Uganda - Namagumba Budaduri-Naluguga Road Upgrading Project


Project Summary

Approval Date 28 Sep 2022
Planned Completion Date 31 Dec 2027
Last Disbursement Planned Date 31 Dec 2027
Sovereign / Non-Sovereign Sovereign
Sector Transport
DAC Sector Code 21023
Environmental Category 1
Commitment U.A 55,473,950.68
Status Approved

Project General Description

The Namagumba-Budadiri-Nalugugu Road (39km) Upgrading Project is aligned with Uganda's Vision 2040 as it seeks to harness the Country's potential growth opportunities in agriculture, tourism, strategic geographical location, and trade. The Project will support the Government in achieving its development priorities as outlined in the 3rd National Development Plan (NDP-III) 2020-2025 of Vision 2040. The project has been discussed extensively with the key development partners active in the sector, including the World Bank (WB), the European Union (EU), and Japan International Cooperation Agency (JICA). The three development partners are active members of the development partners' transport sector working group in Uganda. The project entails the construction of the Namagumba-Budadiri-Nalugugu road and associated town roads totaling 39km to bituminous standards. It has been packaged broadly into seven main procurement components. The overall project cost is estimated at USD77.74 million, including compensation and resettlement costs (net of taxes). It will be implemented over the period 2022-2027, i.e. 5 years. The road project will contribute to building resilience in the beneficiary districts by expanding livelihood opportunities and improving the socioeconomic wellbeing of the people—particularly women, youth, and persons with disabilities.

Project Objectives

The Project's development objective is to improve transport access in the area, thereby linking the population with economic opportunities both in Sironko district and elsewhere. Specific objectives of the proposed Project are twofold: (i) to improve accessibility in eastern Uganda to spur diversification of economic opportunities, thereby facilitating a transition from subsistence farming to cash-cropping and entrepreneurship, and, (ii) to reduce the physical burden of transport on the community, particularly for women in the area, to widen the participation of women and youth in gainful employment.

Beneficiaries

The Project Road is in eastern Uganda on the slopes of Mount Elgon in the Sironko district, with an estimated population of 0.5 million residents expected to benefit from the intervention directly. First, the district has high agricultural potential. It is famous for Arabica coffee, bananas, Irish potatoes, and abundant fresh milk. All the products are sought after by traders from Kampala and across the border in Kenya. Hence, it is estimated that the road intervention shall indirectly impact up to 1.2 million people. The second key economic activity in the area is tourism. Improved access to Mt. Elgon National Park and Sipi Falls is expected to attract more tourists. The main Project related outcomes include: (i) improved tourism earnings, (ii) increased farm gate prices of agricultural produce, (iii) increased job opportunities for women and youth, and (iv) improved access to social amenities (schools and health centres) by remote communities in the area.

Participating Organization

Funding
African Development Bank
Implementing
UGANDA NATIONAL ROADS AUTHORITY

Information

IATI identifier 46002-P-UG-DB0-031
Last Update 05 Dec 2022

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Contact Details

Name MAKAJUMA George Adongo
Email g.a.makajuma@afdb.org

Geographic Location

Country Uganda