Case Study of Kampala-Entebbe Express Highway

Case Study of Kampala-Entebbe Express Highway

What issues facilitate and constrain the use of value capture mechanisms by the State in Uganda: Case Study of Kampala-Entebbe Express Highway By Mwesigye Ian Kananura A research dissertation presented to the Department of Construction Economics and Management in partial fulfilment of the requirements for the degree M.Sc. in Property Studies. May 2016 Declaration 1. I know that plagiarism is wrong. Plagiarism is to use another‘s work and pretend that it is one‘s own. 2. I have used the Harvard convention for citation and referencing. Each contribution to, and quotation in, this project from the work(s) of other people has been attributed, and has been cited and referenced. 3. This project is my own work. 4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work. 5. I acknowledge that copying someone else‘s assignment or essay, or part of it, is wrong, and declare that this is my own work. Signature ______________________________Signature removed Date ____31st May 2016_______________ i To My father, Dr. Patrick Mwesigye; My mother, Harriet Mwesigye; My brother Eric; And sisters Esther and Angela ii Acknowledgement Special thanks go to my supervisor Mr. Rob McGaffin for his invaluable knowledge, insight and critique and for his time to answer my countless questions. I would also like to extend my gratitude to Eng. Kant Kanyarusoke, Ben Bityo, Dr. Charles Koojo, Eddie Nsamba-Gayiiya and Tony Odokonyera for their counsel during the research process. Lastly, I would like to thank my father Dr. Patrick Mwesigye for generously sharing his vast academic knowledge and for his gracious support. iii Abstract The purpose of the research was to examine the issues that constrain and facilitate the use of value capture mechanisms by the state in Uganda. Considering that limited research had been undertaken on value capture in Uganda, an exploratory case study approach was used to identify and investigate the issues associated with the use of value capture in Uganda. The identified case study was the Kampala-Entebbe Express Highway. The methodology involved collection of data using the survey method and desktop review of relevant documentation. The survey method was conducted using face to face interviews with carefully selected respondents that were knowledgeable in the subject matter of the research. Both qualitative and quantitative data were collected. The qualitative data was analysed using thematic analysis with the assistance of Nvivo, a qualitative data analysis tool while descriptive statistics was used to analyse the quantitative data. The findings of the research showed that value is created from the provision of public transport infrastructure. However, there are issues that may constrain the capture of this created value. These included insufficient valuation of land parcels and registration of land ownership, the existing land tenure system, gaps in the policy and legal framework and insufficient institutional capacity. iv Table of Contents 1. INTRODUCTION ................................................................................................................................ 1 1.1 Background ................................................................................................................................. 1 1.2 The Research Problem ............................................................................................................. 2 1.3 Significance of the Research Problem .................................................................................... 4 1.4 Aims of the Research ................................................................................................................ 5 1.5 Research Questions .................................................................................................................. 5 1.6 Objectives of the research ........................................................................................................ 6 1.7 Research Methodology ............................................................................................................. 7 1.71 Research Approach ................................................................................................................... 7 1.72 Research Design ........................................................................................................................ 7 1.73 Data Collection ........................................................................................................................... 8 1.74 Data Analysis .............................................................................................................................. 9 2. LITERATURE REVIEW ................................................................................................................... 10 2.1 Definition of Value Capture ..................................................................................................... 10 2.2 Components of Value Capture ............................................................................................... 14 2.2.1 Evidence of Value Creation ................................................................................................ 17 2.3 Value Capture Mechanisms.................................................................................................... 19 2.4 Pre-conditions for the successful implementation of value capture ................................. 24 3. METHODOLOGY ............................................................................................................................. 28 3.1 Research Philosophy ............................................................................................................... 28 3.2 Research Approach ................................................................................................................. 29 3.3 Research Methods ................................................................................................................... 31 3.4 Data Collection ......................................................................................................................... 33 3.5 Data Analysis ............................................................................................................................ 39 4. FINDINGS ......................................................................................................................................... 45 4.1 Background to the case: Kampala-Entebbe Express Highway ......................................... 45 4.1.1 Viability of toll roads in Uganda .......................................................................................... 47 4.2 Contextual Framework of the Case ....................................................................................... 49 4.2.1 Legislative Framework for the application of value capture mechanisms ................... 49 4.2.2 Fiscal Framework of Local Governments ......................................................................... 53 v 4.2.3 Land Use Planning and Tenure System ........................................................................... 60 4.2.4 Land Use Planning and Management in Uganda ........................................................... 65 4.2.5 Institutional Capacity ............................................................................................................ 67 4.2.6 Market Conditions ................................................................................................................ 69 4.3 Value Creation from the provision of public infrastructure in Uganda .............................. 71 4.4 Constraints to the issues that encourage the use of value capture in Uganda .............. 73 4.4.1 Value Creation ...................................................................................................................... 74 4.4.2 Land Tenure System............................................................................................................ 75 4.4.3 Registration of Land Ownership and Valuation of land parcels .................................... 76 4.4.4 Legal Framework .................................................................................................................. 77 4.4.5 Land Use and Planning ....................................................................................................... 78 4.4.6 Political Interference ............................................................................................................ 79 5. CONCLUSION AND SUGGESTIONS FOR FURTHER RESEARCH ..................................... 81 5.1 Aims of the Research .............................................................................................................. 81 5.2 Objectives of the Research ..................................................................................................... 81 5.3 Summary of findings ................................................................................................................ 81 5.4 Limitations to the study ............................................................................................................ 82 5.5 Recommendations for further research ................................................................................ 83 References ................................................................................................................................................ 85 APPENDIX A – INTERVIEW

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