KAMPALA – The Ministry of Finance has revealed that the Uganda Development Corporation (UDC) is scrutinising the investment potential of Tondeka Bus company Limited to see if the proposal is worth injecting in money by Uganda taxpayers.
This was revealed by the Director Public-Private Partnership, Ministry of Finance, Jim Mugunga who told MPs on the Trade Committee on Trade, Tourism and Industry, that Government-mandated UDC to scrutinize the possibility of Tondeka being a potential investor and that are still waiting for the report.
The interface between the Ministry and Parliament followed allegations made by Alex Ruhunda (Fort Portal Municipality) accusing Government of being in bed with Tondeka bus owners, that a number of different stakeholders were left behind as the Tondeka was awarded rights to bring about 1000 buses in an initiative to decongest Kampala.
Mugunga told Parliament that currently, UDC is at assessment/evaluation level as it explores the project with all possible proposals and that it will be so early for one to conclude that Tondeka has already been given green light to go ahead with its plans.
However, the MPs questioned what UDC has in plans for the local investors who have assembling companies but in this Tondeka bus project were left behind as a manufacturing company from India is being looked upon to provide the needed buses.
In response, the Director Investment at Uganda Development Cooperation Mugerwa Andrew though they are mindful of the promotion of Buy Uganda Build Uganda (BUBU), a number of steps have to be followed and that they are in talks with all the local car assembling companies who might be considered to provide partial of the consignment of buses just in case Tondeka is awarded the project.
It is said that the government is planning to borrow Shs600bn from EXIM bank of India on behalf of Tondeka Bus which is a private entity that intends to invest in decongesting Kampala city.