Uganda Road Fund (URF) was established by an Act of Parliament in 2008 to operate as a 2G (Second Generation) Fund with the objective of financing routine and periodic maintenance of public roads in Uganda from mainly reserved road user charges.
Within the East African Region, Uganda was the last country to launch a second-generation road fund. The Fund became operational in 2010. The Fund must finance the implementation of the Annual Road Maintenance Programs (ARMP) that are carried out by the Uganda National Roads Authority (UNRA), Kampala Capital City Authority (KCCA) and the other designated agencies responsible for District, Urban and Community Access Roads.
By aspiring to ensure a stable, adequate and timely flow of funds to agencies, the URF provides the opportunity for the implementing agencies to plan for efficiency and effective delivery of maintenance on their respective categories of roads. The anticipated gains due to such stable and predictable financing, together with effective monitoring of fund use, will bring improvements to the condition of roads; reduce road maintenance costs; encourage a vibrant local construction industry; reduce road maintenance backlog and eventually reduce total transport costs, with the consequent gains to the national economy.
Background
In response to the need for reforms in the road sub-sector, the Uganda Road Fund was established to finance road maintenance and improve the effectiveness of road maintenance through Road Management Initiative (RMI) by Sub-Saharan Africa Transport Policy (SSATP) to manage road networks by treating and managing them like a business. Within the East African Region, Uganda was the last country to launch a second-generation road fund.
As a Second-Generation Road Fund, it must finance the implementation of the Annual Road Maintenance Programs (ARMPs) of designated agencies that include Uganda National Roads Authority (UNRA), Kampala Capital City Authority (KCCA) and Local Governments responsible for District, Urban and Community Access Roads.
Vision: To provide Adequate financing for the maintenance of public roads
Mission: To provide effective and sustainable financing of maintenance for public roads, build partnerships with stakeholders and serve with integrity
Core Values
- Prudence
- Transparency
- Integrity
- Value
How do I contact the Uganda Road Fund
Tel: +256 (0) 312 178 100, Fax: +256 (0) 414 257 071
Website: www.roadfund.ug
E-mail: info@roadfund.ug
Where is the Uganda Road Fund located
Plot 10, Katwe Road Nakasero, 5th Floor, Twin Towers, P.O Box 7501, Kampala, Uganda
Principles of the Fund
The Fund achieves its goals by giving effect to the following principles:
- Management of its affairs in a business-like and cost-effective manner and per modern management practices and techniques and, in particular, apply to its operations the best standards of financial management and accounting;
- Ensure that its operations are designed for the provision of the best services to its customers while maintaining a high degree of responsiveness to their needs.
VOTE MISSION STATEMENT
To provide effective and sustainable financing of maintenance for public roads build partnerships with stakeholders and serve with integrity
STRATEGIC OBJECTIVE
- To strengthen institutional capacity for better service delivery and Sustainability
- To efficiently and effectively mobilize and administer funds for the maintenance and safety of public roads
- To ensure effective and timely preparation of road maintenance programs
- To ensure satisfactory accountability for road maintenance funds
- To improve networking and partnerships with key stakeholders in road maintenance
The 2G Status Fund
The Uganda Road Fund operates as a Second Generation (2G) Road Fund that finances road maintenance from road user charges levied on applicable road usage proxy instruments that include:
- Road user charges as the Minister may, on the recommendation of the Board determine by statutory order including:
- International transit fees, collected from foreign vehicles entering the country;
- Vehicle license fees;
- Fuel levy;
- Toll fees under the Traffic and Road Safety Act.
- Any revenue received by the Fund or Fund Management Board for the Act.
- Any revenue transferred to the Fund or Fund Management Board by the terms of any arrangement made or approved by the Minister.
- Any revenue derived from the sale of any property, movable or immovable, by or on behalf of the Fund.
- Money received by the Fund by way of voluntary contributions.
- Fines payable under the Act; and
- Earnings from investments made under section 34 of URF Act 2008 and interest accruing from monies of the Funds deposited in Banks.
Principles of Operation
The Uganda Road Fund (URF) operates under the principles of economy, efficiency, and effectiveness. It aims to function in a business-like manner while remaining responsive to the needs of road users. This approach transitions the management of public roads away from traditional budgetary allocation processes into a market-oriented model that incorporates a ‘fee-for-service’ arrangement. In this model, road users are charged for the use of road space and the wear and tear they cause.
To ensure fairness among different categories of road users, the Fund incorporates equitable charging instruments. According to section 21(3) of the Uganda Road Fund Act, the Fund is designed to operate independently of the general government taxation system. It has the authority to collect funds and distribute them to agencies based on agreed work programs defined in performance agreements.
Funding Sources
The Fund’s financial resources are primarily generated from various road user charges, including:
- Fuel levy
- Transit fees
- Road licenses
- Axle load fines
- Tolls
- Weight/distance charges
- Traffic and road safety fines
Uganda’s Road Network
The URF oversees the maintenance of a total road network of 102,002 km, distributed as follows:
- 20,856 km of National Roads managed by the Uganda National Roads Authority (UNRA)
- 1,500 km of Kampala City Roads managed by the Kampala Capital City Authority (KCCA)
- 38,500 km of District Roads managed by District Local Governments
- 42,674 km of Community Access Roads managed by District Governments
- 45,000 km of Urban Roads managed by Urban Councils
Partnerships
The Uganda Road Fund collaborates with various partners to enhance its operations, including:
- Ministry of Works and Transport (MoWT)
- Ministry of Finance, Planning and Economic Development (MoFPED)
- Ministry of Local Government
- Development Partners
- Designated Agencies
- Civil Society Organizations
- Professional Bodies
Governance Structure of the Uganda Road Fund
The Uganda Road Fund (URF) is governed by a seven-member Fund Management Board that includes representatives from both the government and the private sector. This board is comprised of members from key ministries and professional associations, such as:
- Ministry of Finance, Planning and Economic Development (MoFPED)
- Ministry of Works and Transport (MoWT)
- Freight Forwarders Association
- Uganda Transporters Association
- Institute of Public Certified Accountants of Uganda
- Uganda Institute of Professional Engineers
Leadership
The primary responsibility of the Board is to oversee the functions outlined in the URF Act, ensuring that the Fund operates effectively. Day-to-day management of URF activities falls under the Executive Director, who leads the Fund’s departments and oversees fund
URF’s governance structure includes oversight by the Minister for Finance, Planning, and Economic Development, who, along with the Minister for Works and Transport, ensures that the Fund complies with regulatory and operational standards. URF reports to Parliament via MoWT, maintaining transparency and accountability in its operations. Additionally, the URF Act of 2008 provides a consultative arrangement involving the Ministers for Finance, Works and Transport, and Local Government for enhanced oversight.
Mr. Simon A. Madraru– Board Chairperson
Mr Chillanyang Cyprian– Member Representing Ministry of Local Government
Mr. Hannington Ashaba– Member Representing the Ministry of Finance Planning and Economic Development
Ms Dorothy Kiyaga Nseka– Member Representing the Accounting Professional
Ms. Phoebe Muathe– Member Representing Uganda Freight Forwarders
Dr. Eng. Andrew G. Naimanye– Executive Director/Secretary to Board
Mr Winstone Katushabe– Ministry of Works
Eng. Andrew Kitaka– Professional Engineer
Procurement and Disposal Unit (PDU)
The Procurement and Disposal business processes take their strategic and operational direction from the Public Procurement and Disposal of Public Assets Act, 2003/2014 together with subsequent Regulations and Guidelines. The processes are clearly described in the Act and Regulations and are affected by a mandatory Procurement and Disposal Unit in each governmental or quasi-governmental organisation.
The Procurement and Disposal Unit reports directly to the Executive Director, who is also the Accounting Officer of the Secretariat. The placement of the Procurement and Disposal Unit in the organisation structure reflects its cross-cutting role, which impacts all departments.
The Procurement and Disposal Unit is charged with ensuring timely and compliant procurement of goods, works and services in support of the Fund’s internal activities. In this context and in compliance with the relevant laws and regulations, the roles and responsibilities of key players in the procurement cycle are stipulated and thus owned.
The Procurement and Disposal Unit also contributes to and supports the external activities of the Fund by providing advice in support of planning and programming, monitoring and evaluation and audit functions of the Fund where procurement and disposal issues affect performance. This engagement supports good governance and enhanced accountability in the operations of the Fund.
Business Processes
The Fund implements its mandate through key business processes that include:
- Funding operations – relates to sourcing of funds and their application to the improvement of Uganda’s road network infrastructure;
- Impact of funding – related to the prudent use of resources to ensure roads are maintained in a motorable state through maintenance financing, as a way of shortening journey times and reducing transportation costs;
- Fund Management – related to the implementation of the URF Act and monitoring the execution and use of the URF funding efficiently and transparently to ensure accountability
- Acquisition and management of human resources – to facilitate the Secretariat and URF to execute its functions.
Institutional Arrangements and Linkages
The Uganda Road Fund has working relationships with agencies responsible for road management, funding agencies, professional bodies, and the public in the promotion of transparency and accountability in road management and maintenance.
Major Achievements in 2022/23
In the second quarter of the fiscal year, the Uganda Road Fund (URF) achieved significant milestones regarding its budget allocation and physical performance in road maintenance. The Fund received 27.74% of its annual budget, amounting to UGX 135.574 billion. Of this, UGX 33.51 billion (representing 19% of the District, Urban, and Community Access Roads (DUCAR) annual budget) was allocated for DUCAR maintenance, while UGX 100 billion was allocated to the Uganda National Roads Authority (UNRA), accounting for 32.55% of its annual budget. Overall, the Fund cumulatively received and allocated UGX 197.559 billion, with UGX 124.105 billion (or 40.37% of the Indicative Planning Figure (IPF)) for UNRA and UGX 73.454 billion (representing 42.2% of its IPF) for DUCAR.
Physical Performance Outputs
National Roads
- Routine Manual Maintenance: 4,868 km of paved roads and 14,557 km of unpaved national roads.
- Routine Mechanized Maintenance: 355.9 km of paved roads and 2,717 km of unpaved roads.
- Routine Maintenance (Framework): 99 km of paved roads and 186 km of unpaved roads.
- Periodic Maintenance: 3 km of paved roads.
- Maintenance and Operation: 10 ferries.
- Enforcement of Axle Load Control: Conducted on 11 fixed and 6 mobile weighbridges.
District, Urban, and Community Access Roads (DUCAR)
- Routine Manual Maintenance: 27,278 km of unpaved roads.
- Routine Mechanized Maintenance: 6,216 km of unpaved roads.
- Periodic Maintenance: 1,044 km of unpaved district roads.
Kampala Capital City Authority (KCCA)
- Routine Mechanized Maintenance: 97 km of paved roads and 421 km of unpaved roads.
Municipal Council
- Routine Manual Maintenance: 1,527 km of roads.
- Routine Mechanized Maintenance: 500.6 km of roads.
- Periodic Maintenance: 88.57 km of roads.
- Installation of Culverts: 312 culverts on Municipal Council Roads.
New Cities
- Routine Manual Maintenance: 525 km of roads.
- Routine Mechanized Maintenance: 225.7 km of roads.
- Periodic Maintenance: 19.86 km of roads.
- Installation of Culverts: 86 culverts.
- Repair of Bridges: 2 bridges.
These achievements underscore the Uganda Road Fund’s commitment to enhancing the quality and accessibility of the country’s road network through efficient allocation and effective maintenance strategies.