Revival of Uganda’s National Carrier – Feasibility Study
This feasibility study was undertaken following a directive from the Presidential Economic Council (PEC) to the National Planning Authority to prepare a Paper on the Revival of Uganda’s National Carrier.The Authority undertook this comprehensive investment appraisal for the National Carrier in close partnership with key stakeholders including; the Ministry of Works and Transport, Civil Aviation Authority, Ministry of Finance, Planning and Economic Development, Uganda Development Corporation (UDC), Uganda Air Cargo, Ministry of Defense, State House, among others. In particular, the feasibility study was informed by preliminary studies by Civil Aviation Authority (carried out by Ernst & Young) and UDC. The feasibility study informed the PEC Paper that was presented to PEC on 3rd October 2016.
The feasibility study undertook a detailed analysis and review of: the causes of success and failure of Airlines globally, with particular focus on Africa and the collapse of the country’s previous National Carrier;Uganda’s existing market fundamentals;appropriateaircraft technology; suitable airline management and operational framework; and the financial and economic benefits of the various investment options for the National Carrier, including risk assessment. The study was based on internationally recommended methodologies that use cost benefit analysis techniquesas the basis for decision making on the various investment options for the National Carrier.
Overall, the report recommends that investment in the National Carrier should be considered as an infrastructure for enhancing the country’s global connectivity and competitiveness beyond direct financial benefits, as the Carrier will play a critical catalytic role in tourism development and promotion, export growth and investment in various priority sectors.The study particularly highlights that the National Carrier will facilitate significant direct foreign exchange savings to the country through cheaper air transport for passengers and cargo.
The study underlines the crosscutting role of the National Carrier in spurringgrowth and transformation across sectors of the national economy, provides solutions to past mistakes and serves as a useful basis for making financing and management decisions. It is worthwhile to note that the revival of Uganda’s National Carrier will be a key milestone towards
improving the country’s competitiveness and achieving the middle-income goal.
The Authority intends to continue strengthening its capacity for undertaking feasibility studies of various other cross-cutting projects and for training trainers across sectors and local governments in order to enhance implementation of national projects.
Prof. Kisamba Mugerwa
CHAIPERSON, NATIONAL PLANNING AUTHORITY