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tin four volumes!

VOLUME IV -

(in seven parts) Public Disclosure Authorized

PART FIVE: ATNNEX D - TRPANSPORT

Au uSt- '3 1, 16A7 Public Disclosure Authorized

Africa Department EQUIVALENTS

Currency

1 Uganda Shilling = U. S. $0. 14 U.S. $1 = U. Sh 7. 14 ' = STTC $. QA = U. Sh 20.00

Weiht

Throughout this report. unless otherwise stated, tons refers to long tons of 2240 lbs. COMPOSITION OF THE MISSION

This report is based on the findings of a Mission to East Africa which did its field work in October, November and December 1966 and consisted of the following:

John C. de lTilde. Chief of Mission (IBRD)

Colin V. F. Bruce, Deputy Chief of Mission and Chief Economist - Kenva (TRRD) Kudlapur G. V. Krishna, Economist - (IBRD) C. CT_ Akhurqt- AgrcrimifnrAl Ad-viser - Kenrv (FAn) Maurice Fenn, Agricultural Economist - Kenya (FAO)

Per Tvei+.te, Depy -ir Ghief of MMlion and Chief Economist - (Consultant) Bruno E. Scheterma, Economlst - Tanzania (TTPR) Archie Forbes, Agricultural Adviser - Tanzania (FAO)

Ta cque Kahane, AgriculturalI Ec onomis - Tan nia (ITRP)

Otto Maiss, Deputy Chief of Mission and Chief Economist UgTTa-Td (ID) Nicholas Carter, Economist - Uganda (IBRD) David rVT.. Haynes, Agricultural Adviser - Uganda (IBRD) Montague Yudelman, Agricultural Economist - Uganda (Consultant)

H. David Davis, Auviser on Tourism (IBRD) Bernard H. Decaux, Adviser on Industry (Consultant) Jfaclk-JDerrick,9 AV.Liser on In1UsUIry (Uo1nULUtLitanJ Edward V. K. Jaycox, Adviser on Transport (IBRD) Aristides J. Macris, Adviser on Agricultural Training and Education (IBRD) DavdldMcLejllan,l Adu-viser, onG eai Educationi (Conrsultarnt) Lyell H. Ritchie, Adviser on Industrial Finance (IFC) Gavin Wyatt, Adviser on Power (IBRD)

The Mission's findings relate for the most part to the situation as of the end of 1966, although in some respects note has been taken of developments up to the middle of 1967.

TABLE OF CONTENTS

Page No.

SUVIJARY AND CONCLUSIONS

A. The Transport EconoriyV...... 1 T'h, C.r,+ rm 1, Pl±±e SysJ...... 1.. Transport Coordination ...... 3

PhysiLca.L iNeeus ...... 4 Staffing and Organizational Needs ...... 5

Thie £JnO..d.hI...... v Estimated Public Investment in Transport ...... 7

B. Roads and Road Transport ...... 9 Growth in Vehicle Fleet and Road Use .. 9 The Road Systemsm...... 9 Road Administration . .. .11 Road lHaintenance...... 12 Road Construction ...... 13 Planning Road Investments . . 14 A Road Program...... 14 Financing the Road Program ...... 16 Project Identification . .. 16

C. Airports..... 18

NAP

TRANSPORT D!i' UGANDA

SU2MARY AND CONCLUSIONS

1. Uganda's internal transport system is in general sufficient in extent and in adequate condition to meet present and foreseeable needs. However, the capacity of the vital railway line to the sea, through Kenya and the port of IHlombasa, is to be rapidly expanded, since combined Kenya and Uganda rail traffic is increasing and costly congestion and delay must be avoided; also, some main road sections require upgrading where traffic densities justify it.

2. In some areas of high agricultural production, the secondary arid minor networks are inadequate for present traffic. There is need for comprehensive as- sessment of these requirements and for better liaison between planning authorities responsible for transport and those responsible for the productive sectors.

3. Road conditions, while still generally good, are beginning to deteriorate as a result of inadequate maintenance in recent years, especially with respect to periodic regraveling and bituminous resealing. Financial allocations for mainten- ance have not kept up with traffic grovith or the increasing cost of labor, materi- als and equipment. Accordingly, the Nviission recommends a substantial increase in the road maintenance budget.

The Mlinistry of Communications. IWJorks and Housing. which is rpsponsible for assessing the needs for all modes of transport in Uganda, is seriousl:y under- .qtaffed- There i.s no nlhnning machinerv c.anahle of making economicassensntn. and the engineering staff is inadequate in numbers. A suitable strengthening of the Ministrv is urgent if the countrvr' transport p1ar.rini a cDn 0: :ic i.r3.ct-eL.s arnd be implemented effectively.

5. Road and rail development suffer from the absence of rigorous economic analysisz o n an i hnfraebais~ whi.hlc has~sometP+imes-- ledH ton duplnlcaioe_+n rof facriIi- ties. While the program of road works takes a suitable long-term view, costs have been seriously inderesa+oat andl in ar.y ervn+ the Rnods anr Aerodromes Div,i on of the Ministry does not llow have the capacity to implement the programn. The road program must therefore be reassessed to establlsh economlc priorities.

6. TvT.i Ai cn hna assessd +.th adm,rl nstrative, a .dtehnicanlcapacr. it.yr of' +the lvMinistry and EAR&H and has established an order of economic priority with respect to outstanding projects wi4+h,in +he------r.. On ths a we forecast a 4total public capital investment of 128.9 million during the Plan period. The road and

airport7 '. Li p 4V4i - 4this i4vestment depend or. a q-4ui reversa of 4the A--L-inidec trend in staff capacity. Most of EAR&H external financial requirements are as-

sured for the first fewv y earI UJ± Ulof ItLhePn I IeiUU, aLr, tUe rodUU dLIUadairpUorI pIgram, outlined by the Mission should attract foreign assistance once firmer cost; esti- maues are ava'Lable anUd economJc assessmen1ts have bUeU lU. S±lnce IhIU ilUdcaL COStS of these programs are well in excess of Uganda's capacity to finance, the lMission leels uriat part of1 tIluhe, 1 dUUIUIU_LuL dLi UtAlC UIU1ll eACIiaige CoStS, srluulu ue provided by external aid agencies.

TRANSPORT IN UGANDA

A. The Transport Economy l/

The System

1. Uganda's transport system is in general sufficient in extent arid in ade- quate condition to meet Dresent and foreseeable intereitv transport needs. All areas of the country now have at least an all-weather trunk road connection with the main urban and market centers. The next stage of transnort investment plan- ning should therefore concentrate on meeting local transport needs in connection with agricu1ltural developmentj and on establishing the appropriate timing, of such improvements in the trunk system as are needed to meet growth in transport demand.

2. The basic internal transport system (see Map) consists of 721 miles of rai'IT.Tnr iin abn ut 150 mn-Jileso mai,n -econd-an -an o+her pbc r-d-c.s, nla water services on and 15 airports or airfields serving sche!duled or charter f1 1gh+s. Since -n ics a landLc-eA -- +- some 700 M,i--es from the nearest seacoast, and with an economy heavily dependent upon import/export trade, main Kenya/ Line to the port of . An alternative outlet is IJU iLdll V I U UUU ,o hiwaVdLz. Jni M±d-_ -_ ± -_i L,ie ±dl1z aLLaI1 a±j. t across Lak-e ViTct1-oria to 1'1CLrain,TLL1 andL11LUhethenby- L Tanzania ral] system t . Uganda is a joint owner, with Kenya and Tanzania, of these rail links, water servies and seaports, which are operated as a common service for the three countries by the East African Railways and Harbors Administration (EAR&H).

3. To its west and north, Uganda has links with the Congo, and Sudan, although these are not highly developed due to formidabie natural barriers and pre- independence trading and transport policies. Internally, communications are hin- dered somewhat by the River Nile, which cuts the country from south to north, and with its extensive papyrus swamps, which lies across direct access be- tween the populous fringes of Lake Victoria and the less-developed northern parts of the country.

4. , the capital and major cormmercial city, is the main transport hub of the country. Mlost of the import/export traffic by rail originates from or is destined for, Kampala from which the main roads radiate throughout the country. , on the Kenya border, is also an important transport center where the main rail line divides into two main branches to serve the northern and southe!rn parts of the country separated> by-Lake Kyoga. wAhile the railway's- main role is in handling export/import traffic and in this respect is a significant element of the internal

1/ VJhile this section considers all transport modes and subsequent sections dis- cuss investment programs for roads and airports, EAR&H programs are discussed in Annex I-A. - 2 -

trunk system, inter.al rli tribution for local consumption is almost entirelyr by road because of the relatively short distances and the type of traffic and loads involved.

Cf Th91VA -1 l4no C A oii,r hk.rn 1Am +0n rAn-h +hA)r noi +; ,rnl - ohn oo; n of v *-ve xeV-- vS. present-day Uganda and it has been a major factor in the country's development. In an East African context, the ent-;re Ulganda +rnsportsystem Js a feeder or branch network to the rail trunk through Kenya. During 1957-64, rail traffic on the

V-ny- Ug1IT. llne grew at- 4-1he average annual ra -t- ofP--o 3--perce because of. ULhe low and interrupted economic growth of the region during these politically un- certain years.

o6. LJ~~LIiIi±LI~,iU1nnnL1U161a, ±11 L7tJ)Ld.LIU ctIui UULiUUt 1976, a. dramatic r-ise tUookr place in the demand for rail transport on the Kenya/Uganda line. After a traffic i-ncrease of 7 percent in 1965 over the previous y1ear, he line handled an esti- mated 1.63 billion ton-miles of Kenya and Uganda traffic in 1966, as compared with l.4O billion in 1965, an iincrea eas o aly 16 percent. The extraordlnary increase in production and foreign trade in Uganda and Kenya during 1966 accounted for about half the increase. Most of the remainder can be attributed tO exceptional require- ments that are unlikely to recur, such as large grain imports to alleviate the threat of famine in parts of Kenya and extraordinary nonquota coffee sales by Uganda in late 1965 and early 1966. Traffic through the Mombasa Port increased by an estlmated l1 percent in 1965 and another 12 percent in 1966. This ±lncreased berth occupancy to a rate over 96 percent and resulted in serious congestion.

7. Uganda's road system is one of the best in tropical Africa in terms of density and serviceability. Since Uganda was "at the end of the line", road development was not regarded as a serious threat to the competitive position of the railway. Road transport has a long-established place in the Uganda economy, in the marketing of all crops, in the distribution throughout lhe country of imported and domestically produced goods and in the intermal movement of passengers. Road trans- port is more important than rail in terms of ton-miles moved within the country. On the basis of traffic counts, vehicle fleet growth and fuel-consumption sta- tistics, road traffic appears to have been growing at an average annual rate of 8 percent.

8. Inland waterway transport has declined in importance in recent years, primarily because of the cessation of EAR&H services on Lake Kyoga and which were phased out with the opening of the northern extension of the railway to and on the River Nile. Water transport on Lake Victoria, however, is still important in Uganda, and provides an alternative access to the sea. The eco- nomic viability of this route has recently been improved by the introduction of a between Jinja, and .

9. Intermal air transport is relatively unimportant in Uganda, since distances are short and most parts of the country are accessible by road in a day's jourmey from Kampala. The significance of internal air transport lies more in ad- ministrative communications, and charter tourist services to the game parks. Ex- termal air communications between Uganda and Kenya and Tanzania as well as overseas, are of growing importance for the tourist industry and modern commerce. Entebbe, the main airport, handles all international traffic. The eleven smaller airfields are fairly well distributed geographically. The air services provided by East - 3 -

African Airways (the national airline of Uganda. Tanzania and Kenva) annear ade- quate for Uganda's presenlt needs.

Transport Coordination

10. Transport coordination in the East Afri±can context, both with respect to invaestment alloeation and an appropriate modal division of function, is complicated by the fact that each of the three countries has its own national objectilres eve-n thougrh +theyv nll nnr-"c;n-nn n partnersh"ipj for- co-+an^mon+ascr ail ties, namely for railways, lake services, ports and for some aviation services; roadad -.oa d traSn,spo r+t, Er e, on thbo _the had, e x^l u s i v el y the, con cer n of the, i-4 dividual country. In the past, "transport coordination" in East Africa has largely 0drlmi; tc ni; tng +h -~r01_)AC s, 0 fn A Aor a i; - fl -s_+ , - r -+ T-- _%-a4AJ~r-- so LIHsO.I LU wufl 4-1Lr,.Lln.u UIirU VS.'L V1aVCll... Cl. s 6 .1 |J ,'SaL X4.. U1. 0l.sOHI4 u v aLLLu,,SL..EO ut a u t vt jueaiilo principally through restriction of road transport by licensing regulations to Ithel -4ilwa -an 44ts rate protLectupiuu~uu u±±Z Lc"LV.5d. al" L..... uo ±a cl structureu J bul t .LILUIIfrmradc,lptton ILUaU LUL I1JPU± ±UI. ±)Pti!Lh poe - economic coordination of t;ransport within the East African region as a whole, and UL1the etabLLLLLshment fU approprlate policies fraLc countiry, are nioUV UinILig ZiLUuleU in detail by a team of consultants. Their task is to recommend an appropriately pihlasedU ser-les of adUministrativVC andl pricnllrgP.E mleasures-b Lt rational,ize ulhe t-Uransport system in the future. This study, to be completed by late 1968, is being financed by lrie UNDPr, with the International Bank for Reconstruction and Development as executing agent.

11. Licensing restrictions of the road transport of goods have never been introduced in Uganda. For many years investigations have asserted that tne various modes of transport are complementary in Uganda and that there is no transport coordination problem. This is true wnen viewed in an East African contexit. Road transport in Uganda does not seriously threaten the mainstay of railway finances, the long-haul trunk line traffic, as it could in Kenya and Tanzania where road licensing restrictions have been adopted. (See Annexes II-D and I±i-D). In the case of Uganda;s export/import traffic, the long average length of haul to the sea has been sufficient to protect this traffic from serious road competition despite the differential tariff which elsewhere (See Annexes Ii-D and III-D) has t;ended to distort transport demand patterns.

12. The past assertions as to the complementarity of Uganda's transpcort system appear to rest in large part on this regional view of the transport; situa- tion. Wlithin Uganda itself, however, there has been to some extent a parallel development of transport facilities along some routes with resultant underutili- zation of capacity and apparent premature, and therefore wasteful, use of re- sources. The Government has found it necessary to subsidize certain rail lines and extensions by arbitrarily directing to the railway all Govermment traffic, in- cluding that of the cotton and coffee marketing organizations, as well as transit traffic to and from the Congo. This has taken place regardless of possibly cheaper altermatives. At the same time improvement of roads parallel to these lines has taken place or is planned on the basis of road vehicle traffic growth.

13. In the Mission's view, this duplication of rail and road facilities stems largely from faulty railway investment criteria and the coordination difficulties imposed by a differential tariff policy. Rail extensions in Uganda have bceen jus- tified on purely financial grounds, by crediting to branch lines and externsions a large part of the revenue generated on the trunk line from traffic fed by the branch lines or new extension. The "branch line formula," as it is called, es- pecially favors rail extensions in Uganda because of its distance from the sea.i/ Even viewed in an exclusively financial context, this formula ignores the fact that most of these long-haul revenues would also accrue to the railways from an im- proved road connection to the rail-head, because the railway would continue to handle the traffic over the subsequent very long haul from and to the sea. Where feeder transport to existing rail-heads has been considered, the economic alterna- tives of road and rail have not been rigorously assessed. Once a rail extension has been built and has become a "sunk" investment, the differential rail tariff does not attract all the traffic that the railways could probably carry at a lower cost than the road system, thus maintaining a higher level of demand for parallel road improvement than would otherwise be the case.

14. The East African joint transport coordination study, to which we have refprredi. will r1ecommend annronriate transnort investment criteria for each rountry so as to ensure resources allocated to transport are employed in the most efficient manner Tn driition. tht- study will anaqlv,7, and renmmenri t.ransnort t.aEtion noli- cies, measures to recover road costs through road-user charges, and other crucial aspects of an integrated transport policy.

p-hvsir'a1l\Needs~

5.~-The unusual rise in demand for rail transport in East. A.frica as a whlhole since mid-1965 has led to serious operating difficulties during peak traffic periods. Whlile the presure of derimnd has had the healthy effect. of imnrovinng railway operating efficiency, a general shortage of goods wagons has caused transport de- lays a don ofrnd exvort shinpmentsr A badi npiwi-r wagnon renew,anl and nAd-- tions program is under way and more locomotives are being acquired, so that operat- ingy cannpact:y shoulznir b -eoniqiicranlyi incr~-i,reae rliring l9f'7.

1 The rapidgrowA +h in tra+ff a-t + the po rts of Mombs and TDar s Salaam a1-s caused congestion and has become a potentially serious bottleneck in Uganda's ac- cess +t 4th1aesea Programs t o4-sae S t hl Ssi+tuatn by, AdA inl, , +bs a,n strag facilities are under way but will necessarily take time to complete. The acquisi- tion of r-sailo ro-rl1 ,ing stoCk , shou]d ease----2the+iuto por t - +t- Il-o-s - n siderably by clearing "back-of-port sheds" more rapidly. Low and declining labor prod 4.4 a 4- nd a shortage - - -- g-of al t4an t4 at4 Lth pI.rts0 54, aggrvatea-- congetio particularly at peak periods. Immediate attention must be focused on these problems -- 4- t'Uobring LJ U. alboutuL L~quick U L. Limprovements. I UVci j 00ILLJ tia 5 , auau a

17.* iii~ U~iIIdiJU jul IU Uud[J0JU.LnJ U LLJ UgnWug

18. On the other hand, the secondary and minor systems are relatively inade- quate. The secondary network is dense in the more populated areas of the country, but is inadequately constructed and maintained to carry the present traffic volumes

1/ Though the "branch line formula" has been used to justify two railway extensions in Uganda, the Uganda Government gave a branch line guarantee only to the West- ern Uganda extension used primarily to haul Kilembe copper ore.This guarantee is; no longer operatiVe though EAR&H still moves copper concentrates at sub-economic rates. and to provide the year-round access increasincily being required. In many areas of Dusoga and Buganda, in particular, local roed construction and improvement has not kent un with demard. In the less-develoned areas of the country, minor road net- works are required in connection w-rith agricultural, and possibly fishing, develop- Tnp.nt. nrnprm-nq.

19. The basic trunk system has few;! gans at today's levels of transnort de- mand. New trunk connections or extensions should be undertaken only after careful economic analysis of the diversion of traffic frorn existing facilities toc deternine ~-t1ei the benefits accru:Lg to the wThole road system justify such investcLa-nt. Wh.ile we believe that fewT opportunities remain for new trunk roads to stirr,il ate economic development of then selves, we do believe that certain investments in secondary -ad anr in r.14nn, + ' mlo,ntl-ir local impnorta+.qne ncnil b-aemcme an important stimulus for such development if integrated with other necessary invest- ment-S 1Sevcs

U1suei V1 >1±± \J.1W V. j Staffn/ -n Oran__izational1 Needs

20.~~.U. ~ ~UgandsU~~dgaUc ~ ablyUL- L loAJ solveOU ± V J.it uC Lu.ransport CiIjULIU5 problem,sLiJU± I0 lL0 o 0 eiul±1JL_LUUDC_ fetdbL±L C LU'y staff limitations. The staffing situation is especially serious in the Rinistry of Communications, 'Works and Housing (MCl;J), the Ministry responsible for planning and iriplementing road and airport prograrmis and for formulating the Government's views on railway and water services and presenting them to the East African CoUmiron Services Organization (EACSO). Not only are there insufficient personnel at the 1iinistry, but the existing establishment faiis to include planners and economists, essential to its efficient operation.

21. To improve the size and quality of the staff, a number of steps will have to be taken. General and technical education and training programs for positions in the Ministry must be expanded. Salary scales must be so structured and other incentives so provided for engineering and planning careers in the public service that recruitment takes place at an adequate pace. Also, the extensive use of foreign expertise, both within the administration and as consultants, will be necessary as an interim measure for some years until local staff is sufficient and capable of taking over. In addition to strengthening the staff, organization must be improved. At present, t;here is no effective transport planning machinery with- in, the MCW. An adequately staffed transport planning section including representa- tives from the railways and ports should be established as a matter of high priority and be capable of assessing the road, rail, air and water transport requirements of the country and of establishing economic priorities. Transport taxation and pricing policies should also evolve from the work of this unit. The unit would collect and evaluate basic transport statistical data, now virtually unavailable in Uganda, especially in the field of road transport. The Govermment has :-ecognized the need for strengthening of MCW staff and the planning apparatus, and has taken some steps to increase recruitment and improve organization.

The Plan

22. Uganda's Second Five-Year Plan for 1966/67-70/71 is derived fromr a rmacro- economic model and is expressed primarily in financial rather than physical terms. In the transport sector, the Plan calls for an investment by the Governmertt of f19 million, of which about fli.8 million would be spent on road improvements with the - 6 -

remaining -Vi2 million on airports and associated roan fcilities The Plnn, how- ever, recognizes planning and implementation limitations and possible financial constraints; byv setting a total of E 16=o million as a more realistic target for the Government's investment in transport. Uganda's expectations as to East African PRin TTqnn and,ri rharbq i nvetmPnt. in +,he tontnr,fvr n r. fleia+. PI rthn"n.d in the PI n; * nll other capital investment both public and private, in the transport and communica- tions sector nrivNate rnvesmenf in vehicls annd investment byr Ena African Posts and Telecommunications) are put together and taken as approximately 1,91 muI i nn A,r n a +lhc P1 nfl r-na rnri

23. The broad outline of the Upganda en ments portion - the I lan d no appear firmly based either on prepared projects or on established priorities. The road program consists of a list o- 8- pro Jct, AVtch t;heI- Misslon esi Lmates would cost about E 32 million to complete. This long list of projects is on the whole a wel-l-rounded,I_~logtr -u4 ' vewL of whatjzj appearst be eu~iured"." Mos hIaveI:ut; bee carried_Lt_ over from the First Five-Year Plan and are still in very early stages of prepara- 4ti'on. Alth-1,oug the- Pl- itsa-4--elf 4is - o 4hsiaxrse-- in _ teL4ls- mos_ ) 4 of bhe uLiU IMI. el VLU511 UI I It: L .LcuI L LDC-.LL -± Lo ) U uAjJ.J. CCJDUUt I±11 Ly0Lk.d.± U5LCL1 ,L ~LULLU _LL LAIC road projects were expected to be undertaken during the Plan period with about a 2Ln-30 ofL ionu1 intouu-4. -h cu L)VCiL1 percentu carr-yd.LyUVIV over constructUiLIULUU1 1 LliU IIC neALnext. IPlan dlcII }JJUL_LU.p-iod. Thi±L11±5o bUgt-,USLjsuggest that, with more realistic cost estimates, the physical plan would involve a total expenditure of close to E26.0 milllon in ruads, about 70 percent greater than the El4.8 million stipulated in the Plan. This increase is clearly financially and economiLcally outUU U ofL theI ques tLLoi for Uganda1ul dul.±ri theunig C P 1 piLoL.jla iThese pjiysiU l targets are also unattainable because of present limitations in the capacity of the MiZnIstry of W-"orks to plan and implement projects. Moreover, Lhe u barItA I - crease in cost estimates for particular projects casts considerable doubt on their economic Justification, even though some of them are in an advanced stage oI prepa- ration. The Ministry of W4orks is faced with the large task of reviewing the list of road projects and establishing priorities on the basis of cost/benefit analyses and its capacity to carry out works. The Ministry does not at present have the staff for this task.

24. EAR&H is currently executing a 1965-67 equipment renewal program and has prepared a suitable investment program for 1968-71. However, the further extension of the rail line from Pakwach on the River Nile to Arua in the WTest Nile District, close to the Congo border, mentioned in the Govermment Plan, does not appear in the EAR&H program, and the Government has not assessed economic alternatives for meet- ing West Nile's transport requirements. Furthermore, the Ministry of Works is pro- posing to build an improved road parallel to the suggested rail extension. The confusion over transport development in West Nile is an example of the lack of proper coordination between the Uganda Government and EAR&H which the Missicn be- lieves stems from the absence of sound overall transport planning by the Uganda Government. The Government's analysis of railroad programs is distorted somewhat by the regional financialstructure and self-sufficiency of EAR&H, which makes pos- sible both railway investment in Uganda and financiTl subsidies to sections of Uganda's rail system that are not a direct financial burden on the Uganda Govern- ment as such while the indirect financial burden, assumed by Uganda as a partici- pant in the common services, is shared by the other co-owners of the system. As a result, Ugandan authorities tend to be somewhat biased in favor of rail solutions to transport problems. The "branch line formula," an element in EAR&H decision- making (see paragraph 13, above), further distorts analysis of economic alterna- tives. The Mission believes that the creation of the recommended transport planning unit in the NICW, if adequately staffed with qualified economists, could aid significantly in reaching decisions on the basis of an integrated national transport plan within the context of a partially integrated regional system.

Estimated Public Investment in Transport

25. 1Ihile the Plan gives only the broadest guidelines for a transport program, even these do not appear to have been followed. Furthermore, the guide- lines do not indicate a specific program of EAR&H investment. In these circum- stances, the ilission has attempted to outline an investment program, based on ad- .iusted cost estimates, the present status of projects, our assessment of the capa- city of the Government and EAR&H to plan and implenent projects a-nd on our general views on transport priorities. The estimated road and airport programs are dis- cussed in subsequent sections of this Annex, while, the EAR&H program is discussed in Annex I-A.

26K The Ivission expects fpnita1 investment in the transnort. sertOr to amount to about B28.9 million (not including a notional third of .Amni+.nl PYnPnH(+.iitrP) riiirincr 1910/(67-70l/71 (aPp Tqhl= 1 o(f tJhp totanl -q,maot. T,1).n million would be in road improvements and E1.5 million in airport facilities, for a total government invrestment oPf about <15 million.- RAtPRJ4- i1 uinemtwud il mo to about L13.4 million, of which E5.4 million would be for replacement of existing as--et--. The EAl in.vestment is compriJ-d in lar-ge part o rollin. stock and motive power which is allocated as investment in Uganda according to traffic pat- tern s on the Kenya/Uganda line, but does not include any notional portion of in= vestment in the port of liorbasa.

27. Transport investment will more than double in l966/67, due to the large capiaLU injection in EiALRHi plan1nedU fL ± L1S67. The1 -_L, 1 OsLeLes 110nilUol r C± ciLY barriers to the realization of the railway program through 1971. EAR&H has already obt'LIaUined miIos0It of ±it s estimated L orei±gn brUo inUVV reuir emeIUntLs ui. Ugui 1k. L'dU Uap- portunities for further financial assistance appear likely. The fi14 mill-on in- ves'tmlen't -inroad mp' vmn andA dVvUelUP1a(Zent andi theu lj.5) ,ml-li-on investme:Int in. airport facilities depend on the capacity of the IMinistry of Works to establish sound priorities, reassess advanced projects in light of more realistic cost esti- mates and to select economic road routes. Unless the Ministry's administrative 1 andu technicalaLIu UCUIILLUdI cUpdI.XLUy apa city is-Lbt a,Lpove"LiIIjJrUVUU, ,-U1J.U_ '.±1Zib-ULI--- -_sso be-lieeUe±ie_LVt:, thaIU Uii total-4IUO Ut.I ±LkiVi.-4--,vs;mn Uo I,111tf511U ±11in__4.- roads could probably not exceed 11 million in the Plan period, and that, even for these expenditures, there wou'ld be no ass-urance that they would follow a sui- able pattern of priorities. Table 1: MISSIONIS FROJKCTICONS CIF PUBLIC' INVEST1IENT IN TRANSPORT', 1966/67-70/71 a/ (in E.million)

Actual_ E/ _ PlaTI Period Trota' T)t;7/;' i : Tb O 7s/ lMT{/F 77771 i'Fy770 I y 7l7T Plzn Period

]Roads 0.80 1.17 1.02 2.08 3.53 3.63 3.75 4h.06

Airports o.4 3 0.30 0,.15 0.31 0.30 0.3:2 0..2 1.50

Total, Government 1.23 1.47 1,.17 ,2.39 3.8:3 4h00 4 .17 15.56

EAR&H New Investment 0.41 o.904 2.63 :1.61 1.38 1.27 1.04 7.93

Total, New Invest- ment 1.6hI 2.141 3. 0 IL.OO 5.21 5.27 5.21 22.49

EAR&H Replacement 0.29 0.57 2.33 1.05 0.80 o.661 0.61 5.L3

Gross Public c Investment 1.93 2.98 6.13 5.05 6.01 5.91 5.82 28.92

a/ EAR&H investment in calendar years, 1965-71. - 9 -

B. Roads and Road Transport

Growth of Vehicle Fleet and Road Use

28. In 1965, there were about 40,000 vehicles in Uganda, or a vehic:le density of one per 190 persons, as compared with one per 100 in Kenva and one per 200 in Tanzania. The average annual rate of growth of the vehicle fleet was about 5.5 percent during 1956-65, but appears to have slowed down between 1959-65 to only 4 percent. Private cars constitute about 70 percent of the vehicle fleet and their numbers have been growing at above the average rate for the 1955-65 neriod. The number of trucks and buses was almost stationary between 1955 and 1962, because of an increase in tho avernpgs narrving annpai tv of truinks and t.hn mnrs Pffp.nt.ivp us,eP of trucks as a result of road improvements and partly because of the stagnation of the econonymv Since 1Q962 thpre h-,s bheeon nnrose in thp trucnk flppft, ;-veraging 7 percent a year which is equal to the growth rate in numbers of private cars.

29. Traffic counts have been taken regularly in Uganda since 1958/59:), al- +.'hrm crh +.ho -1 nr-n+. nn of1 c' r:n n fr +1+3I'O n0r'nlr t 1n1O C+ +: ±1n T.Tnq r,OI-' rlAii-'n l r rbhT'1- MnA1 lin+i I 1964/65. As a result, it is difficult to establish clear traffic volume trends along most of the roads in the country except at about 70 counting stationrs where continuous counts have been kept since 1960. The available data suggest that the average aCnnual growth ra-te for mo-st of t1hese llatter statJons ha_s varied be+tween_ 6-8 percent. Fuel consumption increased over the period 1961-65 at a 4 percent average nnu.a.l rat-e in -iiuthecase olf gaso-jLine andu at 8---4-pecn for ---- I. The weighted average of the two suggests that highway fuel consumption has increased at aboutabu A. pecnecn rnulyi- -11 -~ 4-c- eetyas,ad,-- 4- - - -- A -.ntelgh 4-~ 1,-I4 -1,4.-~ of a trend tov,rard Li L u± a;LifIUa&L_LY -Li I ~Uucui ~Y_L , C1LL LIIU, L1 aIil _L.L.iiL U. Lu Ii U U'LI W smaller passenger cars and more efficient vehicle operation in general, the traffic growlulh ralue raust have been somXeiwIIO.at hitghuer.

30. The majority of ccUr,,iercial vehicles are o-wned by individuals, rather than by corporate bodies. Public transport licenses are freely available, although the indu stry is subject .o GoverrnmieLt contLro'l i11 UWo _UIIportaLct -ways. In the first place, for coffee and cotton, which comprise the greatest volume of freight available to road haulers, the state m,narketing organizations enforce rigid regulationrLs and rate structures for transport to the nearest processing plant and/or rail-head. SecondJly, passenger transport by corxmnercial vehicles is restricted. The laAter has encouraged the development of monopoly bus lines which maintain a higher standard of comfort tharn large segments of the population appear to demand but which do not provide adequate service on secondary roads. The rapid development of a specialized road transport sector has been held back by overcapacity, due in part to the Seasonal nature of much of local road freight, and by the traditional preference of business firms for maintaining their own transport fleets, even if at higher cost. Recent increases in import duties on equipment, and license and registration fees, have raised the fixed charges for road transport and may give some stimulus to pubilc road haulage, since higher fixed charges would tend to raise the costs of private goods transport relative to public haulage where more intensive vehicle utilization is possible.

The Road System

31. Compared with other tropical African countries, Uganda has a well - 10 -

developed road network. About 15.000 miles of roads are on government inventory. and there is an undetermined additional mileage of minor roads and tracks. Only about 75O miles are bituminous naved: the rest of the system is gravel or earth surfaced. The network has developed in a pattern of main arteries radiating from Kamnala toward cutlving areas. interconnected bv transversal trunlc roads (sooee Mn)- The main network adequately covers the national territory. Road density is suffi- cient and generallv follows the nattern of nonulation distribution.

32 There are several reasons for the develonment of this goond road net.work. First, an abundance of laterite subsoil, extending over most of the country, fur- nishes an excrellent and inexnpensive road1 surfacing material nid a generallv eqaibhle distribution of rainfall over the year facilitates gravel road maintenance. Second, customary law has given the African taxpayer the choice between paying local taxes in cash or by community work; the latter has provided a labor force used primarily for road building. Third, the relatively short hauls _ithin the country constitu- ted a natural role for road transport that did not threaten the finances of the railways and +herefore- the railways did not oppose road development p 11, above).

33. About 200 miles of new roads have been added to the network, and about

lOO.nnL4 'J0I MI4 _L_L let o-fJ± Ue.AL -4stn J- 4avuLov1Il,-upgrA1 I 'JC.USod i-ave beeUC,1-- UJ--- aded4A4.LLUC in_Ll VC.!.-- LULA.0-A -aiu-eres- LI'tic CtUUULUabout 19C.±L7'J\,. The mileage of roads registered for public maintenance, however, was increased by somIe percer.t tLo a presentu total of about 15,00'Ie, -n Cenra Goverr4 re O 4JIILoJ), jJLL~1 ~ .jl~~I 'JU.L~ L OU U U L2 J.''I .lleCs. we'.'J ra.. 'L Go.Jvernment1i re- sponsibility increased by 25 percent while the gazetting of local roads nearly ouUledu 'uhieforrIIal responsibiliUies of iocal goverriuenus. In most parts of hIIe country, the condition of the roads has been allowed to run down. Periodic reseal- ing aniu reballastlng are lagginrg behinrd brte requirements, fu increasing traif ic ana maintenance allocations have not kept pace with the growjth of government responsi- bilities or increases in prices. The main road system is still reasonably service- able but, unless its deterioration is arrested, road transport costs will increase sharply and adversely affect development of traffic. The ivdssion urges that pro- grams be devised without delay for improving road maintenance.

34. The ilission believes that minor road improvement and maintenance deserves more emphasis than it has received in the past. The minor road system ol the coun- try, under local government jurisdiction, while fairly dense in the more populated areas of the country, is in the main poorly constructed and poorly maintained. In high-productivity areas, a backlog of required minor road improvements has accumu- lated and a continuing deterioration has taken place for want of proper maintenance. In less-developed areas, minor road construction should constitute an integral part of specific agricultural schemes and general programs to increase productivity.

35. Central Government expenditures on the road network during 1961/62-65/66, including maintenance, construction and estimated administrative expenses have varied between I1.4 million and f2.1 million, averaging about 11.7 million a year (see Table 2). This amount of expenditure appears low in relation to the require- ments of the road system, and suggests that a continual erosion of road assets is taking place. - 11 -

Table 2: CE!ITRAL GOVERN2EIT EXPEI\IDITURES ON ROADS, 1961/62-65/66 (in I million)

Year Administration a/ Viaintenance Construction Total

15'61/62 0.3 0.7 1.0 2.0 1062/63 0.3 0.8 0.h 1.5 1963/64 0.3 0.7 0.4 i.4 1°64/65 0.3 0.8 0.8 1.9 i(65/66 0.3 0.7 1.1 2.1

a/ i

Road Administration

36. The 1LGW is divided into divisions according to its four principal func- tions: the Communications Division. the Roads. Bridges and Airf'ields Division, the Housing Division and the Water Supply Division. The Communications Division is concerned tiith nolicv rplating to aviation. railways and other transport and corn- munication matters falling within the framework of EACSO through the hiinisterls nprticinntion in the East, African interminiqtPriPl transnort. eommittee. The Pnonrls Bridges and Airfields Division is responsible for the construction, improvement and m-aintearncn o£F thp nrimarv road svytem qnrd airfiPlds. T. is dviderd intro 1'ivp gao- graphic sections with headquarters at Entebbe and four regional offices in the Torthern, Eastern, Western and Buganda Provinces. On paper, the headquarters ls further divided into three subsections for planning, for general administration and budgets And for coordination, the latter dealing with all operations related to foreign-financed highway development. However, because of understaffing, this he.ad quarte r 0 'irL6- a nization is not actually in effect.

37.* OAI. UtiLVeZ1 -UiL,'.UJ....LLY Li,>f Uma. 1 inta.inU.LIng1 tLhL pIi,y adLIU seconIUd.L,y ru systern lies with the four regional sections of the MCW, while the responsibility of tlh- headquar,,ters c--nne, - --neral and-olicy buAget-r control. Ii-,-n+eannance and improvement of the tertiary road system are the responsibility of local govern- mentLs uslng 4their own fund supplmente by--grant fro th-cnra--+era me~~~'.~ UlIZOLI .J lL .1. 00 0 yy iY' Li,>' 51 01 V110 4 VIIJ 11110 '-.IV.t 0JL U. VO 1±1110i11CULI

nQ~~~~~~~~~s- mlir _ : __ : -- _ _ *3_:_: : -*L- - _. _U .. LUL1 'IIIti j:it:LULLViL u jJ ' UU0I ±1'.- L1 Lt,'l.dy diU1 ELLiLL,UIdU.lULI ubuib e ;'1L. J Ud)-_: Ut qualified staff, lack of which imposes a major constraint on the maintenance and the development of roads. Eight engineering positions inheadquarters plus: four regional engineer posts, provided in the present Government establishment, are clearly insufficient to operate properly the highway system and, in an.y event, half of the headquarters positions are unfilled. In the late 1S50's and early 19 600s, there were over 40 roads department engineers in Govermnent service. This reduced staff, the cumulative result of the progressive departure of expatriate professionals, cannot properly carry out the duties of the RToads Division. eniae the Government expresses concern over the staff shortage, no systematic measures for dealing with it have yet been taken, and the Mlission urges suitable prcmpt action. The Roads Division's present establishment should be doubled, and its - 12 - present strength tripled, by establishing and filling at least 25 engineering posi- tions. Since the supply of qualified nationals is presently inadequate and it will take time before there are sufficient numbers of qualified nationals to take over fully the duties of highway administration, the Roads Division will have in the meantime to continue to rely upon the employment of foreign nationals, even though it is Government policy to fill administrative positions with Ugandan nationals. There is still a nucleus of expatriates in the Division with local experience and the Mission feels it important that this experience be preserved and systematically transmitted to new staff. The Mission recommends that the Government initiate re- cruitment campaigns immediately to obtain additional staff, to revise the Govern- ment salary structure so as to attract and retain competent personnel and to devise a scheme for the professional education of nationals for future road administration positions. The Mission recommends that concerted effort be made by foreign coun- tries and external agencies interested in Uganda's transport development to meet the most urgent personnel requirements.

39. The MCW has in the past employed survey firms to locate, survey and de- sign road alignments while departmental staff did soil surveys, bridge design and nreparaqtion nf -,nPrif!i;,qtAionn. and cnnt±rnnt. dcnnrmmnt.q. ThisA nra(-tine rvInI lts.q in a lack of coordination leading to serious errors in design, long delays and sub- stantial increases in construction c zstsover designc estimates. The MCW also uses its own forces to supervise construction iihich, in view of staffing limitations, hampers effective implementation. The Missinn therefore hbelieves that ennnultnnts should be used for the design and supervision of those construction projects en- taqiling majon r wo rks.

10. W , in 'H'+he R-radsrc Brld rir tacndrfields Dnision, functions ar.dr r- bilities are loosely defined and much of the energies of the reduced staff are dis- slpaedn dulicting9utes.In the ------road -d.nsraioe-csth country's political structure and is highly fragmented. The Mission believes that, in vieT.w of the weaknesses in lonal government plar.nnng and budgeta Jr control, the central Road Division should have responsibility for a wider network of roads, whdiile extending its sory assstc to,4dv loa i h lnigo -Pele road development and maintenance. The MCW has proposed to the Government that a detlail-edI survey ofILth1,e exi;s+ting--roa netor4-1 be unerc4 kenby team4a of cosl-_14 ue d~t.._L./ U4 .± UL 0 ~LLIn .L 'd. ne~ Uvo'.JJ Xi uc; U11U,u.L taken~i L/J' ci U %L11 UL'4 L IIOUI. U,- ants, which would, among other equally important tasks (see paragraphs hl and 46, UbeLJo,V/ apprais lts cniUOU'JLLUJ UJLLLLL funionLIaL cl,0a00J±atiuLv wIiuLaL 0 viewVJ toeLrecom,- mending a proper division of administrative and maintenance responsibilities be- ,Ween1 IAIU cntralUtfe andU LUoTlon Iy fully sujpports t,eC Iiins, view that this analysis is required.

Road Maintenance

41. Maintenance expenditures of both central and local government roads in 1965/66 are estimated at about Ei.i miiiion, oI wnicn about E750,000 was spent on the main and secondary roads under central Government juriediction. Maintenance expenditures have consistently fallen below budget allocations, partly due to tardy release of funds by the Treasury. This level of maintenance expenditure is clearly below that required. In 1966/67, the allocation for maintenance was raised to E900,000, plus an additional E500,000 for backlogs in periodic maintenance. The Roads Division has estimated on a very preliminary basis, that more than 13.0 million should be spent annually on the entire road system, including day-to-day and periodic maintenance. The Mission believes that these estimates may be high,but thatthey suggest the magnitude of the present shortfall in expenditure.Pending the - 13 - detailedinvestigation,which we recommend as part of the proposed highway survey(see paragraph4o),the Mission suggests that the Government.-allocate:cabout i.5 million formaintenance in 1967/68together with perhaps 1300.000 for continuatiori of the~ rrantenanceprogram of resealing and reballasting that has been deferred in the past. Given new construction and growing traffic loads, the 1,ission estimates that about 11.5 million (at 1966 prices) would be required for day-to-day and periodic main- tenance of the roads now under central Goverrment jurisdiction by the end of the Plan period. The Mdission has made no attempt to estimate the budgetary require- ments for maintaining the roads under loc2l government iurisdiction. but -itis clear that the present expenditure of about 130 per mile is far below whalt is need- ed. narticularlv on thosp narts of thp te.rtiarv netwsrlk carrying conqiderhle traf- fic.

42. Road maintenance is partly mechanized, although a substantial share is left to. labor. Miechanical equipment is distributed between the Roads Division and the local governments. The Mdission believes that the development of road transport in TTcrondn hna rechd +he stnge when more cnsi era,n+inon chold be gj-en t, increns ing the role of equipment in maintenance operations and we recommend an investiga- tio-n ofl thIe poss ;ib;lit of achvinIflln more - rlnaemn- of--'-. roa plant- - by- pooling central and local government equipment under a single and financially self- supporting16 CaGgenMcy.

R oad Ctonst4-rue' 4ion

±LU.U ThUllere are a grea,t± varieJy1 rI sdards in U8ildUi reflecting various stages of road development. Nhile the larger portion of the network retains the rough layouts typical ol the empirical irieuxhud6 o cUsur-uLULUn lUloutweU earlIer, the trend now is to upgrade and to build roads with engineered standards of align- ment and surfacing consistent with the prevailing higher traffic volumes.

44. Since the inception of the First Five-Year Development Plan, it has been found necessary to revise road construction cost estimates upwards by roughly 70 percent. The increase is partly due to rising costs of labor, materials and management, but primarily to the need for higher standards of design over those originally contemplated and faulty cost estimation in the past. Typical construc- tion cost figures used in present estimates vary from 114,000 to 128,0CO Fer mile for bituminous paved roads and 85,000 to 118,000 for gravel surfaced roads, accord- ing to terrain and of the existing facility. The foreign exchange cost of road works is estimated roughly at 65-70 percent of total costs, including depreciation of equipment, imported materials, fuels, spare parts and the foreign costs of contractor and engineering services.

45. The construction industry in East Africa, which operates in all three countries, primarily consists of branches or subsidiaries of large European firms. In view of the large amount of construction under way and planned in East Africa, which will absorb most of the capacity of the present firms, further works should be offered in large enough contracts to attract outside bidders and thus keep prices at a reasonable level. Small contracts such as for culverts, short span bridges and other labor-intensive works are taken up by small local firms which are mostly Asian-owned. There are as yet no African firms in the road construction business in East Africa except for haulers and truckers who obtain small contracts for delivering gravel and murram. Present construction and contract awarding Dractices are aDpronriate to attract foreign contractors and to make available to the country on a competitive basis the construction capacity required for a reason- able level of investment.

Pl_nninn' Roand TnvP.tments.

+6. The road prog,ram has been developenove a period of years on the basis of the Roads Division's familiarity with local technical needs and in general, +~~ ~~-n ~ n Ai _hnncari _ n zI _ nirlA11nA ltHA95r; Tr rT.T .f _ nrn I Q I An -,, n-29nAA9e{]Z+A the other hand, economic criteria are often ignored. I,here priorities have been enstaoblished, they oftenapnear too hare been -r-luinnnnAby the Jnterest of forign lenders in particular projects or by local political considerations. Feasibility studies have been made for only a few of the =,erous road proposalsg ,f4n wt faulty cost inputs. In any case, apart from feasibility studies of individual project-- an -- pr4-4-- - -nF' -or4i-ti+4 be established on basis. The transport planning unit, which the Mission recommends be established wi th1iLn tihe IIUJ J ILJU.LUsul d u.rgtl-,1Uy add.-LU±ress it0±seLf tU the es110UaUWISUlIJenLU ofJ s5UoIUn, practical criteria for assessing the timing and extent of justified road improve- ments, based on the real costs of maintenance, construction, and vehicle operation, and the transport requirements of the country. The highway study, which the ACW proposed to undertake with the help of cons-ultants (see paragraph 40), should in- clude a careful estimate of road costs, and should devise a system for the data collection, storage and analysis which the planning unit would require. TheI-I,UT transport planning unit should also extend planning assistance to local govern- ments to ensure adequate emphasis on maintenance, improvement and construction of minor roads. The unit could also be the main channel for coordinating rural road planning with projects of the Ministry of Agriculture.

A Road Program

47. The lMlission has reviewed the status and probable costs of the road pro- gram and assessed the capacity of the Division of Roads. Bridges and Airfields to plan and implement road works. On the basis of this review, the Mission has at- tempted to compose a road program that under certain assumptions would appear real- istic over the Plan period, carrying over into subsequent years. The road projects listed in Part I of Table 3 are those which have been prepared beyond the stage of feasibility analysis (though some have not been subject to feasibility studies) to the design or construction stages, and the Mission has attempted to phase expendi- tures on them in relation to their likely rate of implementation. M4any projects now being designed will have to be reassessed in the light of better cost estimates and revised expectations as to benefits that would accrue. In connection w.ith route selection for major projects, economic analysis is required prior to comple- tion of detailed engineering. In the general absence of economic criteria, the Ilission has been forced to establish its own rough order of priorities - an order which might have to be readjusted in the light of the recommended improved plan- ning studies after they have been completed.

48. Part II of Table 3 indicates possible additional investments that could be made toward the end of the Plan and thereafter, and, in general, reflects the Mission's view of the subsequent direction road development in Uganda should take. W1hether in fact Part II projects can be undertaken during the Plan period will de- pend - as indeed will the effective implementation of even all of the Part I Table 3: MIfSSION'STENTATICVE PRO JECTION OP CENT'RALGOVItRNIENT RZOAD INVESTMENT, 1966/67 - 1970/72 (in ! thousa nd)

Festeacted Previous Plusb Period Icesitted a) 70arted P'Lan)I.PrDjects Prepared or~ uoder Total Present Lopend- T517fl_977I_1 7_7T 3 T _ 1970/ Subsequent or, being b) negotiating Active Preparation Cost Status iture 1567 1L968 1969 1970 1971 Expenditure lonsidefed c) seeking_ A. Trenk Reads 101 Bopo-Adjseani and FerrY

InP-onemeta 980 design 19657 6 -- - - 50 150 780 -(c) 10ll uI.ira...rti 1,350 ) firncue oossdttnd ) - (- - - 150 1,200 106 Gsiu-Wdbalenzi 3,200D thosgh problens of 3 8 (1-50 250 300 500 7,100 )',8,%I UK (a) 107 Lir-Jalber 7,80 3 rote sod Justifi.ation, 3 - - - 150 630 11 Iganga - taile 1,2?30 route nete1ntiooidesig,n 1967 3 0 c 200 500 530 -*IDA Log. (bID 137 Rh...rar - Katung~u 1,900 design 19657 25 60 L520 660 715 - - 1,33ID ) None - Kabale Ntungamo 1,990 tender 19657 16 150o 600 700 525 - - 1,1560 -Ger,,any (a) - 152 Masaka gyctera - Mtutkla 1,015 design 1957 12 * a 250 500 295 -cIDA Log. (a) 13 Bkoloto - Bulassagi 75den ig. 1967 7 a a 350 218 - -*IDA Eog. (lb) 1)1 Sezibas Isoep CrOusing 115 design 1907 - * * 9 25 - *Eaog(sID 155 Gapaza - Nagalama 230 design 1967 4. 5 10 100 120 IATD Log. lb) gone Pakach Rcad/ Rail Bridge a/ 600 teoder 1967 - 60 00 lIl - - --- None Rood Equipment 1.66 - 3C0 :L66 - -166 UK (a) None Ka-paia. Urban Streets 300o ,ontrao'tor finance 150 ISo-5- - - Contractor (a) Detailed deeign works an sterinked rds. 88 underway 5:6 32 62 IDA (A) Total TracIk R.ad 1478i0 -77 Tri 1710! TIM1 "17F 77877 n7715 5787 B. Secondary &Minsr Beada

101A la-opi - Obengi 690 design 1968 7 30 660-() La)1 BH.mkunga A.coee 2)1 -2 Ii b lIJ2 Kahendero Access ) 33 designed 2 - - - 31.3 Kisenyi Ancese 3 ,2 D A La47 Kigeci Tea Roads 4.03 deetgn 19,67 - a 10 200 193 - -*IDAk Log. (b) li4D Ankole Qutgmrawr Circuit 2?88 densig,n 1957 - (1 200 78 - IDA Eog. (b) - 1a9 Hims Linyantale - Mironge 58 denign 1967 - a - 58 - - .IRSk Log. (b) 15o Kagorogore - Hakibale 1.6 design 1967 - a 20 26 - - -. III Log. ~n) None Dikuni Wbarseko - Farms. :119 suderuay 91 21. 11. - - - -,22 bJ Germ,any 1651 Kaynoga - Dale 173 design 1967 8 * 80 70 - - -. aIDA Log. (b) 152 Gairyay Complex 1.6 design 1967 3 * - 26 20 - ]I*m LEg. (A) 1653 Ka1unga - Duncas - R. Ni-le, :15 design 1967 3 * 55 50 IDA-001 Log. (A) , I5W Mityarca - Kalangalo 11i5 design 1967 - *55 0 - .5IDA Log. (a) ~ liSy DBsana Nazeign 46 designb 1967 3 * 40 - - - IDA Lng. (b) 5aee Dusoga A.enes Reads :172 des.igned 8 - - 64. 100 - Dk Log. (b) BNIDe Kyaresozi - Kijora - Mik.oya 51.9 designed 3 .- - - 1.6 100 -.- ce) Nosee Eqaipsent 100 - - Ito - - - - C)(a Detailed design on asterisked sec. ran. 118 underwy 50 68 - .82 iak Cb) Total Secondary &Miner Beads T757! 520 LU)T 517 08 58! 23 3

Total, Fart I 17,!520 011. 018 1.9In .1.,59 3,J)15 2.125 5.37(3 6.386 II.Possible additions daring the Plan period

A. Trunk Beads

Construction Ponsibilitiesn6: KabaTe--Bsad.SBorder feasibility. - - 60 Paklchc-Arsa ) studies Entebbe-K&,,psla 3required Speed-up projeots in Part I Feasibility Studies and design 85 35 65 125 S. Bridges Program f-seikility studies requ.ired 3- - 50 350 C. Secondary &Minor Roads

Pe,osibility Studhce and Denigo 1.5 o.0 •1 ( Constru tions 100i 500 Total, Port IIl 80 75 265 1.625 GRANDTOTAL 1,068 2,1079 3,531. 3,680 3,750

a! Pinancing tc be sh-red equally by G-cerone-i and FkRiB; figure rerreneots Uganda Gco-ment hbor. b/ Reaining to, be dieb-red. - 16 -

projects - on the suitable strengthening of ITCW and its Roads Division which we have discussed.

Financing the Road Program

49. Table 4 indicates the annual phasing of disbursements of foreign assist- ance, already committed or under negotiation, and the local funds accordingly re- quired. Once cost estimates are firm and the projects are properly assessed, ad- ditional parts of the program,l will become eligible for consideration for foreign assistance. If foreign financing wiere limited to covering the estimated foreign exclang-e LId~L5con,ponentUiIIJuLIiiL, ~ ofU thseaddtoaArjc11SehL al1U_U±LULLId.L jJJiUJtz1,U css4h4iacilbre1.UjU, ULM- iikkiCL1U_Ldi LJUL'UtLi OJint UliI Government would rise steeDly from the annual level of about E350,000 during 1964/ u6-6)U/u to over Ifl.U IilWL±lion annuallJ-y in the latter years of the Plian period. In addition to capital expenditures, the Government's expenditures on road maintenance and administration should be irncreased substantially from a past annual ievel of about fl.O million to f2.3 million toward the end of the Plan period. The total local financial requirement for the Pian period wouid thus amount to about L15.2 million, rising from about E2.0 million in 1966/67 to about E3.5 million in the last year of the Plan, 1t70/71. Availability of the necessary local funds may prove to be a major constraint on road development expenditure since maintenance should generally have the prior claim on those funds. Therefore, we recommend that a significant proportion of even the local expenditures be financed by external aid agencies.

50. Total annual road expenditures by the central Goverrment would rise sharply from an average annual level of 11.7 million during 1961/62-65/66 to an average annual level of f5.0 million during the Plan period. Road expenditures are financed from the general budget. Central Government taxation of the road user, consisting of import duties on road transport equipment and fuels, consumption taxes on fuels and license and registration fees, amounted to roughly 118.5 million during 19/61/62-65/66, as compared to total central Gcvc-rrment road expenditures of about f8.5 million. Taxes on fuels and other imports have been progressively and substantially raised in recent years3 annual road-user taxation receipts doubled from 1S'61/62 to 19,65/66 and amounted to an estimated f4.6 million in the latter fiscal year. Uihile it is not clear what portion of these receipts should be con- sidered as charges on the road user to cover the costs to the Government of pro- viding and maintaining the roads, the i'iission recommends caution in further tax increases aimed specifically at the road transport sector, pending the outcome of the present studies as to highway costs and appropriate policies regarding trans- port coordination.

Project Identification

51. A number of road proiects listed in Part I of Table 3 do not have firm foreign financing for their construction, but will be ready for construction dur- ing the Plan Deriod- manv of these projects will require further assessment, in light of the cost estimates obtained by detailed engineering studies. In addition, some route selectionq. nqrt,iclpnr1v in nonnPetJion with th,-. Tencn;)_T4ihhl ronri_ wrilI require an economic assessment of alternatives. Included in Part I are two proj- ects which have been designed departmentally anrd nnpear -orthy of further study. First, the Eoyo-Adjumani road and ferry improvement project would improve the link between the developing cotton growing area of northern West Nile with the ginnery U G A N D A

TOTAL ROAD EXPENDITURE AND FINANCINC3 (Central Government) E millions

Actual Actual P L Ah^ P E R I 0 D T964/6 196s;7266;/f77 1W7/6d -_1i96M,/69 _1qVq77ff- ;7o7i7 ' :pDit-1' c- 'ea<3iturce .80 1.17 1.02 2.08 3.,3 :3.68 3.75 a- -(1.97) Foreign Assistance a - 1.25 - .75 1.,17 1.28 1L.23 .80 Local Finance Required a .72 - ,27 .91 2.2 2; 5 2. 95 Possible Additional Foreign Assistance - - .20 1.]18 :L.4o 1.'30 Local Requirement with Additional Assistance .27 .71 1.07 1L.o5 1.o5

Estimated Foreign Exchange Component b/ . P ~~~~~~1.26) .72 .71 1.41 2.60 2.50 2. 4

ecurrart 5xroxnditiare 1.01 1.05 1.70 2.25 2.'35 2.30 2.1h5

Ma:intenance c/ .79 .75 .90 160 1.70 :L.8o 1.90 Deferred Miaintenance - - .5C0W .30 .20 Administration (Estimated) .30 .30 .30 .45 45 .50 55

Estimated Foreign Exchange Component b/ .40 .41 .68 .90 .'5 .92 . 98

TOrTAL ROAD EXPENDITURE 1.81 2.22 2.72 4.33 5.88 5.98 6.20

Foreign Assistance including Additional _- 1.25 - .75 1.37 2. 46 2.63 2.'70 Local Requirement - 2.78 - 1.97' 2.96 3. 42 '3.35 3.50

a/ Committed or under negotiation; annual figures represent disbursement according to progress of execution,. b/ Includes some indirect foreign exchange costs. c/ Future expesnditure estimates based on present Central Government road responsibilities ancl 1966 prices. c/ Budget figure - may not be achieved. - 18 -

at AA4umari, w1h-le recent t4raff±-c 'AJLconson road are low, the MissinL1 fls that transport improvements may be required to meet effectively future traffic de- manu. Second, U11he VUongi-.LJd.IJjJ.L road -Ls d. iIld.JV.J .1. 1 toUV U11f Myof-lJUiIlC21Vth I UdU., serving the high potential area along the west bank of the River Nile. These two proJe;U, uIUiU be assU11JUsLULU1d 11nLUUwith.L VJL ,11 LL UgVlurl ULt=11U potentials and programs.

52. Three trunk road possibilities are mentioned in Part II of Table 3. First, impro vemei i ol. the naba±e- .wwiu border roau, if accom-leu b-y [imp- -v1em1eU to the road from Kigali, Rwanda, would provide Rwanda with a new and apparently much better route to the sea via Uganuda and tle East African Railways; trunk traf- fic over the existing very poor road is at present growing rapidly due to Rwanda's poor political relations with Burundi which is astride the country:s traditional access to the sea. The proposed road would be built through the mountains and swampy gorges that mark the Rwanda-Uganda border and would entail heavy expendi- tures. Uganda would benefit substantially from the transit traffic and trade with Rwanda that would ensue. The economics from Rwanda's point of view would have to be investigated in some detail, although it is clear that the country re- quires better access to the sea.

53. The second possible trunk road project would entail improvement and re- alignment of the Pakwach-Arua road,-now an unimproved all-weather route, and would extend the trunk system into West Nile District. The area is developing fairly rapidly and construction of the rail/road bridge at Pakwach may considerably boost traffic on the present road. Study of this road possibility is also required in connection with proposals to extend the rail system to Arua, to avoid the dupli- cation that is currently envisaged and to select the appropriate modal solution.

54. The third is the Entebbe-Kampala road (31 miles) where capacity will probably have to be expanded. Present traffic on the .road, though mostly passenger cars, amounts to about 2,000 vehicles per day. The existing road is poorly aligned, with inadequate sight and stopping distances during peak traffic periods. INhether augmented capacity should be achieved by building a parallel roadway or by other means, including possible reconstruction of the existing road, needs analysis. The Mission has included this road project as a possibility for ad- ditional road investment toward the end of the Plan period.

55. The Government has listed the technical bridging needs of the main and secondary road system. The resulting bridge program includes replacement and con- struction of minor bridges and the construction of a few major bridges scattered throughout the country, Further study could probably produce a project of high economic justification in terms of maintenance and travel distance savings. There are also a great number of feeder road possibilities included in the Govermment's list of road projects, some of which have been studied for feasibility, although with q1uestionable cost assumptions. Road improvements in the Mount Elgon area and along the northern fringes of Lake Kyoga appear worthy of review.

C. Airports

56. The planning and provision of civil aviation services, to meet both local nn rinternational rpnuirements. are done for the Past African region as a whole bv the Directorate of Civil Aviation and the East African Meteorological Department whir-h unrler the new Treatv for Eat Afric2n fpnnnrntion arp ton hp. Ira1v - 19 - decentralized under officers designated for each partner state. The East African Airways Corporation is the national carrier for all three countries and provides scheduled services within and among them and overseas. Under the new Treaty the Corporation and its Board of Directors are to look for general policy guidance and for approval of annual programs, alterations in tariffs, maior investment projects and major changes in salary structure to the Community's Ministerial Counnil whie-h reonsists of. the thrpe nprmanent East African Ministers and the Com- munications Minister of each partner state.

57. The planning, construction and maintenance of airports is the respon- sibility of the individual states, though inevitably influenced by the decisions of the EACSO organizations as to air services. The Roads, Bridges and Airfields Divi- sion of +he M-nicst.r'r nf G.ommunict'.iorns, Wnrlvks annrd iousingp adminiistepfrs andr maintaiins twelve airports or airfields in Uganda, of which two have asphalt runways (Entebbe andrulu', one g7V'nTraveH-rl(Jiin) ndirl +hn remain,iinge nine hanver grras s+t-ricp T'n+ hi.)c is the major airport, handling international traffic. The remainder serve only inter- na l iht; icun -+P f 1 +h nc " TPnrT A As';Xl . ViAh A'AA; -r T^;7rQA1-On; also responsible for provision of crash, rescue and firefighting facilities, the management of the air terminal at EntebbeTfa.cilte and the collecton of l-aAding fees.

58. There is no separate accounting for airport current receipts and expendi- tu 4. SinCe AO1. 4Aceit ±fl w _;A+o Ath_ Tr- -AAo_ and a-" r mJanAL Lu.1 A AAAaloa. eA from the central budget. Receipts are far greater than current expenditures; in I965/66L7uJ.W LJiJ, total LU UtaL ai_4-tai..jJiJI U LJC_.iia±iUL1I1L.It:mai4-nnc Cand kIiL aAM4n~U IL L± 4strat4i-- U. UI.LULI1 U&JVeI%.ALen-144-es ULU O amonteL1IPI%UIU L _A~L UIJ _L:0'I -less than 130,000 while receipts from landing and parking fees, aircraft cleaning and portuerage a,mounted ^o abutz157 ,000.

pui-UeLd n d[IIU II UU- LU L)U rU M44 ) 4 .- 4.-I - __UXIUe:4

59.During ±961/U2-15)/6U , LtUota UcJ.tLL eAte&JJe snLLLUI±1L di}L.JUJU faciLiLUts amounted to about 1895,000 of which most, 1600,000, was spent in 1564/65 and 1965/66 on expansion of- lAlheairport facilities aU Gulu and asphaltinlg the run-way to Imeet combined military and civil needs. Less than 14,000 was spent on the airports other than Entebbe and Gulu.

60. Planned investment during the Plan period consists almost entirely of one major project, at Entebbe, to extend the runway, construct new terminal facilities and improve navigational and meteorological equipment to meet the needs of growing international traffic and larger modem aircraft. The Government has given. rela- tively detailed consideration to the proposed project, wnich, including improved local approach roads in Entebbe, is estimated to cost about C2.6 million.

61. The number of passengers embarked and landed at Entebbe more than doubled during the period E9xO-65.Existing terminal and baggage haidling facilities are inadequate for the present throughput of passengers and is aggravated by a rapidly growing in-transit passenger volume. The Government believes that expansion of present terminal facilities will not meet future needs and that a larger wholly new terminal complex is required. The layout of the existing terminal is such that its expansion cannot be so devised as to achieve a required standard of operating effi- ciency. Furthermore, future expansion of aprons and runways would probably entail a resiting of terminal facilities in the medium term. The management of the air- port is generally quite efficient, in the face of the physical problems imposed by space limitations. The need for approach roads for the enlarged airport is apoar- ently dictated by the planned extension of the runway across present access, and - 20 -

growing traffic through the winding lanes of Entebbe Town. Extension of the main runway from its present length of 9,975 feet by 800 feet appears necessary to meet fhe npeers of large qir'raft Alternative sites have been investigated for an inter- national airport nearer Kampala. The Government estimates that the most suitable alternntive site would cost about E17 million due to topographical and approach problems; such a cost is unlikely to be economically justified for many years to comes

62. Phasing o-fr the qirnort- investment. at Fntehhe has already slinnped sub- stantially due to lack of detailed planning. Relatively minor investments in equipment and apron facilities will be made in l966/67. Tn the Mission'S view, the project could not be completed during the Plan period since detailed planning and desitpo are re;quired behfrore -Subhsn+.tnl invp.efmpnts rcan bh madep andr the Minis;tryl' technical and administrative capacity is limited. Of the 12.6 million included in the Plan for the i.tebbe A-rn-t,. +.he Mistsin hellievesu that+. only abou half' is likely to be usefully spent during the period.

63. The Mission also believes a sound case for investment at the lesser air- fields in th.e count.ry could be made. Jinjan Airnort appears to bn inaddequante forPrI present and future needs; consideration of an airfield at seems appropriate, and lumnizat-ion of some othI-er airIfield-s especially in wetl. ganda- to ha.dn-le anLU LJ..L4-LUmU.L±.L- 4 O/l i110 s . ~ 0jJLSO-.JJ s C WJ.UIS+eM TT Friendship aircraft - the mainstay of East African Ainrays (EAA) internal services -4-Jn4- I-ihbe reuie n, smnn, depending +kuotfe devePlA OfA - ,r,A-ne +1,a growth of tourist traffic by air. In connection with the latter,consideraticn 0 SI01 )U..L.J _.1.LJJ kt VO- -LA) 44a-CL 1-- 0 0 sa +0±it ftO..L± O i011 V V.LI.Lk, .±..1f1-..- 4--. 1- called upon to receive an increasing traffic in chartered light aircraft (see An- nlex tV 'U\.

I -v- u,. 14. 1Te 'issionestmates that ivtmnU[IIiLi on a-l- adirii-±elds could rise from about E150,000 in 1966/67 to more than Eh00,000 in 1970/71, for a total during the Plan period of about E 1.5 mlllon. 'c-. '- -

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