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Tondeka bus company owners sign new deal

The Tondeka promise

The Tondeka Metro Bus project worth US$165 million (Approx.Shs600 billion) was launched in January to great fanfare.

The project is designed along the current trend of mass rapid bus transit systems that many governments on the African continent are investing in with varied levels of success.

With its promise to start mass transit bus operations with a fleet of about 980 buses in the first phase, cater to two million passengers daily, and employ 5000 people, Tondeka was received with cheers among the public. It would serve passengers within the Greater Kampala Metropolitan area which includes parts of Entebbe, Wakiso and Mukono districts within a 25-kilometre radius from the capital, Kampala city.

Terminals would be set up in Gayaza, Mukono, Matugga, and Maya. These would have transit and drop off platforms, park and ride facilities, eateries, and shopping facilities.

But the project hit bumps when the global COVID-19 pandemic broke out.

The signing of the RHT contract comes a month after the September 01 scheduled date for start of Tondeka Metro operations.

Before that the project had run into trouble over alleged procurement malpractices. Some of its critics petitioned court, the Public Procurement and Disposal of Public Assets Authority (PPDA), and the Inspectorate of Government. They want the Tondeka deals with the government and Kampala Capital City Authority (KCCA) cancelled because, they said, they were procured without following the Public Procurement and Disposal of Public Assets Authority (PPDA) guidelines; including on competitive bidding.

The Tondeka Project is to be financed by loans from EXIM Bank of India through the Uganda Development Corporation. It is guaranteed by the government of Uganda through the Ministry of Finance Planning and Economic Development.

Then in what appeared to be another blow to Tondeka, President Yoweri Museveni on Oct.10 in his Independence Day Anniversary speech banned the importation of buses. The Tondeka Project includes importing buses from Ashok Leyland of India in the first phase.  But the President said he has already written to the relevant government departments to block all importation of buses.

“I do not want to hear anymore of imported buses. They will be bought from here. We also have the capacity to assemble our own. So, I do not want to also hear about importing assembled buses,” Museveni said.

The move appeared to signal that projects like Tondeka will now have to buy strictly from the government-owned Kiira Motors Company which is piloting assembling of electric-powered Kayoola buses.

According to some analysts, although the President’s directive appears to be in the national interest, it is not clear if the change in procurement does not jeopardise the financing of Tondeka from Exim Bank of India. It is also unclear if Kiira Motors is ready to supply the about 1000 buses required immediately for the Tondeka project. With this background, the management contract between RHT Hold and Tondeka is being seen as a move to keep the momentum of the project high.

One comment

  1. There is nothing many Commuters in Kampala are looking forward to than an organized mass, conveyor public transport. But please, if Uganda/Kampala is to become tourism destination, find a nationally and internationally trendier name than Tondeka.

    And to avoid the nasty and vicious face off competition with the Boda and 14-seater (now 7-seater); I suggest that: in order to phase out the chaos and loss of jobs, Tondeka Bus company should transform itselt into a Public Ltd Company, so that the latter (Taxis Owners and Drivers Association & Boda) would subscribe shares in the company. Otherwise nothing will change.

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