The Infrastructure Magazine-Uganda by The Infrastructure Magazine

Inside: Uganda’s first solar run factory could start before end of 2017

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www.infrastructure.co.ug | October 2017

Right Strategy? Uganda’s massive investment in public infrastructure: Opportunities, Benefits, Risks

FEATURE

INTERVIEW

INNOVATION

Electricity generation: How far Uganda has come

A gaze into the Standard Gauge Railway

Tapping storm waters to keep taps wet

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Contents www.infrastructure.co.ug | October 2017

The Infrastructure Magazine is Published by

2nd Floor, Ntinda Shopping Centre P. O. Box 11670, Kampala, Uganda, Tel: +256 414 667 688; +256 700 665 775; Mob: +256 776 477 751; +256 723 665 775; E-mail: editor@infrastructure.co.ug; inquiry.acl@gmail.com; Website: www.acl.co.ug/ www.infrastructure.co.ug

Editor Simon E. Omoding Sub Editor Arthur Matsiko Writers Jacob Okwii Jackie Asasira Daniel Otto Guest Writers Dr. Harrison Mutikanga, Nicholas A. Rugaba, Francis Ndyakura, Moses Muhumuza Marketing Sales Team Leader Salome Lukwiya Sales Executives George Lukwiya Grace Ajulong Edrine Apolot

10 LEAD STORY

Right Strategy? Uganda’s massive investment in public infrastructure: Opportunities, Benefits, and Risks

04 Editorial: Now we plunge into print 06 News Round-up Feature

10 Uganda’s first solar run factory could start before end of 2017 Analysis

16 Electricity generation: How far Uganda has come Project Implementation

18 Isimba & Karuma Power stations Progress View Point

22 Why Uganda needs to generate more electricity

Design/Layout: Peter Mugeni /Slick Republic Limited

Captains of Industry

ISSN: 2523-191X (print); ISSN: 2523-1928 (Online)

Opinion

24 A gaze into the Standard Gauge Railway 29 Standard Gauge Railway: Some good practices to learn from Kenya Innovation

30 Tapping storm waters to keep taps wet Oil Exploration Cover photo: Construction works at Isimba Hydro Power Project. Photo credit: www.infrastructure.co.ug UEGCL

35 Nigeria’s Oranto Pertoleum inks Ngassa oil exploration deal 3

From the Editor Now we plunge into print For the last four years, we have exclusively published online - www. infrastructure.co.ug - and on social media; where this magazine commands both a devout following and high readership-each article usually attracting and recording several thousand clicks. Initially, our plan was to stay online.

tries-is currently pursuing huge infrastrucowever, over time, we have reture agenda including the standard gauge ceived insistent requests from our railways, roads, power dams, expansion readers to come out in print. Our of the electricity grids, aviation, oil and own surveys showed that our readers are gas infrastructure, expansion of airports, busy people, who require something to to name a few. Indeed, the governments take away, to read at their own free time. are committing substantial parts of the Some of our readers are most of the time national budgets to infrastructure develworking on projects in areas where interopment- and equally attracting heavy fornet is not reliable. And yes, old habits die eign loans and investments into the sub hard- some of our good readers, for good sector. This makes the inframeasure, just want their structure sector the most vimagazine palpably in their brant in the economy today. hands; so they can fix their The coffee, sit up, cross their Infrastructure The Infrastructure magazine legs, swing around their magazine is a is a high quality, professional chair, hold their magazine high quality, publication that covers infraup, and plunge into it. We professional structure development and also found that among our publication associated goods and serdiscerning readers a paper that covers vices. It is about civil works, magazine has a longer shelf infrastructure road construction/ reconspan (compared to the ever development struction, civil works, water ephemeral electronic verand associated & sanitation, engineering, sion), which is good value power/energy, IT, manufacfor money, for our advertisgoods and turing, telecommunications, ers. services. oil & gas, transportation (road, rail, air), industry By this print edition, we are (manufacturing) and associsuccumbing to those wishated services like banking, insurance, loes. We hope you will â&#x20AC;&#x201C;always- have reagistics, training for the sector. son to get your print copy. Our part â&#x20AC;&#x201C;and this is our promise-is to make sure that The magazine is an A+, A, B+, B and C every issue is informative, incisive, anaproduct published for discerning infralytical, insightful and deep, yet accessible. structure industry players such as: Policy & decision makers, project implementUganda-like her East African sister coun-

ers, funding agencies, project managers, consulting firms, private sector players, goods & services providers & manufacturers, engineers, architects, surveyors, contractors and constructors, and indeed Ugandans-because they have a stake in infrastructure development in their country. In this edition, we focus the light on electricity generation- bringing you up to speed with the big infrastructure developments in this area; where electricity generation has come from in Uganda, and where it is heading, at least for the next few years. Elsewhere, we also speak to the project coordinator of the Standard Gauge Railways to provide an update on where things are at as far as the SGR in concerned. In our innovation section, we speak to a Ugandan engineer developing a creative solution to urban water scarcity in Cape Town, South Africa. And much, much more. We hope you enjoy. We welcome your views, comments, ideas, and suggestions on areas we should focus light for you. Please write to editor@infrastructure.co.ug Good reading. Simon E. Omoding, Editor

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In the next Issue... We focus on water & sanitation; on the state of national water & sanitation infrastructure. The Government of Uganda target is to reach 100 per cent Ugandans with clean and safe water by 2020. Today, access to clean and safe water in rural areas stands at about 68 per cent, and 74 per cent in urban areas.

Are you a service provider in water & sanitation? Water engineering, consulting & construction service provider? Specialist in rural/urban water schemes? Supply goods and services related to water & sanitation? Manufacturer/supply water equipment, pumps, pipes, tanks, engines, chemicals etc, water storage, treatment, etc? Involved in any element in the value chain to deliver clean and safe water?

This is the opportunity for people who matter to know what you are doing. To participate in the next issue. Get in touch: Tel: (+256) 700 665 775; (0) 414 667 688; (0) 776 477 751; Whats App: +256 (0) 752 665 775 E-mail: info@infrastructure.co.ug; inquiry.acl@gmail.com www.infrastructure.co.ug

News Round-up

The picturesque Pearl of Africa hotel comes alive on Kampala skyline

he picturesque 23-storey luxury hotel, set on a spectacular location in Kampala, with nearly 360 degree visibility of the city, was officially launched in October. The hotel- a fivestar luxury affair- comprises 253 rooms and 42 suites on seven levels of accommodation, ranging between 31 and 164 square metres in size. Kampalaâ&#x20AC;&#x2122;s newest attraction boasts of a variety of bar and dining space options

in the 3 000 square-metre food and beverage service area with its trendsetting technology, pristine production space and state-of-the-art storage facilities. Also on offer is a 740 square-metre ballroom, nine meeting rooms, two boardrooms, a business hub, three swimming pools and a cutting-edge wellness centre with a luxury spa and fully equipped gym. The building, done by Sudanese-Ugan-

dan business family, AYA Group, was originally meant for the Commonwealth Heads of State and Government Meeting (CHOGM) that Uganda hosted in 2007, and had been enlisted for a Hilton Hotel group facility. The Pearl of Africa Hotel, opening its doors ten years late, still remains a welcome appearance on the Kampala skyline, if only for its gorgeous architecture and tastefully aesthetic finishing.

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News Round-up

Zuku TV introduces “Tripple Pay service”

s the battle by the different service providers to bring digital TV to homes in Uganda intensifies, Zuku TV is going a notch higher by delivering a 3-in-1 product called “Zuku Triple Pay service.” The service consists of digital TV and home internet service. Zuku customers will be able to choose the packages of their wish, from four. So far, the Zuku fiber cable has been only available in Nairobi and Mombasa. A single Zuku fiber has residential internet speeds of up to 250 Mbps, the fastest internet speed in East Africa. The internet speed brings high quality voice services with free unlimited local on-net phone for telephone services. Zuku TV has over 100 channels on the Zuku Satellite platform

and more than 120 channels on the topend Fiber platform. Zuku is an East African brand under Wananchi Group, established with the aim of making quality home entertainment and communication services accessible to a

rapidly growing, choice conscious African middle class. Zuku TV services have been successfully launched in Kenya, Tanzania, Uganda, Malawi and most recently Zambia with aggressive plans to roll out to more countries in the near future.

Kwesé introduces pay-as-you-watch digital TV subscription packages

he newly launched broadcast network Kwese satellite TV has introduced the first ever pay-as you- watch subscription packages in Uganda. The new subscription packages will give Ugandans a choice to purchase pay-as-you-watch packages by purchasing three, seven or 30 day subscriptions to access Kwese’s full programming line-up. “Kwesé’s appeal is not only its worldclass content but also its innovative payment model which has never been adopted in this market. Never before has such premi-

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um content been available for as little as Shs17,000 for a three day subscription,” Herbert Mucunguzi, the General Manager Kwesé TV Uganda, said. Mucunguzi said Kwesé believes that world class content needs to be accessible to audiences not only through multiple platforms but also at affordable prices

which is why it is important to provide such services to Ugandans. Mucunguzi said African viewers are increasingly becoming more discerning, which is why it is important to cater to these diverse viewing appetites not only through premium content but also by means of a multi-platform broadcast offering. These include traditional TV, mobile apps and digital viewing options. Kwese TV is a Zimbabwean satellite and broadcasting network owned by Zimbabwean Econet Wireless mogul Strive Masiyiwa . The name Kwesé is derived from a Shona word “Kwesé” which means “everywhere” and “anywhere.”

News Round-up

New BRICS Development Bank to fund infrastructure projects in Africa

he newly established BRICS Development Bank with will support infrastructural projects in African countries, with the five BRICS countries signing a deal to create a new US$100bn development bank and emergency reserve fund which will provide financial support to infrastructural developments in Africa. A regional office has been opened in Johannesburg, South Africa.

At the launch summit, which was attended by the representatives of the BRICS countries: Brazil, Russia, India, China and South Africa, appeal was made to African countries to identify potential infrastructural projects to be supported by the new bank. “BRICS launch in Africa is a historical occasion which underlines the BRICS commitment to the development of African countries and emerging markets,” Jacob Zuma,

South Africa’s president said. South Africa is the only African country in the group of five emerging economies. South Africa is the smallest among BRICS countries with a GDP of US$325b and China leading the pack with US$11trillion. BRICS countries account for 40 per cent of the world’s population and are responsible for 23 per cent of global GDP.

Uganda hosts 33rd African Union for Housing Finance Conference

ganda hosted the 33rd African Union for Housing Finance Conference from 17-19 October 2017. Facilitated by Terwilliger Center for Innovation and Shelter, Habitat for Humanity International and co-hosted by both the African Union for Housing Finance Conference (AUHF) and Housing Finance Bank Uganda. The African Union for Housing Finance (AUHF) is a member-based body of housing lenders started in 1984. Today, the organisation has 61 members from 17 countries across the continent. Members include commercial and mortgage banks, building societies, microfinance banks/ institutions, housing development corporations, and other institutions involved in the mobilisation of funds for shelter and housing. The theme for the Kampala meet was, “Engaging the Housing Value Chain for Growth”. The organisers said the Kampala conference sought to underscore the importance of the various elements of the housing value chain. “Housing is all about the value chain. The process of

Prime Minister, Dr. Ruhakana Rugunda (6th left) represented President Yoweri Museveni at the opening of the conference

delivering and managing a home – from land assembly through to infrastructure provision, house construction, the sales and transfer process, and then ongoing maintenance and improvements – is interdependent drawing on multiple sectors in the economy and departments in government.” Focusing on the key links in the chain, the conference brought together financiers, developers, professionals and policy

makers to deliberate on the challenges, explore opportunities, and share experiences from 25 different countries on the continent. Opening the conference, Ugandan President Yoweri Museveni, who was chief guest said the increase in population in Uganda and on the content presented a new housing challenge that must be addressed in order to turn it into a growth opportunity.

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News Round-up

First African Architectural Award held in Jo’burg

From the 21 projects, winners were chosen in 4 categories, with an overall Grand Prix winner taking home the top prize of US$10,000

he first Africa Architectural Award (AAA) meant to recognize and reward creative and notable architectural projects from around the continent attracted participation from 32 African countries, with more than 300 projects submitted to contest.

The overall winner of the inaugural AAA 2017 award was Choromanski Architects, which designed the Umkhumbane Museum in South Africa. It also won a trophy in the Built category.

The event was held in Johannesburg, South Africa early October. The award, which was founded by SaintGobain, an international company that designs, manufactures and distributes environmental-friendly construction materials, received international recognition as a way of promoting excellence in architectural development on the continent. According to David Adjaye, an award-winning architect, the Africa Architecture Awards are very critical and that now is the time to promote excellence and best practice on the continent in order to bring development, in terms of the architecture that is being produced. A steering panel led by Professor Lesley Lokko, Ambassador Phill Mashabane and advisor Zahira Asmal organized the award ceremony. Of all the entries, AAA shortlisted 21 projects selected by the competition jury, which comprised of leading African architects and

Umkhumbane Museum

academics, namely; Anna Abengowe (Nigeria), Guillaume Koffi (Côte d’Ivoire), Professor Edgar Pieterse (South Africa), Patti Anahory (Cape Verde), Tanzeem Razak (South Africa), and Phill Mashabane (South Africa). Evan Lockhart-Barker, MD Saint-Gobain Retail Division noted that though this was the first edition of the AAA, they believe it captured an incredible moment in time for Pan-African architecture. He added that having launched the first-ever awards of its kind, the award has seen the incredible response from architects working across the continent.

In the Speculative category, which had 91 entries, the trophy went to Aissata Balde from Unit 12 of the Graduate School of Architecture at the University of Johannesburg. Balde designed the “Territory in-Between”, a project that explores the relationship between physical and fictional spaces through familiarities in migration in Cape Verde. Oguindare Olawale Israel was awarded a trophy in the Emerging Voices category. Israel is an architecture student at the University of Johannesburg. He submission was a unique project, The Exchange Consulate: Trading Passports for Hyper-Per formative Economic Enclaves, which investigates the economic districts in Johannesburg. The last award was scooped by Ceica, an Angolan media house that hosts an annual architecture forum trophy in the Critical Dialogue category “Forum de arquitectura” at the Lusiada University of Angola.

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Feature

Uganda’s first solar run factory could start before end of 2017 By Simon E. Omoding

In what will be a first of its kind, a factory operating on solar power could be launched in Kampala before the end December (2017), The Infrastructure Magazine can exclusively reveal. If this happens, this will be a real game changer in energy use in Uganda, as this will be the very first time that a factory outfit will be running on solar energy.

bu Musuuza, the CEO of Village Energy Uganda, who is the brain behind the initiative, told this Magazine that plans are in advanced stages to get the industrialist to use solar to meet part of his 150KW daily energy needs. Although he did not want to name the industrialist who has opened up to have the trial on his manufacturing plant at this point, Musuuza said his company has concluded various assessments to determine the factory’s energy needs. “We have already finalised all the factory’s energy

consumption assessments. As we speak we have got an American manufacturer to design the solar energy solution for the factory.” Musuuza said that his plan is to start the factory to run on solar during the daytime when sun rays are strongest in Uganda, and switch over to the grid power in the night. So far there is no known factory in the East African region that runs on solar. In Europe, Coca Cola in May 2017 announced that now all its manufacturing affiliates in the UK run on renewable energy-mainly solar. Finland, not exactly famous for long sun light hours, recently announced plans to generate 160,000KW of energy from solar energy to run some operations in factories. In the United States of America, two large-scale examples that are variously cited as renewable energy ground-breaking initiatives include: Tesla’s (American car manufacturer) Gigafactory that is currently under construction in Nevada, in the southwest of the United States. Once complete in 2019, the desert located giant factory will run exclusively on solar from the US’ sunniest state, called the Silver State. The factory will produce renewable energy batteries and cells, for Tesla’s next generation of cars. The other outfit to write about is Apple’s 200MW solar powered data centre, also under construction, and in Nevada, as well.

Abu Musuuza

Industry observers say that one of the biggest gains in solar energy use and promotion as a re-

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Feature

Soroti solar power farm

newable energy in recent times, has been the fall of the cost of equipment –particularly solar panels. Over the last five years or so, the price of panels has drastically come down, explaining the fast proliferation of solar energy use world-wide-including in Uganda. However, up to this point solar energy has been mainly deployed as alternative energy mainly for domestic uses such as lighting, water-heating, and now increasingly for powering home gadgets like TVs, iron-boxes, etc. Musuuza said that to facilitate the fast growing generation of energy from solar, there is need for government to re-orient its policy framework and even put in place innovative policy initiatives. He said, for example, that once solar use takes root in Uganda, individuals will install more solar panel capacity on their houses which will produce more energy than they actually consume. In such instances, the policy framework should enable such individual home owners to sell the excess power back to the national grid for use by others who need it.

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Village Solar Energy was started in 2010 with the single purpose at the time to bring energy access to rural communities, through training and employing Ugandan youth to locally manufacture and distribute solar systems. Using this approach the company sold and installed 4,000 solar systems in rural areas in Uganda. Musuuza, however says, “Through our work in rural areas, we saw for ourselves how the lack of after-sales service options was creating a lack of trust of solar in rural areas, and that entire lastmile distribution challenge was a large, unsolved opportunity.”

The factory will produce renewable energy batteries and cells, for Tesla’s next generation of cars. The other outfit to write about is Apple’s 200MW solar powered data centre, also under construction, and in Nevada, as well.

This drove them to go for their current “community solar expert” model, focused on developing the human capital and physical infrastructure needed for a sustainable rural solar economy.” Today they are more a solutions innovator, distribution channel developer and client service provider, servicing the “last-mile.”

Lead story

The Entebbe Express Way currently under construction

Right Strategy?

Uganda’s massive investment in public infrastructure: Opportunities, Benefits, Risks By Simon E. Omoding

Experts say for Uganda to maximise the value for her money that is being spent on infrastructure, the country needs to ensure that supervision and management of the multi-billion dollar projects currently under implementation is tightened to guarantee projects are completed on time, on budget and to wanted standards (quality).

hey also say that for the infrastructure to deliver the intended results: Growth and economic development, leading to socio-economic transformation, which will deliver Uganda to the middle-income status it aspires, the country’s strategy needs to widen beyond just focusing on hard infrastructure, to loop in human capital development. In addition, the country needs to ensure deliberately that substantial amounts of the billions of dollars that is being expended stays in the local economy, through consumption of local content. If these don’t happen, they say, Uganda runs a risk of

sinking deep into debt, with inactive ghost infrastructure that if not well quality-assured, could collapse earlier than planned. The country will also lamentably miss the multiplier-effect benefits of infrastructure to economic growth- and development. For the last half a decade or so, President Yoweri Museveni has not tired of rhapsodising his infrastructure strategy. The strategy: That for Uganda to develop into a middle income status, the country needs to increase its stock of good infrastructure- roads, dams for electricity, the railway, water for production …By so doing the country will develop a competitive investment

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Lead story money…The World Bank has estimated that, if Uganda’s investments were better managed, annual growth could be 2.5 percentage points higher, “she said.

environment that attracts (mainly) foreign direct investment by making the country globally competitive for investment.

IMF managing director, Christine Lagarde, officially endorsed Uganda’s infrastructure strategy, but with circumspection.

Infrastructure development has been at the core of Uganda’s development agenda, over the past few years. Infrastructure- the top two being works & transport and energyhas taken the lion’s share in the national budget. Allocations for works and transport (mainly roads), for example, grew from Shs 2.395 trillion in financial year 2013/14; Shs 3.3 trillion in 2014/15; Shs 3.8 trillion in 2016/17 and to a roaring Shs 4.5 trillion in 2017/18. The energy, oil and gas, the second biggest beneficiary in the national budget, has equally grown from Shs 1.8 trillion in 2013/14 to 2.4 trillion in 2017/18.

“Under-developed infrastructure is a permanent brake on growth. It prevents businesses from connecting to local, regional, and Infrastructure global markets, and limits their development willingness to invest. Ultimatehas been at the ly, infrastructure bottlenecks core of Uganda’s will slow the structural transdevelopment formation and industrialization agenda, over the that Uganda aspires to,” she past few years. said.

Government has also gone out to borrow from international donors, mainly China, to fund the projects. Some of the big ones include- Karuma hydro power project (US$2 billion), the East African Oil Pipeline (US$3.5 billion), the Standard Gauge Railways -Malaba-Kampala (US$2.3 billion), Isimba Power dam (US$1.4 billion), Entebbe Express Way (US$400 million), the new bridge over River Nile in Jinja (US$132 million), among several others. Speaking to a public forum in Kampala while on a visit to Uganda in January (2017), the

Adding: “The government’s strategy to scale up infrastructure investment is well conceived. It is intended to lift growth while maintaining debt at a sustainable level.” Lagarde was however quick to observe that proper project management was critical for ongoing projects if the country was to get value for money.

Infrastructurethe top two being works & transport and energyhas taken the lion’s share in the national budget.

“But to achieve these goals means that investment must be efficient. That calls for strong institutions to keep mismanagement in check and ensure maximum value for

Lagarde was speaking to the gathering, which had Prime Minister Dr. Ruhakana Rugunda, Matia Kasaija the Finance Minister, other cabinet ministers, the country’s topmost economists and CEOs of government parastatals responsible for infrastructure execution, in attendance.

In June last year, while launching the report, From Smart Budgets to Smart Returns: Unleashing the Power of Public investment Management, Christina Malmberg-Calvo, World Bank country manager for Uganda said, “By managing public investments better, Government would spur economic growth, improve welfare and give Uganda’s taxpayers more value for money.” “It is therefore important to invest in the country’s ability to invest by transforming the public investment program into a system

Aerial view of Entebbe International Airport: Expansion works are ongoing

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Lead story that better increases the value derived from public investments,” she added. More recently, IMF economists Christine Roehler, Jacques Charaoui, Martin Darcy, Kubai Khasiani and Arturro Navarro warned that Uganda’s public investment in infrastructure falls way below peers in as far as cost and efficiency are concerned. In their own September (2017) report entitled, Uganda Technical Assistance Report-Enhancing the Performance of Public Investment Management, they said Uganda demonstrates “a large efficiency gap” compared to best performing countries in ensuring efficiency in delivery of public infrastructure projects. “Uganda is significantly scaling up public investments and increasing its debt, aspiring to reach middle-income status by 2020. However, to date, there is a large efficiency gap in Uganda’s investment compared to the best performers and to emerging market economies. In order to keep debt sustainable, and realize the intended growth and development impact, it is critical that projects deliver on time, on budget and with impact,” the report states. It says Uganda’s public investment has an efficiency gap of about 50 percent to the best performing countries, and about a 25 percent gap to the average performance of emerging market economies. What this means is that the impact of public investment on the amount of publicly available physical infrastructure (like kilometres of roads, hospitals, schools, among others) and the quality of this infrastructure (as measured by surveys) is considerably lower for Uganda’s level of expenditure. In other words, for the money the country currently spends on infrastructure, the country could do more infrastructure, and benefit more, for the same money. The IMF report also quotes various accounts from the Accountant Generals Office (AGO) and the Ministry of Finance’s Budget Management and Analysis Unit (BMAU), as well as different project evaluations, which point to “significant time and cost overruns, and

The recently completed Fairway Hotel roundabout traffic lights

impacts below expectations under normal circumstances.” In a recent interview with this writer, Prof. Michael Samson, of the Economic Policy Research Centre (EPRC) in Cape Town, South Africa, argued that for Uganda to get maximum value from her infrastructure, the government needs to equally focus on developing the country’s human capital.

The energy, oil and gas, the second biggest beneficiary in the national budget, has equally grown from Shs 1.8 trillion in 2013/14 to 2.4 trillion in 2017/18.

Samson argued that given the fact that Uganda has a largely a young population (75 per cent of the population being under 30 years), the country needs to ensure that this population is nurtured well, given a good education, training and skills, so that the country can realise a demographic dividend. Once the population is made more productive, the country has more goods and services to export. Samson said no country has developed purely based on foreign investment, but rather from resources generated from within.

“It is a good idea for Uganda to invest in good infrastructure like the Standard Gauge Railway, linking the country to the coast. But this railway should eventually be used more for exporting goods and services, than for importing goods and services into the country, as Uganda is doing at the moment,” Samson said.

Michael Samson’s thinking is in line with those who reason that the “miracle” of the Asian Tigers was more because they focused on the development of their people (human capital), innovation and technology, and less so because of their investments in hard infrastructure. President Museveni is a known admirer of the Asian Tigers (Singapore, Taiwan, Hong Kong, South Korea)-especially Singapore’s Lee Kuan Yew. Indeed, there is a striking resemblance between Museveni’s development model (articulated in his infrastructure strategy) and Lee Kuan Yew’s famous Singaporean model-focussed on deregulation to

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Lead story Multi-lateral lenders and institutions like the African Development Bank, the World Bank and The UN Conference on Trade & Development (UNCTAD), among others, are increasingly championing the consumption of local content in infrastructure projects in Africa. A local economist working for a government department who preferred not to be named, told The Infrastructure Magazine that “Government needs to look beyond the delivery of the final pieces of infrastructure as the only required development. They need to quickly recognise the opportunity of stimulating the local production, manufacturing, development of human capital, so that the local economy gets a local boost from infrastructure projects.”

attract foreign investment into the economy. The other element that has been conspicuously missing in the country’s infrastructure projects, at least until recently, is the element of local content. Most of the money spent on labour, supplies, goods and services to the infrastructure projects, has been spent on importing supplies and services- even if they could be sourced locally. As a result, the country is missing the badly needed injection of foreign exchange into the struggling local economy.

oratory will be established and equipped to help the employer carry out the quality assurance function,” he told this Magazine. He added: “This stringent mechanism is required to ensure that the railway system functions as designed and lasts for a period of 100 years.” The SGR project also recently launched its local content policy. Eng. Dr. Harrison Mutikanga, the CEO of the Electricity Generation Company Limited (UEGCL) said his organisation now has in place an Operation & Maintenance (O&M) strategy aimed at “ensuring efficient and cost effective operation capable of ensuring that UEGCL meets all its obligations…”

Some agencies responsible for key infrastructure development seem to be listening. Eng. Kasingye Kyamugambi told The Infrastructure Magazine (see Captains of Industry interview in this edition) that The Standard Gauze Railway project has its sights set on being able to deliver on time, within budget and to the highest standard of the Chinese Standard Gauge 1 Railway.

In a separate, interview Simon Kasyate, Manager Corporate Affairs, Uganda Electricity Generation Company told The Infrastructure Magazine that the company takes quality, delivery on time, on budget and to specification very seriously. Kasyate said the recent reprimand of the contract of an Indian supervising consulting company for Isimba Dam project, Infratech Pvt Limited, is a testimony that when it comes to time, cost and quality, UEGCL takes no prisoners.

“We have a Quality Assurance Strategy. In order to ensure that the works done and services provided meet the standard as stipulated in the contract, a robust Quality Assurance Strategy has been prepared which includes the design review strategy, construction assurance strategy and the materials quality control strategy. A lab-

On local content, Kasyate told this Magazine that the contractors of the various power station projects have been put on notice to ensure that inputs like cement are procured locally. He said that once the current large stocks that had been imported run out, the contractors will be required to procure cement locally.

If a substantial part of the billions of dollars spent on infrastructure is used locally, it means local manufacturers will have increased demand of their products. They will employ more people and expand their capacity and invest in improving their quality to meet the demand. This in turn would translate into better local manufacturing capacity to supply even the regional markets, more jobs would be created, the tax base would be expanded, the volume of taxes would rise, all of which translate into a big shot to boost the local economy. Artistic impression of the Uganda-Kenya SGR interchange

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Analysis

Electricity generation: How far Uganda has come By Our Reporter

Every day hundreds of people trudge by the sculpture in front of Amber House, on Kampala Road, in the heart of Kampala, oblivious of the import of that man monumented on there. The man, Ernest Kawalya Kaggwa is credited for championing electricity generation in Uganda. He is known to have pestered the colonial administration to invest in hydro-electricity in the colony (Uganda), amidst reluctance by the colonial government because electricity consumption was at the time, limited, and could not attract worthwhile investment. 16

eports indicate that by 1906, some form of electricity was being generated in Kampala by mainly generators. This electricity was however transmitted only to select areas like Kololo where the colonial administrators resided. At the same time, the small-scale industrialists generated in-situ their own electricity to run their factories-mainly cotton ginning, sugar production (S.K Metha- todayâ&#x20AC;&#x2122;s Lugazi Sugar works), among others. Between this time and late mid 1940s, a number of enterprises produced electricity at individual level.

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Analysis

tion initiatives put together, produced no more than 30MW of electricity.

Simon Kasyate, Manager Corporate Affairs, Uganda Electricity Generation Company

The old Owen Falls Dam Below: Ernest Kawalya Kaggwa

According to Simon Kasyate, Corporate Affairs Manager at Uganda Electricity Generation Company (UEGCL), between 1947-1954, there was one “big” power generator in Lugogo, which produced power mainly for the colonial administration and their institutions. At the time, all the several power genera-

Over the years, small-scale generation efforts by various private sector players have taken root. These include Kakira Sugar Works, Kilembe Mines, among others. The country’s electricity is increasingly being supplemented from alternative sources like the solar power stations in Soroti and Tororo.

In the last 1940s, the political disagreements between the River Nile countries (mainly Egypt and Sudan) on Uganda’s use of the Nile for power generation had been resolved, and the private investors were willing to put their money to hydro-electricity production. Works on the dam at Rippon Falls started in September 1949. In April 1954, Queen Elizabeth of England inaugurated the dam in Jinja, called Owen Falls Dam, following 5 years of construction. The dam was built with capacity to generate 150MW of electricity. For the first time Uganda was awash with electricity. And for the next nearly 50 years, this dam single handled provided all the electricity Uganda consumed. It was not until the 1990s, that the power station was renovated, upgraded to 180MW and renamed Kiira Power dam. It took another 10 years from then for Uganda to complete another power station, downstream of the Nile- the Bujagali Power station with a capacity of 250 MW of electricity. The Bujagali dam was completed in 2012. Before this, the country had been hit by severe power shortages so massive the economy was affected. At this point the Government went back to thermal generation of electricity by contracting Jacobsen and Electromaxx to supply thermal power to the national grid. Over the years, small-scale generation efforts by various private sector players have taken root. These include Kakira Sugar Works, Kilembe Mines, among others. The country’s electricity is increasingly being supplemented from alternative sources like the solar power stations in Soroti and Tororo. Today the country generated over 800MW of electricity, and big investments are being made to increase the country’s hydro-power generation capacity. Works are currently under way for Karuma Power project (600MW), Isimba (183 MW). Some other dams that have been lined up for construction include Musizi (44.7MW), Agago (840MW) and Nyagak (5.5MW), among other small projects. The country is also currently exploring exploitation of nuclear energy, increasing generation capacity for solar energy, as well as geo-thermal.

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Project implementation

Ongoing works at Isimba Hydro Power dam (Photo: UEGCL)

Isimba and Karuma Power stations Progress Isimba hydro Power station By Nicholas A. Rugaba, Francis Ndyakura, Moses Muhumuza

At completion, the Isimba Hydro-Power Station will have an installed electricity generation capacity of 183.2MW; with a multi-annual power output average of 1062 GW.h (Giga Watt hours) and annual utilization of 5800 hours. The Isimba Hydro – Power project currently underway, consists of the hydro power plant with 4 Kaplan turbines (each rated at 45.75MW) plus gravity and rock fill dams. It also has spillways, access roads, control, workshop and auxiliary buildings and all corresponding infrastructure for safe and efficient use of hydropower for the production of the electric energy.

he proposed station is located on the Victoria Nile River some 50 km down stream of its source at the location of Koova Island. As part of the project works, a 132kilovolts (kV) substation as well as overhead transmission lines from the plant to the substation, with all necessary auxiliary structure’s and equipment will be constructed. The Isimba 132kV substation will be connected to the grid system at the Bujagali 132kV substation by 132kV double circuit overhead

lines of about 42km. The project is contracted under the EPC (Engineering, Procurement and Construction) model. The client / owner is the Ministry of Energy & Mineral Development, while the Uganda Electricity Generation Company Limited (UEGCL) is the implementing agency. Under this arrangement, UEGCL supervises both the EPC Contractor (CWE) and the Owner’s Engineer. The Owner’s Engineer

is in charge of offering consultancy and supervision services for the construction of the power station, as contracted by the Client.

Financing & execution progress Isimba HPP is financed by the Government of Uganda and Exim Bank of China. The Government of Uganda contributed 15 per cent of the Engineering, Procurement and Construction (EPC) costs, while the EXIM

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Project implementation Bank of China is financing 85 per cent of the works. The total EPC contract price is about US$ 568 million. This cost covers both the Isimba Hydro Power Project and its associated transmission line works (the IsimbaBujagali Interconnection Project). The loan agreement for financing the project was signed between the Chinese Bank and the Government of Uganda (represented by the Ministry of Finance Planning & Economic Development) on 27 November 2014. The Parliament of Uganda approved the Loan agreement in March 2015, and financial closure was achieved in August 2015. To date, some US$ 261 million has been paid to the EPC contractor, representing financial progress 46 per cent. The project commencement date was 30 April 2015, with expectation that it will take 40 calendar months. The project completion date is expected to be August 2018. As at June 2017, the project was 22months into its 40-month project duration, representing 55 per cent time progress for the project.

Engineering progress The engineering component of the EPC contract accounts for all design aspects of the project. The feasibility design was done and concluded by the Fichtner-Norplan joint venture who were contracted by the Ministry of Energy & Mineral Development, prior to award of the EPC Contract. The EPC contractor- China International Water and Electric Corporation (CWE) has finalized basic design for all the component structures of the power project, including the power house, spillways, gravity dams, electro-mechanical (EM) and hydro-mechanical (HM) equipment switch yard, among others. The current progress under engineering covers detailed design for the powerhouse and associated structures. Engineering/ design stands at over 80 per cent for all civil works and 75 per cent for EM and HM works. The pending design /engineering works include second stage diversion scheme, right embankment dam beyond Koova Island, switchyard and workshop, and so on. There are also outstanding design modifications and changes yet to be approved including materials for electro mechanical / Hydromechanical installations like gates, trash

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trucks, and trunnion anchors. These were expected to be concluded by October, before second stage diversion.

Construction progress The construction progress covers both civil work and Electro- Mechanical (EM)/ HydroMechanical (HM) installation works on site. On civil works, concrete works stood at 95 per cent as at May 2017. These concrete works are for the power house and associated structures like the damâ&#x20AC;&#x2122;s spillways, erection bay and control building. Whereas the concrete works have progressed extensively, there are major concrete repairs for cracks, joints, formwork ties that remain to be done. These are being undertaken by the EPC contractor using specialized concrete repair materials to ensure durability and integrity of the concrete structures. The placements of embankment dam materials for the right embankment dam resumed after the employer authorized resumption of works following the final approval of the design and QA/QC (Quality assurance, Quality Control) systems for construction of the embankment dam. The foundation remedial treatment for the left embankment dam are ongoing with the EPC Contractor, currently constructing the cutâ&#x20AC;&#x201C;off wall for seepages control in the dam foundation. The installation works for electro mechanical and hydro mechanical equipment have progressed well. Both the upstream and downstream gantry cranes have been installed and their requisite load tests have been conducted

to ensure compliance to technical specifications. These gantry cranes are critical for installation and operation of the intake gates, emergency gates and draft tube gates of the powerhouse and spillways. The draft tube gates for all the units of the powerhouse are fully installed. The radial gates of the lower spill way have also been installed including their stop logs. Furthermore, embedment for electro mechanical equipment e.g. piping draft tube cones, runner chambers etc. have been fully installed for all the units. The ongoing works include casting of the concrete for the spiral case particularly for units 3 & 4. The pending activities include installation of the intake trash racks, intake gates and stop logs for all the 4 units. This will be critical for the second stage diversion to allow for progress of the Electro-Mechanical (EM)/ Hydro Mechanical (HM) installations in the powerhouse and construction of the embankment dam of the right hand side of Koova Island.

Manufacturing progress With procurement progress, we mainly review the status of off shore manufacturing for the electro-mechanical and hydro-mechanical equipment to be installed in the power plant. These include transformers, turbines, generators and governor, excitation, cooling and oil systems, supervisory control & data acquisition (SCADA), firefighting systems, among others.

Works in Isimba (Photo: UEGCL)

Project implementation The manufacturing of most of these systems and equipment has been finalized in China, awaiting a few factory acceptance tests before shipping to Uganda. The manufacturing of the main transformers and diesel generators is at least 75 per cent complete. The manufacture of the turbines and generators for all the units is complete. The key focus for UEGCL currently is witness the factory acceptance tests and inspection of these systems before they are shipped to the site for installation and commissioning.

Health, Safety and Environment Health Safety and Environment (HSE) management is an integral part of Isimba Hydro

power project operations to ensure environmental sustainability of the project. In order to achieve this the project implementation team is working in partnership with the key lead agencies such as NEMA, Kayunga and Kamuli district local government authorities in the project monitoring HSE activities. Six certificates of approval for the environmental impact assessment (EIA) for Isimba Hydro-power project and auxiliary structures were obtained from NEMA and twenty various permits and licenses were obtained from other lead agencies. In an effort to comply with the local regulatory requirements, well as national and international standards, ten health safety envi-

ronment (HSE) and social management plans were developed and are being implemented by the contractor, supervised by the owners engineer. The UEGCL is monitoring the implementation process for improvement of HSE performance. From the internal assessment conducted in June 2017, compliance with the regulatory requirements in NEMA certificates and permits /or licenses from other lead agencies is rated at about 70 per cent. Regular ongoing monitoring activities such as noise and vibrations monitoring, water quality monitoring, site inspections and stakeholders engagement are also being undertaken.

Karuma Power Project The 600MW Karuma Hydro- Power project is located in Kiryandongo district. It is a run- of- the river (ROR) scheme located on the Kyoga Nile stretch between Lake Kyoga and Murchision falls, about 2.5 km upstream of Karuma Bridge. The scheme will utilize a gross head of 70.0m and design discharge of 1098 cumecs to generate on average 4,073 MU of energy per year.

he main components of the project include; the dam, intake, headrace tunnels, underground powerhouse and

transformer cavern, tailrace surge chamber and tailrace tunnels. The dam is a 14m high and 314m long concrete structure with over-

flow, non-overflow, river water training, and ecological discharge, sand flashing bottom outlet and fish way sections.

Engineers at work at the Karuma power station (photo: UEGCL)

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Project implementation scaffolding temporally works required for concrete works. Concrete works in the main transformer Cavern (MTC) and Bus Duct Tunnels (BDT) commenced and are progressing well. Regarding HM/EM works progress is currently at 7.6 per cent(Design and site progress). The engineering procurement and Construction Contract(EPCC) has made significant progress with the fabrication and installation of the Head Race Tunnel. Lower bend penstock in pressure shafts #1,#3,#4,#5,#6 were completed. Installation of draft tubes in the powerhouse was also completed.

On the left side of the dam are six power intake structures leading to six 7.7m diameter headrace tunnels; one for each of the 100MW turbine unit. The underground powerhouse comprises mainly of a 45m long and 19.6 wide erection bay for equipment installation and maintenance, a unit bay where six hydro generator units(each 100MW ) will be installed, an auxiliary power house, transformer cavern and cable shaft. The tailrace surge chamber is of an orifice type divided into two chambers each connect in to three turbine units and one of two tailrace tunnels. Tailrace tunnels TRT#1 and TRT2 are 8,705 and 8,609m in length respectively. The Karuma project is also contracted under the EPC (Engineering procurement and Construction) model with the Ministry of Energy & Mineral Development as the Client/Owner and UEGCL is the implementing agency; supervising both the EPC contractor (Sino hydro Corporation Limited) and the owner’s engineer.

Financial Progress The Karuma project is financed by both the Government of Uganda and Exim Bank of china at 15 per cent and 85 per cent respectively. The total EPC contract price is about US$ 1.4 billion for the plant component of the Karuma hydropower project. To date a gross amount of US$ 571 million has been expensed, making financial progress of 41 per cent.

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Physical Works Progress The project commencement was 16th December 2013. The project duration is 60 calendar month and the project completion date id December 2018. Therefore, project time progress is at 71 per cent. Civil works currently stand at 51.4 per cent progress, an aggregation of site works and design progress. Progress of works at the Dam and associated works was slow during the 2017 second quarter, partly due to the defects (i.e. cracks at the stilling Basin)identified in the concrete works the rectification of which necessitated detailed investigations and monitoring. Chinese panel of experts (PoE) visited site in 2017 to carry out another investigation into the cause of the cracking and offered recommendations which include; use of polyvinyl Alcohol (PVA) fiber in the concrete, change in cement type, and concrete have not been fully implemented meanwhile monitoring of the cracks at the stilling Basin is also ongoing. Significant progress was registered at the intake and pressure shafts. Apart from pressure shaft #3, concrete lining of all pressure shafts (#1,#2,#4,#5 and #6)was completed. Installation of draft tubes and the associated concrete works were the key activities in the power house. Installation of all draft tubes was completed but there was no significant progress in the surge chamber as the engineering, procumbent and construction contract (EPCC) is still designing required

However, tracking of progress of EM/HM equipments such as gates, Hoists, Transformers and generators is difficult as these are being manufactured offshore in China. Information available is based only on Engineering, procurement, and construction Contract (EPCC) progress updates. The OE has been asked to develop a plan of having an independent verification of press for HM/ EM equipment other than waiting for Factory Acceptance Tests(FATS) which is only done after a long period of time with a potential of not being able to reverse any deviations made manufacture. Overall physical progress as at end of June 2017 is at 59 per cent.

Health Safety and Environment Whereas a general improvement of engineering, procumbent and Construction Contract(EPCC’s)project, Health Safety and Environment(HSE) aspects had been registered in the first quarter 2 seem a rise in Health safety and environment incident/accidents across to the site owing to the laxity and non responsiveness of the EPECC in implementing corrective actions as communicated employer’s Team . OE has been instructed to enforce health, safety environment (HSE) compliance using all measures available. Some of the outstanding issues EPCC attention include; Inspection and certification of the crane operators, riggers, and banks men and defensive driving training of the project drivers.

View Point

President Yoweri Museveni commissions a rural electricity project.

Why Uganda needs to generate more electricity By Harrison E. Mutikanga

There is increasing debate on whether to continue investing in electricity generation facilities or shift focus to transmission and distribution infrastructure improvement. This article aims to contribute to this debate by providing insight into the electricity demand-supply with respect to meeting the 2020 National Development Plan (NDPII) targets.

ganda currently has 862 MW of installed electricity generation capacity. In his budget speech, Finance minister Matia Kasaija indicated that electricity access is currently at 20.4 per cent, meaning more than 25 million Ugandans lack

access to electricity. From the electricity-consumption point of view, Ugandaâ&#x20AC;&#x2122;s situation is far below other developing countries. The NDP II provides a baseline figure of annual average electricity consumption of 80 kilowatt-hours per capita (kWh per capita) for the financial year 2012/13. This is one-tenth of the consumption in Zambia (767 kWh per capita) and just 2.6 per cent of the global average (3,026 kWh per capita) from the 2013 energy indicators provided by the International Energy Agency report of 2015, on key world energy statistics.

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View Point For Uganda to attain middle-income status by 2020, the NDP II has set targets for electricity access at 30 per cent and average consumption at 578 kWh per capita. The World Bank has categorised income status based on 2013 global average electricity consumption in five different groups: high income (9,084 kWh per capita), low and middle income (1,874 kWh per capita), lower middle income (745 kWh per capita), middle income (2,000 kWh per capita), and upper middle income (3,409 kWh per capita). From this categorisation, it is clear that Uganda aims to probably attain lower middle-income status by 2020. In order to realise these targets, the NDP II projects power generation installed capacity to increase to 2,500 MW by 2020. This means increasing installed electricity generation capacity by 1,638 MW between 2016 and 2020. Currently, there are two large hydropower plants under construction that will be commissioned before 2020, that is, the 600 MW Karuma Project and the I83 MW Isimba project. According to the Electricity Regulatory Authority (ERA), there are five small hydropower projects with a combined capacity of 36.3 MW that are under construction and expected to be commissioned by 2018. The large and small projects combined will add a total of 819.3 MW of new capacity by 2020. This, however, falls short of the NDP II target for electricity installed capacity by 819 MW. This clearly shows there is still need to invest in more electricity generation facilities to close the deficit and ensure sustainable socio-economic development in the next five years. It is important to note that the NDP II aspirations of attaining 2,500 MW of installed electricity generation capacity by 2020 would not translate into an average electricity consumption target of 578 kWh per annum per capita by 2020. The 2014 National Population Census reveals that Uganda’s population was 34.6 million people with an average annual growth rate of 3.0 per cent. Assuming this growth trend remains constant, Uganda’s population will be 41.3 million people by 2020. With an average per

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capita consumption of 578 kilowatt-hours, and allowing for 18 per cent energy system losses, and a system load factor of 69 per cent, Uganda will require over 4,800MW in electricity-generation installed capacity. To attain lower middle-income status (745 kWh per capita) by 2020, Uganda will need 6,200MW of electricity generation installed capacity. To achieve these numbers, the Uganda Government needs to prioritise and fasttrack the development of the proposed four cascade hydropower plants along the River Nile, that is, Ayago (840MW), Oriang (392MW), Kiba (288MW), and Murchison (648MW). It is unlikely that Uganda’s electricity generation goals and consumption targets will be realised in 2020 but it is possible to achieve them by 2025. This could help Uganda align its Vision 2040 with the UN’s Sustainable Development Goals, specifically Goal 7, with a target of ensuring universal access to affordable, reliable, and modern energy services by 2030. One may be wondering where the 1,638 MW of new electricity-generation capacity in the next five years will be consumed.

fication Growth (130 MW), Urban Centres Growth (50 MW), Power Trade through Regional Grid Network Interconnection (250 MW), Mining (300 MW) and others (100 MW).

These figures have been adapted from the Inter-Institutional Committee on Power Sector Planning Report by ERA, UMEME Annual Report 2015, and estimates based on population growth, electricity connections growths, and unconstrained electriciFor Uganda to ty-demand growth.

attain middleincome status by 2020, the NDP II has set targets for electricity access at 30 per cent and average consumption at 578 kWh per capita.

Like the proverbial chicken and egg story – what comes first? From the engineering point of view, planning and developing electricity generation plants takes much longer than expanding the transmission and distribution infrastructure and connecting new customers to the grid. In conclusion, the energy sector needs a multi-pronged approach that addresses not only investments in the transmission and distribution infrastructure improvements but also investments to increase electricity generation capacity. Business-as-usual must be challenged if we are going to accelerate the turnaround of Dr. Harrison Mutikanga Uganda’s stagnated economy is the CEO of the Uganda and propel the nation to midElectricity Generation dle-income status by 2020. Government has put in place inCompany (UEGCL) terventions in the NDP II aiming Uganda Electricity Generation to harness the opportunities Company Limited (UEGCL), the and unlock the huge potential government agency with the mandate to in the agriculture, tourism, minerals, oil and develop, own, and operate electricity gengas sectors. These interventions include eration facilities has stepped up its efforts to developing the following energy intendeliver 783 MW of new generation capacity sive infrastructure and/or power demand by 2020. UEGCL will continue to work with loads to foster economic development; the government, development partners, and Standard Gauge Railway (300 MW), and the private sector under the enhanced pubNamanve Industrial Park (107 MW). lic-private partnerships to attract low interest concessional finance in developing new The others are: Mukono Industrial Park (90 electricity generation facilities. MW), Luzira Industrial Park (60 MW), Iganga Industrial Park (43 MW), Phosphate Fertilizer Factory in Tororo (200 MW), Rural Electri-

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Captains of Industry

A gaze into the Standard Gauge Railway Uganda is currently in advanced prep stages for the construction of the first 273 km of the planned 1,724km Standard Gauge Railway (SGR). Construction of the Eastern route of the railway running from the border town of Malaba to Kampala will cost $2.3b. The railway will traverse the towns of Tororo, Butaleja, Namutumba, Luuka, Iganga, Mayuge, Jinja, Mukono, Wakiso and Kampala.The Infrastructure Magazine’s Jacob Okwii sat down Eng. Kasingye Kyamugambi, the SGR Project Coordinator in the Ministry of Works & Transport, to ask a wide range of questions on the progress of the SGR

Let us start from the basic. Uganda is currently undertaking several infrastructure projects. Why do we need the SGR anyway? Why now? Developing modern infrastructure as enshrined in the second National Development Plan (NDP II) and the Uganda Vision 2040, remains a key ingredient in achieving the country’s middle-income aspirations. Infrastructure development is primarily meant to provide a conducive investment climate that attracts large foreign direct investment especially in heavy industries and services. This will serve to reverse the large trade imbalance in the country due to limited exports. There is worldwide competition to attract investors by different countries. It is important that Uganda’s investment climate is competitive, globally. Investors want to be assured of reliable, cheap and adequate transport services to the markets. This is the basis of developing a modern railway. To understand the benefits of the railway, we need to know that we are in the realm of global competitiveness. The fundamentals of competitiveness, one of which is transport, must be significantly strengthened and improved. What the SGR does for Uganda is to create a competitive environment. Currently because of the challenges- especially around reliability and travel time with

Eng. Kasingye Kyamugambi

the existing railway system, the country continues to lose at least $1.5billion, a year. The SGR will reduce the time taken to move cargo from the port of Mombasa to Kampala, from the current average of 7-14 days to a single day. That will change the turnaround

time for business. This will be a fundamental transformation to the flow of commerce in this country. Under the Northern Corridor Integration Projects (NCIP), the four countries of Kenya, Uganda, Rwanda and South Sudan agreed-

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and will construct a standard gauge railway connecting their four capitals. Uganda in particular has planned to develop 1,724Km of SGR network in a phased manner, starting with the Malaba-Kampala route (273km). Uganda’s strategic geographical positioning, puts it at the heart of the East and Central Africa logistics chain and can evacuate its products through the ports of Djibouti, Mombasa and Dar es Salaam among others. This can easily translate into Uganda being a regional inland logistical hub. The SGR is an inter-state project. What agreements/protocols is Uganda signing with the other countries like Kenya, Rwanda and South Sudan for purposes of building and operationalizing the inter-stateSGR? The Ministry of Works & Transport spearheaded the formulation of the SGR Northern Corridor Integration Projects (NCIP) framework and preparation of the SGR original protocol. This protocol provides for the four Partner States (Kenya, Uganda, Rwanda, South Sudan) to follow the same standards and specifications which will allow the development of a seamless railway transport system across the region. It also emphasizes the use of Chinese Class 1 railway standards. In November 2016, Kenya and Uganda issued a joint communique on joint sourcing of financing and harmonizing construction timelines among others. In June 2017, Uganda and Kenya signed a bilateral synchronizing construction timelines with the Naivasha-Kisumu, Kisumu-Malaba with Malaba-Kampala routes. It was agreed that Kisumu-Malaba and Malaba-Kampala routes be constructed simultaneously in order to increase viability of SGR Project. Prior to this bilateral agreement, Uganda had entered into an Engineering, Procurement, Construction (EPC) Turnkey commercial contract with China Harbour Engineering Construction Ltd (CHEC) for the development of the SGR eastern route section from Malaba to Kampala.

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Officials from the Exim Bank of China in the field in Jinja to appraise the SGR

200 Acre proposed site for Tororo SGR Station

The Governments of Uganda and Kenya agreed on an Operations Model which will govern the operations of the SGR. This has been forwarded to the financier. For Operation and Maintenance, the MoWT/SGR Project have signed a memorandum of understanding with CHEC to undertake operations in the interim as the country builds own capacity. The Government of Uganda (GoU) and that of Kenya (GoK) have signed a Communique for the use of one Operator on the Mombasa-Kampala SGR.

Further, Uganda’s Ministry of Works & Transport and their Kenyan counterpart have identified policies that will increase the viability of the railway line. The respective Ministers approved the policies. For the Uganda part, these will be forwarded to Cabinet and Parliament during the process of loan approval. What’s the progress on financing? Discussions towards financial closure are moving on well with the Exim Bank of China. The China Exim Bank has hired consultants who are appraising the SGR Uganda proj-

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ect. The consulting firm, the Fourth Railway Survey Design Institute, a Fortune 500 listed company is engaging Uganda’s SGR technical team, finance and works officials to review the entire project. This is an important step in the lifecycle of the project especially as the project moves towards securing financing. The consultants will look at the technical, financial and the economic viability- a routine procedure carried out by all financiers for mega infrastructure projects. The appraisal team will be evaluating whether the project as designed is economically viable, whether all the engineering planning has been well done and whether all the risks both technical and financial have been taken care of. What other major pre-construction activities have been done? We completed the feasibility study and engineering design, which was done by Gauff Consultants. This exercise provided the Ministry of Works & Transport (MoWT) with the engineering design, economic and financial parameters that would be a basis for engaging the contractor and the consultants. It was the basis for part preparation of employer’s requirements given to the contractor. In addition, Gauff provided the environment and social impact assessment report, which was later used to get the Certificate for Environment and Impact Assessment from the National Environment Management Authority (NEMA). Secondly, the SGR project management also developed the Employer’s Requirements. These are a set of requirements needed by the MoWT/SGR project as the employer of the contractor, to solicit the bid from the contractor. The Project prepared the Employer’s Requirements based on the NCIP requirements, the feasibility and engineering study earlier done by the consultant, Gauff. These Employer’s Requirements emphasized functionality of the railway system; including speed, durability, major geometrical parameters and the standards. These standards are compliant with China Class 1 railway standards.

Thirdly, procurement of the Contractor. The Ministry (of Works & Transport) spearheaded the signing of the Memorandum of Understanding and subsequent procurement of China Harbor and Engineering Co. Ltd. (CHEC) as the contractor for the building works. The contractor was selected following the Public Procurement and Disposal Authority (PPDA) law. The contractor carried out preliminary works (engineering surveys, geotechnical investigations, hydrological assessments, etc) to ascertain the conditions on the route and confirm that the data given by the employer was definite. In all, 94 geotechnical boreholes were drilled and 74 excavation pits were made. Survey works and geophysics investigations were carried out. The contractor prepared the Bankable Feasibility Study and Engineering Design for Malaba-Kampala based on the Chinese Class 1 standards. Fourthly, the Ministry prepared all the loan application support documents which include Certificate of Environmental & Social Impact Assessment (ESIA), Bankable Feasibility Study, Contract Documents and all other reference documents to support the loan application.

Fifth, using in-house capacity, a project document was prepared and approved by the Minister, detailing the development of 1,724 km of railway line. The Project also prepared the Strategic Plan 2016-2020, detailing the activities required for the development of the railway from Malaba to Kampala and the light rail. Six, land Acquisition Strategy: The Strategy for Land Acquisition was prepared and was approved by the Chief Government Valuer. The railway corridor was gazetted as required by Land Acquisition Act. Sensitization and socio-economic assessment of the affected persons were carried out. Memoranda of Understanding were signed with all the affected districts. Permission for Right of Way was obtained from the National Forestry Authority for 8.9km of land in National gazetted forests. The certificate for railway corridor of 53km in wetlands was obtained from the National Environment Management Authority (NEMA). To date 100km of 60m corridor have been acquired and compensated for. Resettlement Action Plan for 82 per cent of the route has been done- and this is still ongoing. Thirty-three schools and 11 factories will be affected. The challenges are mainly to

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Presidents Salva Kiir of South Sudan, Paul Kagame of Rwanda and Yoweri Museveni of Uganda, launching the construction of Standard Gauge Railway part of the Northern Corridor infrastructure network for the region at Speke Resort Munyonyo on October 8, 2014

do with compensation issues. Private land owners where the SGR will be compensated and they relocate elsewhere. How are you dealing with the issue of public utilities; where for example the SGR crosses where public utilities already exist? We have done what we call Design Reconciliation and Harmonization which has surveyed all possible conflict between the SGR and other existing/planned public infrastructure. For example, the intersection at Access Road in Jinja between JICA flyover currently under construction over River Nile in Jinja, the meter gauge railway and the standard gauge railway has been harmonized after intense discussions with all the stakeholders including Kampala Capital City Authority, Uganda National Roads Authority, and others. The flyover was elevated higher and the SGR will have a separate grade crossing. In the case of the SGR and the planned Jinja Kampala Express Way (JKEW), to avoid a lot of intersections between the JKEW and the SGR that would require harmonizing the levels and angles of approach, the JKEW is being re-aligned to run along the SGR and

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UNRA has taken this positive initiative for the sake of harmonizing infrastructure along the corridor.

the system. This was done and reports have been submitted, which we have also passed on to the financiers.

As far as electricity installations are concerned, we are working with Uganda Electricity Transmission Company (UETCL) to ensure that future constructions and designs are harmonized with the SGR. On the other hand, there are areas where the SGR may need to extend power for its operations, where currently no extensions exist. In such circumstances, we work with UETCL to address the challenge. Currently, together with UETCL we have carried out survey and design that will guide in extension of electricity from UETCL 132kV lines to the railway traction substations. Approximately 60km with 132kV HEV will be extended to the planned five traction sub-stations of Tororo, Buwoola, Iganga, Nyenga and Namanve.

We have also done another study called the Geo-hazard Assessment Study. We did this together again with the Directorate of Geological Survey and Mines (DGSM). In this study we carried out a geo-hazard assessment aimed at assuring the financier that the railway is not affected by mudslides, floods or geological catastrophes. The report is ready and approved.

For district urban community access (DUCAR) roads, we are also harmonizing with all the district authorities to provide access through the SGR since SGR will be elevated all the way from Malaba to Kampala.

What will happen if a precious mineral is found on the course of the SGR after it has been constructed? Together with the Ministry of Energy & Mineral Development, particularly the Directorate of Geological Survey and Mines (DGSM), we have carried out a mineralogy assessment study aimed at ensuring that the railway does not traverse areas with high mineral potential which may require future diversion of the railway. So that is taken care of.

You have done several surveys already. However, there may be instances where But the nature of these works require fresome utilities may have to be relocated. quent surveys. What plans do you have in We are working with the National Water & place to take care of this? Sewerage Corporation (NWSC), UMEME and We have taken the National Survey Conother entities to relocate their utilities that trols into consideration. Due to the demands traverse the SGR line. We have identified of the contractor to have national survey 17 conflict points with UETCL beacons that are less than 5 that will require relocation of years old, the SGR Project, totransmission lines, either by gether with the Department of We have providing underground cables Surveys and Mapping, is estabdone what we and/or shifting the lines. lishing national survey controls call Design along Kampala-Malaba route. Reconciliation There will be 27 beacons plantWhat plans do you have in and ed either in schools or health place to take care of natural Harmonization centres. hazard like earthquakes? We have done the Earthwhich has quake Hazard AssessmentYou cannot talk about a surveyed all which was also required out huge project like this without possible conflict by the financier. We hired contalking about safeguards- enbetween the sultants to carry out an earthvironmental, social and othSGR and quake hazard assessment erwise. What safeguards are other existing/ along Malaba-Kampala route you putting in place for the planned public which is necessary during the good of the people of this infrastructure. detailed engineering design of country?

Interview Using our internal project capacity, we have prepared the Environmental Safeguards Strategy for the Malaba-Kampala section detailing procedures to ensure that all the environment laws and regulations are observed. Similarly, and again using in-house capacity, a Social Safeguard Strategy has been prepared and approved. This strategy will ensure that the social, cultural, HIV/AIDS prevention and other norms of the communities in contact with the SGR are observed. It draws experience from the challenges we have had in the construction sector concerning social and cultural issues. We also have in place the Occupational Safety & Health (OSH) Strategy which has been prepared to ensure that construction regulations and guidelines, working conditions of the people, are strictly followed. The SGR is a first in Uganda. What are you doing to ensure that local capacity of Ugandans is built for SGR works, operation and maintenance? Again, we have prepared a Capacity Building Strategy. This strategy aims to achieve transfer of technology and skills to the indigenous Ugandans, especially in the areas of design construction and Operation and Maintenance. This first phase of project alone will cost Ugandans US$ 2.3 billion (UShs 82 trillion). How will you ensure Ugandans get value for this money? That the SGR will not in the near future break down and require substantial renovation? We have a Quality Assurance Strategy. In order to ensure that the works done and services provided meet the standard as stipulated in the contract, a robust Quality Assurance Strategy has been prepared which includes the design review strategy, construction assurance strategy and the materials quality control strategy. A laboratory will be established and equipped to help the employer carry out the quality assurance function. This stringent mechanism is required to ensure that the railway system functions as designed and lasts for a period of 100 years. The MoWT/SGR Project has signed an MoU with the Engineers Registration Board (ERB) to regularize the qualifications of the engi-

neers, technicians and technologists that will be coming to work on the Project. All will have to be certified by ERB. We have also signed an MoU with the Ministry of Internal Affairs to ensure that all the foreigners coming into the country to work on the Project must seek a ‘no-objection’ from the SGR Project. This will ensure that the personnel entering the country are those strictly required for SGR construction and in compliance with the local content approved guidelines.

and Civil Engineering Contractors (UNABCEC) are under way to ensure sub-contractors do take on some of the civil works. Discussions with the Private Sector Foundation Uganda (PSFU) and Ministry of Education & Sports are ongoing to ensure that at least a minimum of US$700m is spent locally. To ensure that all the materials that come into the country meet the quality mark in compliance with the standard, MoWT/SGR Project have signed an MoU with the Uganda National Bureau of Standards (UNBS). The UNBS/SGR Project will not only carry out pre-shipment inspections but also pre-production, in-production and post-production of the equipment, locomotives and rolling stock for SGR. The standards bureau will also improve their laboratories to develop capacity to test the construction materials that will be used on the Project as per agreed testing regime and standards. The Bureau will also recognize the Chinese Class 1 railway standards used by the Project as the official/legal standards for development of SGR.

The World Bank, IMF and even the African Development Bank are making the argument that when developing countries invest in big infrastructure projects like the SGR, they should not just look at the final piece of infrastructure. Given the big money investment governments should ensure that a good part of this borrowed money is injected into the local economy to spur the economic growth through employment, purchase of locally manufactured goods and services. What is your plan for local content to boost the local economy? There are several possible We have prepared a Local areas of participation for the Content Strategy, which delocal private sector including scribes how the Project will It is important supply of major construction ensure that at least 40 per that Uganda’s materials including cement, cent of the value of works is investment timber, steel and stone prodspent locally. Hon. Monica climate is ucts. The others are security Azuba, the minister of Works competitive, services, petroleum products, and Transport signed off the globally. consultancy, legal, vehicle strategy a few months ago. For Investors want hire, legal and labour among us, the SGR local content reto be assured of others. To date, the SGR projfers to the benefit brought to reliable, cheap ect office has visited and held Uganda through the competand adequate several discussions with Hima itive and gainful participation transport Cement, Tororo Cement, of citizens and the Ugandan services to the Kampala Cement, steel manprivate sector in this multi-bilufacturers and insurers, PSFU, lion infrastructure project. The markets. This Uganda Chamber of Mines local content ratio will be 9:1 is the basis and Petroleum (UCMP), MinUgandans to foreigners. We of developing istry of Trade & Industry. A lohave discussed with cement a modern cal content data base is being manufacturers to produce railway. developed. the low alkaline, low sulphate good grade cement required Thank you for speaking to for railway construction. We us, and our best wishes with the huge task have discussed with steel manufacturers to ahead of you produce the steel required for the railway concrete structures. Further discussions with Thank you the Uganda National Association of Building

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Opinion

Standard Gauge Railway: Some good practices to learn from Kenya

Despite cost concerns, Kenya’s Standard Gauge Railway deal shows that infrastructure agreements with China can be made fairer for citizens of partner countries. Its neighbours should take note. On 31 May, (2017), Kenya’s president, Uhuru Kenyatta, and his election campaign team descended on Mombasa for the inauguration of Kenya’s Standard Gauge Railway (SGR), writes Rebekka Rumpel.

he SGR is Kenya’s biggest infrastructure project since independence, and its first new railway since Britain opened East Africa to imperial control with the completion of the ‘lunatic line’ in 1901. However, the high cost of the project clouded the SGR’s grand unveiling. A huge US$3.8 billion is now owed to China, which funded 85 per cent of the SGR’s construction. This represents Kenya’s biggest ever loan, equivalent to 6 per cent of GDP. Construction work on the Mombasa–Nairobi SGR began in November 2013 and was completed 18 months ahead of schedule. The government has promised that the railway will bring a number of benefits: reducing transport costs and times by over 60 per cent; carrying ten times more of the cargo unloaded at Mombasa port than the current trains, thereby relieving congested roads; and offering freight costs more than 30 per cent below the prices charged by truck operators.

While Kenya’s mounting indebtedness to China is concerning, its SGR deal actually provides a stronger model for sustainable development through partnering with China than Ethiopia’s agreement.

concerning, its SGR deal actually provides a stronger model for sustainable development through partnering with China than Ethiopia’s agreement. At every stage of the process- from the negotiations with China’s Exim Bank (led by Kenyatta himself), to the procurement of construction materials, the compensation of affected landowners, and the implementation of work in Tsavo and Nairobi National Parks – Kenyan organisations and citizens made their voices heard to secure a better outcome. All cement for the SGR was supplied by Kenyan businesses; railway cars were made in Kenya; over 25,000 Kenyans were employed and trained; 33 crossing stations, as well as bridges and tunnels, were added to reduce the impact on wildlife; and the National Land Commission had to double its budget for compensation. Many of these issues also proved controversial, particularly land value estimates, working conditions for Kenyan employees, and the stretches of track laid in areas with high levels of biodiversity.

The contract to fund the project was signed between the China Road & Bridge Corporation and the Government of Kenya in May 2014, under the auspices of China’s immense Belt and Road Initiative. While the minister for transport declared that the resulting debt could be repaid in four years, this is likely to prove optimistic. Growth forecasts were recently lowered, as the effects of the country’s worst drought in 30 years make themselves felt.

Nevertheless, Kenya’s practices compare well to Ethiopia’s, which did not consult with those affected by its railway or offer compensation for the displaced (a frequent flashpoint in the country), provided only 18 wildlife crossings, ensured the employment of onefifth fewer Ethiopian workers, and has a service being run by Chinese staff until 2021. Kenya’s SGR deal shows that agreements with China can be made fairer for citizens of partner countries.

A number of commentators, both in the press and on social media, reacted angrily to the cost of the project, which was four times as high as originally estimated, and expressed alarm over the country’s debt burden. Unfavourable comparisons have also been drawn with the SGR linking Djibouti and Ethiopia, which was launched in October 2016. Despite a lower cost of $3.4 billion (80 per cent funded by China’s Exim Bank), the Djibouti–Ethiopia railway is electrified and is over 250 kilometres longer than the Nairobi–Mombasa line. Kenya’s trains are diesel-powered.

The Kenyan government must ensure that it pushes for guarantees on labour rights, more local content, greater procurement transparency, and stronger dialogues with stakeholders in the extension of the SGR to Uganda and Rwanda. Kenya is the second most unequal country in East Africa, and much of the population is becoming increasingly frustrated with growth and grand projects whose benefits do not seem to reach them. Better deals with China will need to play a part in tackling this. Neighbouring Rwanda and Uganda are weighing up their own SGR deals with China and should consider the lessons from Kenya’s and Ethiopia’s

While Kenya’s mounting indebtedness to China is

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Rebekka Rumpel is a Research Assistant, Africa Programme at Chatham House. This article was first published by Chatham House.

Innovation

Innovation: Tapping storm waters to keep taps wet Management of water for household, industry and commercial use is one of the main challenges that urban centres face. Many cities around the world increasingly face water stress because of changing climate conditions. One such city is Cape Town, South Africa. Increasingly, policy makers will have to adopt innovative approaches to maximising the use of dwindling resources like water. This will call for increased use of knowledge from scientific research. In the case of Cape Town, one attempt at keeping the taps wet is to tap storm water. John Okedi, a Ugandan PhD student of water engineering in the University of Cape Town, is working on one such innovation (called storm-harvesting), under the tutelage of Prof. Neil Armitage. The Infrastructure Magazine editor, Simon Omoding interviewed John Okedi on his work. Excerpts:

Could you begin by telling us about yourself: Your family background, education, work experience, expertise? Well, I am your true Ugandan. My father, Valerian Epiyu, is from the eastern part of the country, specifically hailing from Kachonga, Malera sub county, Bukedea District. My mother, Monica Epiyu, is from Kazo, Kiruhura district in the western part of Uganda. Using the law of averages, you could then say that am from the central, but with the African patriarchal lineage, that makes me a proud Etesot. I was born 40 years ago in Entebbe, and largely grew up in Kampala. I went to various schools in the central, western and eastern regions of Uganda including Kiswa primary school in Bugolobi, (Kampala), Nganwa Junior in Bushenyi, Ntare School in Mbarara, St. Peterâ&#x20AC;&#x2122;s College, in Tororo and Caltec Academy in Kampala.

water resources engineering at the prestigious Katholieke Universtiet, Leuven (Catholic University of Leuven) and Vrij Universteit Brussels with a 3 months flood management program at the University of Sophia Antipolis in the French Riviera. On completion of the masterâ&#x20AC;&#x2122;s degree, I returned to Uganda and worked with ILISO consultancy, a South African firm working on various water supply and sanitation projects in Uganda. After about 2 years, I applied and was awarded the prestigious Carnegie Fellowship to study a PhD in civil engineering at the University of Cape Town which I hope to complete in 2018. Along my PhD studies, I teach under graduate courses at the University of Cape Town and the Cape Peninsula University of Technology, both in Cape Town, South Africa. John Okedi

I joined Makerere University for a civil engineering degree, completing in 2005. After graduation, I worked with the Ministry of Water initially at the head office in Kampala then on an African Development Bank (ADB) funded project that brought piped water, sewerage and solid waste management services to Iganga town. After that project, I joined National Water & Sewerage Corporation as area engineer for Kabale Town for 3 years, after which I took up a job with

an American NGO called Water Missions International (WMI). At WMI, I was a field engineer responsible for design and installation of robust low cost water treatment and distribution systems to small communities (around 3000 people). At this NGO, I assisted with installation of various projects in Uganda, Zimbabwe, Burundi and Malawi. After some 5 years of work, the Belgian Government awarded me a scholarship to study

What is the urban water system problem in the city of Cape Town that you are trying to solve in your PhD studies? Currently the biggest problem in Cape Town is the long and persistent drought. This has been the case for three years in a row. That has led to a water crisis in the city. The main source of water in Cape Town and indeed South Africa is surface water from dams built on rivers, which rely heavily on above average rainfall at least once in two

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Innovation

Cape Town (Net photo)

years. With the extended drought period, Cape Town residents are now counting down to â&#x20AC;&#x2DC;day zeroâ&#x20AC;&#x2122;; the day we will have no water in our taps. Note that Cape Town is a advanced and quite comparable to most European and American cities. So Capetonians expect water to always be in their taps nice and clean to drink with no need to boil. With this water shortage, the city is looking for alternative sources as the current conventional water resources are no longer adequate to meet demand. The city is considering various options including waste water recycling, sea water desalination and groundwater. My research is investigating the potential for storm water (rainwater in urban pipes) as a source that is currently not being considered by the city. What is the solution you are coming up with? Conventionally, the practice in urban areas is to convey or transport all stormwater from locations of rainfall incidence to larger water bodies downstream like a sea, lake or swamps outside the city boundary. Then water for use in the city is brought in, sometimes from as far as over 100 km from the

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city to meet domestic, commercial, industrial and other water needs. For example, the water used in Johannesburg is transported from Lesotho, a neighbouring country. But since the 1990s, stormwater management experts led largely by experts from Australia, USA and UK began to consider more sustainable approaches of stormwater management and possibility for reuse. Various labels have since been proposed for the new approaches including Sustainable Urban Drainage Systems (in the UK), Water Sensitive Urban Design (Australia) and Low Impact Development (USA). Application of these approaches has been a subject of research for Professor Neil Armitage and colleagues at the University of Cape Town and this culminated into guidelines and framework for planning and installation of the infrastructure. As Professor Armitageâ&#x20AC;&#x2122;s PhD student, my task was to take the research further and provide insight into the opportunities and possibilities especially with regard to storage of the stormwater in an urban area. Stormwater is mostly available in the rainy season. Yet water is required all year round especially in the

dry period for irrigation. Accordingly, I have considered storage in stormwater ponds with possibility for pre-emptive discharge prior to major storms to control flooding through a system called real time control. With real time control, the stormwater ponds are emptied by opening outlet valves prior to onset of forecasted storms. A 24-hour lag is adequate for the system to work and the forecasts are sufficiently accurate to this extent. Alternatively, I have simulated the stormwater ponds to function as artificial recharge basin. In this case, the stormwater ponds hold the water long enough to allow for infiltration into a groundwater aquifer. This seems to be the most suitable approach as the aquifers are much larger than the surface water storages with limited evaporation and potential additional treatment through ground filtration. According to my findings, the groundwater approach is the most preferred and cost effective option. It is said that Cape Town uses 300 million cubic litres of water annually, but it loses about 1,200 million cubic litres in free flow

Innovation of rain and storm water. Would you say the same proportion of rain water loss applies to Uganda, Kenya, Rwanda, or indeed any East African country? Cape Town is a city where its water consumption/use can easily be quantified and compared with available rainfall. I would not know exactly how much water is used in the East African countries. But What I can say, is that rainfall in East Africa is twice or three times and in some places four times higher than South Africa. Secondly, the proposal in my research is more practical in urban areas such as Kampala, Nairobi and Kigali. Thirdly, the approach can only be attractive from a water supply point of view, to a city that is water resource constrained. For example, Professor Armitage has been working on this topic for many years and it had never attracted such political and media attention. It is now due to water shortages that we are finally getting noticed. For a city like Kampala, I doubt they will ever consider it with a source like Lake Victoria, the largest fresh water lake in the world nearby. However, there are other additional benefits of the approach such as water quality improvement, biodiversity preservation and amenity provision for a city that would be interested in such. Due to budgetary constraints and perhaps lack of political will, itâ&#x20AC;&#x2122;s unlikely that authorities in Uganda would be interested in this approach. Could you explain this concept of â&#x20AC;&#x153;Storm water harvestingâ&#x20AC;?? Is it relevant to Uganda and other East African countries as a source of water for human use? If so how is it relevant? In simple terms, stormwater harvesting is an approach where stormwater management infrastructure in a city is retrofitted for stormwater reuse. This can range from a building scale e.g. installation of permeable pavements and green roofs with storage to capture most of the rainfall for reuse. At a neighbourhood scale, this could include drainage through soak pits and infiltration trenches into the ground and later harvested with boreholes. At the city scale, which is the subject of my research, a network of interconnected stormwater ponds to capture and either reuse or infiltrate into the ground

for storage. The building scale opportunities are immense and neighbour scale would be and should be considered. Cities of the relevant in East Africa especialfuture will ly in an attempt to minimise What urban water manincreasingly house hold water bills and agement principles can you need to be avoid water shortages in case take away from your study self-reliant of outages. A warning though, and apply to other cities in with regard to this approach would be fatal East Africa, say Kampala, for food, water and if there are many unlined pit example? energy. latrines. This approach would Cities of the future will only be suitable for areas with increasingly need to be sound sewer networks and self-reliant with regard to lined septic tanks. For a city food, water and energy. like Kampala, the cost benefit analysis would This stormwater management approach not favour this approach due to an already would promote sustainability with reexisting water supply network and an infinite gard to water. Secondly, demands of the source in Lake Victoria. population living in developing cities are changing. People are no longer just satisfied with good roads and painted How appropriate is your proposed solubuildings but now demand for improved tion to Cape Town urban water system? ambience and liveability. Well designed, What features of Cape Town make this retrofitted and well managed stormwater solution relevant? infrastructure would provide water feaThe solution is appropriate for Cape Town tures, urban parks and fresh air in addias a water supply option only because we tion to a water source that city dwellers are comparing it with other relatively expennow demand. With progressive leaders sive options such as sea water desalination like Jennifer Musisi in Kampala and othand waste water recycling. However, if other ers, I am hopeful such ground-breaking benefits of water quality improvement in the innovations are achievable. urban rivers, provision of local amenity and biodiversity preservation are considered, the

Okedi (left) discusses his work with colleagues

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Innovation What is the cost of technology investment to make your idea work in Cape Town? The capital cost to implement the project in the study area (portion of Cape Town) would be about 300 million rands (UShs 81 bilion) to include water abstraction from the source, water treatment and distribution to 100,000 households. The cost of water would be about 10 rands (Ushs 2,700) per 1000 litres for the groundwater option and 14 rands (Ushs 3,780) for the surface water. The difference is due to the requirement for treatment of the different sources of water. Well as surface water would require a full water treatment train including sedimentation, coagulation, flocculation, filtration and disinfection, the groundwater source would only require the disinfection process. The current lowest water tariff in Cape Town is 16 rands (Ushs 4,320) per 1000 litres and this is due to long distance transmission of water over 50 km. Would you say, that idea in full, or in part, could work for Ugandan urban areas as well where millions of litres of water literally runs down the drain during the rainy season, yet taps run dry during the dry season?

As already mentioned above, from a water supply point of view, the approach would work well at a building and neighbourhood scale and not the city wide scale. However, the additional benefits of ambience and liveability is incentive for the approach to be attractive to city dwellers are equally strong. Has similar technology been used elsewhere in the world? Where? Yes, Singapore is the best example. Other cities in South Korea, Australia, Netherlands, Denmark, USA and UK have implemented the approach. I am going to bring you back to Uganda where you have lived and worked before. Uganda experiences episodes of water stress for human use in both rural and urban areas. Yet at the same time, the country sometimes suffers from floods from rivers, rain water, etc. What is the problem here, too much and yet too little, at different times? What do you see as Ugandaâ&#x20AC;&#x2122;s biggest water management problem? I could say the problem is both lack of proper planning and implementation of appropriate technology. But again, everyone outside government says that

government is not doing the right thing and their best; but government says they are doing their best. Then it comes down to who do you trust more? I will take it a notch higher though. I believe African countries in general do not demonstrate tat they value life of their citizens much. That is why we ask for money from emergency cases in hospital before administering even the basic first aid to save a life or embezzle Global Fund money meant for TB, HIV and malaria. So when we lose a life to a flood, drought or hunger, I never see the situation given the urgency it requires and no solution is provided to minimise the impact of the hazards in future. It does not mean that such hazards never happen in developed countries, but when they happened, emergency measures are swiftly implemented and plans are put in place to minimise casualties in future. In summary, I think our governments do not care and do the right thing enough. Secondly, engineers like myself could provide technical solutions but these are short term. This problem really requires a fundamental, multi-disciplinary approach and political will to deliver the change we need and deserve. Your last word? Uganda and Africa in general has immense human (numbers and education) and financial resources (natural resource). Many of us have acquired knowledge in various fields and are willing to assist make a difference in our communities even when it is tempting to remain abroad. My advice is for our governments to lead all of us to work together for the common good. Working in silos everyone in their own professional field will not yield much for our countries and continent. The future professionals need to work across disciplines as specialised solutions have failed to work. Engineers need to work with biologist, social workers, and economists with mutual respect and value all contribution.

John Okedi with his family

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Thank you for accepting to speak to us and, our very best wishes to you Thank you

oil exploration

Nigeria’s Oranto Petroleum inks Ngassa oil exploration deal Nigeria firm, Oranto Petroleum Ltd, in October inked a Production Sharing Agreement (PSA) with the Government of Uganda that effectively hands it the exploration, development and production rights to Ngassa block in the Albertine region.

his is the first time Uganda and indeed the East African region is undertaking stratigraphic licensing, where licences are issued vertically over the same block. The two exploration licences cover 410 sq km for four years and are split into two periods of two years each,” Irene Muloni, Uganda’s Minister of Energy & Mineral Development, who signed for Uganda, said. The Ngassa block was initially part of the EA2 licenced to Tullow, which is covered with good quality 2D and 3D seismic data acquired from surveys done between 2003 and 2008. “We are excited to enter this agreement ... Lake Albert is home to some prime petroleum acreage,” Prince Arthur Eze, chairman of Oranto Petroleum, said in a statement.

Ngassa block structure lies entirely under the lake, two deviated wells, Ngassa-1 and Ngassa-2 which were drilled on land at the periphery of the main structure between 2007 and 2009. Muloni explained that each PSA has a minimum work obligation together with a minimum exploration expenditure which includes; reprocessing existing seismic data, acquiring new seismic data, carrying out geological and geophysical studies as well as feasibility studies for drilling from the lake with a minimum expenditure of US$2.4 million in the first two years. Oranto Petroleum Ltd has had an experience in the oil exploration since 1991. According to Martin Ayuk, the Spokesperson for Prince Eze, Oranto Petroleum will explore for oil in a safe and sound manner using its experience used in similar ventures in countries like Equatorial Guinea, where the firm had to carry out a similar venture in an equally sensitive environment. The company holds portfolios in several mainly West African countries ; Equatorial Guinea, Benin, Ghana, Liberia, Namibia, Senegal, Sao Tome & Principe, Nigeria. Outside of West Africa, it also has interest in South Sudan and Namibia- and now Uganda. Muloni said a signature bonus of US$ 800,000 and annual acreage rental fees of US$8,200 for each of

In August 2016, the Ministry of Energy and Mineral Development issued eight production licenses to Joint Venture partners Total E&P Uganda and Tullow Oil Uganda, adding to the one given to China National Offshore Oil Company.

the contract areas have been paid to the Uganda Petroleum Fund. The research and training fees per year of the first exploration period of US$100,000 for each of the contract areas has also been paid to the Petroleum Authority of Uganda. She said the government total collection from the signature bonus, research and training fees per year, and annual acreage rental fees for the contract areas amounts to US$1,816,400. Meanwhile, a performance (bank) guarantee amounting to US$ 2,443,175 for two PSAs (each PSA worth US$1,221,587) with respect to the agreed minimum exploration expenditure for the first exploration period (first two years) which has also been provided to the government of Uganda. The contracts also show that taxes will be paid in accordance with the laws of Uganda. According to their website, Atlas Petroleum International and Oranto Petroleum “represent Nigeria’s largest privately-held, Africa-focused exploration and production group. Our extensive footprint across the African continent includes 22 oil and gas licenses in 11 jurisdictions, including producing assets in Nigeria and Equatorial Guinea and numerous Atlas/Oranto-operated blocks.” Started in 1991, Atlas and Oranto are headquartered in Abuja, Nigeria. Atlas Petroleum International and Oranto Petroleum are privately held, with a common share ownership, and are registered in Nigeria. Stock in the companies is held by the Eze family, whose are actively involved in its operations.

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Technology review

Total Excellium technology By Jacob Okwii

To many a motorist, petrol and diesel- commonly called “fuel” is just a liquid that runs engines, to power vehicles. But in fact, fuel is a technology, a product of extensive research, innovation and technology development. Different fuels are specifically designed to achieve specific motoring purposes and experiences. As technology generally advances, fuel technology is moving with the times. Increasingly oil companies are investing heavily to ensure that they out fuel technologies that meet the increasingly discerning motorists’ needs.

s a result, oil companies are fast churning out different fuel technologies not only to charm motorists, but give them better value in their motoring life and better car experience. Motorists challenges and needs range from the quest to drive for long distances for less fuel, and therefore a saving on fuel bills to preservation of the car engines so that their cars last long and save on the need to buy a new car every few years. More than ever before environmental conservation- through use of environmentally friendly fuels has become a major concern as well. Total’s answer to some of these needs is Total Excellium. According to Total officials the Excellium is a new technology specifically designed to clean car engines to give better performance and is designed to take less fuel for more distance.

During the launch of the new technology in Kampala late last year, Stanislas Mittleman, Total’s senior vice president, marketing & services, Africa/Middle East, said “The Total Excellium products combine the best Total’s technological know-how in its formula and reflect… very high commitment to quality.” “ Our research teams developed these fuels to provide an ever-more effective response to our customers’ growing focus on engine care.” Excellium works by ensuring a clean engine which results into less fuel consumption and less pollution and longevity of engine lives. Accumulation of deposits in car engines is known to affect the engine’s operation and negatively impact performance, resulting in higher fuel consumption, a rise in harmful emissions and less power experience. The crux of Total Excellium is that its

formulation has been optimized with specific detergent additives to clean the engine’s vital components and to keep it clean over time. According to Total, the result of this is , “up to 89 per cent less build up (of deposits) for diesel engines and up to 93 per cent less for gasoline engines. By eliminating deposits on fuel delivery systems, Total Excellium keeps engines performing at their optimum level over time with reduced fuel consumption and lower carbon dioxide emissions.” The Total Excellium logic is:

A clean engine lasts longer By eliminating deposits, Total Excellium is thought to enable engines maintain their performance. Excellium’s anti-corrosion technology protects engines for extended lifetime.

A clean engine uses less fuel A contaminated engine increases fuel consumption; a key to marinating efficiency is keeping the engine clean. According to Total, Excellium contains detergents which make for a reduction in fuel consumption.

A clean engine pollutes less

Total Uganda MD, Florentin de Loppinot fueling a customer motorbike at the launch of Excellium

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By improving running of the engine, Excellium contributes to a reduction in polluting emissions (carbon monoxide, hydrocarbons). The reduction in consumption directly results in a reduction in carbon dioxide emissions.

Company Profile

Halai Holdings Ltd: The constructor’s reliable partner for earth moving equipment and quarry services Halai Holdings Ltd previously known as Hirji Samji Halai and Sons Ltd, was incorporated in Uganda in January 2006 and licensed by the Uganda Investment Authority. The company’s primary business is quarrying and production of stone aggregate. The quarrying works are based in Nanagwa village, in Mukono district, about 25km on the Kampala-Jinja highway. With the close proximity of the quarry to Uganda’s two main towns of Kampala and Jinja, quarry boasts of reasonable proximity to its customers. The company has ambitious plans to build upon a reputation for construction and producing excellent aggregate by diversifying into areas of manufacture of various construction materials to meet the regions’ sustained demand for construction materials such as blocks, pavers, road slabs, curb stones, culverts and manholes. The quarry rock from which the materials are produced has high strength, with high physiochemical durability and a good bitumen affinity. It has been certified by the Ministry of Works & Transport (MOWT) as being suitable for producing materials for different types of construction in the country. livery in the construction industry. The company’s secondary operations involve plant hire for the construction of roads, excavation and demolition works. The company has a varied range of earth moving machinery capable of performing both small and large-scale earth works. Halai holdings Ltd has enjoyed sustained demand for its products and services and has further expansion plans to boost its current fleet of earth moving machinery and manufacture of construction materials. Through this, the company intends to establish itself as a market leader for the supply of materials and construction services to the construction industry. Halai Holdings Ltd prefers to do business the old fashioned way; being honest and straight forward and keeping our word as to what we will do and when we will do it. That is something they strive for, in every job. “We oversee each project and personally respond to resolve any problems. Quality is granted, and we stand firmly behind everything we do,” Ramesh Halai, the company’s managing director told The Infrastructure Magazine. The company values prompt service delivery, customer care and satisfaction, professionalism, teamwork, sustainability and social conscience profitability. The company’s vision is to be the supplier of high quality, distinctive products/services and respected for unequalled customer service de-

The company boasts of a parker plant from the United Kingdom, which has an optimum production capacity of 250 tonnes per day. The Hopper plant is fabricated with 10mm thick metal plates, capable of loading between 25-35tones of raw materials, primary crasher: Parker Double -toggle jaw crasher with both hydraulic oil and grease functioning, capable of handling maximum sizes of feeding material 350mm x 180mm. The secondary plant is a product is Shaktiman product from India with a production capacity of 150 tonnes per day. The Shaktiman Double toggle jaw crasher capable of handling maximum size of 150mm x 75mm. In addition, the company also has a Caterpillar Chain loader D6, CAT M312 Excavator. Hitachi Excavator machine UH045, Hitachi Excavator EX200, Hitachi Excavator machine UH075, Hyundai Excavator 210LC, JCB back hoe loaders Model 3CX-(3 Units), Hyundai Excavator 130LC, Massey Ferguson 50HX back hoe loader –(1 unit), Hyundai Excavator 140LC, Isuzu tippers ELF (2 units), CAT ChainLoader 977L, Isuzu Tipper (18.5tones), Komatsu Chainloader D5S, TATA Tipper (22.5 tonnes) The company currently produces and supplies the following raw materials/finished products to the local market: Hardcore, road chippings, crush run, stone dust, 3/8 inch aggregate, 3/4 inch aggregate, ½ inch aggregate, ¼ inch aggregate, solid blocks, hollow blocks, road slabs.

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uetcl UETCL Headquarters located at Plot 10 Hannington Road, Nakasero P.O Box 7625, Kampala-Uganda. Tel + 256 417 80 2000, + 256 314 80 2000, + 256 414 233 433/4 E-mail: transco@uetcl.com, Website: www.uetcl.com, Twitter: @uetcl

2018