By Our reporter
HON. BETTY Amongi Akena, the newly appointed Kampala and Metropolitan Affairs minister want President Museveni’s directive on decongesting the Central Business District (CBD) and easien public transport in Kampala Metropolitan Area by replacing matatu with 980 buses, executed.
Minister Amongi will officiate at a Greater Kampala Mass Transit Bus Service Conference at 8:30am on Thursday January 30th 2020 organised by Tondeka at International University of East Africa, Main Auditorium in Kansanga under the Theme: ‘From Planning to Execution’.
For starters, Government of Uganda entered into an Eight years’ deal with powerful Hinduja Group in India which manufacture vehicles, to supply 980 Ashok-Leyland buses to Uganda in phase one, and replace over 12000 taxis that has been operating around city centre.
“This is a very organized project that works in different Africa cities and many people will find no reason to drive their cars to and from city centers since buses will be very many and fares affordable.”Said officials of Tondeka Metro, a locally Special Purpose Vehicle sponpored by Hinduja Group to operate these buses.
Now all is set and six months from now, these state of the art buses will be in Kampala.
This comes after a meeting between The Head of State and Hinduja Group to supply Ashok-Leyland buses of the JAN make that will not only boost Tax revenue by 100 billion in taxes and GDP by US$ 800M annually but also create over 20000 jobs especially to youth, veterans and women in the first year.
In this meeting, both parties agreed that allowing buses to operate in Kampala will enhance urban safety and security, massive reduction in security surveillance costs, it’s affordable in costs to the elderly, youth, women and disabled and cost optimization.
“In countries where our buses are operating, the city roads are decongested and this leads to quality environment. There is road optimization and a very organized city transport system.” Wealthy Hinduja Group told the President in the meeting.
They talked about Ancillary infrastructure services, issue of IPO – on completion of year three track record and that there will be service accessibility and predictability.
The suppliers assured Government that their buses are comfortable and hygiene and will cut trabsport costs hence household savings.
In a letter to Finance, Planning and Economic Development minister Hon. Matia Kasaija dated August 31st 2018 on supply and assembly of Ashok leyland buses and trucks, president Museveni directed him to, “Expedite the signing of the Term sheet dated July 9th 2018, valid
for 90 days from EXIM Bank of India for supplier credit under Loan Agreement.”
Letter reads, “Recently when I met with the representatives from Hinduja Group, in regard with the supply of 980 buses Ashok – Leyland to Uganda through a secured funding under EXIM Bank NEIA, I agreed on
the following actions”.
“Ashok – Leyland will supply 980 buses imported from India under Phase 1 and to establish an assembling plant for trucks/buses in Uganda with a minimum of 200 units per month for the supply of vehicles beyond the initial 980 buses.” President Museveni said.
He added that, “The Ashok- Leyland buses will only use arteries of cross-city transport (East-West, North-South, South-East to
North-West) and leave the feeder branches to the locals for some years.”
The President also agreed with Hinduja Group to strengthen the institution and technical collaboration between Ashok -Leyland and Kiira Motors in Uganda.
“Eventually, Ashok-Leyland will float shares so that the locals can also benefit from our growing purchasing power, transport expenditures in this case.” Said Museveni in his letter to the Finance minister in which he gave him directives.
“The past is PROLOGUE not DESTINY! We should be open minded and curious. A lot has been done. More needs to be done” said the President directeing Finance minister to expidite this project. The project name is Tondeka Metro and the government is implementing this project through UDC, the government investment arm in collaboration with the Hinduja Group/Ashok Leyland. This project will be fully implemented in 6 months. Matatus will now work in feeder roads, feeding buses and no matatu will be allowed in centre centre and all routes where buses operates.
WHY GOVT WENT FOR ASHOK-LEYLAND
It is the leading Bus Manufacturer with Mass Transit Bus System (MTBS). They have customized technical specifications, flexible financing and delivery terms and conditions and their buses are technically enabled with an intelligent integrated transport system – for tracking vital information.
Government says, Ashok buses have excellent technical and institutional operation and maintenance support and solid African footprint in the cities of Dakar, Lagos, Abuja, Abidjan, Accra, Luanda among others.
DETAILS OF THE DEAL
Hinduja Group will supply JAN Bus Vehicle module 980 buses that will operate a cross 4 service routes in Greater Kampala Metropolitan Area. According to project frame work, there will be aftermarket support and Cashless ticketing Infrastructure Module of Bus Depots & Infrastructure, Mobile service vans and Cashless IT Infrastructure including cards, hand held devices & servers. The Spare part and Workshop development Module will have fast moving spare parts and accident bound body parts and Work shop development related tools & special tools etc.
JAN BUS SALIENT FEATURES
· 12m Front Engine Semi Low Floor Bus (650mm Floor Height)
· Fully Flat Floor throughout the Passenger Saloon
· Modular Body – Accommodates different Applications / Door Combinations
· CRS (Common Rail System) Engine
· AMT (Automated Manual Transmission)
· Full Air suspension (Kneeling arrangement available)
· Tubeless Radial Tires
· Conforms to latest UBS (Urban Bus Specification) formulated by MoWT
· Multiplex Wiring
· Latest ITS (Intelligent Transportation System) features enabled
SOLUTION: NETWORKS AND ROUTES
Buses will operate in four routes.
Eastern routes will cover; Kampala- Jinja Road (up to Mukono, Kampala- Luzira Road (Up to Kirombe) and Kampala- Ntinda Road (Up to Namugongo).
Western routes are; Kampala- Masaka Road (Up to Nsangi), Ka;mpala-Mityana Road (Up to Buloba) and Kampala- Hoima (Up to Wakiso).
Northern routers are; Kampala- Gayaza Road (Up to Gayaza), Kampala-Bombo Road (Up to Kawanda) and Kampala- Northern Bypass Road.
Southern routes; Kampala- Entebbe Road, Kampala- Makindye, Kampala-Nsambya Road (Up to Lukuli), Kampala- Gaba Road (Up to Gaba),Kampala-Salaama Road (Up to Munyonyo) and Kampala- Kibuli Road (Up to
Transit Terminals will be constructed in Mukono, Nsangi, Buloba,Wakiso and Matugga.
Government agreed with the Ashok – Leyland operators fares to be socially affordable.
The proposed Fare charges are as follows:
· One way/Single Trip; UGX 1,200. For example from Buloba to Kampala, from Entebe to Kampala, from Wakiso to Kampala, from Matugga to Kampala or from Mukono to Kampala.
· One day unlimited travel; UGX 3,500. Use this ticket to travel where ever you want with the Tondeka buses.
· Weekly pass (unlimited travel); UGX 18,000
· Monthly pass (unlimited travel); UGX 55,000
· Number of Passenger Transported Daily; 1,980,000
· Number of Km Per Bus Daily; 200KM
· Average Speed per hour; 25/30km
EXPECTED IMPACT w.e.f FY 2019/2020
Under Economic GDP according to World Bank, US$ 800M is expected per year and in 8 year period it will be US$ 6.4B.
Looking at Environmental – Excess Fuel, report by NEMA shows, UGX 300B (US$ 80M) estimate per year and in 8 years period , it will be UGX 2.4 Trillion .
Under direct employment, in a year, 6000 people will be employed and 10000 people are estimated to be employed in eight years.
Indirect employment, it is expected in the first year to take 4000 people and in eight years, it will be 5000 employees.
Under Treasury – Government of Uganda;
· Estimate annual Corporate Tax will be UGX 50-60B and UGX 400B – 450B.
· Staff Income Tax in a year is estimated at UGX 40 – 45B and inmEight years it is estimated at UGX 320 – 360B.
· Import Taxes/Vat Year ½ is annually estimated at UGX 181N (US$ 47.5M)
· NSSF fund annually is estimated at UGX 17B and 136Bb
· New Income Stream/Operator Fee on Revenue (0.5%) UDC is annually estimated at UGX 3.14B and 25B in Eight years.
· Licence fees in a year is expected at UGX 1B and in eight
years it is estimated at 8B.
· Local Authority Fee (KCCA 50%) in a year is expected at UGX 3.6B and in eight years it is estimated UGX 28.8B.
(Who is who in Tondeka Metro? Wait for the full details)