Government is set to secure $150 million (about Shs389 billion) from the Government of India for long overdue development of the Kampala Industrial and Business Park, the State minister for Investment, Mr Gabriel Ajedra, has said.
According to Mr Ajedra, if the deal with the Export-Import Bank of India goes through within the next four weeks, by close of the year, the park will be installed with power, water and roads.
Talking to Daily Monitor on Monday in Kampala, Mr AJedra said: “I was in India recently and I can confirm to you that in the next few weeks, we will be getting $150 million from the Government of India to develop the Namanve infrastructure—fix power, water and roads.”
He continued: “At the moment, we are engaging a consultant who will give us an update on the revise costs of what is needed to be fixed. And when this is done, then we can sign an agreement.”
In an earlier interview with the Uganda Investment Authority executive director, Mr Frank Sebbowa, it emerged that the biggest problem hindering swift development of the Namanve as well as other industrial parks across the country is shortage of funding. “We have challenges around financing. Our mandate is large and our resources are never enough for all our plans. For example developments of the industrial parks require a lot of money yet we do not get adequate financing,” Mr Sebbowa said in an earlier interview.
However, according to the manufacturers ,the problem is not only the development of the park but the fact that allocation of the industrial park is being done without them being consulted.
a decade later, the park is not developed
The Kampala Industrial and Business Park project was started in 2002, but nearly 12 years later, the project is far from being complete.
The main funders (the World Bank) pulled out citing environmental concerns, administrative bureaucracy and inflated land costing procedures, among others.
Uganda Investment Authority statistics show that the government previously needed $180 billion (about Shs470 billion) up from the budgeted $125million (about Shs350 billion) to develop the Namanve-based industrial park.
The park sits on 2,213 acres of land. About 1,039 acres have so far been allocated with about 1,174 acres of land still available.
The land has so far been allocated to 277 projects to invest about $3.1billion and create about 75,000 jobs.
One company that is actively operating in the park is Roofings Rolling Mills while those developing their areas are Alfasan Uganda, Victoria seeds and Aloe Cure. More than 90 investors have also carried out cadastral survey already.