Government swift on compensation for new Kampala-Jinja Expressway

January 16, 2019 in Finance, Infrastructure, Investment, Land & Agriculture, Transport by Editor

Kagina (right) said the government has in this financial year set aside $35 million for compensation in the $1.1 billion project.

Half of the people along the proposed $1.1 billion Kampala-Jinja Expressway (KJE) have been financially compensated for the 77 kilometre Public Private Partnership project. French development agency, AFD and the International Financial Corporation have been involved in the preparatory work in terms of paying for feasibility studies.

Uganda National Roads Authority (UNRA) executive director, Allen Kagina said, “We have largely worked with local leaders to make sure that we come to a quick understanding with the land owners. This has largely worked because the people in the area trust their leaders.”

According to UNRA officials, out of the 3000 people affected by the first phase of the Kampala Southern Bypass project, 1500 have already been compensated representing a 50 pc coverage. The rest are expected to be paid before June 2020 when major construction begins.

Several international contractors, some submitting joint venture bids with local firms, are in the running for the project. The winner will have to prove the ability to put up 60 pc of the financing for the multi-lane toll-road expected to be completed in five to six years. The government and international financial institutions, including the African Development Bank, will provide the rest.

The first phase involves the 18km Kampala Southern Express Bypass (Urban Express) that will channel traffic to the main Expressway through Busabala, Salama, Gaba and Luzira. Together with the planned flyovers being paid for the Japanese government, the expressway will substantially reduce the time it takes to cut across Kampala which at peak hours is a nightmare for motorists and adds costs to hauliers.

“We however have issues that have come up, like people who have already been paid refusing to leave after their six months grace period is done. Some of them have continued to carry out commercial activities like brick-laying and others have put up new structures. However this issue can easily be solved because the land now belongs to us,” Kagina said during an on-the-ground inspection early this week.

Norah Njangali, the Team Leader for Land Acquisition for the KJE project, said the right-of-way for the 77 kms second phase of the project, has already been started.

“We started with the Kampala Southern Bypass, however we have also started land acquisition on the next phase of the project and we expect no big challenges,” she said.

Bidders include Strabag and IC Ictas (a consortium of Austrian and Turkish firms); KJ Connect/Vinci Concessions/Mota-Engil (a consortium of French and Portuguese firms); China Communications Construction Company/China First Highway Engineering Company Ltd from China; Portuguese consortium, Tecnasol Luisa Goncal and the CCKS consortium made up of South Korean and Chinese firms. Others are Enkula Expressway consortium from South Africa, CCECL and the CRCCIG consortium from China and Shapoorji Pacconji Group from India.

Kagina said, “In February this year, we will invite the pre-qualified bidders to present their proposals and we expect to award and sign the contract to the best bidder by December 2019 so that work commences next year. Government is committed to supporting this project. In the 2018/2019 budget, it allocated UGX 130 billion (about $35 million) for land acquisition and is committed to allocate adequate budget in the subsequent years to cover the need for acquisition of the project right of way.”