. Aston Kajara
Minister of State for Finance (Privatization)
April 11, 2013
Sheraton Hotel Kampala

2. Introduction
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Provision of infrastructure and related services is
traditionally a role performed by Government
 finance,
build, maintain and operate
 procured through works procurement
 all risks on government


Untenable due to inefficiencies, mismanagement,
competing needs, limited budgets
PPPs - alternative to stimulate, modernize and grow
Uganda's economy

3. What are PPPs?
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Private sector involvement in providing infrastructure
related services
Emphasis on economic and social infrastructure
Long term contracts that stress service delivery
rather than asset creation
Several Types – Design, Build, Finance, Operate
– Concession
– BOT, etc.

4. Why PPPs?
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Infrastructure requirements outstrip budget
allocation
Private sector financing - increased infrastructure
investment without Gov't borrowing
Private sector management and innovation increased efficiency and productivity
Risk sharing – Gov’t remains with residual risks
Scope for user charges – less cost to Gov't

5. Success Factors
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Service specified in output terms
Competitive tender process
Optimal risk transfer
Institutional framework:
 political
commitment and good governance
 legal system to assure private sector
 appropriate capacity in managing a PPP program,
project selection and appraisal, negotiations,
contracting, etc.

Not burdened by uneconomic objectives

6. The Case for Uganda?
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Vision 2040 – To transform the economy to middle
income in 30 years
National Development Plan designed to
incrementally achieve this vision (5 year plan)
NDP 2010/11 – 2014/15 recognizes engagement
of private sector in service delivery (PPPs) as a key
strategy
Government commitment to infrastructure dev’t

7. Investment Priorities
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Increase stock of physical infrastructure
 Energy
 Transport – rail, road and water
 ICT
 Tourism, trade and agriculture infrastructure
Others
 Improve quality of Human Resource
 Promote science and technology

8. Infrastructure Funding Gap
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
Infrastructure requirements – approx US$ 30bn
(in the next 5 years)
 Of
which National Core Projects – US$ 8.5bn
 Approx 50% unfunded

Balance social infrastructure, services and Human
Resource capacity building

9. Core Projects
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
Oil and Gas
 Oil
Refinery
 EAC Inter-state distribution pipeline
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Energy – Large Hydros (Isimba, Ayago)
Transport
 BRT
for Kampala
 Water on Lake Victoria
 Standard Rail Gauge (Malaba – Kampala)

10. Core Projects Cont’d…
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ICT - IT Business Parks
Trade and Industrial Development
 Phosphate
 Iron
industry
Ore
 Science Parks/Technology Incubation Centres

11. Social Infrastructure PPPs
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
Education and Sports
 Public
Universities overcrowded, opportunity for PPP
 Skills Development – private schools

Health
 Health
infrastructure and equipment
 Training

Water and sanitation
 Rural
water supply
 Solid waste management

12. Challenges
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Limited resource envelop so Gov’t has opted to
embrace PPPs
Capacity constraints to implement PPPs
 Institutional
 Resources
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– local capital
Inadequate legal/regulatory framework
Public awareness/expectations
Ad-hoc selection of projects for PPPs

13. Government Interventions
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To provide a conducive environment,
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PPP Policy has been passed
Pipeline of PPP projects has been prepared
PPP Bill has been tabled in Parliament
PPP Unit or Department – to be established
Limited number of ongoing projects
Roads (Kampala – Entebbe highway)
 Energy (Bujagali and Eskom hydro projects)
 Office Accommodation and Housing


14. Conclusion
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PPPs can provide a viable mechanism to execute
strategic projects for national development.
Government wishes to partner with the Private
Sector to provide solutions to meet Uganda’s
infrastructure and social services needs through
PPPs mechanisms.
Government is prepared to address the key
challenges identified as major hindrances in PPP
project implementation.

15. 14
THANK YOU !