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 has a duty to finance the implementation of the Annual Road Maintenance Programmes (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.
To provide Adequate financing for maintenance of public roads
To provide effective and sustainable financing of maintenance for public roads, build partnerships with stakeholders and serve with integrity
Prudence – Transparency – Integrity – Value
Principle of operation
The URF aspires to principles of economy, efficiency and effectiveness in its operations. It also seeks to operate in a business-like manner, while remaining responsive to road user needs. These principles will move public roads away from the normal budgetary allocation process into a market domain that embraces paying for use of roads under a ‘fee-for-service’ arrangement.
In other words, road users pay for use of road space as well as the wear and tear they impose on it. The corresponding charging instruments have in-built provision for achieving equity among the various classes of road users. The Uganda Road Fund Act, in section 21(3), envisages independence of the Fund from the general taxation arrangement of Government. The Fund has the mandate to collect funds and to disburse the resulting monies to agencies based on agreed work programmes enshrined in performance agreements.
The sources of funds, listed in section 21 of the Act, include:
- Road user charges, including:
- fuel levy
- transit fees
- road license
- axle load fines
- weight/distance charges;
- Traffic and road safety fines;
- Appropriations by parliament; and
- Other donations, grants and fines.
The arising funds may be used for routine and periodic maintenance of public roads, road safety activities, expenses of UNRA and URF, research and other relevant activities.