STANDARD GAUGE RAILWAY (SGR)

PROJECT
MINISTRY OF WORKS AND TRANSPORT

LOCAL CONTENT STRATEGY

September 2016
THE FOREWORD

The Ugandan Government is striving to raise the country’s competitiveness, reduce the cost of
doing business and foster socio-economic transformation in line with the National Development
Plans (NDP I and II) 2010/11 - 2019/20 and Uganda Vision 2040 by developing a Standard Gauge
Railway (SGR) network and the Greater Kampala Metropolitan Area (GKMA) Light Rail Mass
Transit (LRT) system.

This Main SGR and the SGR-GKMA LRT will be modern, high-capacity standard gauge railway
systems that are efficient, reliable, safe and affordable. The Main SGR project is being
implemented as a regional project with the partner states of Kenya, Rwanda and South Sudan.

The Government recognises that the SGR Project is the largest project ever implemented by the
country and appreciates the transformation impact that the project will have on the country.

It is widely believed that such mega infrastructure projects have numerous opportunities for local
participation. The Government has through a number of development policies and strategies
highlighted the need for Local Content. It is in this spirit that the SGR project has developed a
local content strategy to enable the private sector and or individuals of Uganda to effectively
participate in the development, maintenance and operations of the SGR by ensuring preference to
domestically produced/ sourced goods and components or substantial value addition.

The strategy outlines the key possible areas of participation and the respective strategies both
general and specific that have been developed to enhance the capability of local participation. It
also stresses the need for adequate attention to social issues such as HIV/AIDs, elderly and persons
with disability, gender, culture, teenage pregnancy, sexual harassment, child labour, protection of
the environment among others.

Local content mainstreaming is enshrined in the Malaba-Kampala SGR EPC contract and the
government is working hard to ensure that the country achieves the 40% local content target as per
the contract. To achieve the target, the following is being undertaken:

 The Ministry is collaborating with the EPC contractor to provide the necessary information
to stakeholders on a timely basis;

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  Capacity development to ensure the 9:1 Local- Foreign labour ratio as stipulated in the
EPC contract;
 Engagement of local cement manufactures to ensure that all cement is locally sourced;
 Engagement of Steel manufacturers to ensure that they improve their capacity to meet the
required standards so that all reinforcement steel is bought locally;
 Putting in place mechanisms for local businesses to supply other earth materials like gravel,
sand, aggregate, and ballast which will be sourced locally;
 Discussions with private sector associations such as Private Sector Foundation, Uganda
Manufacturers Association, Uganda National Association of Building and Civil
Engineering Contractors (UNABCEC), individual major suppliers, banking institutions
and others on the pending opportunities are ongoing.
 Engagement of Government MDAs such as Ministry of Finance, Planning and Economic
Development, Uganda Revenue Authority and the Ministry of Internal Affairs to iron out
issues including immigration, tax exemptions, licensing among others is ongoing to ensure
a fair playing field for local players.

Prudent implementation of the strategy will go a long way in preparing the Ugandan private sector
for not only the current SGR project but also for future infrastructure projects including those in
other subsectors.

I wish appreciate the input by the various individuals that were involved in the development of
this Strategy.

In conclusion, I call upon all Ugandans and the contractors to support the implementation of the
strategy to ensure maximum benefits for Uganda.

Hon. Monica Azuba Ntege

Minister of Works and Transport

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LIST OF ABBREVIATIONS AND ACRONYMS
AU African Union
ATM Automated Teller Machine
CCECC China Civil Engineering Construction Corporation
CHEC China Harbour Engineering Company Ltd
COMESA Common Market for East and Southern Africa
EAC East African Community
EAS East African Standards
ESMP Environmental and Social Management Plan
E&P Exploration & Production
EPC Engineering, Procurement and Construction
EU European Union
FY Financial Year
GDP Gross Domestic Product
GKMA Greater Kampala Metropolitan Area
GOU Government of Uganda
ISO International Standards Organization
KCCA Kampala Capital City Authority
LRT Light Rail Transit
M Meter
MG Meter Gauge
MGR Meter Gauge Railway
MOU Memorandum of Understanding
MOWT Ministry of Works and Transport
NCIP Northern Corridor Integration Projects
NDP National Development Plan
O&M Operations and Management
OPC Ordinary Portland cement

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PMU Project Management Unit
PPDA Public Procurement and Disposal of Public Assets Authority
PPP Private-Public Partnership
SADC Southern Africa Development Corporation
SME Small and Medium Enterprises
SGR Standard Gauge Railway
SWOT Strength, Weaknesses, Opportunities and Threats
MT Metric tons
UACE Uganda Association of Consulting Engineers
UGX Uganda Shillings
ULS Uganda Law Society
UNBS Uganda National Bureau of Standards
URC Uganda Railways Corporation
USA United States of America
USD United States Dollars

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Contents

THE FOREWORD ........................................................................................................................... i

LIST OF ABBREVIATIONS AND ACRONYMS ..................................................................................... iii
EXECUTIVE SUMMARY ..................................................................................................................... 1
1.0 INTRODUCTION .......................................................................................................................... 2

1.1 SGR Purpose ............................................................................................................................... 2

1.2 Vision.......................................................................................................................................... 2
1.3 Mission Statement ..................................................................................................................... 2

2.0 SGR LOCAL CONTENT ................................................................................................................. 3

2.1 Objectives of the local content Strategy .................................................................................... 3

2.1.1 Main Objectives ...................................................................................................................... 3
2.1.2 Specific Objectives .................................................................................................................. 3
2.1.3 Possible areas of participation ................................................................................................ 4

3.0 BEST PRACTICES FROM SELECTED COUNTRIES .......................................................................... 6

3.1 Brazil........................................................................................................................................... 6
3.2 South Africa................................................................................................................................ 6
3.3 Kenya.......................................................................................................................................... 7

4.0 THE CURRENT SITUATION .......................................................................................................... 9

4.1 Trade .......................................................................................................................................... 9

4.2 Public Procurement ................................................................................................................... 9
4.3 Development Policies and Strategies ...................................................................................... 10

4.3.1 National Development Plan II (NDP II) 2015/16-2019/2020 ................................................ 10

4.3.2 Buy Uganda Build Uganda Policy, 2014 ................................................................................ 10
4.3.3 National Trade Policy 2007 ................................................................................................... 11
4.3.4 National Industrial Policy 2008 ............................................................................................. 11
4.3.5 National Petroleum Local Content Policy ............................................................................. 11
4.3.6 National Public Sector Procurement Policy .......................................................................... 11

4.4 Education, Employment and Human Capital Development .................................................... 12

5.0 SWOT ANALYSIS OF THE UGANDA PRIVATE SECTOR IN REFERENCE ....................................... 13

TO THE SGR PROJECT ..................................................................................................................... 13

5.1 Strengths .................................................................................................................................. 13

5.2 Weaknesses ............................................................................................................................. 13
5.3 Opportunities ........................................................................................................................... 13
5.4 Threats ..................................................................................................................................... 14

6.0 STRATEGIES FOR PRIVATE SECTOR PARTICIPATION ................................................................ 15

6.1 General Strategies .................................................................................................................... 15

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6.2 Specific Strategies .................................................................................................................... 15

6.2.1 Human Resources ........................................................................................................... 15

6.2.2 Major Construction Materials ............................................................................................... 16
6.2.3 Auxiliary construction materials ........................................................................................... 17
6.2.4 Sub- Contracting ................................................................................................................... 18
6.2.5 Other Opportunities.............................................................................................................. 18
Consultancy services ...................................................................................................................... 18
Oil and Petroleum products (Fuel and Lubricants) ........................................................................ 18
Training .......................................................................................................................................... 18
Financial services ........................................................................................................................... 18
Insurance services .......................................................................................................................... 19
Communication services ................................................................................................................ 19
Legal Services ................................................................................................................................. 19
Security services............................................................................................................................. 19
Equipment Hire and leasing ........................................................................................................... 19
Tourism and Hospitality ................................................................................................................. 20
Medical and Health Services .......................................................................................................... 20

7.0 IMPLEMENTATION STRATEGY.................................................................................................. 20

7.1 Internal organization and coordination ................................................................................... 20

7.2 Working closely with other stakeholders ................................................................................ 20
7.3 Infrastructure and Government Support ................................................................................. 21
7.4 Constant measuring of Progress .............................................................................................. 21
7.5 Increase awareness of local content (communication strategy) ............................................. 22

8.0 IMPLEMENTATION, MONITORING AND EVALUATION ............................................................ 22

9.0 WARFORWARD ........................................................................................................................ 22

 ANNEX I: LIST OF PROFESIONS/SKILLS THAT SHALL BE REQUIRED DURING THE SGR

CONSTRUCTION/OPERATIONS ....................................................................................................... 23
 Annex II: Key Details of the Cement manufacturing companies in Uganda ........................... 24
 Annex III: Key Details of the Steel companies in Uganda ....................................................... 25
 Annex IV: SOME MATERIALS WITH ESTIMATED QUANTITIES................................................. 26
 Annex V: licensed communication service providers ............................................................. 28
 Annex VI: A template for Monitoring and Evaluating Local Content...................................... 28

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EXECUTIVE SUMMARY

The primary objective of the local content strategy is to enable the private sector of
Uganda to effectively participate in the development and maintenance of the SGR project.
The Local content strategy has an introductory part, a detailed SWOT analysis of the
Ugandan Private sector in respect to SGR, Strategy for the private sector participation,
an implementation, enforcement and sustainability plan. It concludes with the way forward
or action plan for the strategy.
The Introductory part highlights the commitments of the NCIP partner member states
protocol to jointly development the SGR network within the member states. The SGR
purpose, Vision and Mission is also highlighted.
Chapter two (2) explains local content with its intended benefits to the country in line with
the SGR project and brief of how it can be achieved.
Chapter three (3) Analyses the best practices from selected countries. This chapter
delves into what the selected countries are doing to ensure that local participants are
given priority in areas where this can be achieved.
Chapter four (4), Analyses the current situation in terms of local content. In the
introductory section, it highlights the huge and growing trade deficit that the country is
experiencing. The chapter notes that the PPDA Amendment Act (2014) has created
provisions for Preference for domestically manufactured goods and Ugandan contractors
and consultants to promote their development by giving them a competitive edge but
asper the 2014/15 Procurement Performance and Measurement System (PPMS) report
over 30% of the value of all Public Procurement contracts are awarded to Foreign
Providers.
Chapter five (5), analyses Strength, Weaknesses, Opportunities and Threats of the
private sector in Uganda with respect to the SGR local content approach
It discusses the plan in the following breakdown areas; SGR internal management
system and coordination, Working closely with the other relevant stakeholders,
Infrastructure and government support and Concludes with constant monitoring and
evaluation measures.
Chapter five (6) delves into the major strategies to enhance local participation in the key
identified areas. It provides both general and specific strategies for achieving local content
objectives in SGR project delivery.
Chapter seven (7) discusses the implementation strategy. It emphasizes the need for a
concerted effort with clear stakeholders and their roles in ensuring enshrinement of local
content in project delivery.
Chapter Eight (8) provides the monitoring and evaluation framework and the last chapter
summarizes with the way forward to be taken to achieve the intended objectives.

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1.0 INTRODUCTION

The Governments of Kenya, Uganda, Rwanda and South Sudan are committed to the
development of a seamless railway transport system within the framework of the Northern
Corridor Integration Projects (NCIP) regional initiative. In May 2014, the four Partner
States signed a regional SGR Protocol that commits them. The Protocol provides
mechanisms for cooperation between Partner States and stipulates key timelines for
project completion. It is in this respect that the SGR project is being fast-tracked to enable
faster socio-economic transformation of the NCIP economies.

The total route length of the SGR project in Uganda is 1724km. The project will be
developed in phases starting with the Eastern route from Malaba to Kampala which is
273km.

Government of the Republic of Uganda (Represented by the Ministry of Works and

Transport) and China Harbour Engineering Company Limited (CHEC) signed an
Engineering, Procurement and Construction (EPC) contract on March 30th, 2015 to
develop the Eastern Route (Malaba-Kampala) and the Northern Route (Tororo -
Pakwach/Gulu-Nimule) Standard Gauge Railway (SGR) lines.
A memorandum of understanding was also signed with China Civil Engineering
Construction Company (CCECC) Ltd to develop the Kampala – Kasese line including the
Greater Kampala Metropolitan Area Light Rail Mass Transit system.
1.1 SGR Purpose

To build an efficient Railway System that will stimulate Industrialization, reduce

unemployment and Transform Uganda.
1.2 Vision

To develop a modern and efficient railway transport System in Uganda.

1.3 Mission Statement

To develop in a cost effective manner the SGR network in line with the regional SGR
protocol and the greater Light rail Mass Transit System
All the above under the SGR project shall require the ultimate participation of the local
indigenous stakeholders, therefore calling for a clear local content strategy for the project.

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2.0 SGR LOCAL CONTENT

SGR Local content is the added value brought to Uganda through the competitive and
gainful participation of citizens and the Ugandan private sector in its initial planning,
development and maintenance leading to;
 value addition,
 skills and knowledge development and retention,
 Enhancement of economic multipliers, thus economic growth and improvement of
citizen’s welfare.
It shall be promoted through:
1. Work force development by employment and training of local workforce
2. Investments in supplier development through:
 Developing and procuring supplies and services locally
3. Subcontracting of specific elements of the project
It is estimated that the project benefits which will accrue to the economy by 2040 is at
USD 118.4 billion.
In this regard as per the PPDA Act, a company will be regarded local if at least 51% of
capital is owned by Ugandans (PPDA ACT section 59A Sub SEC 5)
2.1 Objectives of the local content Strategy

The strategy recognizes the fact that the Standard Gauge railway Project is the biggest
project of its kind that the Government is implementing. It is therefore important that
Ugandans are engaged fully in the entire process to ensure the realization of the benefits
to the present and future generations
2.1.1 Main Objectives

The main objective of the local content strategy is to enable the private sector and or
individuals of Uganda to effectively participate in the development, maintenance and
operations of the SGR by ensuring preference to domestically produced/ sourced goods
and components or substantial value addition
2.1.2 Specific Objectives

To develop the Ugandan local businesses to become competitive locally and

internationally through the empowerment of local suppliers to meet the needs and
standards of the SGR project
 To have appropriate technology transferred to Ugandans for developing,
managing and operating the new railway system
 To enable local training institutions run requisite curriculum relevant for the railway
industry

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  To maximize participation of skilled and unskilled Ugandans in the SGR project
activities
 To enhance value addition and job creation through the use of local businesses.
 To have local goods and services that meet the standards and specifications
procured by the contractors in line with the terms and conditions of their contract
 To ensure mainstreaming of cross cutting issues and activities such as gender,
Environment, HIV & AIDS and other infectious diseases in the delivery of the
project.
 To Ensure sustainable development of the railway industry in particular and the
economy in general

2.1.3 Possible areas of participation

The SGR project presents several possible areas of participation for the local industry.
By identifying them in each case, companies can justify applying the necessary resources
and management effort and simultaneously identify the functions and areas of the
business that should be involved.
These include the following:
a. Major Construction Materials
i. Cement of various types, batten, converted timber, board, geogrid,
geomembrane, geotextile, rubble, ballast, sand and gravel
aggregates, Steel bars,
ii. petroleum products
iii. pre-stressed metal bellows, steel bars, shape steel, and steel strand
b. Sub-contracting (Labour outsourcing for civil and building works)
c. Equipment leasing and hiring
d. Consultancy services
e. Labour resources (Skilled and Unskilled)
f. Security services
g. Financial services
h. Insurance and brokerage services (IRA)
i. Communication services and data systems
j. Legal Services
k. Vehicle hire services

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l. Tools, small equipment, Instruments and spare parts
m. Travel and tour services
n. Personnel Management (Agencies)
o. Hospitality, (Hotel/catering services, Accommodation, food supplies)
p. Cleaning services
q. Vehicle service/repair
r. Clearing and forwarding services
s. Health/Medical Services
t. Events/PR/Entertainment
u. Training Services
v. West recycling and Management
w. Environmental issues
x. Translation Services
y. Logistics and warehousing
z. Social issues Services – HIV, people with less ability, Gender, cultural,
Reproductive Health (Teenage pregnancy), sexual harassment, Child
labour.

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3.0 BEST PRACTICES FROM SELECTED COUNTRIES

3.1 Brazil

Brazil introduced Local content policies in the Oil and Gas sector in 2003 with an aim of
increasing the participation of domestic manufacturers and service providers in the Oil
and natural gas supply chain on a competitive basis, Local content policy strictly follows
this guideline by requiring a minimum percentage of domestic content for a variety of
equipment and materials to promote domestic Brazilian industry and strengthen the
country's productive capacity. The country also introduced the Buy Brazil Act (Law
12.349/10 of 15 December 2010). The law gives preference, on public bidding, to
companies that offer products and services that comply with Brazilian technical regulation
and are produced in Brazil.
The margin of preference considers studies that establish criteria based on jobs and
income generation, as well as development and technological innovations that take place
in Brazil.
Brazil uses mostly indirect mechanisms to require a certain level of local content, these
include;
a) Subsidized financing through the Brazil Development Bank
b) Tax breaks for companies reaching a certain level of local content.
c) Quotas for preferential purchases of locally manufactured goods in government
tenders.
d) Self-adopted policy in companies strongly tied to Government.
3.2 South Africa

The South African Government amended regulations to the preferential procurement

policy framework act (PPPFA), Act 5 of 2000, which came into effect in December 2011.
This empowered the Ministry of Trade and Industry to utilize government procurement to
ensure achievement of key industrial policy objectives namely, increased local production
within the economy. The implication of the new regulations for businesses, local and
foreign is that all suppliers in designated sectors have to meet the set minimum local
content requirements if they are tendering for goods, works and service contracts within
the Public Sector. Suppliers are required to submit both a declaration of local content and
proof of verification. (Ministry of Trade and Industry Website; South Africa).

Suppliers in certain sectors have to include minimum amounts of Local Content in the
goods, works and services that they provide to users in the public sector. This means it
affects all national and provincial departments, all municipalities; all entities listed in terms
of Schedules as well as all other government agencies. The government supply chain
management personnel in these departments and organisations have to check
adherence to National Treasury regulations on how tenders must be evaluated against
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Local Content. As a supplier, if you do not comply, you do not win the tender. The
Government has also;
 Developed tender advice centres;
 Broadened participation base for small contracts (less than R7 500).
 Waived the security/sureties on construction contracts with a value less than R100
000.
 Encouraged unbundling or unpacking of large projects into smaller projects.
 Promoted early payment cycles by government.
 Development of a preference system for SMMEs owned by historically
disadvantaged individuals (HDIs).
The Government of South Africa and other social partners including organised labour
unions, business (private sector) and community constituencies including Organizations
of women, civic structures, people with disabilities, youth and cooperatives signed a Local
Procurement Accord on 31st October 2011 to accelerate creation of 5 million new jobs by
2020 as well as the attainment of the goals of the Industrial Policy Action Plan (Local
Procurement Accord, 2011 South Africa). This was achieved through a social dialogue
which aspired to achieve 75% localization in the procurement of goods and services, both
by the public and the private sector.
3.3 Kenya

The Kenyan Government Amended the Public Procurement and Disposal (Preference
and Reservations) Regulations, 2013, the Preference and Reservation regulations now
cover the following areas generally:
a) Small or micro enterprise or a disadvantaged group wishing to participate in public
procurement should apply for registration with the National Treasury or the
Respective County Treasury with which they operate.
b) Public entities are now required to grant exclusive preference to local providers
offering; motor vehicles, plant and equipment that are assembled in Kenya,
construction material and other material used in the transmission and conduction
of electricity of which such material is made in Kenya and furniture, textiles,
foodstuffs and other goods made or locally available in Kenya.
c) Thresholds were set for exclusive preference in respect of works, goods and
services.
d) Procuring Entities are now required to unbundle procurements of goods, works
and services in practicable quantities.
e) Budgetary Reservations, procuring entities can now allocate at least thirty percent
of their procurement spend for the purposes procuring goods, works and services
from micro and small enterprises owned by youth, women and persons with
disability.
f) Facilitation for financing of local purchase or service orders. Procuring entities are
now required to facilitate financing of enterprises owned by youth, women or

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 persons with disabilities that have been awarded contracts, by authenticating their
notifications of tender awards and local purchase or service orders and
subsequently entering into an agreement with the relevant financing institution with
conditions that shall include paying the contracted enterprise through their account
opened with the financier.
g) Strict deadlines for payments have also been set.
h) Procuring Entities are now required to have in their tender documents as a
mandatory requirement as a preliminary requirement for all foreign tenderers
participating in International Tenders to source at least 40% of their supplies from
Citizen contractors prior to submitting a Bid.
i) Following the increase in the number of foreign contractors tendering for
infrastructure work in Kenya, The Government responded to the pressure from
Local contractors by introducing new regulations in July 2014. The regulations
restrict the categories of work open to foreign contractors and also stipulate that
foreign contractors must either joint venture with local contractors or locally
subcontract a percentage of the work.

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4.0 THE CURRENT SITUATION

Analysis of the current situation is meant to assist in understanding the demand side
requirements the supply-side capabilities, and any barriers that limit that may limit local
participation. This knowledge will enable the PMU to define what is realistic and
achievable.
4.1 Trade

The country has continued to experience a large trade deficit over the years. Over a
period of 5 years (2009 to 2013) Uganda’s value of imports have continued to double the
value of exports. The overall trade deficit has continued to widen as a result of importation
of high value manufactured goods compared to low value exports of agricultural primary
products. The biggest composition of Uganda’s imports includes petroleum and
petroleum products. The Manufacturing output in Uganda has been growing at an
average rate of 5% annually for the last 5 years with the highest composition of the
manufacturing output in food processing. Opportunities exist in virtually all areas ranging
from; Food processing &beverages, leather, paper, textiles & garments, fertilizers,
pharmaceuticals, oil exploration & extraction, fabrication, ceramics, etc.
4.2 Public Procurement

While there may be widespread agreement with a policy of supporting the participation of
local producers in the supply of infrastructure assets, questions are raised as to whether
procurement is the best way to do it. The view is often expressed that assistance to local
industries should be on the supply side and that procurement policies should be ‘neutral’
in terms of promoting development. However, current demand-side policies are not
neutral and as a consequence because the playing field is not level. Local content in
Public Procurement is essential to developing a sustainable Public Procurement System
in Uganda.
The Government of Uganda spends a significant amount of money in its expenditure
through Public Procurement. However the Public Procurement and Disposal of Public
Assets Authority (PPDA) Procurement Performance and Measurement System (PPMS)
report of the Financial Year 2014/15 shows that over 30% of the value of all Public
Procurement contracts are awarded to Foreign Providers which means that much of the
funding through Government Procurements does not benefit the local providers in
Uganda.
Public Procurement can be a very good avenue of promoting Local Content in Uganda
with Trillions of shillings being spent through public procurement each year.
The PPDA Amendment Act (2014) has created provisions for Preference for domestically
manufactured goods and Ugandan contractors and consultants to promote their
development by giving them a competitive edge. Also to promote particular specified

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geographic areas, specified public procurement contracts or parts of a contract can be
reserved.
4.3 Development Policies and Strategies

The Government has through a number of development policies and strategies

highlighted the need for Local Content (enhancing the country’s competitiveness through
support of locally manufactured products, knowledge transfer and human capital
development). These include but not limited to;
4.3.1 National Development Plan II (NDP II) 2015/16-2019/2020

The key objectives of the NDP II include;

1. Increasing sustainable production, productivity and value addition in key growth
opportunities,
2. Increasing the stock and quality of strategic infrastructure to accelerate the
country’s competitiveness,
3. Enhancing human capital development; and
4. Strengthening mechanisms for quality, effective and efficient service delivery
Objectives (1) and (3) can best be achieved through promotion of Local Content and as
such some of the strategies outlined by the NDP II include; industrialization and export
oriented growth through value addition, agro processing, mineral beneficiation, selected
heavy and light manufacturing and an employment creation strategy through fast tracking
skills development and harnessing the demographic dividend.
4.3.2 Buy Uganda Build Uganda Policy, 2014
In September 2014, the Government of Uganda through the Ministry of Trade, Industry
and Cooperatives launched the “Buy Uganda Build Uganda” Policy to give guidance to
policy makers to ensure that promotion of the consumption of local produced goods is
integrated into their policies and procedures. The Buy Uganda Build Uganda Policy also
intends to foster local economic development through increasing input of local labor,
goods and services.
The policy vision is “To develop a vibrant dynamic and competitive private sector that
transforms local products through the value chain to meet the required standards.” And
the mission is “To support the production, purchase, supply, and consumption of local
goods and services.” The policy aims at promoting consumption of local goods and
services, promoting the use and conformity to standards to guarantee quality goods and
services and providing capacity building programs to local suppliers of goods and
services.
The policy also outlines several strategies that can be used to achieve the above
objectives and shows a range of products including beverages, cereals etc. currently
being imported that can be provided in Uganda.

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4.3.3 National Trade Policy 2007

The National Trade Policy encourages the use of locally developed materials in
production with a view of stimulating growth in local production sectors. The policy also
encourages the consumption of locally produced goods and services and providing
affirmative action to local suppliers under Government procurement, while ensuring
conformity with existing national laws.
4.3.4 National Industrial Policy 2008

One of the policy objectives of the National Industrial Policy is to exploit and develop
natural domestic resource- based industries such as petroleum, cement and fertilizer
industries and promote competitive industries that use local raw materials.

The policy encourages the use of local raw materials in value adding industrial processes
to enhance market opportunities for supply sectors through use of cluster development
initiatives and encouraging existing industries and new investors to utilize the services of
local technology institutions and consultants as a means of developing national local
technological capabilities.
4.3.5 National Petroleum Local Content Policy

In 2014 the Government of Uganda developed petroleum national content regulations

2014.The purpose of these regulations is to promote the training and employment of
Ugandans, transfer of knowledge and technology and the provision of goods and
services by Ugandan companies in petroleum activities and to promote cooperation
between international companies and Ugandan Universities research institutions and
technical institutions.
The policy also requires licensed companies to source goods and services exclusively
from Ugandan companies where the goods and services meet the desired quality,
the provision of goods and services not available in Uganda by international
companies that have entered into joint ventures with Ugandan companies and in
exceptional cases, with the approval of the Authority , wholly foreign owned
companies.
4.3.6 National Public Sector Procurement Policy

The National Public Sector Procurement Policy promotes socially responsible public
sector procurement. It provides for Government to promote equal engagement
opportunities and ethical trading initiatives that support marginalized groups for purposes
of socio-economic development through achieving the following objectives;
 Ensure that public contracts are awarded to providers who maintain acceptable
standards of business probity and ethics.

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  Institute deliberate efforts to involve the disadvantaged groups [especially women
and the youths], SMEs and Local Providers in Public Sector Procurement.
 Develop simplified and accessible procedures to promote participation of SME’s
and local providers without compromising value for money.
 Promote incorporation of both international and regional standards, especially
those related to supporting social inclusion, decent work and promoting
employment opportunities.
 Ensure that there is effective access of information and credit facilities to local
providers and SME’s.
 Support local providers, women, youths and SME’s to build sufficient capacity to
enable them participate in the procurement process.
The policy also provides for using public procurement as an economic development tool
through promoting progressive procurement policies which are receptive to, and
considerate of the local economy
4.4 Education, Employment and Human Capital Development

In the Financial Year 2012/13, the working population in Uganda (aged 14-64) was 13.9
million people. Over 70% of these were engaged in the Agricultural Sector and the
education level of these is still low with three quarters of these having primary school as
their highest level of education. About 43% of all working persons are involved in
subsistence agriculture and over 50% of the working persons are self-employed.
There have been considerable efforts by the Government of Uganda into the Education
Sector in Uganda, 13.4% of the overall National Budget of FY 2013/14 was allocated to
the Education Sector.
There have been considerable achievements such as expanded access to secondary
school education with over 1.3 million students being enrolled into Secondary school
education per year and introduction of the Students Loan scheme to support students for
higher learning and increase in the number of higher learning institutions. However there
is still a large gap between the education and workforce dynamics in Uganda partly
because there have not really been conscious human capital development programs or
efforts in Uganda. This is supported by the World Economic Forum’s “The Human Capital
Report, 2015” which ranked Uganda at position 102 out of 124 countries. The report cited
a below average quality of Math/Science education, below average capacity to attract
and retain talent and ranked the country 166 out of 189 countries.

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5.0 SWOT ANALYSIS OF THE UGANDA PRIVATE SECTOR IN REFERENCE

TO THE SGR PROJECT

A SWOT (Strength, Weaknesses, Opportunities and Threats) analysis was carried out to
identify the Ugandan Private Sectors strengths and Weaknesses as well as the broader
underlying opportunities and threats in respect to their involvement in the SGR project.
This was carried out to help in developing the local content strategy and decision making.
5.1 Strengths

The Ugandan private sector has evolved over time and has a number of strengths that
can be taken advantage of to enhance their ability to effectively participate in the SGR
project as listed below;
 Existing nascent construction industry
 Liberalized economy
 Government policy on strengthening local industry
 Educated labour force
 Abundant young semi-skilled affordable labour force
 There are business firms in the country with international background such as
VIVO Energy, TOTAL, HIMA Cement (Lafarge Group) etc.
 There is stable government with good political will to address the local content
agenda
 Good investment climate and incentive regime

5.2 Weaknesses

There are a number of weaknesses that may affect the full participation of the private
sector in the SGR project that require to be closely analyzed and addressed. Some of the
key weaknesses are;
 Limited government support to local private sector
 Fragmented uncoordinated, unregulated and heavily informal private sector
 Limited Technology and Research & Development
 Few established industries that are internationally competitive
 Poor work ethics and managerial skills
 Inadequate legal and regulatory framework for the construction industry
5.3 Opportunities

There are a number of available opportunities for the private sector to explore under the
SGR project to enable local content participation. SGR management is to address the
local firm’s participation in the supply chain of the project with strengthened capacity to
compete, which is very crucial to the promotion of local content.

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The Local firms shall be required to meet the quantity, quality, consistency and
competitive pricing as per the project standards and specifications. The opportunities are
listed below:
 Political Will
 Public Private Partner Act in place
 Availability of local materials to be used in the project
 Government strategy to invest in infrastructure over a long-term horizon
 Tax incentives for construction industry

5.4 Threats

There exist external factors that still pose a threat to the private sector in respect to their
effective participation in the SGR project, both in the short and long term. These threats
require close internal government intervention to give a favorable climate for the Ugandan
private sector. Some of the threats are;

 Unfamiliar standards (Chinese Standards)

 Varying export quotas from various countries that make imports cheaper.
 Deliberate support by foreign Governments to their respective companies in
strategic sectors
 Regional bodies such as COMESA, SADC, and EAC have conditions that may not
be favorable to the Ugandan private sector.
 High production cost
 High cost of finance to support the private sector, especially lack of construction
specific financing

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6.0 STRATEGIES FOR PRIVATE SECTOR PARTICIPATION

The local content strategy looks at the available opportunities alongside the existing
Strengths, weaknesses and threats. General and specific strategies are proposed to
mitigate the weaknesses and threats and also harness strengths and opportunities

6.1 General Strategies

1. Putting in place mechanisms for enhancing the capabilities of the local human
resource through training, attachments other capacity building mechanisms. A
skills mapping exercise will be undertaken and strategies to bridge identified gaps
developed and implemented.
2. Sensitizing and mobilizing the private sector through their umbrella bodies and or
individually to take up the opportunities offered by the project
3. Holding SGR – Private Sector forums to share information, develop strategies to
enhance private sector participation and monitor progress
4. Working with specific industries to meet the required standards for the contract.
5. Engaging key Government MDAs including MoFPED, MTIC, and regulatory bodies
with the key objective of enhancing private sector participation in the project
6. Encouraging the private sector to benchmark the neighboring countries of Kenya
and Ethiopia so as to better appreciate the need and or modalities for their
participation
7. Work with URA, MoFPED, on the issues of taxation and immigration of labour.
8. Continuous building of local human capacity to ensure that they have the requisite
skills, experience, attitude and work ethic required in a global market.
9. Ensuring that the contractor provides timely information on his quantitative and
qualitative needs in terms human resources, materials, procurement procedures
and any other opportunities to allow for ample preparation time on the part of the
prospective private sector participants1.
10. Establish a collaborative approach with all stakeholders especially with the
contractors to ensure that implementation of the strategy will not generate
unbearable constraints to delivery of the project.

6.2 Specific Strategies

6.2.1 Human Resources

Ensure the implementation of the contractual obligations such as 9:1 local labour to
foreign labour ratio. This will be ensured through, ring fencing certain jobs, immigration
control, skills transfer/apprenticeship for specific jobs and regular skills audit, training for

1
It is important to note that in countries where local content enhancement has been successful, it has taken a long
term view as there is no quick fix solution for local participation especially in cases where the local base is narrow.
Contractors usually meet difficulties in finding partners with the requisite capacity and managements standards
but these diminish over time as capabilities are reinforced and business connections are more easily made.

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special skills (e.g. Machine operators, stone pitching), labour audits, ensuring competitive
wages among others,

 Favorable working conditions in compliance with the relevant laws of Uganda in

collaboration with district labour offices.
 Work closely with LG in organizing and training local labour force especially on
work culture, alcohol and other substance abuse among others. Annex I provides
a list of some of the professions/skills that shall be required during construction of
and operation of the SGR.
 Early identification of skill requirements: creating the opportunity to train workers
for the construction phase.

6.2.2 Major Construction Materials

All materials to be used in construction of SGR shall conform to the Standards specified
in the EPC/Turnkey Contract. These are the same standard agreed upon by the NCIP
partner states in the SGR protocol and are also a requirement by the financing institution.
The SGR PMU will ensure early information sharing on the supply side to ensure that
prospective suppliers are given ample time to prepare themselves to compete for the
available opportunities. Two key strategies will be employed to achieve this: sensitization
of the private sector on the procurement systems, policies and the use of dedicated
supplier or enterprise development’ programmes.
Cement
The Cement to be used in the project will be both ordinary and high grade cement.
Ordinary cement will be 32.5N and 42.5N and high-grade 45.5N and 52.5N. The high
grade cement will conform to the National Standard of Peoples Republic of China, GB
175 - 2007. The SGR Project will engage local companies to configure their
manufacturing processes to be able to supply the required high-grade cement conforming
to the Chinese standards and quantities. This will be easier for companies that produce
clinker locally. Annex II provides details of the current status of the cement industry
Steel (Reinforcement bars)
The steel products that shall be used in the project range from smooth and ribbed bars
(8 – 32mm), angle bars, and tendons, flat steel, I – Beams, C – Channels, steel pipes,
tracks and Turnouts. Some of the products are not manufactured locally and it is important
for the Ugandan Steel manufacturing sector to focus on what they are currently
manufacturing to start with. The National Standards of Peoples Republic of China for steel
is GB 1499 – 2007 (part 1, 2 &3) and this shall be followed.
Uganda has about twelve steel manufacturing companies but only eight are operational
(UNBS report 2015). These include: Roofing rolling Mills, Madhvani Group Steel, Steel
Rolling Mills, Steel and Tube, Pramukh Steel, Tembo Steel, Mayuge Sugar steel Division,
Tian Tang Steel Group, Abisha Steel, and Yogi Steel.

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The total annual production rate of metal/steel products by 2014 was at 156,000 tons with
a percentage increase of 4.8 % from the year 2013.
Annex III highlighting key details of the Steel companies in Uganda and Annex IV provides
some required materials with estimated quantities.
In the case of steel, three main strategies will be employed as follows:
Structural Steel: Because it is manufactured by few companies world over and none of
these is found in Uganda, the contractor will be having to import.
Reinforcement steel bars: Steel manufacturers that import billets will be provided with
the required standards and advice on how to configure their processes to meet the
required standards. However, where manufacturers do not meet the standards, the
contractor will be allowed to import. The SGR project will work hand in hand with the
Uganda National Bureau of Standards to augment their capacity given the new
developments railway development in the country.
Benchmarking: The project will encourage the private sector to benchmark from Kenya
given that they have had experience with the Chinese requirements during their
construction of the Mombasa-Nairobi SGR section.
6.2.3 Auxiliary construction materials
Uganda has large quantities of good local materials such as sand, aggregates, timber,
gravels etc. These materials and sources for the SGR project will be subjected to detailed
study and analysis to determine their suitability to meet the minimum quality acceptable
standards.
Aggregates and Ballast
The stone base with good tested and approved granite rocks for construction in Uganda
is enormous. This will be used in the SGR construction in form of hardcore, coarse and
fine aggregates, stone/quarry dust etc. It is important to note that the specifications have
stringent physical and chemical properties of the rock and production processes including
gradation and cleanliness and therefore any supplier must adhere to these requirements.
For quality control purposes the contractor will be allowed few specific sites that must be
approved by the employer. The project will work with the contractor to ensure that the
sites approved by the project are the only source. The private sector will be participating
in processing and transportation of the materials.
Sand & Gravel
Sand & gravel mining is one economic activity supporting the construction sector in
Uganda with SGR not being an exception. Sand is mined from lake shores, and inland
dunes. Sand mining has increased considerably in Uganda to meet the demands of the
construction sector where it is used to make concrete products etc. Gravel soil is in
abundant in all parts of the country. All these materials must conform to the chemical and
physical properties and must be cleaned in compliance to the Chinese standards.

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The project will work with the contractor and National Environment Management Authority
(NEMA) to ensure that the sites approved by the project are the only source. The private
sector will be participating in processing and transportation.
However all the above requires approvals from NEMA that issues licenses for sand-
mining on the lakeshore, and for large scale projects away from water bodies as
well as gravel mining
6.2.4 Sub- Contracting
The SGR Project has so many areas of civil works that the local contractors can tap in as
subcontractors based on their abilities, experience and skills. Main areas shall include;
 Drainage works
 Slope protection works including grassing and stone pitching
 Construction of station houses etc.
The Ugandan Contractors under their Umbrella body, Uganda National Association of
Building and Civil Engineering Contractors (UNABCEC) are better placed to negotiate
with the EPC/Turnkey contractor. Only labour subcontracting shall be allowed in this
contract.
6.2.5 Other Opportunities
Consultancy services
The project shall have engineering and non-engineering works that require consultancy
services.
Members of Uganda Association of Consulting Engineers (UACE) and Private
Professionals will be encouraged to take up these opportunities.
Oil and Petroleum products (Fuel and Lubricants)
The project shall require large quantities of fuel and its lubricants to run the many
equipment’s to be used. Therefore there will be opportunity to supply oil and petroleum
products to the project.
Training

There will be various opportunities for training firms and institutions to impart skills,
transfer knowledge, and build capacity during the SGR project implementation. The SGR
project will encourage the contractor to engage local firms to partake in opportunities in
this area.
Financial services
The magnitude of financial transactions that shall be involved in the project calls for the
direct participation of local financial institutions. The SGR project expects the financial
institutions regulated by the BOU to play a major role in the delivery of the project.

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Insurance services
The magnitude of financial transactions that shall be involved in the project calls for the
direct participation of local insurance companies. The SGR project expects insurance
companies regulated by the IRA to play a major role in the delivery of the project.
Insurance of the civil works, construction equipment , contractors workers, are
requirements for the project that calls for the many insurance firms under their umbrella
Association, Uganda Insurance association with close to 29 members to take lead.
Communication services
Uganda has a number of local Communication service providers that have to take up the
opportunity for providing data, Courier, Broadcasting and telecommunication services.
This shall be both to the Contractors and associated firms.
Table 5, below highlights the number of the different licensed service providers in the
country by the end of FY 2015.
Annex IV highlights the number of licensed communication service providers in the
country, 2015
Legal Services
In Implementing the Standard Gauge Railway Project, management shall ensure
adherence to the rule of law, respect for human rights and business. This will require the
services of the different Ugandan law firms and the legal professionals.
Security services
Security is an important aspect of the society. The management of SGR project alongside
the government security agencies looks forward to the many private registered local
companies in Uganda to offer the different security services to the project.
Uganda has close to 60 registered private security companies with over 20,000 private
security personnel. Private security firms will be encouraged to take up opportunities
presented by the project.
Equipment Hire and leasing
There will be opportunities in leasing equipment for haulage of cement, gravel,
aggregates, ballast, reinforcement bars and others. The private sector is encouraged to
take up opportunities in this area.
Logistics, Clearing and forwarding
Given the magnitude of the SGR project, there will be significant opportunities in Logistics,
Clearing and forwarding. The contractor will be encouraged to advertise these
opportunities. NB. The contractor and all other players will be encouraged to meet the
axle load requirements of the country.

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Tourism and Hospitality
There will be opportunities in Tourism and Hospitality services. The private sector is
encouraged to take up opportunities in this area. These opportunities include:
accommodation, catering services for camp and sites, tour and travel services,
Medical and Health Services
There will be opportunities in Medical and Health Services including: counseling, general
medical treatment, immunization, vaccination, HIV/AIDS testing, treatment and
counseling and others. The private sector is encouraged to take up opportunities in these
areas.

7.0 IMPLEMENTATION STRATEGY

The project management team envisages a long term program in achieving the local
content objectives with clear flexible implementation and sustainability strategy. This shall
involve proper internal organization and coordination as well as working with all the
stakeholders.
7.1 Internal organization and coordination

To advance coordination within the project management, the following shall be effected;
 a local content desk shall be established within the project office with a designated
focal person whose performance is partly based on local content strategy
implementation objectives
 The Project will ensure establishment of a strong contract supervision team,
mechanisms and monitoring, evaluation and reporting framework to enforce the
strategy.
 Information flow shall be clear between the project management and contractors’
staff to understand the capabilities of local suppliers and how to reach them.
Meanwhile the local suppliers need to understand when and where opportunities
will become available.
 Establishing a corporate approach to recognize local content as a strategic issue.
This shall be done by developing and implementing corporate standards with easy
communications between the different stakeholders and business units.
 Integration of the local content into the project systems to maximize local content
outcomes.
 Encouraging and enforcing the contracting firms to include local content among
their key performance objectives.
 Ensuring transparency in all dealings
7.2 Working closely with other stakeholders

The project management recognizes close collaboration with stakeholders in

implementing local content. The stakeholders need to play a key role in developing a

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successful strategy. Stake holders participation brings with it valuable Knowledge,
resources, ownership, sustainability, legitimacy and commitments.
The project management shall closely work with the following key stakeholders to
implement the SGR local content;
 The Private sector Foundation Uganda
 Uganda Manufacturers Association
 Government Ministries such as Ministry of Internal Affairs, Immigration department
to handle issues of labour importation
 Government Agencies such as Uganda Revenue Authority on Issues of taxation
and imports
 Local governments are crucial stakeholders
 The EPC Lead contractors
 Communities
 Business community and Chambers of Commerce
 Financial institutions
 Uganda Association of Building and Civil Engineering Contractors
 Uganda Association of Consulting Engineers
 Insurance firms etc.
7.3 Infrastructure and Government Support

Infrastructure such as power, water and Transport facilities and favorable tax regime are
critical to the success of local content plan and activities. SGR management therefore will
look at such factors and advice government accordingly for policy formulations.
7.4 Constant measuring of Progress

The strategic plan has an appropriate monitoring and evaluation tool with clear indicators
to allow measuring progress against set objectives. Conducting a baseline survey and
collecting suitable performance data will help to meet compliance and reporting
requirements. Management will put in place mechanisms to ensure that the targeted
beneficiaries are actuary benefitting from the strategy2
Management will constantly review the environment in which the local content strategy is
developed and implemented. The review of systems and procedures regularly may
include;
 The regulatory environment
 Availability of goods and services

2
There are cases where setting KPIs has led to perverse behavior. One example of this is ‘front’ where companies
are established with the prescribed local ownership or address, but the decision making and benefits are held by
individuals other than those who are targeted. The impact on the economy is also restricted when goods supplied
to the contractor are merely imported, repackaged and sold by local firms

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  Availability of service providers
 Social and political environment
7.5 Increase awareness of local content (communication strategy)

Currently there are a number of policies that address local content issues and yet there
is little knowledge about their existence and implementation. The SGR PMU will develop
and implement communication strategy for the Local Content Strategy. The strategy will
among other things ensure timely information flow, through different communication
channels such is radio, TV, Print media, Social Media and Public campaigns.

8.0 IMPLEMENTATION, MONITORING AND EVALUATION

This strategy will be managed by the SGR PMU on behalf of the Ministry of Works and
Transport. The PMU will establish a dedicated office to among others ensure adequate
implementation of the strategy. In executing this mandate, the office will work hand in with
the private sector, the contractor and other Government bodies to ensure proper planning,
coordination, implementation, visibility, monitoring, and evaluation, reporting,
accountability and sharing of experiences.

A Monitoring and evaluation framework that sets out appropriate indicators that allow for
the collection of appropriate data, measurement and tracking of progress against
objectives will be developed. The template will assist in estimating number of contracts
and the actual monetary value delivered by local firms for each contract. See Annex VI:
For a template for Monitoring and Evaluating Local Content
It is important to note that the environment in which a local content strategy is developed
and implemented is likely to be very dynamic. It is therefore essential to review systems
and procedures regularly.

9.0 WARFORWARD

In order to achieve the intended objectives, all the stakeholders have to play their
respective roles with maximum cooperation. The EPC contractor, a key player for the
successful implementation of the strategy shall be effectively involved.
Continuous research, test on materials and conducting study tours and visits to other
countries to understand and learn their success stories and challenges shall be
undertaken.
The project management, Ministries, departments and agencies shall look forward to
having strong government policy and legislation on local content in place.

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 ANNEX I: LIST OF PROFESIONS/SKILLS THAT SHALL BE REQUIRED
DURING THE SGR CONSTRUCTION/OPERATIONS

Profession Trade
Managers
Procurement officers
Lawyers
Humanities Monitoring and Evaluation Specialist
Transport Economist/Planners

Human resource
Accountants
Mechanical
Electrical
Engineers, Civil/structural
Technologist/Technicians Quantity Surveyors
Land Surveyors
Information Technologist
Architects
Welders
Carpenters
Steel fixers
Artisans Masons
Concrete works
Plumbers
Electricians
Mechanics
Painters
Truck drivers
Earth Moving Equipment
Operators
Railway operations, control, Traffic Engineers
Locomotive/Rolling stock Dispatchers
Railway operations Locomotive operators/crew

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  Annex II: Key Details of the Cement manufacturing companies in Uganda

Table 1; highlighting key details of the Cement manufacturing companies in Uganda

Item Company Brands/Grades Production Remarks

capacity
-It is ISO 9001 – 2008
-Clinker production and
is 500,000tons p.a ISO 140001 :2004
01 Tororo -PC - CEM 1 42.5N & and production certified
Cement - PPC- CEM 11;32.5N capacity of -UNBS certified
1,800,000tons p.a - Supplied major
construction projects
such as Karuma, Isimba
& Owen falls project
- Power Crete(CEM I 52.5 -ISO certified
OPC) -Member of the Lafarge
Hima -Powermax (CEM I 42.5 Holcim group
02 Cement OPC) 1,000,000 tons p.a -UNBS certified
(Lafarge -Powermax CEMIIA-P -Supplied major projects
Group) 42.5) such as the Entebbe
-Superset (CEMIV 32.5R) expressway, Jinja New
-Road Cem (HRB 22.5) Nile bridge, Karuma &
-Multipurpose (CEMIV Isimba dams
32.5)
-NDOVU (42.5R OPC) -UNBS certified
03 Kampala -KIFARU (42.5R) 1,000,000tons p.a - Not yet supplied any
Cement -NYATI (32.5R) major project

General comments and Analysis

From the above analysis, Hima Cement (Lafarge group) and Tororo Cement can be
competitive in the supply of the SGR project based on their available products, capacity and
experience. Kampala Cement is still a new entrant in the cement market industry with its
products not so much used in the major projects in the country and they are only certified by
UNBS

Table 2: showing Production, Exports, Imports and Net domestic supply of Cement (‘000
tons)

2010 2011 2012 2013 2014

Production 1,347 1,666 1,780 2,023 2,141
Imports 503 501 449 322 397
Exports 362 502 556 593 485
Net domestic supply (NDS) 1,489 1,665 1,673 1,752 2,053
(NDS is a proxy of growth in the construction
sector)

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 Annual % change in NDS 11.3 11.8 0.5 4.7 17.2
Source: Uganda Bureau of statistics

 Annex III: Key Details of the Steel companies in Uganda

Table 3: Highlighting key details of the Steel companies in Uganda

S/No Company Remarks

 Installed capacity of 72,000tons p.a but
producing at only about 33.5% annually
 Produces bars from 8 – 32mm
 Imports billets from China, Russia & South
01 Roofing Rolling Mills Africa
 Has a complete quality control laboratory
 UNBS & ISO certified
 Have good machines
 Installed capacity to produce 40,000tons p.a
 Produces bars from 8 – 32mm
 Imports billets from China, Russia & South
02 Madhvani Steel Africa
 Has a complete quality control laboratory
 UNBS ,ISO, EAS certified
 Have new installed machines
 Has capacity of 36,000tons p.a
 Produces bars from 8 – 32mm
 Uses sponge iron from iron ore mined from
Kabale but has challenges of reducing
03 Steel Rolling Mills phosphorous content.
 On verification, it has no spectrometer but has
an old UTM machine for Mechanical test
 UNBS certified but was reported for not having
renewed its permits for the last two years
 Has the required machines installed
04 Steel and Tube  Company is ISO & UNBS certified
 Production capacity is 72,000 tons p.a
 Imports Billets for its raw materials
 Has a complete quality control laboratory
 Installed new machinery for steel production

 Installed capacity to produce 80,000tons p.a
 Produces bars from 8 – 32mm
05 Pramukh Steel  Raw materials is from scrap
 UNBS ,ISO 9001-2008, EAS certified

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  Have new installed machines
 Production capacity of 180,000tons p.a at
Lugazi and 60,000tons p.a at Iganga
 Produces 8 -32 mm bars
06 Tembo Steel  Raw materials is majorly scrap metal
 UNBS and ISO 9001 – 2000 certified
 Production capacity 30 tons p/d
 UNBS certified
 Raw materials is majorly scrap metal and
07 Mayuge Sugar steel Sponge iron from Steel Rolling Mills
Division  Has some quality control management system
in place.
 60,000tons p.a capacity
 UNBS certified
 Has inadequate quality management system
08 Tian Tang Steel Group  Uses scrap as main raw material source
09 Abisha Steel
 Capacity not known
 Not on UNBS certification Scheme
10 Yogi Steel  Raw materials used is scrap
 Lacks capacity to supply quality products

 Annex IV: SOME MATERIALS WITH ESTIMATED QUANTITIES

SOME CONSTRUCTION MATERIALS WITH ESTIMATED QUANTITIES OF

THE SGR EASTERN ROUTE MATERIALS QUANTITIES
Unit Quantity

Earthworks/Auxiliary Gravel M3 12,045,604

materials
Geotextile M2 37,506
Geogrid M2 39,778,863
Compound 1,088,319
Geotextile M2
Ballast m3 968,500
Rock fill M3 12,047,556
Stone products Aggregates M3 790,621
Stone dust M3 381,608
Sand M3 34,538
Office & 70,345
Buildings Workshops M2

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 Accommodation 23,636
Supplying pipe Km 51.55
Pipes Drainage Pipe Km 38.8
Rebar 208,910
Pres Stressing 8,784
wires
Steel Post tensioning 16,153
wire Tons
Structural steel 5,750
Fasteners 1,645
Rails 32,888

Grade 32.5 Tons 56,849

Cement Grade 42.5 190,565
Grade 52.5 142,257

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  Annex V: licensed communication service providers

Table 4. Number of licensed communication service providers in the country, 2015.

Category Licensed
National Postal Operator 1
Domestic Courier Operators 11
Regional Courier Operators 5
International Courier Operators 8
National Telecom Operators 2
Public Infrastructure Providers (PIP 25
Public Service Provider (PSP ) ) - Voice & Data 36
PSP (Capacity Resale) 7
PSP (Capacity Resale) 28
Digital TV stations 5
FM Radio station 292
Telecom operators offering Mobile Money enhancement 4
From UCC annual market report 2014/2015 financial year

 Annex VI: A template for Monitoring and Evaluating Local Content

Contract Single Descri Contract Effectiv Anticipate Value of Expendi % of total committed
No. Souring od ption or e date d finish contract ture to value
Bidding /Supplie of initial date and any date
r name contrac amend Intern Natio Total
t ment ational nal/lo
cal

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