THE Rt. Hon. Speaker of Parliament Rebecca Alitwala Kadaga, a few minutes from now is expected to meet proprietors of the Tondeka bus transport system in the Speaker’s Boardroom.
The Speaker however, has beem sumoned by President Museveni to State House but any time from now, she will be in.
The Government of Uganda in a move to decongest the Central business district (CBD) and easien public transport in Kampala Metropolitan Area, has 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.
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 canalso benefit from our growing purchasing power, transport expendituresin 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 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.
We will give you the details of this meeting