Speaker Grants Hon. Nakiyi More Time for Expert Analysis as MP Questions Expressway Payback Period, Proposes Private Toll Collection

Budadiri East Member of Parliament Hon. Eng. Julius Nakiyi has challenged the government to rethink the financing and toll-collection model of the Kampala–Entebbe Expressway, arguing that the current arrangement could leave taxpayers carrying the cost of the road for far longer than its useful economic life.

Nakiyi made the submission on the floor of Parliament yesterday during plenary as legislators debated the motion for the adoption of the Infrastructure Committee’s report on the Kampala–Entebbe Expressway.

He said he fully supported the recommendations contained in the committee report but urged Parliament to use the debate to demonstrate that the 12th Parliament is prepared to protect public resources and the interests of Ugandans.

“I associate myself with the recommendations of the committee and I support them fully,” Nakiyi said.

He added that the debate should send a message that the new Parliament is made up of legislators who are prepared to scrutinise government projects without fear.

“I want this to be used as an opportunity for us to send a message that we are the 12th Parliament, a new generation of members of Parliament, who are not threatened, who are not cowards, but who are here to protect the will of the people,” he said.

Nakiyi questions the stated cost of the expressway

A major part of Nakiyi’s submission focused on the actual financial cost of the Kampala–Entebbe Expressway.

He challenged the commonly cited figure of about US$476 million, arguing that the true cost of a project financed through borrowing should also take into account the interest payable over the life of the loan.

Nakiyi referred to international accounting principles governing borrowing costs, explaining that interest associated with financing a capital project can form part of the overall capitalised cost.

He argued that if the interest payable over the 40-year repayment period is taken into account, the eventual cost of the expressway would be significantly higher than the initial project figure.

According to Nakiyi, the financing arrangement involves a loan of about US$350 million, meaning that the financial obligations associated with the project should be assessed beyond the headline construction cost.

“The project cost should be more than 500 million,” he argued, after factoring in the financing costs that would accumulate over the repayment period.

Concern over the current revenue model

Nakiyi also raised concerns about the amount of revenue currently being generated from the expressway compared with the financial obligations associated with the project.

He told Parliament that the current collection arrangement could result in a very long payback period if the road continues generating revenue at the levels contained in the committee's findings.

He contrasted the annual revenue being collected with the amount required to recover the investment, arguing that under the current model, it could take hundreds of years to recover the investment.

Nakiyi said this would be inconsistent with the 40-year loan repayment period and the expected useful life of the road. “The payback period is 400 years, yet they were supposed to pay back in 40 years,” he said.

He further warned that the physical lifespan of the road must be considered when assessing the financing model.

According to him, if the road's useful life expires around the same period as the loan or before the investment has been recovered, Uganda could find itself in a situation where there is no meaningful residual asset from which additional revenue can be generated.

“And also in 40 years the useful life of the road will be done. The road will not exist beyond 50 years, so there will be no residue over to collect,” he told Parliament.

Proposal to privatise toll collection

As an alternative, Nakiyi proposed that the government consider outsourcing or privatising the collection of toll revenue.

He said studies indicate that the expressway has the potential to generate significantly more revenue, which could be leveraged through a different collection model.

Nakiyi suggested that instead of government collecting toll revenue year after year, the collection rights could be tendered to private entities with the financial capacity to pay government an agreed amount in advance.

Using an analogy from local government market operations, he said government could invite companies or investors to bid for the right to collect tolls for a defined period.

“If we were to get people who have money, we tell them, ‘you’ll collect US$12 million in a year; instead, give us US$10 million now, then you go and collect US$12 million,’” Nakiyi explained.

He argued that such an arrangement would allow government to receive revenue upfront while transferring the responsibility for collection and management to a private operator.

Under the proposed model, the private entity would assume the commercial risk of collecting the toll revenue after paying government the agreed amount.

“If they get 20 billion, that's up to them. But from the study, we know the minimum,” he said.

 Nakiyi says private collection could align repayment with revenue Nakiyi said the proposed model could help bring the road's revenue-generating capacity closer to the repayment obligations attached to its financing.

He gave an example in which government could secure about US$10 million annually from a private operator in exchange for the right to collect the projected higher amount.

According to his calculation, an annual payment of US$10 million against a US$350 million loan would bring the recovery period to approximately 35 years.

“That would need only 35 years for us to pay back the loan because the loan is 350 million and it’s for 40 years,” he said.

Nakiyi argued that this would create a much closer match between the period for recovering the investment and the 40-year loan repayment period.

He contrasted this with what he described as the current mismatch, where the projected payback period could stretch to hundreds of years.

Speaker gives Nakiyi additional time

During the debate, Speaker of Parliament Rt. Hon. Jacob Oboth intervened to give Nakiyi additional speaking time.

The Speaker said Nakiyi's expertise warranted more time on the floor and added one minute to his allocated speaking time.

“You are an expert who deserves more time on the floor. I’m adding you a minute,” Oboth said.

The Speaker also advised the Leader of Government Business, Rt. Hon. Robinah Nabbanja, to make use of experts such as Nakiyi and deploy their expertise where it can contribute to government decision-making.

The intervention highlighted the technical nature of Nakiyi's contribution, which centred on infrastructure financing, accounting treatment of borrowing costs, revenue projections, investment recovery and public-private management of toll infrastructure.

Call for a new approach

Nakiyi concluded by urging Parliament and government to reconsider the existing approach to managing the expressway's toll revenue.

He maintained that Uganda should pursue a model that maximises revenue, reduces opportunities for inefficiency and corruption, and ensures that the financing obligations can realistically be met within the life of the asset.

“I submit that we go private,” Nakiyi told Parliament.

His proposal now adds to the wider parliamentary debate on how Uganda should manage and finance major infrastructure projects, particularly those developed through long-term borrowing arrangements.

The Kampala–Entebbe Expressway remains one of Uganda's most significant road infrastructure investments, connecting Kampala to Entebbe and serving as a major transport corridor to Entebbe International Airport.

Nakiyi's intervention therefore puts the spotlight not only on the expressway's construction cost, but also on the long-term financial sustainability of the project, the efficiency of toll collection and whether the current revenue model can adequately support the obligations incurred to finance the road.