50628 Kampala
President Yoweri Museveni has instructed the Ministry of Finance to come up with a policy on the Private-Public Partnership (PPP) within two months.
The PPP is where a government project is largely funded by the private sector. In many cases, the private sector manages the project for an agreed period of time.
Under such a deal, the Government benefits from the efficient management and expertise of the private partners. Many times the Government provides assets as its share in the joint venture, but its input can take other forms.
For example, in the case of the Serena Kampala Hotel owned by Aga Khan, the Government offered buildings. In the Bujagali power project, in which Aga Khan is also involved, the Government offered assets in kind. For The New Vision Group, it offered the initial start-up capital, but let private players run the company professionally and profitably.
The President told the presidential investor’s meeting at the Entebbe Beach Resort Hotel yesterday that public-private partnership could go a long way in solving the country’s ailing road and rail infrastructure.
“The idea that the private sector people want to deal with this infrastructure thing themselves is good,” Museveni said.
The President’s directive followed concerns raised by the business community attending the conference.
Businessmen spoke of the slow process of passing critical legislation, red tape and unequal treatment of investors.
“Why two months, why not two weeks, Uganda should get copies of these documents from India and South Africa who are already doing it,” said Museveni before asking finance state minister Fred Omach to come up with the policy in two months.
Earlier, Philip Kelly, a World Bank consultant, had made a presentation on implementing public private partnership, where he said for the policy to work, there was need for legislation, a PPP centre, and authority.
Participants at the two-day conference were concerned that the Government had dragged its feet on the matter.
“Bank of Uganda and the Uganda Investment Authority organised a seminar on a model law for PPP, we thought we had made a breakthrough three years ago. Why are we not moving on it, where is the legislation?” asked, Elly Karuhanga, the chairman of the Petroleum and Mines Chamber.
Investment minister Aston Kajara informed the meeting that the Cabinet had already drafted a Bill on the matter but this was shot down by the National Planning Authority (NPA).
NPA chairman Kisamba Mugerwa pointed out that developing a Bill before a policy was a mistake.
“We have had a problem with the land Bill because we ignored the importance of developing a policy. We need to develop a policy first on this matter to avoid several amendments,” Kisamba said.
Museveni noted that the economy had continued to grow and had improved by over 1,000 times in the last 23 years. “Our tax collection has improved 1,000 times compared to 1986. It will reach sh5,000b by the end of this financial year,” Museveni said.
“The importance of this is that finally we can have our own independent planning without external interference.” The President, however, noted that the sh5,000b is only 13% of Uganda’s GDP, which does not make the country totally independent.
“If we go to 20%, we shall go down to Paris as donors. 13% is not good enough,” Museveni noted.
He said the money realised from revenue collection can help Uganda construct roads without relying on donors.
“You can imagine what problems we would have if we were still depending on begging,” Museveni said.
On electricity, Museveni said the Government is committed to generating 3,800 megawatts in the next five years. “Thereafter, we shall target 17,000MW in the next ten years. If there are some friends who want to join us, they should, but according to our plans.”
President Yoweri Museveni has instructed the Ministry of Finance to come up with a policy on the Private-Public Partnership (PPP) within two months.
The PPP is where a government project is largely funded by the private sector. In many cases, the private sector manages the project for an agreed period of time.
Under such a deal, the Government benefits from the efficient management and expertise of the private partners. Many times the Government provides assets as its share in the joint venture, but its input can take other forms.
For example, in the case of the Serena Kampala Hotel owned by Aga Khan, the Government offered buildings. In the Bujagali power project, in which Aga Khan is also involved, the Government offered assets in kind. For The New Vision Group, it offered the initial start-up capital, but let private players run the company professionally and profitably.
The President told the presidential investor’s meeting at the Entebbe Beach Resort Hotel yesterday that public-private partnership could go a long way in solving the country’s ailing road and rail infrastructure.
“The idea that the private sector people want to deal with this infrastructure thing themselves is good,” Museveni said.
The President’s directive followed concerns raised by the business community attending the conference.
Businessmen spoke of the slow process of passing critical legislation, red tape and unequal treatment of investors.
“Why two months, why not two weeks, Uganda should get copies of these documents from India and South Africa who are already doing it,” said Museveni before asking finance state minister Fred Omach to come up with the policy in two months.
Earlier, Philip Kelly, a World Bank consultant, had made a presentation on implementing public private partnership, where he said for the policy to work, there was need for legislation, a PPP centre, and authority.
Participants at the two-day conference were concerned that the Government had dragged its feet on the matter.
“Bank of Uganda and the Uganda Investment Authority organised a seminar on a model law for PPP, we thought we had made a breakthrough three years ago. Why are we not moving on it, where is the legislation?” asked, Elly Karuhanga, the chairman of the Petroleum and Mines Chamber.
Investment minister Aston Kajara informed the meeting that the Cabinet had already drafted a Bill on the matter but this was shot down by the National Planning Authority (NPA).
NPA chairman Kisamba Mugerwa pointed out that developing a Bill before a policy was a mistake.
“We have had a problem with the land Bill because we ignored the importance of developing a policy. We need to develop a policy first on this matter to avoid several amendments,” Kisamba said.
Museveni noted that the economy had continued to grow and had improved by over 1,000 times in the last 23 years. “Our tax collection has improved 1,000 times compared to 1986. It will reach sh5,000b by the end of this financial year,” Museveni said.
“The importance of this is that finally we can have our own independent planning without external interference.” The President, however, noted that the sh5,000b is only 13% of Uganda’s GDP, which does not make the country totally independent.
“If we go to 20%, we shall go down to Paris as donors. 13% is not good enough,” Museveni noted.
He said the money realised from revenue collection can help Uganda construct roads without relying on donors.
“You can imagine what problems we would have if we were still depending on begging,” Museveni said.
On electricity, Museveni said the Government is committed to generating 3,800 megawatts in the next five years. “Thereafter, we shall target 17,000MW in the next ten years. If there are some friends who want to join us, they should, but according to our plans.”
