In a move which has shocked the transport sector and beyond, it has emerged that Kampala Capital City Authority has handed exclusive rights to a private bus company, Metu Zhongtong, to operate as a monopoly.
An agreement seen by Watchdog Uganda, KCCA executive director, Dorothy Kisaka granted Metu Zhongtong exclusive rights to operate public transport routes in Kampala city, without regard to impact current players.
“For and in consideration of the mutual covenants contained herein, authority hereby grants company the exclusive right and obligation to deploy 1000 buses and operate a mass transit bus service in Kampala capital city,” states Section 3 of the agreement signed off on July 19, 2021.
The Attorney General Mr Kiryowa Kiwanuka, however says, he consented to the agreement, for some of the routes in Kampala not all routes. However, the agreement states otherwise.
“In as far as the routes stated in the agreement, they shall operate on those stated in Kampala,” said, Mr Kiryowa, when reached out on telephone. He explained that the agreement doesn’t give Metu rights on all routes.
However, the agreement uses the word “Exclusive” twice, in the agreement.
Analysts however say, other players can still use the city if they operate from neighboring local governments, and drive through the city.
For example, a bus can come from Entebbe, drive through Kampala, Kira and turn around in Mukono or Lugazi. This leaves Metu controlling a small area.
However, there are those opposed to creation of the monopoly in the transport sector.
The revelation of exclusivity has therefore shocked not only transporters, but also government officials who were working back and forth in the past years on streaming the mass transit transport services in the Metropolitan area.
This websites understands that officials in the Ministries of Finance, Works and Transport and Local Government, as well as private companies have been building synergies to create a robust and sustainable force which shall ensure bus services don’t stop when they start running, having learned from past experiences.
Metu Zhongtong, is a little known player in the public transport sector, whoever, in its schedule to KCCA, had pledged to deliver 250 buses in October 2021 and another 250 in February 2022. Nevertheless, Metu Zhongtong has not put any buses on the ground.
Metu Zhonhtong promoter Mr Metu Katabazi, known as associate to President Museveni, also acquired 100 acres in Kasese to set up a manufacturing plant for buses, which is yet to show any signs of starting.
It remains to be seen if President Museveni gave a green light to the Metu Zhongtong deal, since the president has given other directives on running public transport in Kampala in the past.
Kampala’s legendary congestion and unregulated public transport nightmare has been subject to discussion in and out of boardrooms.
Recently, the ministry of Finance, prioritized Kira bus initiative, granting it sh240 billion during the cash strapped Covid-19 lockdown, to ensure the firm with a plant in Jinja produces some buses. Having received all funds it required, is in advanced stages of commissioning before October this year, with a manufacturing capacity for 20 buses per day, with a first order of 1,030 buses this year. The company envisions manufacturing 30,000 units by 2030 for local and regional markets.
With Metu, given concession to manufacture, deploy and manage transport services, the Kira project is going to turn into another government white elephant project.
Seriously?
Observers could not imagine how an individual bus company without history of managing transporting services in Kampala or elsewhere could be trusted with exclusivity by KCCA officials including its Legal Director, Caleb Mugisha who is one of the signatories on the agreement between KCCA and Metu Zhongtong.
According to sources this website spoke to but preferred anonymity to speak freely about the matter, officials in the relevant ministries were not aware of the negotiations or processes between KCCA Metu Zhongtong bus co. ltd, reaching an extent of locking out players such as Pioneer buses and Awakula Ennume, who are now condemned to parking their buses and go home sooner than later, because they would be operating illegally.
The documents signed on July 19, 2021 by Ms Dorothy Kisaka and KCCA director Legal, Caleb Mugisha, with Mr Metu Katabazi, and witnessed by Emmanuel Katabazi, state that KCCA granted a 15-year concession to Metu Zhongtong to exclusively run bus services in Kampala.
However, KCCA gave 24 months to Metu Zhongtong to manufacture up to 1,000 buses, and hit the streets.
Metu, according to the deal from KCCA, shall have a right to operate bus services transiting through the city and for buses originating from or terminating in the city.
By implication, Metu runs bus routes in Kampala city – but one wonders how one bus company can operate in Kampala, when research shows over 70% of passengers to and from Kampala, come from Wakiso, Mpigi and Mukono.
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