Uganda will consider four bids, including submissions from Strabag of Germany and China’s Communications Construction Company.
The 95km (59-mile) road will be the first built in the country using a public-private partnership (PPP) model, which means the contractor awarded the contract, will design, build and operate the route for 30 years, earning profits by charging tolls before handing it back to the state.
The highway will connect Kampala with Jinja, an industrial town in the east. But it will also be part of a regional transport route connecting the coast of Kenya to landlocked Uganda, Rwanda, Burundi and South Sudan, as well as the eastern Democratic Republic of Congo.
The Ugandan government has said construction of the road would cost about $1bn, with the contractor paying $600m and the state contributing $400m.
An additional $500m will be needed to fund acquisition of land, debt financing and operating costs.
Projects financed through PPP have run into problems in the region in the past, over government guarantees and arrangements to share revenues.
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Originally Authored By: the_star