DEVELOPMENT OF BUKASA PORT

PRESENTATION TO TOP TECHNICAL MEETING OF

MINISTRY OF FINANCE, PLANNING AND
ECONOMIC DEVELOPMENT
BY
MADAM ROSEMARY TIBIWA
COMMISSIONER TRANSPORT SERVICES &
INFRASTRUCTURE
MINISTRY OF WORKS AND TRANSPORT
5th July 2022
 

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 PRESENTATION OUTLINE

1) Introduction
2) Objectives
3) Scope of Work
4) Progress as at June 2022
5) On-going Activities
6) Financial progress
7) Benefits of the Port
8) Challenges
9) Recommendations and Conclusion
10)Prayer

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 INTRODUCTION

Development of Bukasa Port was prioritized by

His Excellency the President of the Republic
of Uganda as a flagship Infrastructure Project.
It is in line with NPD III, National Transport
Master Plan and Uganda Vision 2040. GoU
through Ministry of Works and Transport
plans to construct a modern high capacity
Port at Bukasa on the shores of Lake Victoria
as one of the flagship Infrastructure Projects
to foster Uganda’s Economic Growth

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 INTRODUCTION

Uganda does not have a Port. it has two

Piers i.e Portbell & Jinja.
Port Bell was constructed to handle
650,000 tons per year, however, GoU has
projected to carry 2.3 million tons per
year that can not be handled at Port bell
Pier.
Port Bell Pier is located on the outskirts of
Kampala and has been enclosed by the
expanding city
4
 INTRODUCTION

has poor road access and no land

for expansion.
Given that it is centrally located
and has no land for expansion, it
should be utilized to handle local
and passenger traffic to the
Islands and other landing sites and
Tourism.
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 INTRODUCTION

Bukasa has 400 hectares available for Port

Development. It is located near the Kampala
Industrial Business Park (KIBP) at Namanve,
closed to Kampala-Jinja Express Highway,
Kamapla-Malaba Railway Meter gauge and
planed Kamapla-Malaba Standard Gauge
Railway.
Given this situation, Bukasa area should be
utilized for development of the Ugandan
Port.

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 INTRODUCTION

This will handle International

Cargo transported by trio-
modal (Ship-Rail-Road), act as
a gateway for traffic along the
Central Corridor and facilitate
trade along the Northern
Corridor.
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Objectives of Developing a Port in Uganda

 Address Country’s
rapidly growing traffic
demand using the
Central Corridor to
Kenya and Tanzania,
thereby reducing over-
dependence on the
Northern Corridor.
 Improve cargo
transportation to and
from Uganda via Lake
Victoria

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Objectives of Developing a Port in Uganda Cont‘

 promote regional trade,

corridor competition &
Regional Integration.
 reduce traffic on Northern
Corridor, reduce road
maintenance costs &
reduce cost of doing
business
 Establish a central
logistics hub connecting
the Northern and Central
Corridors for
intercontinental and East
African inter-state trade

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GoU Plans for Port Bell & Jinja
Piers and Bukasa Port

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 SCOPE OF WORK

Phase I: Preparation Phase; Construction of

Kinawataka-Bukasa Road, preparation of Port
Master Plan, Port Preliminary Design,
Geotechnical Survey, Hydrographic Survey,
Topographical Survey, Bathymetric Survey,
Hydrodynamic Survey, Sub Bottom Profiling,
Satellite Imagery, Conceptual Design,
Environmental and Social Impact Assessment,
Resettlement Action Plan (RAP), compensation of
1,958 Project Affected Persons (PAPs), carry out
Dredging, Swamp removal and Reclamation works.
This Phase will be completed in March 2023.

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 SCOPE OF WORK Cont’

Phase II: Construction of Bukasa Port to

handle a capacity of 2.3 million tons per
year, construction of shipyard and
floating dock. This Phase is expected to
be completed by June 2024.
Phase III: Future extension of the Port to
capacity of 5.2 million tons per year and
to maximum peak of 7.5 million tons per
year. This Phase is expected to be
completed by 2030.
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 PROGRESS AS AT JUNE 2022

Completed: under preparation Phase I:

Construction of Kinawataka-Bukasa Road,
Port Master Plan, Port Preliminary Design,
Geotechnical Survey, Hydrographic Survey,
Topographical Survey, Bathymetric Survey,
Hydrodynamic Survey, Sub Bottom Profiling,
Satellite Imagery, 3d Port Animation,
Environmental and Social Impact Assessment,
Resettlement Action Plan (RAP) and
compensated 1,690 Project affected persons
(PAPs) out of 1,958 PAPs
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COMPENSETED AREA AT BUKASA

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Pictorial impression of the project:
June 2022

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 STEPS TAKEN TO COMPLETE PREPARATION
PHASE; PHASE 1

Remaining Activity: Dredging, Swamp removal &

Reclamation works.
MoWT carried out two procurements to obtain a
Belgian firm to carry out these works. Belgian firms
quoted very high costs i.e Euro 48m by M/s DEME
Group in June 2020, Euro 62m by M/s Dredging
International NV & Euro 70m by M/s Jan De Nul NV in
October 2021. These were above the engineering
estimates of Euro 16m. This arises from Clause 6(b) of
the Loan Agreement between GoU represented by
MoFPED and the Lenders i.e German Banks (AKA &
COMMERZEBANK AG)

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 STEPS TAKEN TO COMPLETE PREPARATION
PHASE; PHASE 1

That clearly states that Dredging Works, Swamp

Removal and Reclamation Works must be done by
Belgian. MoWT and MoFPED held a meeting and
MoFPED was tasked to urgently relax clause (6) of
the Loan Agreement to allow works to be executed
by either local or regional firms for cost-
effectiveness and time saving. On 21st March
2022, MoFPED wrote to AKA to relax clause (6) of
the Loan Agreement and AKA responded on 31st
May 2022 with a number of conditions to be
fulfilled by MoPED, the response is being awaited
by AKA from MoFPED.

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 3) Financing Options
Phase 1: EUR 50 m

The project is funded by AKA &

Commerzbank AG and GoU

15% is funded by GoU and 85% by AKA and

Commerzbank AG

Phase I: Preparation Phase has utilized

Eur 28.2 m and balance is Eur 21m for
dredging, swamp removal and reclamation
works
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 BENEFITS OF THE PORT

Provides a gateway for 90% of Uganda's

Trade that will trigger economic growth
for Uganda and East African Region.
Promote Macro Economic Stability of
Uganda
Facilitate movement of transit goods to
Uganda, Southern Sudan and Eastern
Democratic Republic of Congo.

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 BENEFITS OF THE PORT Cont’

•Improve mobility of traffic along the Central

Corridor Route, hence avoiding natural
monopoly of utilization of the Northern
Corridor. This will reduce heavy congestion
on the Northern Corridor, hence reduce road
maintenance costs & cost of doing business.
•Stimulate Regional Business that results in
increase of GoU‘s Revenue.
•Promote trade, industrialization & create
employment opportunities.

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 CHALLENGES

High costs quoted by Belgian firms above the

engineering estimates for dredging, swamp removal
and reclamation works at Bukasa in the last two
procurements delayed commencement of works.
The works could not commence as scheduled,
according to the loan agreement which states that
these works can only be carried out by a Belgian firm

Covid-19 affected carrying out sensitization of

remaining PAPs to be compensated.

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 CHALLENGES

Initial Violent Resistance of PAPs in Bukasa

affected timely commencement of Project
Preparation Phase I, given that, it was
expected to commence in July 2016,
however, it commenced in June 2018 i.e
after two year. This is because PAPs did not
accept the cost of their properties, they
wanted to be paid the cost of both properties
on the land and the land, which was not
correct as land belongs to Government.

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 CHALLENGES cont’

 PAPs were heavily sensitized on legality of

paying them the cost of their properties on
land and not the land because land belongs
to Government, but could not accept.
 After heavy continuous sensitization of
PAPs and meeting with H.E the President
Republic of Uganda and MoFPED, MoLHUD,
MoWT, MoJCA, OPM & Bukasa PAPs, the
President assured the PAPs that they will be
provided with KUSHUMBUSHA

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 CHALLENGES cont’

Which means Payment of the cost of

properties only on land and not land,
because land belongs to Government, that is
when PAPs accepted to be paid only the cost
for their properties.
This is when compensation of PAPs
commenced in 2018, however we have
compensated 1,650 PAPs out of 1,958.
Remaining with only 308 PAPs to be
compensated

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 RECOMMENDATIONS

MoFPED should:
 finalize negotiation with lenders to enable
Phase I (dredging, swamp removal &
reclamation works) to commence
 release funds to finalize compensation of
the remaining PAPs.
 Conclude Loan negotiations with KFW
which expressed interest in funding Phase
11 (Construction of the Port, shipyard
and floating dock)

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PORTBELL AND JINJA PIERS

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PORT BELL & JINJA PIERS

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 CARGO TRAFFIC AT PORT BELL
PIER

Cargo Traffic at Portbell Pier

was 64,000 tons for FY
2021/2022. This is far less
than 490,000 tons of cargo
carried in 2003/2004 (highest
traffic so far)

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 CHALLENGES
• Limited space for warehousing,
cargo handling equipment and
rolling stock
• Inadequate funds for piers
maintenance
• Human Resource capacity
challenges

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 IMPLEMENTATION PLAN

Minimum rehabilitation of Port Bell and

Jinja Piers

Improvement of Port Access Infrastructure

(Roads & Railway rail lines)
• Institutional Capacity Improvements &
Implementation Assistance

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 GoU Future Plans for Port Bell Pier

Port Bell Pier is located on the

outskirts of Kampala & enclosed by
the expanding city, has poor road
access and no land for expansion.
Due to its central location and
scarcity of land for expansion, it will
be utilized to handle local and
passenger traffic to the Islands and
other landing sites and Tourism.
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 GoU Future Plans for Jinja Pier

Jinja Pier is located near the outflow of

Lake Victoria into the upper Nile, dams
and hydropower plants. It is close to Jinja
town, near local fish processing industry,
aquaculture and fish farming and has no
space for expansion. Given this situation,
Jinja Pier will be utilized for fish farming
and processing, Lake Navigation Training
Center in cooperation with Busitema
University and Ship Building.

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 RECOMMENDATION
Minimum Rehabilitation of
Portbell and Jinja Jinja Piers
to operate in the short–term
terms & construct Bukasa
Port to operate in medium
and long-term

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THANK YOU

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