Uganda investment forum_-_ict_-_cisco_systems

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Uganda investment forum_-_ict_-_cisco_systems

  1. 1. UGANDA INVESTMENT FORUM 2013 Public Private Partnerships: “Stimulating, Modernizing and Growing Uganda’s Economy” by Hon. Aston Kajara Minister of State for Finance (Privatization) April 11, 2013 Sheraton Hotel Kampala
  2. 2. Introduction 1  Provision of infrastructure and related services is traditionally a role performed by Government  finance, build, maintain and operate  procured through works procurement  all risks on government   Untenable due to inefficiencies, mismanagement, competing needs, limited budgets PPPs - alternative to stimulate, modernize and grow Uganda's economy
  3. 3. What are PPPs? 2     Private sector involvement in providing infrastructure related services Emphasis on economic and social infrastructure Long term contracts that stress service delivery rather than asset creation Several Types – Design, Build, Finance, Operate – Concession – BOT, etc.
  4. 4. Why PPPs? 3      Infrastructure requirements outstrip budget allocation Private sector financing - increased infrastructure investment without Gov't borrowing Private sector management and innovation increased efficiency and productivity Risk sharing – Gov’t remains with residual risks Scope for user charges – less cost to Gov't
  5. 5. Success Factors 4     Service specified in output terms Competitive tender process Optimal risk transfer Institutional framework:  political commitment and good governance  legal system to assure private sector  appropriate capacity in managing a PPP program, project selection and appraisal, negotiations, contracting, etc.  Not burdened by uneconomic objectives
  6. 6. The Case for Uganda? 5     Vision 2040 – To transform the economy to middle income in 30 years National Development Plan designed to incrementally achieve this vision (5 year plan) NDP 2010/11 – 2014/15 recognizes engagement of private sector in service delivery (PPPs) as a key strategy Government commitment to infrastructure dev’t
  7. 7. Investment Priorities 6   Increase stock of physical infrastructure  Energy  Transport – rail, road and water  ICT  Tourism, trade and agriculture infrastructure Others  Improve quality of Human Resource  Promote science and technology
  8. 8. Infrastructure Funding Gap 7  Infrastructure requirements – approx US$ 30bn (in the next 5 years)  Of which National Core Projects – US$ 8.5bn  Approx 50% unfunded  Balance social infrastructure, services and Human Resource capacity building
  9. 9. Core Projects 8  Oil and Gas  Oil Refinery  EAC Inter-state distribution pipeline   Energy – Large Hydros (Isimba, Ayago) Transport  BRT for Kampala  Water on Lake Victoria  Standard Rail Gauge (Malaba – Kampala)
  10. 10. Core Projects Cont’d… 9   ICT - IT Business Parks Trade and Industrial Development  Phosphate  Iron industry Ore  Science Parks/Technology Incubation Centres
  11. 11. Social Infrastructure PPPs 10  Education and Sports  Public Universities overcrowded, opportunity for PPP  Skills Development – private schools  Health  Health infrastructure and equipment  Training  Water and sanitation  Rural water supply  Solid waste management
  12. 12. Challenges 11   Limited resource envelop so Gov’t has opted to embrace PPPs Capacity constraints to implement PPPs  Institutional  Resources    – local capital Inadequate legal/regulatory framework Public awareness/expectations Ad-hoc selection of projects for PPPs
  13. 13. Government Interventions 12 To provide a conducive environment,      PPP Policy has been passed Pipeline of PPP projects has been prepared PPP Bill has been tabled in Parliament PPP Unit or Department – to be established Limited number of ongoing projects Roads (Kampala – Entebbe highway)  Energy (Bujagali and Eskom hydro projects)  Office Accommodation and Housing 
  14. 14. Conclusion 13    PPPs can provide a viable mechanism to execute strategic projects for national development. Government wishes to partner with the Private Sector to provide solutions to meet Uganda’s infrastructure and social services needs through PPPs mechanisms. Government is prepared to address the key challenges identified as major hindrances in PPP project implementation.
  15. 15. 14 THANK YOU !

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