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Mauritius eyes trade deals in Uganda market

By Stephen Otage

Posted Friday, March 15 2013 at 02:00

The exhibition will enhance trade between the business community in Uganda and Mauritius.



A delegation of 27 companies from Mauritius is expected in the country this weekend to stage a two-day exhibition showcasing goods made in Mauritius and source business partnerships in Uganda.
According to Mr Amos Tindyebwa, the executive director of the Trade and Development Centre (TBDC), the exhibition—the second of its kind— will include buyer-seller meetings targeting the business community in Uganda that has been traditionally importing goods of questionable quality from the Far East and China yet Mauritius is producing similar goods of better quality which are enjoyed in USA and UK.

Led by the Mauritius Trade, Industry and Consumer Protection minister, Mr Cader Sayed Hossen, the delegation from the Indian Ocean island country under the Enterprise Mauritius initiative, also seeks to expand its market to the Democratic Republic of Congo, Rwanda and Burundi.

“The first exhibition was testing and ground breaking to introduce the Mauritius business community to Uganda. Most traders have been venturing into the Far East Markets where it takes two months to import a vessel notwithstanding pirates operating deep in the ocean,” said Mr Tindyebwa.

He added that traders should take advantage of the Mauritius free port services to quicken shipment of goods and also use Mauritius as an international sourcing centre that is more cost effective.

“We have products like raw milk in Uganda which is on high demand in Mauritius because these people depend on powdered milk …Ugandan traders should cash into this market,” said Frank Mwebaze the deputy country director TBDC.

Trade minister Amelia Kyambadde, is expected to open the two day exhibition at Imperial Royal hotel. Mauritius is a member of the Common Market for East and Southern Africa with a gross domestic product per capita of $14,000.

Jinja acquires Shs120b steel plant to boost local industry


Posted Saturday, March 16 2013 at 02:00

Growth of local industries in Uganda is still very low, standing at 3.4 per cent. Unless tax waivers are offered and imported steel products banned, growth is likely to remain low.


Once regarded as the industrial heartbeat of Uganda, Jinja could have a new lease of life with the emergence of MM Integrated Steel Uganda Limited, one of the leading manufacturers of steel in the region.

The $47 million (Shs122 billion) plant is set to produce 50,000 metric tonnes of steel products a year including iron bars, iron sheets and storage tanks and directly employ 1,800 people.

The company has projected to invest $600 million in the next five years.
“The factory is no ordinary establishment. It’s large in all measure. It consumes 5 megawatts of power at over Shs210 million per month, tapped from the Madhvani feed to the national greed.

The three-Kilometre line was non-existent so MMI had to connect it. They use Shs10 million worth of water from National Water and Sewerage Corporation (NWSC) and are currently employing 220 workers,” said the company CEO Mr Jain Narendra, at the tour of the plant recently. He appealed to government to reduce taxes and place a ban on the importation of steel products to lessen competition for the market.

“High power tariffs also affect the final product price yet we want to sell at a relatively cheaper price. 60 per cent of the manufactured products will be sold on the Ugandan market,” Narendra said.

The Minister for Trade, Industry and Cooperatives, Ms Amelia Kyambadde, who toured the factory, hailed the management of the company for rejuvenating economic activity in the area and the country `s development as a whole. “I would like to commend the proprietors of this steel mill for the contribution towards the economic development of our country and I hope that we as Ugandans shall gain more in terms of revenue collection and employment,” said the minister, adding that her ministry was in plans of drafting policies through the stake holder’s consultations to help local industries grow.

Ms Kyambadde admitted that growth of local industry was still very low at 3.4 per cent which is not healthy due to the high cost of utilities. She also promised to look into the issue of tax waivers and having a ban on the importation of steel products.

Coordinator for MMI in Uganda and presidential aide on media Farouk Kirunda, said access to iron sheets and other building materials will be readily accessible at cheaper prices upon the completion of the steel plant.

“Residents will access them in multiple colours and at factory price. People will come from as far as Western Kenyan because there is also no factory of this kind,” he said.

5,740 Posts
Massive effort needed to revive mining sector
Publish Date: Mar 24, 2013

By David Mugabe

Poor financial support to monitor and supervise the mining industry is costing the country billions in under-declared royalties and taxes, a senior mines inspector has said.

Gideon Amunyo, the inspector of mines in charge of western Uganda, says his office is meant to oversee the entire western region from Mbarara to Bundibugyo, but it does not have enough capacity to do so and revenue is being lost.

“A mere sh100,000 in fuel for an entire month is a drop in the ocean when you consider the amount of movement required in adequately supervising the mining activities in the area. As such, mining investors constantly under-declare their finds, which costs the state a lot in royalties and taxes,” Amunyo is quoted in a statement following a late February field excursion organised by the Uganda Chamber of Mines and Petroleum (UCMP).

The other impediment to a profitable extractive industry, according to Amunyo, is the low level of staffing and a failure to adapt international legal provisions that would safeguard the industry and further strengthen regional security needed for a stable industry.

Uganda is yet to adopt the Dodd Frank Law, a US legislation that aims to limit the trading of conflict minerals that have for long funded wars such as that in the neighbouring Democratic Republic of Congo.

The “bag and tag” initiative requires US companies buying from a region rich in minerals to ensure their supply does not come from areas controlled by armed groups or corrupt soldiers. Since Uganda neighbours the DRC, it is important that it adopts the initiative, according to Amunyo, otherwise its minerals such as tin and wolfram (tungsten) will become unattractive.

“The delay to embrace the law has seen increased smuggling of minerals from Uganda to neighbouring Rwanda where the law is already in existence and, therefore, a guaranteed market. This means Uganda loses out on would be returns were the minerals to be sold legally,” he says.

The department of geological survey and mines is also poorly staffed and facilitated.

The excursion discovered that the Kirwa Wolfram Mine, located in Kisoro, is bogged down because of ownership wrangles, leaving the biggest and oldest mine to operate below full potential.

But there is some good news with Krone mines, which extract 30 tonnes per year despite applying rudimentary methods.

At Hima Cement in Kasese, a new eco-friendly plant plus additional deposits of raw materials have upped the company’s stakes in the last couple of years.

William Gumisiriza, the quarry manager, notes that Hima is well set for the next two or so decades as a result. Reliance on road transport, however, means costs in that regard will remain high.

“A working railway network linking western Uganda to the coast like it was in the past would of course serve us and other mining firms in the area well,” says Deis Twine, the production superintendent.

Though still run-down, Kilembe is fully facilitated and is awaiting a credible investor to resuscitate it.

Five companies have been shortlisted for the same and a winning bidder should be known by the end of the year.

Following the airborne geophysical survey data covering 80% of the country, Uganda is embarking on a serious exploration phase concentrating on areas that have obvious anomalies.

Catherine Wabomba, the geotechnical officer at UCMP, says the inaugural fact-finding trip has been an eye opener that puts in perspective the level of investment and commitment that is still required to push the mining industry forward.

UCMP intends to gather as much first-hand information as possible about the country’s mining operations which can reliably be used to attract investment into the sector.

Total to drill more wells in Nebbi
Publish Date: Mar 20, 2013

By Benedict Okethwengu

The Government is negotiating with Total E&P Uganda, to carry out more drilling in search of commercially-viable hydrocarbons in Nebbi district.

The state minister for finance, Fred Jachan Omach explained that President Museveni met with Total officials to discuss the drilling of more wells in other prospective sites in the district.

He added that the company is only waiting for their license to be renewed before they start to drill more wells.

“The President last week met Total officials and we are happy they promised to come and carry more tests and drilling. So, I ask the people of Nebbi to pray hard so that they can find oil deposits ” Omach said

He noted that the discovery of oil would boost the economy and improve the social welfare in the district.

He was speaking on over the weekend at fundraising ceremony that was to mobilise resources for the construction of Amor Chapel at Amor Village in Pakwach Town Council. Over sh15m was raised at the event.

Total E&P Uganda, the French oil company handling exploration and production of oil in Block 1 in the Albertine region, struck two dry wells in their first attempt to discover commercially-viable hydrocarbons in Nebbi district.

The Odyek-1 and Riwu-1 wells located in Panyimur and Alwi sub-county respectively were drilled in January after acquiring 2D seismic data, but no hydrocarbons were found.

Following the failed attempts, the company suspended plans to drill, Okuma- A, well in the same area as Riwu-1.

Ahlem Friga-Noy, the corporate affairs manager of Total E&P Uganda, noted that Total made a discovery in January, in Lyec 1, out of the five exploration wells drilled.

She said in an email that the discovery corresponds to the normal ratio for exploration. She added that as per February, 2, the license has expired and has not been renewed.

5,740 Posts
Uganda awards contract for 600-MW Ayago hydroelectric project


The Ugandan government has awarded a US$1.9 billion contract to Turkey's Mapa Construction Company for the construction of the 600-MW Ayago hydroelectric project.

A memorandum between the parties, signed this past week, is part of Uganda's efforts to fast-track development of its energy production.
"The most important thing in this project should be efficiency," Ugandan President Yoweri Museveni said.

Sources said the project is to be developed in two phases, with the Ayago North to have an installed capacity of 350 MW and the Ayago South to have a capacity of 250 MW.

5,740 Posts
Wind, solar projects to add 250Mw to national grid
Publish Date: May 08, 2013

Ugandans in up country areas of Kasese, Soroti, Tororo, Mubende, Lira and Gomba will soon benefit from an additional 250megawatts (Mw) of electricity after the Electricity Regulatory Authority (ERA) gives the nod to 11 wind and solar energy parks.

Mola Solar Systems Uganda has filed a notice of intended application for a license for generation and sale of electricity from solar and wind power parks in various parts of the country.

The company is yet to carry out feasibility studies leading to the development of a 20Mw solar power park in Kabulasoke, 10Mw in Lira, 20Mw in Nkenda, 50Mw in Nkonge and 50Mw in Opuyo.

Wind power parks planned for are 20Mw in Tororo, 10Mw in Nkenda, 15Mw in Nkonge, 5Mw at the banks of River Awoja, 20Mw in Kabulasoke and a 30Mw expansion in Tororo district.

Only 12% of 6.5 million households access electricity from the national grid, according to the Uganda National Household Survey report 2010.

Electricity demand is growing steadily at between 60Mw and 50Mw each year. The projects will ensure that supply and demand remain even.

ERA has issued statements inviting affected parties and local authorities in the affected areas to lodge objections before a go-ahead is given to the developers.

Tom Massa, a member of the electricity consumers committee of eastern Uganda, notes that the projects will ease the energy demand in the region.

Uganda is still experiencing one of the lowest electricity consumption per capita in the world currently at 75kWh per year. The current generation cannot support the medium-term government industrialisation plans, contributing to slow economic transformation.

Power demand is growing at 15% per annum. This means that every year, Uganda should be able to commission a 50Mw project online if we are to avoid reverting to loadshedding

The demand forecast was that the surplus energy Uganda is enjoying now will be consumed in the next 18 months before the undesired load-shedding returns.

The National Development Plan (NDP) clearly identifies limited generation capacity and corresponding limited transmission and distribution network among key constraints to the performance of the energy sector.

The NDP further set out increasing power generation capacity as the first objective to address the power shortage problem, and construction of larger hydropower plants as the first intervention strategy.

5,740 Posts
India gives Isimba dam $450m boost

State-owned Bharat Electricals Ltd scheduled to commission the new dam by 2017

The government of India will provide a $450 million (Shs 1.12 trillion) loan to finance the construction of the 140 MW Isimba hydro-power dam on the River Nile. The State- owned Bharat Heavy Electricals Ltd has undertaken to construct the dam the project located in Kamuli District in Eastern Uganda.

On completion in 2017, the dam will be the fourth largest in the country. The Indian company will also participate in oil and gas exploration among other sectors including IT, agriculture, food processing, and security. The credit facility and cooperation in other areas were decided during bilateral talks with India’s External Affairs Minister Salman Khurshid on his recent visit to Uganda.

It was agreed that India would help Uganda in e-governance, training and setting up IT institutions. It would also fast-track the setting up of the India-Africa Institute of Foreign Trade in Uganda and a food processing industry incubation centre.

During the visit, his first to Africa, Khurshid also had a meeting with 18 heads of Indian missions of the region and discussed new initiatives to bolster peace and development in the region. However, it’s the news on the development of the power dam that Ugandans will be most interested in, as they struggle to deal with the niggling power shortages and high power tariffs.

Hydropower contributes only 1% of Uganda’s energy supply, one of the lowest in the region – making Uganda’s electricity some of the most expensive in the region. Installed capacity stands at just 683 MW, with the recently launched Bujagali dam contributing 250MW, Nalubale 180MW, Kiira 200MW, while mini hydro dams contribute a combined total of about 53MW.

However, current hydro power generation stands at only 400-450MW - way below the national demand, which often leads to expensive power rationing and one of the lowest power access rates in on the continent. Analysts say over the years, the key energy challenge in Uganda has centered on lack of a mix of energy sources in power generation, inadequate infrastructure for generation, transmission and distribution.

The government has set an ambitious programme to set up flagship power projects such as Ayago (600MW), Orianga (400MW) as well as solar, thermal, micro hydro dams and co-generation from bagasse. Government projections show that if all the power projects in the pipeline are completed by 2017 as scheduled, the country could have installed capacity amounting to about 2,200 MW, which could go a long way towards addressing the development and industrializations concerns of the country.

In the last three years, the government has been keen on fast tracking the 600 MW Karuma Dam as a public project but it has been beset by incessant procurement problems. Since 2009, the government has also been keen to enlist a private entity to develop Isimba to boost power generation.

In March 2010, the government signed a $3.8 million contract with Fichtner of Germany and Norplan of Norway to do a feasibility study for the project, which is to be located downstream of the new 250MW Bujagali dam, and will include a 40KM transmission line to the new dam.

The study was completed in 2011 and the government has been on the lookout for a willing private investor to take over the construction of the dam. On paper, Bharat Electricals Ltd is appears to be a perfect fit for the project.

According to their website, the company says that as of June 2011, Bharat Electricals Ltd says it had cumulatively installed generating capacity of over 8,500 MW outside of India in 21 countries, including Malaysia, Iraq, UAE, Egypt and New Zealand. Additionally, the company had about 5,200 MW in 19 countries under various stages of execution.

The company’s international operations encompass a wide range of our power and industry segment products and services, including thermal, hydro and gas-based turnkey power projects among others. Uganda, an emerging oil and gas producer, has historically been home to multi-billion dollar private Indian investments.

Following the immense success of these investments, the government-owned parastatal is keen to venture into the processing and exploration of oil and gas, train oil professionals and invest in the country’s petrochemical industry. At the bilateral talks, the two countries agreed to boost bilateral trade and addressing the trade imbalance, which has historically remained in favour of India.

Two-way trade stands at $450 million, with India exporting goods worth $430 million in 2012. Uganda shipped goods worth $25 million to India during the same time.

783 Posts
It seems all dams in Uganda are consistently expensive. Between $3 - $3.6 per watt. The Global average is around $2 per watt. Ethiopia is even building them cheaper than that. I think we all guess there must be massive kickback in there somewhere. I suspect this is someones slush fund. I also suspect the problem with Karuma dam is the Chinese did not give this kickback. It is the only quoted dam in Uganda which came to the correct price at $1.2 billion for 700MW. Makes you wonder!!

1,799 Posts
It seems all dams in Uganda are consistently expensive. Between $3 - $3.6 per watt. The Global average is around $2 per watt. Ethiopia is even building them cheaper than that. I think we all guess there must be massive kickback in there somewhere. I suspect this is someones slush fund. I also suspect the problem with Karuma dam is the Chinese did not give this kickback. It is the only quoted dam in Uganda which came to the correct price at $1.2 billion for 700MW. Makes you wonder!!
dont u know uganda nawe, corruption everywhere

5,740 Posts
Chinese car maker enters Uganda market
Publish Date: Jun 15, 2013

Key Chinese and Ugandan stakeholders attanded the launch in Kampala. PHOTO/Francis Emorut
By Francis Emorut

KAMPALA - An international player in the Chinese car manufacturing industry has penetrated Uganda’s market and is set to build a car plant in the country.

Only a nod from the government will get the firm, Foton, going.

“We are ready to start manufacturing 100 commercial cars per day once the Government gives us a go ahead,” Lydia Liu, the general manager of Foton East Africa said.

She said this at the official launch of Foton East Africa Uganda in Kampala on Friday.

Several key stakeholders attended, including government officials, Beijing deputy mayor, officials from the Chinese embassy and from Uganda Local Government Association (ULGA).

The car firm’s appeal to government is to allocate them land to kick-start the manufacturing project.

“We are very serious about new partnership of Beijing and Uganda. Foton has a high plan for Uganda to create more employment opportunities,” Liu said.

The firm believes it is in position to manufacture commercial vehicles like light trucks and minibuses.

Vice Mayor of Beijing municipality, Gou Zhongwen, lauded President Yoweri Museveni for spearheading the economic growth of the country.

“Under President Yoweri Museveni’s leadership the country has witnessed rapid economic growth,” he said, pointing out that Uganda has a huge demand for vehicles especially for commercial purposes.

He noted that Foton East Africa-Uganda investment is aimed at improving economic growth and development in the transport sector.

Vice President Edward Sekandi, who was chief guest at the launch, welcomed the venture, saying it will provide a gateway linkage of technology between China and Uganda.

He called on Foton management to ensure high quality of product and service is maintained.

The VP is the chairman of China Africa Local Government Cooperation.

He said government is hosting over 7,000 Chinese nationals and they have created over 100 business ventures.

He further hailed China’s leadership for the excellent ties China and Uganda have enjoyed since the East African nation’s independence some 50 years ago.

“Government cherishes excellent relationship with China since 1962,” he told guests.

Ties should be consolidated by trade linkages in order to spur economic development that would benefit citizens of both countries, Ssekandi further suggested.

Chinese ambassador to Uganda, Zhao Yali, expressed his belief that Foton car plant will provide a better choice for Ugandans.

If approved to start operating here, all vehicles to be manufactured by Foton will be designed by Chinese engineers specialized in commercial vehicles and minibuses for the Police.

5,740 Posts
Vendors to enter new markets next month


The new Wandegeya market complex nearing completion

The construction of seven modern urban markets in selected municipalities in Uganda is almost complete with vendors expected to occupy the premises next month.

Contractors are expected to fully hand over the markets to government by the end of October. Markets under construction are Jinja central market, Mbale main market, Mpanga main market in Fort Portal, Hoima central market, Lira central market, Gulu main market, and Kampala Wandegeya.

“The current average physical progress of the civil works on these markets is at 80 per cent in the municipalities…,” said a statement from the ministry of Local Government.

It adds that vendors in the old markets were registered and memorandum of understanding signed between them and the urban councils. These will get first priority in the allocation of stalls, ahead of new ones. Construction of the second phase of Gulu market, however, only commenced last week and the contractor is expected to finish it in one year.

Once completed, the markets will have stalls, lock-ups, shops, cold rooms, restaurants, kiosks, paved pitches, parking areas, loading and offloading areas. They will also have solid waste bays, drainage ways, fire fighting facilities, day care centres, washrooms, police booths, banking halls, and health facilities, among others.

Many vendors are excited about the new markets.

“This is a modern market and we expect improved standards. Some people may get affected but it will improve the business environment,” Shafiq Mugumya, a dealer in ladies’ shoes in Wandegeya, said.

To the Wandegeya market vendors’ association chairperson, Mawejje Muteesasira, vendors should not be worried as they won’t be overcharged.

“This is a ‘government-funded’ project targeting small-scale vendors. We do not plan to overcharge our people,” he says, pointing out that there will be very little, if any, changes to the old rental charges.

The construction of the markets is being implemented by the ministry of Local Government with funding from the African Development Bank (AfDB) and the Arab Bank for Economic Development in Africa (BADEA).

The first phase of the Markets and Agricultural Trade Improvement Programme project has seen the construction of the first seven markets in six municipalities and the other one in Kampala under the AfDB loan.

Two other markets, under the BADEA loan are to be constructed at Nyendo in Masaka and Busega in Kampala. The designs for the markets are being finalised with construction expected to commence soon, the ministry statement said. The markets will help their respective local authorities raise revenue from dues collected from those operating in markets.

2,263 Posts
Wow u.g are always keeping the Ugandan forum alive...Thank you

100 Posts
It seems all dams in Uganda are consistently expensive. Between $3 - $3.6 per watt. The Global average is around $2 per watt. Ethiopia is even building them cheaper than that. I think we all guess there must be massive kickback in there somewhere. I suspect this is someones slush fund. I also suspect the problem with Karuma dam is the Chinese did not give this kickback. It is the only quoted dam in Uganda which came to the correct price at $1.2 billion for 700MW. Makes you wonder!!
Not only dams even other infrastructure projects. That's why projects in Uganda generally take a longer time to get started or completed

5,740 Posts
Uganda: Italians to Build Uganda Solar Units

Kampala — Four large solar energy plants are to be developed in Uganda, as the country struggles to close the electricity deficit gap.

According to the Italian developers, Ergon Solair and Martifer Solar based in the United States, the new power plants were commissioned by the Ugandan Development Corporation (UDC).

The solar energy power plants are expected to have a significant economic impact on several communities throughout the country, many of which are under intense financial pressure due to the prices associated with energy.

Ergon Solair, say the four solar power plants will have a combined energy capacity of 500 megawatts. The company expects that solar energy could help several communities throughout Uganda save anywhere from 30% to 50% on their energy bills.

Uganda's electricity tariffs are said to be the highest in Africa ranging from Ush550 (about 22 US cents) per unit for domestic consumers., Uganda

Recently, national legislators were agitating for the termination of the Umeme distribution concession.

According to an Ergon Solair statement, construction on the new power plants is expected to begin in 2014.

It is hoped the power plants will be completed in October 2016.

The electricity produced will be bought by the government through a power purchase agreement with Ergon Solair.

Uganda for 100% cover

Kampala, Uganda – National Water and Sewerage Corporation (NWSC) last week launched a Five Year Strategic Direction work plan that will facilitate and increase water and sewerage service delivery to major urban centers by 100 percent.

Silver Mugisha, the Managing Director of NWSC explained that the Five Year Strategic Direction has targets which the Corporation aims to achieve.
Supreme of these targets is to ensure rapid expansion of water coverage to reach 100 percent by 2016 and the expansion of sewerage services in all areas of NWSC operation.

At the moment the public utility water supplier is present in about 30 urban centers but under the new work plan, they are targeting to reach 80 towns and also add new customers on the network to move from the current 317,000 to 450,000 connections.

The Five Year Strategic Direction implementation which will guide NWSC to carry out its mandate of taking safe water to Ugandans in an efficient manner has already begun with capacity development of staff member under the STEPUP-90 programme.

While officiating at the launch of the Direction, the Minister for Water and Environment, Ephraim Kamuntu said that government attaches great importance to water and sanitation sub sector as it has become intrinsically linked to sustainable development of the country.

Kamuntu said water is a driving force that underpins most social and economic activities like sustainable health, agriculture, energy, tourism and industrialization within the country.

“The centrality of water’s importance to the economy is demonstrated by the estimated 21 percent contribution to the GDP of the economy. The cliché water is life underscores this point,” Kamuntu stated.

Commenting on the Fiver Year Strategic Direction, the Minister explained that it is imperative for any organisations to have a long term outlook if it is to succeed in its aspirations.

“We in the ministry are pleased with the board and management’s initiative in formulating the Five Year Strategic Direction, which takes into account the aspirations of government, key among which is the need to attain 100 percent water service coverage in all urban centers of Uganda,” Kamuntu said.
Kamuntu was pleased with the Direction’s plan to takeover more urban centers and the incorporation of integrated management of water resources and promotion of rain water harvest.

“We in the ministry pledge our total support to the initiatives laid out in the Strategic Direction and look forward to its successful implementation” he said.
Mugisha also mentioned that they are targeting modernizing and diversifying customer care with a new high capacity call center being erected and to achieve financial sustainability.

Infrastructure improvement, increasing geographical reach from 28 urban centers to 80 towns, protecting the environment and being innovative are some of the targets spelled out in the document.

The corporation is also looking at reducing water loses from current level of 37 percent in Kampala to less than 30 percent from an aggregate level of 18 percent in other areas than 15 percent and enhance cost optimization of operations.

To reduce the debt age from three months to less than two month and reduce creditors days from current 90 days to 45 days and increase customer base from 317,000 to 450,000 connections.

Also on target is increasing annual turnover from Ush168bn to at least Ush295bn and ensure that 50 percent of towns breakeven.

The purpose of this plan therefore is to provide the Corporation’s future outlook and key strategic interventions for the next five years.
The new Ag NWSC board chairman Eng. Christopher Ebal reiterated that the board has fully consented to the aspirations of the five year strategic direction to excel.

5,740 Posts
National Water in grand 5-year plan

Despite taking over one of the best-regarded public bodies in the country, Dr Silver Mugisha is not resting on his laurels as managing director of National Water and Sewerage Corporation.

Instead, Dr Mugisha talks of a NWSC with new targets, new goals, and new milestones ahead. Visiting The Observer on Monday, Mugisha reiterated NWSC’s commitment to increasing the reach of its services regardless of profitability, increase water production capacity, and ensure a sustainable resource base.

“Our model is a service delivery model; it is not a profit model,” Mugisha said. “We shall cross-subsidise; money made in Kampala can be used to subsidise Pader, for instance.”

Now two months into the job, Mugisha believes the service delivery model does not mean NWSC should be babysat by taxpayers.

“We are conscious that we do not want to go to government to ask for money, especially for operational costs; we do not want to ask government for money to pay salaries,” he said.

However, NWSC would still need the government to help, in case of investments in large infrastructure projects.

Shs 728 billion
And there are several of such large projects on the horizon. Last Friday, NWSC signed a deal with some European development banks and the French firm Sogea-Satom, to improve Kampala’s water supply and sanitation.

The contracts, worth Euros 212 million (Shs 728.3bn), will see the implementation of the Kampala Water – Lake Victoria Watsan project. Under the project, a new water treatment plant will be constructed at Masajja hill to serve Kampala East, and several refurbishments will be carried out on the NWSC treatment complex at Ggaba.

The complex’s supply capacity is expected to rise from 180,000 cubic metres per day to 240,000 cubic metres per day to match Greater Kampala’s growing demand. Construction works are expected to be completed by June 2015.

NWSC has an estimated three million customers in Greater Kampala metropolitan area and the surrounding parts of Wakiso and Mukono districts. But officials expect the demand for water services to rise as the population grows.

Sogea-Satom are the main contractors for the rehabilitation and upgrading of Ggaba and construction of the new treatment plant. The European Investment Bank (EIB), the French Development Agency (AFD), the German Development Agency (KfW) and EU-Africa Infrastructure Trust Fund, are funding the project.

Speaking after the signing of the contracts, Dr Mugisha said there would be no more dry zones in Kampala once rehabilitations and upgrades on Ggaba facilities are completed. At the same event, Mugisha also unveiled the corporation’s five-year strategic direction.

The plan lays out strategies through which NWSC intends to improve service delivery and revenue collection. Within the next five years NWSC wants to extend the reach of its services from an estimated 78 per cent today to 85 per cent of the populations in the covered towns.

The number of towns covered is projected to rise from 34 to 80. Besides the above investments, NWSC is still keen on setting up a major water plant at Katosi in Mukono, for which a design-and-build partner is yet to be identified.

At The Observer, Mugisha was accompanied by Sarah Namuwenge, the manager for public Relations and Communication; Principal Public Relations Officer Vivien Newumbe, and Senior Public Relations Officer Sheba Bamwine Mukiza.

Mugisha praised The Observer for maintaining faith in respectable journalism.

5,740 Posts
Arua Gets US $ 100,000 to Develop Structural Plan

0 Comments Local government
Arua municipality has been operating on an old structural plan, which was developed by the colonial government.
Arua municipality has received a boost of US $ 100,000 from the United Nations Development Program-UNDP to design a structural plan in its quest for a city status. It comes after an earlier plan initiated by the local government’s ministry with support from World Bank was rejected over shoddy work.

Arua municipality has been operating on an old structural plan, which was developed by the colonial government. Officials believe putting in a place a structural plan will spur development in the municipality. Charles Asiki, the mayor Arua municipality says the absence of a structural plan has given rise to unplanned construction.

He says the new structural plan will see the expansion of the boundaries of the municipality as they push for a city status. Currently, Arua municipality covers 10 square kilometers, which Asiki says they seek to increase to 80 square kilometers.

//Cue in: “although we tried…”
Cue out: …needs of everybody.”//

Francis Byabagambe, the town clerk Arua Municipality says they are not sure whether the US $ 100,000 will be sufficient for the work. He appeals to government through Rebecca Kadaga, the speaker of parliament to support the municipality to come up with a structural plan.

The news of the expansion of the municipal boundaries has drawn mixed reactions amongst residents especially in neighboring sub counties. Simon Draku, a resident of Oluko sub County Arua district concurs with the need to draft a structural plan.

He is however concerned that no consultations have been made on the proposed expansion of municipal boundaries. Helen Bako, a resident of Pajulu Sub County wonders whether the new structural plan will not affect the existing structures.

Francis Byabagambe, the town clerk Arua Municipality says the new structural plan will not affect the existing developments. He says the structural plan seeks to control new developments.

5,740 Posts
Tororo phosphate exploration takes off
Publish Date: Jan 11, 2014

Construction of the operations camp is on-going
By Faustine Odeke

THE exploration for phosphate in Tororo district has started after investors began paying sh1m to every land owner in the affected 26.5 square kilometres area in Osukuru and Rubongi sub-counties as a token of appreciation.

The Government, in September 2013, entered into a joint venture with China’s Guangzhou Dongsong Energy group to implement a $560m Osukuru phosphate project.

The company is registered in Uganda as Uganda Hui Neng Mining Ltd.

This current works follows the decision by the investors to establish an operation camp in the area so as to easily interact with the locals.

The camp construction work being undertaken by Ochoda Enterprises at a cost of sh700m is expected to be complete by the end January.

John Dambio, the company managing director, says the scope of work includes setting up a platform for six houses, a perimeter wall, opening up a road network and connecting a water and lighting system.

Juliet Omalla, the human resource manager, said the final structures will be set up by a Chinese firm using imported pre-fabricated houses which will be installed within 18 days.

Omalla said they have already finished the topography survey and are currently conducting geological survey whose samples are being taken to China to establish the quality and quantity of the minerals in the area.

She said the survey will be conducted in the next three years before they apply for a mining lease.

The district chairman, Emmanuel Osuna, said the district leadership is proud of the achievements so far and called for cooperation between the community and the investors.

He requested the investors to employ people and contractors from the area so that they can embrace the project as their own.

He thanked the district police commander for providing security in the area even at the time when the investors first met resistance.

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