ENTEBBE INTERNATIONAL AIRPORT EMBARKS ON CAPITAL PROJECTS DEVELOPMENT PROGRAMME

Uganda’s gateway, Entebbe International Airport, EIA, has embarked on an ambitious programme for development of capital projects. With the infrastructural rehabilitation programme complete, the airport is set to witness capital-in-flows from both the public and private sector for development of infrastructure necessary to meet the demand projected in a 20-year Master Plan study that was carried out by the US-based Transportation Consultancy, LPA.

Planned Projects:

The Master Plan recommends the construction of a cargo processing complex whose feasibility study and structural design have since been completed. The complex is one of the facilities necessary for meeting the country’s growth in air cargo movement estimated to hit an all-high of 150,000 metric tons of exports and 30,000 metric tons of imports by the year 2022. Construction is estimated to cost USD30 million excluding aeronautical infrastructure like the taxiways and Apron, anticipated to be developed by the Civil Aviation Authority (CAA).

In order to free space for international flight operations, CAA is also planning to shift domestic flight operations to a new Terminal building estimated to cost USD1.5 million. Uganda currently records an annual average growth of 21% in domestic passenger movements. The project is one of those in the short term development programme.

Cargo Logistics Centre:

In another study sponsored by UNCTAD and the government of Uganda, a recommendation for the development of an Exports Processing Free Trade Port to be developed at an estimated cost of USD30 Million was made.

It is envisaged the port would facilitate the production and distribution of high value exports to be transported by air, leading to the desirable creation of a cargo hub for forwarders, consolidators and distributors who would take advantage of Uganda’s geographical location to develop the airport into a cargo logistics center of excellence in Africa.

The government of Uganda recently adopted an economic policy with the objective of increasing the country’s export earnings 10-fold from USD 400 million to USD 3-5 billion in a period of five years. The role of air transport in achieving the objectives of the policy is pivotal.

The other projects planned for expansion of passenger and aircraft facilities and services at Entebbe International Airport include construction of an aircraft maintenance hangar and expansion of the Arrival hall and baggage sorting area of the main Terminal building. This project shall also see a redesign of the area, installation of an air conditioning system and expansion of the greeters and meeters parlour.

The CAA is soon completing its head office building in the proximity of the airport, whose occupation early 2003 would free space for concessionaries at the airport.
These and other projects at EIA shall be financed through public-private partnerships. Several options have been looked at including the increasingly popular Build-Operate-Transfer (BOT) approach.

Incentives for Investing in the Air Transport Industry:

There are several incentives for investing in air transport in Uganda, and Entebbe International Airport in particular. Outstanding among the many are:-

• Uganda’s geographical and strategic location.
• A friendly foreign investment regime.
• Good all-year climate.
• Potential for creation of a Free Trade Zone.
• Endowment with beautiful natural tourist attractions.
• Envisaged larger market under the East African Community spirit.
• Supportive government liberal policies.
• Uganda’s fully convertible currency.
• Comparatively cheap labour.
• Availability of land for projects.
• An ambitious national plan for Modernisation of Agriculture.

With a passenger forecast of 1.4 million and 300,000 metric tons of cargo by 2022, Entebbe certainly remains the most attractive investment destination in the region.

Rehabilitation Programme:

The focus on capital projects development follows a 10-year rehabilitation programme that brought remarkable improvement in the country’s air transport industry. At its inception in 1991, CAA found the industry in a sorry state. The aeronautical infrastructure was in a pitiful state.

With assistance from ICAO, UNDP, the Spanish and Danish governments, the industry has not only been revamped, but also set on an average annual growth rate of 5%. The rehabilitation programme resulted in the following:-

• Improved efficiency
• Elaborate staff recruitment, training and retention scheme.
• Regained confidence of air transport industry stakeholders.
• Increased commercial activities.
• Accountability to Government through periodic performance reports.

Other Measures Adopted:

Uganda has adopted and implemented a number of policies geared at attracting investors and air operators to the country. Some of these include:-

• Liberalisation of cross-boarder airline services.
• Abolition of royalty payments.
• Adoption of multiple designation.
• Full liberalization of cargo services.
• Removal of capacity restrictions previously imposed on airlines for aircraft gauge, frequencies and routing.
• Tax exemptions on incomes earned by foreign airlines through the avoidance of double taxation.
• Promotion of tourism by designation of selected countryside aerodromes as international entry and exit points.

A number of other bilateral and regional initiatives are also fairly progressed; and are either implemented or at fairly advanced planning stages.

CAA Contact Information:

Head Office
2nd Floor, Passenger Terminal Building
Entebbe International Airport
P.O. Box 5536, Kampala
Tel: +256 41 320516/9, 320510, 320555, 320763, 320781/3
Fax: +256 41 320571, 320964, 321401
E-mail: aviation@caa.co.ug
Website: www.caa.co.ug