Colas News

Colas in deal for £100 million Uganda project

26-04-2019

Colas in deal for £100 million Uganda project

COLAS UK has today [26 April 2019] signed a deal with the Ugandan authorities which gives the contractor an exclusive window to develop a multi-million-pound project in the east African state.

Under the terms of the Memorandum of Understanding, Colas will develop and negotiate a strategically-important project to supply and install post-harvest processing facilities at 112 locations throughout Uganda. Colas was invited to sign the MOU at a ceremony today in Entebbe with the Ugandan Agriculture Minister, Hon Mr Vincent Ssempijja, and Peter West, the British High Commissioner for Uganda.

Carl Fergusson, CEO of Colas UK, said: ‘Colas is delighted to be signing this MOU today and for the opportunity to support Uganda and the ministry in delivering its commitment to enhance crop production and productivity. We will work together to deliver sustainable and environmentally safe methods for improved food and nutrition security, as well as increased employment, export earnings and improved livelihoods for farmers. The project also has significant potential to deliver added value to locally produced crops which would normally be exported for processing.’

Mr Fergusson added: ‘This project, aligns with the outward-looking international element of the Colas UK strategy - which seeks to expand our activities in East Africa while supporting continued regional development.’

Colas UK is building an impressive reputation in East Africa. Its involvement in the highly-praised on-going work at Hoima airport, in the west of Uganda, demonstrates Colas’s expertise in remote locations and complex projects.

The total value of this latest project is likely to be more than £100 million. If successful, the development and implementation of the project will draw on expertise and resources from Colas in the UK and in the Middle East and Southern Africa. It would allow Colas UK in Uganda to further consolidate capability in the region. It is anticipated a contract will be in place for mobilization towards the end of 2019.

To deliver the ambitious project, Colas UK would team up with Alvan Blanch, the specialist UK manufacturer of agricultural processing equipment. In 2015, the British manufacturing and project engineering company was commissioned by the Government of Uganda to supply a 3,000 tonne maize cleaning, drying and storage plant in Masindi, Uganda. With much of the processing hardware coming from the UK, the project offers the potential for substantial UK export content.

Similar to the Hoima Airport project, Colas will deploy international best practice, along with environmental and social sustainability for this type of project. Thousands of farmers in Uganda will benefit from the project, which will help Uganda realise its full potential as the region’s bread-basket, blessed with its year-round perfect climate for farming.