Summary:

• Uganda has awarded a contract to Belgian firm Coil and Coppleters NV JV to reclaim land and dredge Lake Victoria for the development of Bukasa Port, set to complete by May 2025. Delays occurred due to high costs and restricted procurement to Belgian firms.

KAMPALA, (Examiner) – Uganda has awarded a contract to a Belgian firm for land reclamation and dredging of the Lake Victoria bed to facilitate the development of Bukasa Port. Coil and Coppleters NV JV has been given a 12-month timeline, ending in May 2025, to complete these preparatory works.

Originally expected to be completed in 2019, the Bukasa Port project experienced delays due to procurement issues. Initial bids were restricted to Belgian firms, leading to higher costs than Uganda had budgeted. Despite three attempts to solicit Belgian contractors, the offers were consistently too expensive. The most recent attempt in 2021 saw two Belgian firms specializing in dredging decline the project.

Ultimately, Uganda negotiated directly with Coil and Coppleters NV JV. However, the second phase of the project faces financing challenges as Uganda continues to seek funding. The government is exploring options with CitiBank and a European Union lender, with the Ministry of Finance making the final decision.

David Musoke Bulega, Acting Managing Director of the Uganda Railways Corporation (URC), announced plans to invest part of the funds from the African Development Bank Group, effective from April, into revamping Port Bell to handle increased marine traffic on Lake Victoria. This includes repairing and modifying URC vessels for container transport and addressing compatibility issues between standard and metre gauge railways.

Uganda’s efforts to enhance its railway system and port facilities are crucial for increasing its share in the freight and passenger markets, which currently stands at less than two percent. A $300 million loan from the African Development Bank is earmarked for upgrading the metre gauge railway, but the project is still in the paperwork phase.

Port Bell, with its 2,000-tonne capacity dry dock, suffers from a lack of cargo-handling equipment, causing frequent delays. The planned modernization of Port Bell includes installing new equipment to facilitate loading and offloading, refurbishing the MV Kaawa, and introducing two additional vessels to boost cargo transport.

Currently, Uganda’s water transport infrastructure is struggling, with outdated and inefficient facilities. Combined, the vessels at Port Bell and Jinja pier have a total capacity of 270,000 net tonnes per year, which is insufficient for the growing demand. Experts predict that an efficient Bukasa Port could handle up to 4.4 million tonnes of cargo annually.

The Port Bell project will also involve acquiring two new wagon ferries and a tugboat to meet the traffic demands on Lake Victoria from both the Northern and Central Corridors, ensuring a significant boost in Uganda’s marine transport capabilities.