HALF YEAR PERFORMANCE FOR FY 2020/21

PRESS BRIEFING BY THE EXECUTIVE DIRECTOR

KYAMBOGO,

Wednesday 17TH FEBRUARY 2021

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1.0. INTRODUCTION

UNRA places emphasis on the provision of a technically sound, economically justified, financially and environmentally sustainable road infrastructure. UNRA embraces the principles of good governance, centering on transparent and accountable practices. As such, while executing its mandate and in pursuit of the national and sector overarching goals, the authority is required to fully account for all resources it receives regularly, I wish to present the highlights of UNRA’s performance for 2020/21 as follows:

2.0. FINANCIAL PERFORMANCE

UNRA receives funding, for its recurrent expenditure and development from Government of (GoU) with the support of the Development Partners under Vote 113. This is used mainly for the design, rehabilitation and improvement of the paved roads and upgrading or construction of new roads.

In addition, UNRA receives funds from the specifically for the maintenance and operation of the National Road Network. The total approved budget for FY 2020/21 was UGX 3.81 Trillion. Below is a summary of the funds received by 31st December 2021 and the absorption:

Overview of Vote 113 - Budget Performance (UGX Billions) Budget Annual Q1+Q2 Q1+Q2 Unspent % % of Component Budget Release Payments funds Budget Releases Released Spent

Wage 71.11 35.55 34.42 1.14 50% 97%

Non-wage 32.55 19.92 17.37 2.55 61% 87%

Development: 1,758.21 945.79 843.23 102.56 54% 89% GOU

Development: 1,643.99 1,012.86 874.48 138.38 62% 86% EXT

Maintenance: 310.29 159.39 145.49 13.90 51% 91% URF

GRAND TOTAL 3,816.15 2,173.51 1,914.99 258.53 57% 88%

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Vote Performance

2.1 Development

UNRA was appropriated a total of UGX 3,402.21 billion for development of the national road network, with financing from the Government of Uganda (GoU) consolidated fund in the amount of UGX 1,758.21 billion and External Financing in the amount of UGX 1,643.99 billion for projects directly supported by the Development Partners.

Development (GoU Financed)

89% (843.23 Bn) of the released Development GoU budget (UGX 945.79Bn) was spent by 31st December, 2020. The cumulative cash limit amounting to UGX 1758.21Bn represents 54% of approved budget released.

UNRA’s failure to absorb 100% of the released funds is largely attributed to three projects whose contracts were signed but the verification of their securities by BoU was incomplete to enable UNRA make the payments. i.e., Kira-, -Busabala and Town Roads.

Development (Externally Financed)

Out of UGX 1,643.99Bn approved annual External Development Budget for FY 2020/21, a cumulative total of UGX 1,012.86Bn was released by the end of the first half of the FY, representing 62% of the appropriated budget. Out of the UGX 1,012.86Bn released, UGX 874.48Bn was spent, representing 86% of the releases spent. The improvement in absorption is due to payments that were made for Packages 1, 2 & 3 of Oil Roads.

2.2 Road Maintenance

The Uganda Road Fund provided an Indicative Planning Figure (IPF) of UGX 310.29bn for the National Road Maintenance Program including Axle Load and Ferries for the FY 2020-21. As at end of Q2, UNRA had received UGX 159.39bn representing 51% of the annual IPF, and spent 91% of the budget released as shown in the Financial Performance table 3.

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PHYSICAL PROGRESS

3.0. ROADS AND BRIDGES DEVELOPMENT

In its efforts to fulfil its mandate, UNRA continues to prioritise roads development and is committed to ensuring that the targets in the National Development Plan are achieved.

In this FY 2020/21, a number of multi-year projects will be completed. The major activities to be undertaken include:

 Upgrading of roads from unpaved to paved bituminous standard

 Rehabilitating of the existing paved roads  Construction of new Bridges

 Development of Ferries

The following road development projects were completed and commissioned by H.E The President during the reporting period:

 Upgrading of Musiita – Lumino/ Busia – road project (104Km)

 Upgrading of – - Akisim – Moroto (150.3Km)

 Upgrading of Bumbobi – Lwhakhakha (44.5Km)

 Upgrading of Kashenyi – Mitooma (11.53Km) and Kitabi Seminary Access Road (0.8Km)

 Rehabilitation of – (50Km)

 Upgrading of – – road (107km)

 Upgrading of Mukono-Kyetume-/Nyenga - Njeru (84km)

 Rehabilitation of Ishaka – Rugazi – Katunguru (58Km)

 Upgrading of Ntungamo – Mirama road (37Km)

 Upgrading of – (65Km) - Kanoni – and Sembabule – Villa Maria (110kms)

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Ground-breaking ceremonies were carried out for the projects whose contracts were procured for implementation:

 Rehabilitation of Masaka town roads

 Lot1: Upgrading of Rwenkunya – Apac (90.9Km)

 Lot 2: Upgrading of Apac - Lira – Puranga (100.1Km)

– (92Km)

town roads

 Construction of - Mpigi Expressway (23.7Km)

 Upgrading of Kira – – Matugga road and improvement of 5 No. junctions (21Km)

 Upgrading of Najjanankumbi – Busabala road (11Km), Spur Interchange and Service Roads (17Km)

 Upgrading of Moroto – Lokitanyala (42Km)

 Rehabilitation of – Mubende road (86Km) and Mityana Town roads (14Km)

Also the Contract for Civil Works for the Construction of – - Busaba Road (5Km) Project from gravel to Bituminous Low Volume Sealed Road.

The ground-breaking ceremony is an important event that signifies the beginning of implementation of a project, but implementation does not only cover the physical or visible activities of a project; It includes a number of preparatory activities that may sometimes take months, before any physical activities could be seen on ground. These may include:

 Design or a review of the design;

 Identification of the source of materials;

 obtaining of statutory clearances or approvals before any work can commence, such as NEMA certification, Ministry of Labour to gazette a workplace etc.,

 Mobilisation of resources – Human, equipment, establishment of serviced accommodation, workplaces and campsites etc.,

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 Availability of Right of Way (Unencumbered land)

 A review of the work-programme to take account of any changes to assumptions made during the bidding and any new findings.

The time it takes to witness physical commencement may depend on the scope of works, how the particular project was procured, its location etc. For instance if it is a rehabilitation project, some activities above may not be undertaken; if a project was procured as a Design and Build, such as Kira-Kasangati and Najjanankumbi- Busabala, the contractor will take at least 6 months to complete the design, get it approved before commencing construction. A project whose design is readily available will commence much quicker. Also if a project is located in an urban or eco-sensitive environment, the acquisition of land is often more complex and lengthier than those in the rural undeveloped areas. So, a lot of work is going on, even when you don’t see graders on ground for some projects yet. I hope this allays the fears of those whose projects were ground-broken in Dec 2020 - Jan 2021. I can assure you that works will be visible on ground in this or the next FY.

3.1 Road Upgrading

UNRA is currently upgrading 26 road development projects (new construction and upgrading from unpaved to paved bituminous standards) covering a total distance 1,764.4 Km (see table 2 below). Over the last 6 months (July-Dec 2020), 192km equivalent were achieved against the annual target of 400Km equivalent, which represents a half year achievement of 48%. The target is to increase the paved road stock by 281km.

The table below shows percentage progress of road development projects as of end of December 2020.

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Table 21: Percentage progress of ongoing road development projects

year year

-

S/N Project Name Equiv

-

2020

(Km)

Half Added

output

Length

Km

June 2020 June

December December

%

% Progress % Progress % Progress

1. Kampala Northern Bypass Phase 2 17.5 72.9 9.6 82.5 1.68

2. – Bulima 69 51.3 21.4 72.7 9.453

3. Tirinyi – - Kumi 67 75.6 10.7 86.3 7.17

4. Pallisa - Kamonkoli 44 65.8 22.6 88.4 9.94

5. Package 1: Park Junction and 159 47.1 23.83 70.93 37.87 Tangi Junction-Para-Bulisa 6. Package 2: Hoima – - 111 57 14.96 71.96 16.61 Road 7. Package 3: Buhimba – Nalweyo - 93 40.1 8.5 48.6 7.91 Bulamagi & Bulamagi – Igayaza - Kakumiro 8. Package 5: Masindi-Biiso, Hohwa – 97 5.35 6.26 11.61 6.07 Nyairongo – Kyarusheesha - Butoole, And Kabaale - Kiziranfumbi (97km) 9. - Suam 73 17.3 10.4 27.7 7.62

10. Kitala - Gerenge 10 43.8 18.2 62 1.82

11. Masaka - Bukakata 41 30.8 44.8 75.6 18.36

12. – Kihihi - Ishasha/ 78.5 19.2 14 33.2 10.96

13. Busega - Mpigi Expressway 23.7 0.4 0.1 0.5 0.02

14. Muyembe – Nakapiripirit and Service 117 - - - - Roads 15. – Laropi 66 - 14 14 9.24

16. Rwenkunye – Apac (Lot 1) 90.9 - - -

17. Apac – Lira – Puranga (Lot 2) 100.1 - - - -

18. Kira - Matugga road and improvement 21 - - - - of 5 No. junctions 19. Najjanakumbi – Busabala and Service 28 - - - - Roads

1 Table 3 does not include projects that were substantially complete as of end of FY 2019/20. 7

year year

-

S/N Project Name Equiv

-

2020

(Km)

Half Added

output

Length

Km

June 2020 June

December December

%

% Progress % Progress % Progress

20. Soroti-Katakwi-Akisim 100 96.75 1.75 98.5 1.75

21. Bumbobi - Lwakhakha 44.5 83.84 13.56 97.4 6.03

22. Mubende-Kakumiro-Kagadi Road 107 91.36 8.04 99.4 8.6

23. Kyenjojo-Kabwoya 100 83.5 9.80 93.3 9.8

24. Bulima- Kabwoya 66 91.8 6.10 97.9 4.03

25. Selected Town Roads (20.2km) In 20.2 30.88 54.42 85.3 10.99 Municipality 26. Mpigi Town Roads 20 45.02 29.58 74.6 5.92

TOTAL 1,764.4 191.84

Five (5) road projects are on track to be substantially completed by end of June 2021, adding 280.5km to the paved road network. The progress of the road projects is shown in the table 3 below:

Table 3: Projects to be completed by end of June 2021

S/N Project Name Length(Km) Progress as Progress as of of June 2020 December 2020

1 Kampala Northern Bypass 17.5 72.92% 82.5%

2 Tirinyi – Pallisa - Kumi 67 75.56% 86.3%

3 Pallisa - Kamonkoli 44 65.80% 88.40

4 Masaka - Bukakata 41 30.8% 75.6%

5 Hoima – Butiaba - Wanseko 111 57% 72%

TOTAL 280.5

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Town Roads

In addition, UNRA is upgrading 124km of town roads within various towns and municipalities which are not part of the national road network, as part of the national roads development programme and the following are scheduled to be completed this FY:

 Bulima-Kabwoya town roads (3km)

 Bumbobi-Lwakhakha town roads (5.8km)

 Kyenjojo-Kabwoya town roads (11km)

- town roads (10km)

 Soroti-Akisim town roads (26.2km)

 Mubende-Kakumiro-Kagadi town roads (24km)

 Mpigi town roads (20km)

 Mbarara town roads (20km)

3.2 Road Rehabilitation and Reconstruction

During reporting period, Rehabilitation/ reconstruction of 228.3 Km of the national roads, that have reached their service life continued and are at different advanced stages.

Table 4: percentage progress of road rehabilitation project as at end of December 2020

No. Project Length % Progress as % Progress as (KM) of June 2020 of Dec 2020

1 Nakalama –Tirinyi - (102km) 102 77 100

2 Namunsi - - Muyembe - 29 3.12 23 Kapchorwa Phase II (29Km)

3 Fort Portal - Hima (55km) 55 52 98

4 Hima - Katunguru Phase II (29Km) 29 - -

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5 Buddo and Nabingo access Roads 6 4.31 64.14 (6Km)

6 Masaka town roads (7.3Km) 7.3 - 2

Total 228.3

During the reporting period, 34.7Km equivalent was achieved out of the annual target of 228Km equiv. Two road rehabilitation projects, that is, Nakalama -Tirinyi - Mbale (102km) and Fort Portal - Hima (55km) were substantially complete during the reporting period.

3.3 Structures/Bridges Development

During reporting period, UNRA continued to work on 56 bridges whose progress is at different stages. During the first half of 2020/21, nine (9) bridges out of fifteen (15) planned for completion, are substantially complete while four are also on track to attain substantial completion by the end of the FY.

Table 5: Percentage progress of Bridge development projects to be completed during FY 2020/21

S/N Project No. of District Q2 Progress Bridges

1 Ayugi Bridge on Atiak--Moyo- 1 Amuru 95.6% Yumbe - Manibe Road

2 Ceri and Opio Bridges on Pakele - 2 Amuru 96% Road

3 Adidi Bridge on Pakele - Pabbo Road 1 Adjumani 96%

4 Bridge on DRC border Road 1 99%

5 -6 Bridge on - 1 Kamwenge 93% Kabambiro Road

6 Ajeleik along – Adwa – Usuk - 1 Amuria 51.32% Katakwi Road

7 Aji Bridge on Ullepi - Offaka Road 1 Madi-Okollo 100%

8 Ora-1 1 Pakwach 100%

9 Awa 1 Madi-Okollo 80.27%

10 Olemika Bridge on Pakwach – Inde - 1 80% Ocoko Road

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11 Awoo Bridge on Bobi - Ayer Road 1 Omoro 96%

12 Nariamabune Bridge on - 1 Kaabong 97% Kapedo Road

13 Chololo Bridge on Chosan - Amudat 1 Nakapiripirit 21% Road

14 Isimba Public Bridge & Access Roads 1 93.4%

Total 15

4.0. ROAD MAINTANANCE AND OPERATIONS

4.1 Road Maintenance

Despite the heavy and long rains experienced during the period July-December 2020, UNRA endeavoured to maintain a big percentage of the network in fair to good motorable condition. Carried out Routine (Manual and Mechanised) as well as periodic maintenance of roads. Government was able to deliver the much needed services to all communities even during the lockdown.

Interventions on the Kampala-Jinja Road

Spot maintenance of 3.5km sections which had failed, along Banda-Seeta road was completed in April 2020

UNRA is now procuring a maintenance contract for the -Njeru (72km). Periodic maintenance and rehabilitation of some failed sections will depend on the specific technical needs. The contractor is expected to be on site by end of March 2021.

This should restore the pavement to a state that allows UNRA’s medium and long term plans (KJE) which are intended to increase capacity, to be finalized and implemented.

Interventions on the Lira-Kamdin Road (under the NERAMP)

Reconstruction of this section of the road was packaged under the World Bank financed NERAMP which was structured to have rehabilitation and maintenance interventions for a period of 8.5 years. However, the project was affected by a

11 suspension by the World Bank, during the procurement phase which lasted 18 months, due to non-compliances to social aspects on another World Bank funded project, the Fortportal-Kamwenge road project.

The contract was eventually signed on 27th June 2018 with M/S Mota-Engil Engeharia E Construcao , SA. However, the revision of the conditions for social safeguards within the contract by the World Bank led to a delay in commencement and the start date for activities was set for 12th December 2018.

During implementation of the contract, the contractor has continued to contravene the requirements of the World Bank for social safeguards management, which has led to suspension of works. With the Lira-Kamdini as part of the bigger commitments Government made with the development partner, and with the contractor through the civil works contract, it has become difficult for UNRA to budget for and implement any interventions. UNRA is therefore working closely with all the key stakeholders to ensure that all outstanding challenges are overcome urgently so that the contractor can commence the reconstruction of this critical road section as a priority.

4.2 Axle Load Control

A total number of 805,418 vehicles were weighed in the last 6 months and 26,825 (3.3%) were found to be overloaded. There was therefore a decrease, from 3.4% as at June 2020 to 3.3% as at December 2020, of vehicle weighed and found to be overloaded.

Nine (09) weigh stations were operational, with an average availability of 88.2% against an annual target of 95%. UNRA is also undertaking a number of interventions to improve the function of axle load control on the national road network.

4.3 Ferry Services

UNRA has a total fleet of 11 ferries along the National Road Network that were operational during the reporting period, with an average level of compliance to published ferries schedules of 89% against an annual target of 95%. The Percentage average Ferry availability was 72.1% against an annual target of 96%. Rising water levels have affected landing sites and the Ferry Operations hence the above performance against the set target.

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In the last FY 2019/20, Sigulu Ferry that will connect to the Islands of Lolwe & Sigulu completed. The ferry was commissioned by H.E the President of the Republic of Uganda on 3rd December 2020 and began operations on 4th December 2020.

The Hon. Minister of Works and Transport also commissioned the rehabilitated former Bukakata Ferry into operation on 24 July 2020. This is the new MV Buvuma.

Tolling of the Kampala- Expressway

The Kampala-Entebbe Expressway (KEE) was commissioned by H.E the President in June 2018. The investment in the road was premised on the bigger plans of Government providing alternative faster road service at a premium fee, through an expressway network. The first of this was the KEE. However collection of a toll requires: i) an enabling legal framework, which was put in place by Parliament in 2020; and ii) an Operator to see the efficient management and maintenance of the road assets while ensuring that they are able to return on the investment through collection of tolls. Whereas the procurement of this provider was severely interrupted by the procurement administrative reviews which led to a delay of over a year, I am happy to report that the contract with the KEE O&M provider received the clearance of the Solicitor General on Thur 11th February 2021. The contract shall be signed to allow the provider to start mobilisation, sensitisation of the public and implementation, all by the end of this FY.

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5.0. PROCUREMENT

5.1 Local Content & Reservations

By end of Quarter 2 (December 2020), 39.5% of signed contracts worth UGX 839.7 bn/= were awarded to local providers through applications of the local content reservation schemes, accreditations for construction materials and margins of preferences in favour of the local and resident providers. The details are provided in the Table below

Table 6: Status of Local Content by value and % sub-contracted

Reservations for Local & National Contract awarded Category Providers to Foreign Firms

By threshold By 30% Subcontracting with local content

Works 725,998,878,933 16,172,367,908 1,292,943,019,978.90

Supplies and Non-consulting 76,787,979,395.36 0 198,409,838.00 Services

Services 9,303,811,718.60 0 10,639,658,408.00

Delegated – Headquarters 924,808,652 0 0

Delegated - Central 3,610,734,069 0 0

Delegated – Southern 561,724,638 0 0

Delegated – Western 606,400,751 0 0

Delegated – Northern 899,201,872 0 0

Delegated – Eastern 329,549,384 0 0

Delegated - North Eastern 966,165,922 0 0

Delegated - Construction Unit 3,607,989,479 0 0

Sub – Totals 823,597,244,812 16,172,367,908.41 1,303,781,088,225

Total local firm with 30% 839,769,612,720.634 1,287,608,720,316.49 subcontracting

TOTAL AMOUNTS 839,769,612,720.63 1,287,608,720,316.49

As a percentage of the total 39.5% 60.5% contract signed

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6.0. NETWORK PLANNING & ENGINEERING

During the first half of FY 2020/21, six (6) Development Projects have been designed and are ready for financing and implementation. This represents 85.7% against the annual target of seven (7) development projects. The table below highlights the projects designed in this half year period.

The in-house design team is undertaking a number of feasibility studies and designs for the rehabilitation roads as well as for the weigh station sites.

Table 7: Projects under design

PROJECT

Feasibility study and Detailed Engineering Design of 624.8 Km of roads by external consultants

Lot 1: Kumi – Ngora – Serere - Kagwara (95Km),

Lot 2: Mayuge – Mbaale - Nakivumbi – Bugiri – Namayingo - Lugaala (95Km),

Lot 3: Kyenjojo (Kahunge) - Nyarukoma – Kigarale – Rwamwanja – Kiruhura (97Km)

Lot 4: Muhanga – Kisiizi - Rwashamaire (78.8Km)

Karenga – Kapedo - Kaabong (73Km)

Kazo – Buremba – Kabagole - Kyeggegwa Road (82km)

Muko - Katuna and Muko - Kamuganguzi (104km)

Kampala Flyover Upgrading and Construction Project Phase 2

Feasibility study and Detailed Engineering design for Upgrading of Lira-Abim road(125Km) Bridge Works: Design and Supervision

Engineering Design of Semliki Bridge

Engineering Design of Laropi Bridge

Kampala-Jinja Expressway (KJE) The preparation for the Kampala-Jinja Expressway project as a PPP is now complete. UNRA is awaiting final clearance and guidance from Government before going to tender.

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7.0. CHALLENGES DURING THE FIRST HALF OF THE YEAR

I. The Covid-19 pandemic greatly affected UNRA’s ability to achieve the set targets. Several of UNRA’s activities such as road construction were affected by the lockdown and partial lockdown during the period. Activities such as procurement and land acquisition were halted while essential services and projects continued to be implemented under very strict Standard Operating Procedures (SoPs). The result of this has been a delay in progress.

In order to address this, Management put in place a Business Continuity Management Plan, which has helped the organisation to continue to provide its services in the safest way.

II. The heavy and long rainy season resulted in:

• the slow progress of the construction projects; • Several cut-offs which required emergency interventions to reinstate the road sections and ferry landing sites; • The rapid deterioration of the condition of the roads, reducing the service level and increasing the urgent need for periodic maintenance and rehabilitation of some road sections; • Rising Water levels which affected Ferry Operations by submerging the Ferry Landing sites and their access roads. III. Inadequate funding for land acquisition to enable the entity secure the Right of Way ahead of the construction projects, especially those identified in the NDPIII.

8.0. CONCLUSIONS

Government, with its Development Partners, continues to invest significantly in providing a good road network. UNRA is doing its best to ensure that the resources allocated are efficiently utilised and that there is Value for Money from the investment and for all stakeholders. Management has endeavoured to put in place several

16 initiatives that have helped in improving its operational efficiency, improving transparency and accountability (as evidenced by the recent Assurance assessment by CoST) in delivering the road development and maintenance programme to-date. UNRA has also put engagement of the indigenous local providers at the forefront of its strategic procurement plan in pursuit of BUBU as we have seen in the report.

Management recognises and is appreciative of the Board, the sector leadership that has continued to be supportive in achieving these results. We call upon other stakeholders who have a direct influence on the road development and maintenance programme to support our efforts that are geared to promote effective service delivery.

I thank you!

Allen C. Kagina

Executive Director

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