Shs128 billion to revamp Kalangala infrastructure
The MV Kalangala ferry. PHOTO BY M. SSEBUYIRA
Kampala- A multi-million dollar project to kick-start economic growth on Kalangala Island is underway.
The Shs128.7 billion (about $50m) public-private partnership scheme facilitated by the Kalangala Infrastructure Service (KIS) started last month and will address sectors like; marine transport services, Clean water access, electricity and roads construction.
KIS is a multi-sector infrastructure project- a subsidiary of the UK based InfraCo Ltd, which aims to establish a utility company to facilitate development on the island.
Highlighting the project’s targets, Mr John Opiro, the KIS managing director, said, “In 2005, government signed the MOU [memorandum of understanding] with Infraco for the project, but it was held back by the bureaucracy in government until early this year.”
He added that KIS will retain a licence for each of the sectors on the island for up to 20 years, respectively, in expectation of a 6 per cent return.
“The government regulates all the projects, but we carried out feasibility studies to ensure that we break even in nine years’ time.”
The project will be financed through equity and debt from InfraCo, Nedbank from South Africa, Uganda Development Corporation and Emerging Africa Infrastructure Fund.
KIS has so far provided one ferry-MV Pearl to ease transport between Bukakata and Luuku islands; with a second ferry constructed by Johs Gram Hanssen slated for commissioning in 2014. This was also complemented with the rehabilitation of two landing sites at Bukakata and Bugala islands.
The 66-km main island road has been contract to Spencon construction limited at a fee of Shs154 billion (about $6 million) with works in progress.
Mr Opiro added that a 1.6 Meggawatt solar generating facility has also been assigned to a consultant and shall be completed next year.
“We have engaged the Electricity Regulatory Authority (ERA) to harmonise tariffs for the islanders,” he said.
A total of 84 islands (Ssese) in Kalangala District are set to benefit from the infrastructural development.
