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ANNUAL report 2019

Uganda national association of BUilding and civil EnginEEring contractors

Uganda National Association of Building and Civil Engineering Contractors

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1 ANNUAL REPORT 2019

CoNteNtS>

PRESIDENT’S REPORT..................................5

EXECUTIVE DIRECTOR’S MESSAGE ........11

MINUTES OF THE 25TH AGM......................12

AUDITED FINANCIAL STATEMENTS 2018......................................26

FINANCIAL REPORT SEPT. 2019.................41

ANNEXES......................................................62

CODE OF CONDUCT....................................74

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Vision

Mission

core Values

sTraTeGic objecTiVes

To be the lead engine for growth and development of the construction industry in the region.

To promote and protect the shared interests of members, and the construction industry as a whole, through mo-bilization, advocacy, networking, and innovative service provision.

Integrity and Honesty, Transparency and Accountability, Commitment, Client orientation, Proffesionalism

Strengthen institutional policies, 1. structures and procedures.

Diversify the association’s financial base. 2. Sustain membership growth. 3. Improve service delivery. 4. Effective lobbying and advocacy. 5. Enhance visibility6.

THEME:STRATEGIC PARTNERSHIPS FOR SUSTAINABLE GROWTH

UNABCEC SecretariatUganda National Association of Buildingand Civil Engineering Contractors (UNABCEC)Plot M764, Coronation Avenue,UMA Show Grounds, LugogoP.O Box 34046, KampalaTel: +256 392 795036Email: [email protected]




UNABCEC Board of Directors 2019-2021

UNABCECPast Chairmen

Hon. Eng.Dr. Daudi Ssubi MageziCHAIRMAN UNABCEC

R.I.P 1993 - 1995

Hon. Eng. Katwiremu Yorokam Bategana

CHAIRMAN UNABCEC1995 - 1997

Godfrey ZaribwendeCHAIRMAN UNABCEC

1997 - 2005

Dr. Dan Tindiwensi CHAIRMAN UNABCEC

2005 - 2007

Eng. Birantana GumisirizaCHAIRMAN UNABCEC

2007 - 2013

Eng. Jonathan wanziraCHAIRMAN UNABCEC

2013 - 2015

Mike Serunkuuma

Programs Officer

Nuwagira JettyFinance/Admin

Manager

UNABCEC Secretariat 2019 Sponsors

Elizabeth MuhebwaExecutive Director

Flavia Kebirungi Administrator

Musiitwa Zimula AbubakerField / Office Assistant

Harriet Asabiti Office Attendant

UNABCEC

Robert Ssenozi Director

Eng. Jamesone OlonyaDirector

Alice BongyeirweDirector

AgabaCollinDirector

Mr. Francis Karuhanga President

Agaba EdwinDirector

SybellaNamirembeTreasurer

Mark Nsubuga Director

Ronald MugabiDirector

Moses Tiberondwa Director

Can. Eng. JonathanMweddeDirector

Dott Services Ltd

Mota-Engil Engenharia E Construcao Africa S.A

NC Bank

Diesel Pro Ltd

Tile Center

Terrain Plant Ltd

Niletrac Limited

Moriah Media

Mantrac Uganda

Eco Concrete Ltd

East African Piling Company Ltd

Toyota Uganda

Steel & Tube Industries Ltd

CarMix

Metso

Massenza

Abubaker Technical Services Ltd

Adapt Technical Services

April, 2019 | 7www.unabcec.co.ug UNABCEC_UGUNABCEC




R.I.P 1993 - 1995




1997 - 2005


2005 - 2007


2007 - 2013


2013 - 2015

Mike Serunkuuma

Programs Officer


Manager






UNABCEC




AgabaCollinDirector


Agaba EdwinDirector






Dott Services Ltd


NC Bank

Diesel Pro Ltd

Tile Center

Terrain Plant Ltd

Niletrac Limited

Moriah Media

Mantrac Uganda

Eco Concrete Ltd


Toyota Uganda


CarMix

Metso

Massenza







R.I.P 1993 - 1995




1997 - 2005


2005 - 2007


2007 - 2013


2013 - 2015

Mike Serunkuuma

Programs Officer


Manager






UNABCEC




AgabaCollinDirector


Agaba EdwinDirector






Dott Services Ltd


NC Bank

Diesel Pro Ltd

Tile Center

Terrain Plant Ltd

Niletrac Limited

Moriah Media

Mantrac Uganda

Eco Concrete Ltd


Toyota Uganda


CarMix

Metso

Massenza







R.I.P 1993 - 1995




1997 - 2005


2005 - 2007


2007 - 2013


2013 - 2015

Mike Serunkuuma

Programs Officer


Manager






UNABCEC




AgabaCollinDirector


Agaba EdwinDirector






Dott Services Ltd


NC Bank

Diesel Pro Ltd

Tile Center

Terrain Plant Ltd

Niletrac Limited

Moriah Media

Mantrac Uganda

Eco Concrete Ltd


Toyota Uganda


CarMix

Metso

Massenza




Ibrahim KasiitaMemebership

Consultant

Allan KamukamaField / Office

Assistant

Muhiirwe RonaldAdminstrative

Asstistant SACCO




R.I.P 1993 - 1995




1997 - 2005


2005 - 2007


2007 - 2013


2013 - 2015

Mike Serunkuuma

Programs Officer


Manager






UNABCEC




AgabaCollinDirector


Agaba EdwinDirector






Dott Services Ltd


NC Bank

Diesel Pro Ltd

Tile Center

Terrain Plant Ltd

Niletrac Limited

Moriah Media

Mantrac Uganda

Eco Concrete Ltd


Toyota Uganda


CarMix

Metso

Massenza




Golooba VincentProjects Intern.

Eng. Ronald

Mugabi




R.I.P 1993 - 1995




1997 - 2005


2005 - 2007


2007 - 2013


2013 - 2015

Mike Serunkuuma

Programs Officer


Manager






UNABCEC




AgabaCollinDirector


Agaba EdwinDirector






Dott Services Ltd


NC Bank

Diesel Pro Ltd

Tile Center

Terrain Plant Ltd

Niletrac Limited

Moriah Media

Mantrac Uganda

Eco Concrete Ltd


Toyota Uganda


CarMix

Metso

Massenza




Eng. Ronald

Mugabi

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Agenda

ANNUAL GENERAL MEETING26th

27th November 2019, Sheraton Kampala Hotel, Rwenzori Ballroom. 9:00am

Sn. Time iTem

1 9:00am–9:30amArrival of Members & RegistrationWelcome tea

2 9:30am–9:40amCall to orderOpening PrayerAdoption of the Agenda

3 9:40am–10:10am President’s address

4 10:10am–11:10amReview & Confirmation of minutes for the 25th AGMMatters arising

5 11:10am–12:10am Review of the new strategic plan 2020 – 20246 Working tea7 12:10am–12:40am Presentation of Financial Audit report8 12:40am–1:00pm Confirmation of Auditors9 1:00am–1:30pm Open Discussion10 1:30pm Closure & Lunch

Board members of the 3rd Board Of Directors.




Francis A. Karuhanga

preSideNt’S report

On behalf of the 3rd Board of Directors of UNABCEC, I am pleased to welcome you all

to this year’s Annual General Meeting of the certified genuine players in the construction industry.

First and foremost, I would like to cor-dially recognize and present to you the Association’s governing body members of the 3rd Board of Directors who were elected by the 26th AGM on 6th De-cember 2018. I request them to rise for recognition. I would also like to thank and present to you the management team led by Mrs. Elizabeth Muhebwa, the Executive Director, who, with the support of the Board, have enabled the Association reach remarkable achieve-ments in 2019 as I am going to brief you. Members of the Secretariat please rise for recognition.

As well laid in the agenda in the An-nual Report Pack before you, we have 4 hours to discuss the key achievements of the Association in the year 2019, re-view the draft strategic plan 2020-2024 and a summary of the financial perfor-mance of the Association.

The Secretariat, with the Board as the top governing body, has continued to strive and work towards achieving the overall goal of the Association of being a laudable, self-sustaining, and members’ responsive organisation that meets the needs of the construction industry in a socially responsible man-ner.

This report presents the key result outcomes of the strategic objectives of the Association in 2019.

1. strengthened institutional Gov-ernance, Policies, structures and Procedures

The strength of our voice as an As-sociation is dependent on the strength of UNABCEC as an institution. The new Board of Directors therefore prioritised the following initiatives under this stra-tegic objective.

a) board induction UNABCEC organised an induction for

the new Board of Directors 2019 - 2021 to orient the directors about the As-sociation and equip them with knowl-edge on their roles and responsibilities to make it a success.

b) strengthening board subcom-mittees

To strengthen the effectiveness of the Board, Standing and Special Commit-tees were instituted to oversee different areas of the Association. These include: Executive Committee, Budgeting and Finance Committee, Nominations and Elections Committee, and Publicity and Members’ affairs Committee which are comprised of individuals from member companies and chaired by a Board Di-rector who not only drives discussions of the subcommittee but also reports back to the Board to ensure continued flow of information.

Among the non-instituted commit-tees include the bylaws and policies committee, which will be instituted in the next Board meeting and the Dis-ciplinary Committee which, according to S12 of the UNABCEC Constitution, will be chaired by the General Secretary who hasn’t been appointed yet. The committee is constituted by 4 more members including two (2) from the general assembly. I, therefore, take this opportunity to welcome nominations of these two people.

c) strategic Plan With the elapse of the strategic plan

2014-2018, there was need to formu-late a new plan to guide the Associa-tion’s affairs for the next 5 years. The process of reviewing the old strategic plan and formulation of a new one in time was delayed by the need to have the board directors inducted first and get them acquainted with their roles and responsibilities. The process was also hindered by slow response from the selected participants during the review of the old plan which was ma-jorly attributed to the busy nature of our members. However, with the en-gagement of an external consultant - Institute of Corporate Governance of Uganda (ICGU), the process of review-ing the strategic plan 2014-2018 to for-mulate a new one (2020 - 2024) has been successfully done and a draft is going to be presented in this 26th AGM

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for Members to review and give comments.

2. Diversified association’s Financial baseA strong Association needs a strong financial backing to

enable it effectively implement the agreed strategies. This year, the Association has managed to enhance her financial sustainability through the following avenues;

a) Membership fees collection. This year, we registered a 28% increase in membership

revenue. A total of 110 members subscribed to the Asso-ciation this year as compared to 86 and 83 members who subscribed in 2018 and 2017 respectively. Below is a com-parative membership revenue analysis for the years 2017, 2018 and 2019.

b) event sponsorshipsEfforts in this regard were particularly targeted at events

such as the bi-annual stakeholders’ engagement forums, CEO Social Evenings, workshops and seminars organised by the Association to complement the membership revenue in diversifying the Association’s financial base.

In the year 2018, the sponsorships from events fetched an income amounting to UGX13.7Million. This year, the income grew 8 times; i.e.: from 13.7 Million to 109.7 Million.

c) advertising in unabcec Publications. The publication of the quarterly Contractor Magazine was

reinstated this year with 2 issues (12th and 13th) success-fully published and one (14th) still in pipeline. As a result of this achievement, UGX66 Million has been raised. This is equivalent to 100% growth in income owing to the fact that no publication was made in 2018.

3. sustained Membership Growth/recruitment DriveFor the Association to have a bigger voice that can be

heard, it must have big numbers in terms of membership. For the years 2017 and 2018, a total of 83 and 86 members subscribed to the Association, with 14 and 18 of these being new members respectively. This year we have registered 48 new fully subscribed members, which equivalent to 44% of the 110 fully subscribed members.

This improvement is attributed to the dedicated member-ship team, the presidential pardon that waived arrears of old members, improved service delivery as well as some entities like National Medical Stores and some District Local Govern-ments requiring a UNABCEC Certificate as one of their bid eligibility requirements. Below is a comparison of member-ship growth trend over the last 3 years.

4. improved service DeliveryIn order to enhance the relevance of UNABCEC to Mem-

bers, the Association has made sure that all undertaken initiatives positively address the issue of improved service delivery to Members. Below are the illustrations of the work done towards enhancing the relevance of the Association to members:

a) Discount Programs. Efforts have been taken to negotiate partnerships with

financial institutions, suppliers and manufacturers of con-struction materials and/or equipment for special offers to members. This year, four (4) partnerships have been success-fully concluded with signed MoUs for providing exclusive offers to UNABCEC members. Under these partnerships, i). Ganatra Plant and Equipment Ltd (authorised dealers in JCB earthmoving equipment in Uganda) offers a 5% subsidy on the purchased equipment, one (1) year comprehensive insurance, two (2) free services, two (2) years extended war-ranty and Operator training from their training centre in Nairobi, ii). Africa Road Furniture Ltd (dealers in road traffic signs , safety signs/ labels, road studs, guardrail reflectors, screen printing services) offers a 5% discount off the purchases, iii). Tyre Express (u) Ltd (dealers in a wide range of both pas-senger and off the road tyres) offers special discounts on all




tyre sizes including Passenger tyres- 7% , 4x4 & SUV- 10%, Truck Tyres- 7% and OTR - 5%, and iv). Toyota Uganda Limited offers a Ya-maha motorcycle and UGX 3,000,000 worth of fuel to a UNABCEC who pur-chases a double cabin hilux from them.

These programs are exclusive to fully subscribed members. (Please refer page 40 of issue 13 of The Contractor Magazine for more details about this program)

b). recommendations for Members. Letters recommending members to

potential employers, equipment sup-pliers as well as financial institutions for bidding purposes, hire/lease services and/or comfort letters as well as loan facilities respectively have been issued. Extracts of such letters have been an-nexed to this report for ease of imme-diate reference. The association has en-couraged member-to-member leasing/hiring of equipment/tools among other services.

c). The Tender Portal We continue to circulate information

on advertised tenders from all over the country, daily on WhatsApp members’ platform and a weekly summary every Friday via email to all members. This has

enabled members to access fast and quick information on available tender opportunities in different procurement entities around the country whilst avail-ing them time to concentrate on their other pertinent business errands.

We also share bi-annual reports on awarded contracts with members as well as congratulating the successful ones.

d). Graduate Training Program.This program was initiated this year to

offer graduate training to finalists/fresh graduates of construction and engineer-ing related fields with an aim of empow-ering tomorrow’s contractors and build a future for the industry.

The pilot list of 109 successful appli-cants was shared with members for their selection. So far 10% (11No) of the ap-plicants have been deployed by some of the members. I appeal to all members to support this program as we look forward to bringing technicians and other rele-vant personnel on board so as to avail all kinds of staff required by the members in their day to day business.

Please feel free to get in touch with the secretariat on 0392 795036 to access the list. e). courtesy visits to Members’ of-fices and Project sites.

Project Monitoring Unit on a media guided visit to Terrain services Limited in Soroti.

As a way of having a direct touch with her members, UNABCEC through her Projects Monitoring Unit has made courtesy visits to members’ sites and/or offices to get to understand the chal-lenges they are facing in business and how best the Association can serve them better.

This year, 17% of the members have been visited and the outcomes of the visits were discussed by the manage-ment in order to find possible solu-tions to the challenges. This initiative has been largely constrained by lack of enough resources to make frequent visits to all the members. We hope to improve on the visits next year once the vehicle loan repayment is completed in February.

f). Media Guided VisitsThe Secretariat’s Project Monitoring

Unit together with the Media Team from NTV Uganda visited some of the mem-bers’ projects with an aim of showcasing works done by the members. Two (2) visits were done this year to members’ projects in the Western and East & North Eastern parts of the country.

The first visit was carried in first half of the year, where the Association covered 3 members in western part of Uganda covering projects for Armpass Techni-cal Services Ltd and Kasese Nail and Wood Industries Ltd on the Mubende-Kakumiro-Kagadi road project, Ruzairwe bridge construction on Pacwa-Kyebando road by Armpass Technical Services and construction of Hoima Municipal roads project by Abubaker Technical Services & General Supplies Limited.

The second visit was made to the Eastern and North eastern part of Uganda covering 3 members including Dott Services Limited on the renovation of Nakalama-Tirinyi-Mbale road project, Mota-Engil Engenharia E Construcao Africa S.A on a maintainance project of Tororo-Soroti road and Terrain Services Limited on building and civil engineer-ing works project in Soroti.

g) stakeholders engagement Fo-rums

The Association holds bi-annual con-tractors’ forums dubbed “Stakeholders’

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Engagement Forums” which act as a platform for UNABCEC members to share insights and discussed with other indus-try stakeholders on a number of issues pertinent to the industry.

The mid-year Stakeholders engage-ment forum took place on 4th July 2019 while the end of year forum is happen-ing today on 27th November 2019.

h) unabcec saccoThe Uganda Building and Civil Works

Contractors Co-operative Society Lim-ited is up and running.

With 3 years of existence currently, the SACCO provides a number of financial benefits to UNABCEC members. I would like to invite Can. Eng. Jonathan Mwedde, the current Chairman for the SACCO to give a brief about this initiative.

5. lobbying & advocacyUnder this strategic objective, UNAB-

CEC has made strides in representing the interests of members to government and to lobby for better policies, a conducive business environment as well as a lev-elled playing field through the following achievements.a) We attended an engagement workshop in February organised by UNRA aimed at evaluating the manda-tory subcontracting policy on oil roads projects. We presented a paper on man-datory subcontracting policy that UNRA piloted on oil roads projects highlight-ing deficiencies in the policy, challenges in implementation of the policy, con-straints of and possible improvements or modifications to the policy. The UNRA team led by the ED - Ms Allen Kagina pledged to internalise the paper and see how to consider some of the proposed improvements that are within their man-date. UNRA-ED during the engagement confirmed that in her office, a query handling table had been put and intro-duced the staff in her office earmarked to handle UNABCEC matters.

b) We had a meeting with the commit-tee of parliament on finance and eco-nomic development regarding the local content amendment bill 2019 in which a paper with recommendations to the

proposed amendments was presented and discussed with the committee.

c) Engaging various procurement and disposal entities and advocating for re-alistic/fair bid qualification requirements most specifically in regard to average an-nual turnover and works of similar nature. Among the entities engaged include UNRA, KCCA, UNEB, Makerere University and Ministry of Education and Sports, Nakawa Vocational Training Institute ex-tract of these letters attached as annex to this publication.

Our engagement with UNRA led to a review of the bid qualification require-ment for average annual turnover on Bid Ref. UNRA/WORKS/2018/19/00024/01-25 for access and drainage improvement works for eight (8) swamps. The amounts of average annual turnover earlier re-quested for each Lot were revised to half, and an addendum was issued to that effect and some members were able to participate in this bid. An extract of such advocacy letters has been annexed to this publication.

d) We also engaged PPDA as the regula-tory body in this respect to intervene and issue guidelines to all procuring and disposal entities on bid qualification cri-teria if the bids are to be fair, more inclu-sive and competitive.

6. enhanced VisibilityUnder this objective the Association

aimed at improving the brand visibility of the Association to all stakeholders of the industry and the general public at large. The following interventions have been employed this year to achieve this objective.

a) representation in relevant bodies and/or committees

UNABCEC is a certified member to Pri-vate Sector Foundation Uganda (PSFU), Uganda Manufacturers Association (UMA), Federation of Uganda Employers (FUE) and Uganda National Chamber of Commerce & Industry (UNCCI).

We are also represented on various rel-evant committees namely; the Construc-tion Industry Development Committee

(CIDC) under the Ministry of Works and Transport, Multi-Stakeholders’ Group of CoST Uganda Chapter, Construction Sector Skills Council under the Ministry of Education and Sports, UTC – Lira 6th Governing Council and TVET Policy Im-plementation Working Group under the Ministry of Education and Sports,

b) The contractor MagazineThe Contractor Magazine acts as the

voice for the construction industry by highlighting issues, problems and pos-sible solutions relating to the construc-tion business community. Production of the quarterly Contractor Magazine was revived this year with so far two (2) pub-lications: the (12th and 13th issues) and the 14th is in pipeline expected to be published in January 2020.

We continue to print and distribute (free of charge) 5000 copies of each is-sue to all Members and other industry stakeholders including international and local partners, Ministries, Departments and Agencies, works and technical of-ficers of all Central and Local Govern-ment entities, Members of Parliament, academic institutions, Banks, Embassies and the general public. The Contractor also enables members to showcase their works and promotes brand visibility of their companies to the potential clients to whom these magazines are distrib-uted.

c) international Forums/WorkshopsThe Association was represented in 3

international events:

i) The General Meeting for African Fed-eration for Construction Contractors’ As-sociation (AFCCA) in Cairo-Egypt,

ii) The 10th International Infrastructure Investment and Construction Forum (II-ICF) in Macao – China, and

iii) The innovation days organised by CNHI (dealers in CASE brand of equip-ment) in India. These forums contributed to improved visibility of the Association and opportunities for future partner-ships.




d). Participation in stakeholder awareness Workshops organised by differ-ent Government/Private entities & Donors.

The table below shows the workshops we have participated in this year.

WorkShop deTailS organiSer ouTcome/remarkS

Supplier development workshop focusing on Civil Engineering Services in the Oil and Gas sector on 30th April 2019

CNOOC After UNABCEC’s presentation and appeal to review the stringent bid requirements for local participation, some of these requirements were reduced and others waived for national providers in the oil and gas sector.

26th FIDIC GAMA Annual Infrastructure Confer-ence on 13-15th May 2019

Uganda Association of Con-sulting Engineers

The conference acted as a platform for engi-neers and other participants to discuss the role of consulting engineers in driving growth

in African economies. Bidders’ conferences on electronic Government Procurement (e-GP) on 16th and 31st May 2019

PPDA Members were acquainted with the new government procurement system.

Construction and Engineering conference on 19th July 2019

Petroleum Authority of Uganda

Contractors were provided with a clear understanding of the oil and gas projects and opportunities in the country.

Workshop on ESHS practices in the Road Con-struction Sector on April 16, 2019

World Bank Members were acquainted with information on the ESHS practices.

Annual Joint Transport Sector Review Workshop on 5-6th September 2019

Ministry of Works and Trans-port

Constraints, challenges and possible solutions to sector performance were discussed.

Outreach on the new World Bank proposal to strengthen contractors’ performance in preven-tion of Sexual Exploitation and Assault (SEA) on September 16, 2019

World Bank Members together with industry representa-tives from other countries were acquainted with information on the proposed remedy for SEA on construction projects.

Stakeholders’ workshop on the registration and classification of road contractors on 8th November 2019.

Ministry of Works and Trans-port

The contractors maintained their position of rejecting the current e-CRCS register because it hinders the growth of local contractors. Further in the workshop, the MoWT presented a paper on the 9 proposed strategies for promoting local content in the works and transport sector. 6 of these strategies are part of the 7 interventions on UNABCEC’s Agenda. The Ministry promised to incorporate the 7th intervention of entrenching mandatory place-ment of graduate interns by all construction

companies operating in Uganda.

These workshops have given us a plat-

form to express the challenges our sec-tor faces and expectations/interventions that we believe if put in place would lead to development of the construc-tion industry.

e) opinion and articles in newspa-pers.

This year, opinions and articles have been written on a quarterly basis in New Vision and Daily Monitor newspapers to air out views and interventions pertinent to the construction industry.

oTHer uPDaTes a) litigation against the association (FX Mubuuke Vs. unabcec)

The claimant, Mr. FX Mubuuke was employed by and served UNABCEC as the Executive Secretary under three (3) different contracts until he retired.

The claimant sued the Association on grounds of failure to advance more gratuity on his retirement. UNABCEC did not advance to Mr. Mubuuke any more money after it was discovered that

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starting from 2011 until retirement, Mr. Mubuuke took advantage of his position as Executive Secretary of UNABCEC to unilaterally or in collusion with others to vary, upwards, his monthly agreed con-tractual remuneration from a gross pay of Ugx 1,400,000/= to Ugx 3,607,144/=.

When calculated, it meant that for two (2) years Mr. Mubuuke swindled from UNABCEC a total of Ugx 52,971,454/=. The next hearing of the case is set for 6th May 2020 and updates will be shared.

b) scaling up Training at uganda Technical colleges

This program is aimed at skilling the final year technicians in the 5 UTCs in courses relevant to the sector. It is man-aged by Uganda Institute of Professional Engineers (UIPE) and funded by Euro-pean Union with Uganda Association of Consulting Engineers (UACE) and UN-ABCEC as implementing partners. The training is expected to commence in December 2019.

c) status of the ucicoIn the letter of 31st May 2019, Minis-

try of Finance, Planning and Economic Development reiterated their earlier guidance to the Ministry of Works and Transport that a mechanism be set un-der the latter to regulate the industry following the Cabinet decision to halt the creation of new agencies. This hap-pened after our resubmission of letter about the need for establishment of the Construction Industry Commission to regulate the industry.

The Board is currently working closely with the Parliamentary Committee on Physical Infrastructure to move a private member’s bill about the same.

suMMarY oF Financials For THe Year 2018

Allow me to provide you with some relevant data concerning our operat-ing results in the year 2018. Details will be presented by our external auditors shortly.

In 2018, the Association registered to-tal revenue of UGX 527,006,432 which was a 15% reduction in income from

UGX 621,755,967 of 2017. The major cause of this performance was a reduc-tion in membership subscription as well as non-production of the contrac-tor magazine in 2018. The membership revenue dropped by 25%; that is, from 568,600,000 in 2017, to 427,000,000 in 2018.

HiGHliGHTs oF 2019 FinancialsAs at September 2019, the Association’s

income stood at UGX 728,795,079, an in-crease of 38% from last year 527,006,432. 81% of this year’s income was member-ship collection. Other sources of income included event sponsorships, The Con-tractor Magazine among others. The funds have been majorly spent on activi-ties from the strategic objectives earlier discussed and payment of the vehicle loan.

FuTure FocusA team from Institute of Corporate

Governance Uganda (ICGU) is today going to lead us in reviewing the draft strategic plan 2020-2024 that will guide the Association’s affairs in the next five (5) years and all your comments will be highly appreciated.

As we all are aware of the national elections which are around the corner and whose results are vital for the future of our industry, it is good practice that we turn out in big numbers and vote. It is important that we mobilise all our employees including casual labourers, family and friends to elect leaders with common-sense solutions to the chal-lenges facing the construction industry. We want a government that is dedicated to embrace the following seven (7) inter-ventions that we believe if implemented will drive the industry to development;a) To entrench the National Reservation Scheme;b) To entrench mandatory sub-contract-ing up to 30% of actual works on all de-velopment projects;c) Initiate a 10-year strategic programme with total of 1,000km as Affirmative Road Development Pilot Projects to deliberate training to prime national providers for execution of real paved works thus re-

duce the unit cost of paved roads;d) To entrench Mandatory placement of graduate interns to transfer skills to Ugandan youth by all construction com-panies operating in Uganda;

e) To facilitate the acquisition of the re-volving equipment lease fund of Shs104-Billion onto Uganda Development Bank that offers good financing terms not ex-ceeding 5% pa;f) To classify and register all works con-tractors in Uganda and adapt an enter-prise development program to incubate and promote small and medium local contractors from grade 1 to 7, based upon performance, andg) To establish a specialised training cen-tre for training of Plant Operators and Mechanics.

(Please find more details on pages 13, 24 and 25 of The Contractor Magazine issue 13)

conclusionThe theme for this half of the year is

“STRATEGIC PARTNERSHIPS FOR SUS-TAINABLE GROWTH”, in which UNABCEC is encouraging partnerships among all genuine players in the industry. We be-lieve that we can reach greater heights when we work together. More about this theme is going to be discussed in our end of year stakeholders’ engagement forum 2019 scheduled to commence af-ter this meeting and you are all cordially invited.

I would like to close by appealing to you all to continue supporting the As-sociation and keep us in the know—should you have any challenges in your day-to-day running of the business, so that we may have your back.

I hope to meet you all again in March 2020 in our first quarter CEO Social eve-ning to share more ideas, experiences and available opportunities.

Thank you,

Francis A. KaruhangaPresident/National Chairman




MeSSAge froM exeCUtive direCtorElizabeth Muhebwa

F irst, I would like to welcome you all to the 26th Annual General Meeting and appreciate you for

setting a side time to be part of this meeting.

Secondly, I want to take this oppor-tunity to welcome new members who took a noble decision to join the only umbrella body for genuine players in the construction industry in Uganda. At the same time, I re-assure all existing members of our continued commitment to serve you to the best of our abilities, based on the Association’s core values of Integrity & Honesty, Transparency & Accountability, Commitment, Client Ori-entation, and Professionalism. This year, 48 members were recruited and fully subscribed to the Association. These in-clude 21 old members that reinstated their membership under presidential pardon and 28 new members as hereby listed:

SBI International Holdings AG1. New Plan Engineering Ltd2. VCON Construction (u) Ltd3. Pioneer Construction Ltd4. Rhino Construction Ltd5. Prisma Limited6. Universal Engineering Ltd7. Kuka (u) Ltd8. Spider Contractors Ltd9. Sarick Construction Ltd10. Assured Engineering Services 11. LtdKark Technical Services Ltd12. CGH Establishments Ltd13. Technical Masters Ltd14. Nato Engineering Company Ltd15. Continuum Engineering Limited16.

BCR General Limited17. Muga Services Ltd18. Azu Properties Limited19. MG Engineers and Contractors 20. LtdHeaat General Engineers & Con-21. tractorsDansem Construction Co. Ltd22. Apomu International Ltd23. Wim Services Ltd24. Build Base Associates (u) Ltd25. Crystal Consults (u) Ltd26. Rite way Solutions Limited27. ETA Engineering Works28. CMD Investments Limited29. Shepherds Services (u) Ltd30. Crisp Contractors Ltd31. Juscona Enterprises (u)Limited32. Perfect Multiple Engineering & 33. Consultancy Services (u) LtdDa track Limited34. Pramukh Steel Ltd35. Yogi steels limited36. Kansai Plascon (u) Ltd37. Davis & Shirtliff International Ltd38. Ganatra Plant & Equipment Ltd39. Achelis (u) Ltd40. Africa Road Furniture 41. Hardware World Ltd42. Kyelima General Hardware43. Fabrication Systems (u) Ltd44. Mantrac (u) Ltd45. NSI Water Ltd46. Measurement Solutions Ltd47. Uni Engineers Uganda Ltd48.

2019 has been a promising year. We have made many steps forward as a re-sult of your unrelenting support and can only look back with a lot of admiration and respect for what we have been able

to achieve (as highlighted in the Presi-dent’s report). I believe that by working together with you our members, the board and other stakeholders, we shall be able to accomplish much more that would move the Association to the next level.

As an umbrella body of genuine players, our promise of quality service to members is the same promise our members are encouraged to extend to their own clients so that they continue to distinguish themselves as paragons of quality in the provision of construction services in our country.

Our strength over the years to date, lies in our ability to speak with one voice on matters affecting our industry and to negotiate concessions for the collective benefit of our members. Engage with a network of industry peers to address key issues impacting you and your busi-ness!

To potential members:Best things come to those who can’t wait!Enjoy membership benefits and continu-ous support.Join UNABCEC now! Contact us on ad-dress below:

locationPlot M764, Coronation Avenue.UMA Show Grounds, LugogoP.O Box 34046, KampalaTel: +256 392 795036Email: [email protected]: www.unabcec.co.ugFacebook: UNABCECTwitter: @UNABCEC

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MINUTESoF THe 25TH annual General MeeTinGThursday, 6Th december 2018silver springs hoTel - Kampala

Sn name company

Board direcTorS 2015-2018

1 Mr. Francis A. Karuhanga Armpass Technical Services Ltd

2 Mr. Robert Wamimbi Rodo Contractors

3 Eng. Gurdyal Singh Techno Three (U) Ltd

4 Ms. Alice Bongyeirwe Malt (U) Ltd

5 Eng Rose Kigundu Kasese Nail & Wood Industry Ltd

6 Eng Canon Jonathan Mwedde Jami Construction Company Ltd

Sn name deSignaTion company

1 David Ogwang Board Director Davog Technical Services Ltd

2 Andrew Kavuma Board Director Kavcon Uganda Ltd

List of ParticiPants

absent With aPoLogy




List of ParticiPants Sn name company

1 Opira Raphael Friendship Uganda Ltd

2 Ategeka Zakalia Mbafakoki Enterprises Ltd

3 Moses Tiberondwa Muma Construction Co. Ltd

4 Erina Kansiime Gabikan Engineering Ltd

5 Eng. Ronald Mugabi Gabikan Engineering Ltd

6 Sybella Namirembe Epsilon (U) Ltd

7 Denis Mugarra Daj Investments Ltd

8 Atwine Eliud Mugoyaplus Tech Services Ltd

9 Irene Kayemba China Wu Yi Co. Ltd

10 Magambo Allan Muma Construction Co. Ltd

11 Bisikwa Sharon Kutosi China Gezhouba Group Co Ltd

12 Wang Wan China Gezhouba Group Co Ltd

13 Robert Ssenozi Adapt Technical Services Ltd

14 Sharif Muhindo Terrain Services Ltd

15 Tom Ndawula Volcom Technical Services Ltd

16 Mulhumbira David Majeruda Enterprises Co. Ltd

17 Mugasha Smart Majeruda Enterprises Co. Ltd

18 Semwogerere Moses Semwo Construction Co. Ltd

19 Adong Sarah Amugoli General Enterprises Ltd

20 Edmund Wagido East African Piling Co. Ltd

21 Agaba Edwin Tedmack Engineering Works Ltd

22 Sam Kibbe Hebrone Investments Ltd

23 Saire John Robert Xenon Consults E. A Ltd

24 Mugisha Turyahikayo Allan S-M Cathan Property Consult

25 Bob yie Hauxia International Construction Co. (U) Ltd

26 Idriis Kamapla Cement

27 Moses Bbosa Multiplex Uganda Ltd

28 Tibeingana Manasseh Allied Enterprises & Construction Ltd

29 Jjuuko Henry Tile Center

30 Kamukama Charles Liveco Engineering Co. Ltd

31 Ampaire Michael Geses Uganda Ltd

32 Ashiana Jivraj Ganatra Plant & Equipment Ltd

33 Eng. George Kiberu Kiru General Services Ltd

34 Gloria Katureebe Babcon Uganda Ltd

35 Robert Akona Amugoli General Enterprises Ltd

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36 Byabasaija Francis .K Cementers Uganda Ltd

37 Jetty Nuwagira UNABCEC

38 Tumwesigye Julius Jtm & Co

39 Collin Agaba Niletrac Uganda Ltd

40 Adupa Marion Sanitation Africa Ltd

41 Michael Wamala Bolt Construction Co. Ltd

42 Eng. Deng T Greystone Investments Ltd

43 Eng. Herbert S Power Africa (U) Ltd

44 Eng. Paul Tugume Dacosi Uganda Ltd

45 Muduku Denis Al- Mubarak Contracting

46 Hailley Benteyahum Vambeco

47 Daniel Lokong UNABCEC

48 Harriet Asabiti UNABCEC

49 Mariam Namiya Reenboong Construction Services Ltd

50 Nsubuga Mark Kasese Nail & Wood Industry Ltd

51 Andrew Mukiibi Bolt Construction Co. Ltd

52 Sentongo T Lusa Construction Co Ltd

53 Otwane Jesse Abubaker Technical Services Ltd

54 Kiyimba Robert Vambeco Enterprises Ltd

55 Kato Saidi Da Track Ltd

56 Elizabeth Muhebwa UNABCEC

57 Serunkuuma Mike UNABCEC

58 Flavia Kebirungi UNABCEC

List of ParticiPants




parTicularS remarkS acTion By

Agenda Item 1(i): Calling the Meeting to Order and Opening Prayer:

The Chair of the meeting, Mr. Francis Karuhanga, called the meeting to order at 15:32hrs and asked any member to lead the prayers which was done.

Agenda Item 1(ii): Apologies (Recorded on the register)

The Chair informed members that he received apologies from Mr. David Ogwang and Mr. Andrew Kavuma that they were unable to attend the meeting for being out of Kampala.

Secretariat to note.

Agenda Item 1 (iii): Adoption of the AgendaChair asked members if they review the draft Agenda.

The draft Agenda was okayed by members in unison and thus adopted.

agenda item 1(iv): chairman’s address:The Chair thanked the members for attending the meeting and honor-ing the invitation.Following his written address which was shared with all members pres-ent, the Chair stated that: “2018 was a year for UNABCEC to take several next steps” while noting the economic struggles in the country which had dominated members’ attention for the past three years. He added that UNABCEC continues to deal with the very real effects of the eco-nomic downturn across the construction industry.Chair further informed the members of the following interventions UN-ABCEC had been advocating for to develop the industry.

Setting up a National Reservation Schemes to deliberately cater for 1. citizen owned companies,Introduction of the Local Participation Goal to enable local contrac-2. tors participate in projects above the national reservation limits,Immediate and appropriate classification and registration of contrac-3. tors by the Ministry of Works & Transport,Establishment of the center of excellence for the training of Techni-4. cians & Graduates, craftsmen, consultants and Contractors.Establish a construction Guarantee Fund to facilitate growth of small 5. and medium sized companies.Facilitate the acquisition of the revolving construction equipment 6. lease fund of UGX 104 Billion to offer affordable financing terms.Initiate Affirmative Road Development Pilot Project to deliberately 7. train the citizen owned contractors.Regulating the construction industry through the Uganda Construc-8. tion Industry Commission (UCICO) bill.

The Chair also updated the members on the achievements of the As-sociation in line with the specific objectives as follows:Enhanced cooperation with international bodies like the International Infrastructure Investment and Construction Forum to which UNABCEC became the 20th signatory.Tender registry was established to provide members with tender infor-mation throughout Uganda.Recruitment drive in which he disclosed a target of opening up re-gional chapters of the Association.

REACTIONS TO CHAIRMAN ADDRESS:Chair upon presenting his remarks requested members to react for the necessary responses and Eng. Rose Kiggundu chaired the session:

1) Eng Michael Ampaire, the Director of Geses Uganda Ltd, inquired about the Projects monitoring Unit (PMU) roles, how it operates and man-aged.

2) Mr. Robert Ssenozi of Adapt Technical Services raised a concern on membership as to why the old members were not present in the AGM and yet the arrears were laid off and wondered if these old members are being followed up.

All members to join the •campaign in order to build capacity and a strong voice in the industry.Members to provide in-•formation on bidding ir-regularities to support the secretariat in reporting.Members should collaborate •in the recruitment of mem-bers across the nation.Engage Government on •policy issues for the de-velopment of UNABCEC members.

All to note

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reacTions To cHairMan aDDress:

Chair upon presenting his remarks requested members to react for the necessary responses and Eng. Rose Kiggundu chaired the session:

1) Eng Michael Ampaire, the Director of Geses Uganda Ltd, inquired about the Projects monitor-ing Unit (PMU) roles, how it operates and man-aged.

2) Mr. Robert Ssenozi of Adapt Technical Services raised a concern on membership as to why the old members were not present in the AGM and yet the arrears were laid off and wondered if these old members are being followed up.

3) Mr. Robert Ssenozi also inquired if really the secretariat staff are visiting the members’ offices.

4) Ms. Sarah Adong of Amugoli General En-terprises Ltd inquired if loans were available for members in the UNABCEC SACCO that was formed.

5) Mr. Francis Ssembatya inquired about the con-stitution of UNABCEC if really it was well dissemi-nated to all the members for their understanding of the rules and procedures of elections. He em-phatically questioned the nomination process by class since he was not notified about the election process. He wondered how representation of his class (A2) could occur without his knowledge.

6) Mr. Moses Bbossa Ndege of Multiplex (u) Ltd raised concerns regarding the association’s perfor-mance as follows:

There is a need to educate all members about •the constitution since they were not aware.He asserted that the Association’s service de-•livery to members was still wanting as benefits extended to members are still negligible.•Heproposedaneedtohavesubsectoralplay-•ers to meet and caucus on their problems and challenges so that strategies are developed together.

7) Mr. Sam Kibbe of Hebron Investments Ltd complemented the efforts of the outgoing board and appreciated the good work done during their tenure.

Chair clarified that the Projects monitoring unit is operational but with a lean staffing since financing was a challenge and encouraged members to pay in time to enable the Projects monitoring unit (PMU) to operate.Chair informed members that there is a group of oldies who formed a parallel association and are trying to discredit what UNABCEC is doing thus dis-couraging many from rejoining UNABCEC. He asked members to advise the oldies to desist from infights and come together for the common good of all con-tractors.

It was affirmed by the Chair that the secretariat staff had tried making visits to some members’ offices and sites but were challenged financially since members were not paying their subscription despite the fact that UNABCEC was paying for the vehicles.

Chair clarified that the UNABCEC SACCO was formed and supported by the Board of Directors in order to facilitate savings amongst the members. He also ad-vised that all staff of the members can join and com-panies can buy shares in order to save for borrowing when required. Chair asked the SACCO chairperson – Can. Eng. Jonathan Mwedde to make a brief about the SACCO to members which he did and welcomed all members to join the SACCO since it is the business arm of the Association.

Chair advised that the constitution provides for elec-tion procedures and all members who were invited for the meeting also received details of election guid-ance prior to the AGM meeting. The chair clarified that the constitution was shared with all members through emails.

The chair advised that caucus meetings could not be held because of lack of sponsors for support and promised that the incoming board would ensure col-laborative efforts for quarterly meetings. The Chair further reiterated that bi-annual social events would soon be organized for members and that social media engagements were being set for action.

All to note

All to note

Secretariat/BOD





Agenda Item 2: Confirmation of Minutes for last Extra Ordinary General Meeting (EOGM).The minutes of the Extra-Ordinary General Meeting held on Thursday, 31 August 2017 at Silver Springs Hotel, Kampala were presented for confirmation & Discussion of Matters Arising.Chair guided the members through the minutes page by page and no reaction was made by members.

Upon confirmation of the minutes, Mr. Robert Ssenozi of Adapt Technical services Ltd pro-posed that the minutes of the last AGM be confirmed and he was seconded by Mr. Mark Nsubuga of Kasese Nail and Wood Industry Ltd

All to note

Agenda Item 3: Presentation of Financial Audit Report for the Fiscal Year 2017Chair called upon the auditors to present the audit re-port for year ended 31st December 2017.

REACTIONS TO THE AUDITORS REPORT:Chair upon the auditor presenting the audit report asked members for the reactions and position on the audit conducted as he noted that air was bought by the previous Board and that this effect has therefore placed a bad debt in our books of accounts.

Chair guided that the AGM could write off the debt 1. as per the BOD recommendation.Eng Michael Ampaire of Geses (u) Ltd recommended 2. that we do not pay any more money and we must pursue the issue to its logical conclusion.Mr. Sam Kibbe of Hebron Investment advised that we 3. use the police until the UGX 52 million is recoveredHowever, Mr. Bbossa Ndege Moses of Multiplex (U) 4. Ltd advised that we do not need to arrest the team that bought air but rather disregard the whole matter as it would involve more costs.Mr. Robert Ssenozi of Adapt Technical services pro-5. posed that the AGM could treat this debt as a bad one.

Agenda Item 4: Appointment & Confirmation of the Auditors.Chair guided that the AGM appoints new auditors for the year ending December 2019.

Agenda Item 5: Election of New Office BearersChair requested the Chairperson of the election

ClosureThere being no other business, the meeting was closed at 18:14hrs and members were called for a social eve-ning and dinner.

The Auditors, represented by CPA Tumwesigye Julius P0224 of JTM & Co., presented with opinions as follows:

The report is unqualified•The key audit matter was the absence of land title •/agreement for the property at BulemeziThe business administration of UNABCEC has •been conducted:- Efficiently, in accordance with the company principles and the auditing & ac-counting provisions of the relevant acts; and it is in accordance with its objectives.

Mr. Sam Kibbe of Hebron Investment asked Chair to first give a brief background of the issue before the AGM could resolve otherwise which the latter did.Chair thereafter guided the house to consider keeping the item of the bad debt but we don’t in-volve any cost of the association and it was agreed unanimously.2) On the issue of other bad debts by our members, it was resolved that invoices be issued to mem-bers who commit to sign and have also provided receipts.

The Auditors at present were JTM & Co. and the AGM reconsidered that they be appointed & Con-firmed for the Financial Year ending 31 December 2019.

The following were by acclimation declared mem-bers of the new Board of Directors 2019-2021;President: Mr. Francis A. KaruhangaTreasurer: Ms. Sybella NamirembeClass- A1 International: Eng. Jamesone OlonyaClass- A1 Local: Mr. Mark NsubugaClass- A2: Moses TiberondwaClass- A3: Eng. Ronald MugabiClass- A4: Mr. Robert SsenoziClass -A5 : Mr. Edwin Agaba & Ms. Alice BongyeirweClass- B2 : Mr. Agaba Collin

All to note

All to note

All to note

Francis Aryatuzoora Karuhanga……………………………… Elizabeth Muhebwa……………………

Chairman of the Board Secretary to the Board

Signed:

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STRATEGIC PLAN 2020-2024TaKing neW sTeps…




CoNteNtS>

NOTE FROM THE PRESIDENT....................20

EXECUTIVE SUMMARY................................21

STRATEGIC DIRECTION..............................22

Vission, Mission & Values..............................22

STRATEGIC PRIORITY AREAS...................22

1: Company Efficiency...................................22

2: Quality membership and collaboration......23

3. Responsiveness to the market..................23

4. Resource Proficiency.................................24

5. Advocacy, visibility and lobbying................24

COSTING & REVENUE.................................25.

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As our economy continues to grow, and with Uganda increasingly recognized as one of the best places in the world to

live and do business, we are fortunate to find our-selves at a time of significant opportunity. The first three pillars of National Development Plan – NDP III advocate for the promotion of inclusive devel-opment and sustainability of economic progress of the country in view of leaving no one behind. They are related to industrialization of the country, development of human capital and value addition, as the country strives towards a middle-income country under the vision 2040

In order to make the most of this exceptional time and realize our full potential, I strongly believe that genuine players in this construction industry must join together with renewed purpose and a commitment to collaboration and joining with our partners in new and exciting ways. We want to prioritize setting of inter-related interventions aimed at strengthening the ability of our members to own, manage and control resources, and the flexibility to exercise options, which will enable Uganda to generate income and wealth through a sustainable, resilient and diversified economy.

As the current President of UNABCEC, a sixteen year member of UNABCEC and 8 year member of the NEC/Board, and as someone who has had a long career in construction contracting private sector, I see around me every day the deep re-sources of skills, talent and intellectual capability that would drive our industry forward. From the board tables to the job sites, everyone has a role to play. There is no doubt in my mind that our Association has tremendous impact in securing a strong future for our businesses, and I encourage all members to allow their best and brightest to

contribute to the work of our Association.Our current 3rd Board of Directors was elected

last year in December 2018 and will serve its first term till November 2021. It is with confidence and a sense of accomplishment that this Board pro-vides this strategic plan with a common framework for measuring progress to support our leadership in the next two years and to the next 4th Board of Directors (Dec 2021- Nov.2024)

We identified five Strategic Objectives of this strategic plan;

To Strengthen Governance and Manage-1. ment To develop strong membership and collabo-2. rations3. To ensure responsiveness to market needs 3. in service provisionTo strengthen the institutional resource ca-4. pabilitiesTo promote visibility, advocacy and lobbying 5. for favorable business engagements.

All these objectives require an innovative, entre-preneurial mindset. Our ever-changing political, economic, and cultural environment demands it, and with this 2020-2024 strategy UANBECEC com-mits an unflinching attention to these issues on behalf of all the genuine construction players that we serve.

I thank the UNABCEC Board of Directors, our sec-retariat staff and our many partners and collabora-tors for their efforts and commitment as we set forth on this new strategic plan.

We are here to serve.

Aryatuzoora Francis Karuhanga, President.

Note froM the preSideNt




UNABCEC has championed the cause of the Construction Industry for the last 26 years with some leaps of success. She

now concentrates on consolidating her national character, closely engaging both government and private sector in pursuit of cost effective service delivery to her esteemed membership while hit-ting the bottom line – capacity building and taking a fair share of participation in national develop-ment.

Whereas the Vision of UNABCEC will remain: “To be the lead engine for the growth and develop-ment of the construction industry in the region” and the Mission “To promote and protect the shared interest of members and the construction industry as a whole, through mobilization, advo-cacy, networking and innovative service provision” the Association has identified 5 ways of steering excellency in the Construction industry. These are:

To strengthen governance and management •systems To develop strong membership and collabora-•tionsTo ensure responsiveness to market needs in •service provision To strengthen the institutional resource capa-•bilities To develop a quality assurance, evaluation & •monitoring system that enhances service de-livery.

The critical success factors that will enable the

above goals to be met include the following:i. Consolidation of membershipii. Mobilization of the required resourcesiii. Ability to marshal and coordinate efforts of all

key stakeholders iv. Ability to mobilize continued support

from Government and development partners v. Ability to initiate and sustain innovationsvi. Target Market appreciation of the servicesvii. Enhanced Visibility To successfully implement this plan, the Asso-

ciation needs to take advantage of and harness the favorable internal strengths and environmental factors, including but not limited to:

Human resource capacity•Resource mobilization•Enhancing partnerships and collaborations•Technological advances•Continuous engagement with government on •concept of local content

With a board consisting of all classes of mem-bership, who in their own right have successfully steered their own firms to greatness, the Associa-tion is set to take the next steps into a brighter future.

exeCUtive SUMMArYUnabcec taking the next steps

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StrAtegiC direCtioNVision

“To be the lead engine for the growth and development of the construction industry in the region”

Mission“To promote and protect the shared

interest of members and the construc-tion industry as a whole, through mo-bilization, advocacy, networking and in-novative service provision”

Values Integrity and honesty, •Transparency and accountability, •Commitment, •Client orientation, and •Professionalism. •

sTraTeGic PrioriTY areasOver the next five years, UNABCEC

will focus on becoming and remaining a center of excellence in the building and construction industry to achieve the fol-lowing strategic outcomes;

1: COMPANY EFFICIENCY objective: To strengthen governance and management systems of the Asso-ciation

This strategic priority will be achieved by;

Developing governance manuals •through benchmarking from similar organizations the necessary gov-ernance manuals, identifying a re-source person to draft the missing manuals, hold a joint Board and Man-agement retreat to study the drafts of the manuals and formally adopt the manuals as part of the reference documentation of governance Implementing governance frame-•work through enlisting the vacant functional units in the organogram, developing a recruitment plan,

submitting to AGM constitutional amendments for adoption, laying on table copies of manuals at ev-ery Board meeting for uncertainty avoidance and preparing periodical reports on the governance mecha-nism of the company.Training of staff in prioritized areas •through conducting a training needs assessment among staff and/or even directors, developing a training pro-gram and budget accordingly and engaging a training institution and or individual to conduct training for staff and/or even for directors.Strengthening the functional capac-•ity of UNABCEC through continuous reference to governance manuals, developing an annual calendar for various types of meetings and dis-seminating to the concerned indi-viduals, developing annual work plans from this strategic plan and disseminate to those concerned, undertaking timely communica-tion within and without UNABCEC, documenting all resolutions of board and management, undertaking con-tinuous staff performance appraisals, purchasing a motor cycle to improve delivery and creation of regional branchesPursuing Performance based man-•agement through developing perfor-mance indicators for each, establish-ing annual work plans, developing a report based on the KPIs on a quar-terly basis by each staff and a joint discussion on performance levels by the Board, management and staff.Building staff capacity in Total Qual-•ity Management (TQM) through implementing quality improvement activities. Developing and implementing a •member-wide M&E system through

conducting training workshops on M&E systems in the sector for both staff and members. Acquiring ICT resources for en-•hanced systems through organizing benchmarking trips to learn current ICTs in the sector and later share the knowledge with members and en-courage them to acquire up-to-date ICTs in their firms.Setting up technical working groups •on thematic issues of UNABCEC busi-ness.Ensuring office functionality through •adequate routine supplies, functional facilities, payment for utilities, secu-rity services and functional equip-ment.

Measurable indicators Benchmarking reports•List of gaps•The manuals on file•Self-evaluation and peer evaluation •reports Citations of policy sections in cor-•respondences Signed official copies of each manual •on fileRecruitment plan and action points •as followed to end Citations from manuals in the min-•utes or reportSelf and peer assessment reports•A training needs assessment report•A training schedule•Funds available •At least 1 training session a quarter•Number of people benefiting •Citations from manuals in routine •communications A printed schedule•Annual and aligned operational plans •for each unit at secretariat Internal memos•Correspondences •

“Unabcec: taking the next steps….”




Feedback packs •Resolutions of board and Manage-•ment on fileA tracking tool of decisions •Completed annual Appraisal forms for •each Staff training and development plan•Quarterly Performance sheets•usable motor cycle•Functional regional units•Performance indicators for job families •on fileMonitoring tools for performance •Staff work plans•1 event per year on performance •Activity reports detailing steps under-•taken and achievement and or chal-lengesMOUs where that is achieved •Funding available to support intern-•ship programAt least two members acquiring ISO •Certification per year A Software available to members for •M&E or configuration of Excel or other Ms program to capture and process dataPeriodical reports generated •A pool of trained staff in the sector •on M&E Lessons learnt articles, reports, state-•ments, Pictorials of members on trips •Guidelines and TORs designed •Function TWGs•Routine inspection reports •Supervision feedback •

2: QUALITY MEMBERSHIP AND COLLABORATION objective: To develop strong member-ship and collaborations

This will be achieved by;Improving membership services •through continuous engagements and communication, sharing perti-nent information, social events, ensur-ing strong adherence to the code of conduct, conflict & dispute resolution platform among others. Creating partnerships with training •institutions to attract young profes-sionals through giving feedback from the employers’ perspective, attaching interns to various member organiza-tions, events like seminars for young professionals and setting up a skilling academy mainly for machine opera-tors.Developing distinctive areas of col-•laboration like exchange of specialists among member companies, sharing information on available skills and ex-perts as well as organizing symposia for members to exchange knowledge and updates on the professions.Mapping of foreign and domestic po-•tential collaborations by creating syn-ergies with international contractors, local professional and business firms, government agencies as well as other private players for collaborations.

Measurable indicators

Bank deposits •Active mapping of members•Profiles of members•Observation of the ethical code•Integrity in business dealings by all •members Conflict guides•List of activities •List of members contacted and sup-•ported Internship attachments reports •Bonding letters•MOUs•Magazine articles on activities •Pictorials •Information packs•Correspondences•MOUs•Collaborations with foreign firms •Beneficial engagements with foreign •firmsLocal partners in mutual working re-•lationshipsAt least 10 firms brought in the loop •annuallyMOUs signed with at least 5 MDAs per •yearLetters of engagement with 25% of •LGs where members are doing busi-ness

3. RESPONSIVENESS TO THE MARKET objective: To ensure responsiveness to market needs in service provision

This strategic priority will be achieved through the following activities;

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Developing and implementing a •research agenda through working with Public Universities to carry out research on pertinent issues affect-ing the sector, designing an in-house research agenda where members periodically share data and assign-ing a staff to periodically do desk re-search to gather relevant data and/or information.Hosting UNABCEC business ex-•hibitions for members and other key stakeholders to showcase the achievements and trends in the sec-tor to the public.Tapping into knowledge transfers •from expatriates by lobbying large and/or foreign companies for attach-ment opportunities for local experts and through development partners, invite experts and attach them on projects of local firmsBUBU responsiveness by developing •an in-house policy on BUBU, con-ducting a study to assess inroads with UNABCEC activities and seek-ing government support on BUBU agenda.

Measurable indicatorsA detailed research plan•Correspondence with selected uni-•versity units on research Research reports•Number and quality of press cover-•age of the eventsEstimates of crowd turn up at •eventsEvent reports •At least 10 companies approached •annually At least 10 selected local experts at-•tached to large players An internal policy •Action plan•

4. RESOURCE PROFICIENCYobjective: To strengthen the institu-tional resource capabilities.

This will be achieved through the fol-lowing activities;

Improved member focused subscrip-•tion systems by supporting members to pay in time so as to have capacity to meet their obligations.

Making the Contractor magazine a •revenue center and self-sustaining by ensuring timely issues, quality content, marketing, attracting ad-verts and circulation.An investment task force on income •generating ventures by developing an investment policy and appoint-ing an Investment Task Force with duty to identify and document pos-sible and appropriate investment op-portunities for UNABCEC for income generation. Partnerships with development •partners by lobbying for support on Learning Journeys to various home countries of development partners and collaborations with firms in their home countries.SACCO Growth, Self-sufficiency and •Sustainability by maintaining the SACCO autonomy status and en-couraging all members to utilize the SACCO services and maintain moral commitment to repayments

Measurable indicatorsAchieve 80% rate of subscription in •yr 1, increasing to 100% in year 5 of the SP Activity report of the committee •Two Issues per year •Advert revenues increasing •The task force membership •Activity reports of the committee’s •work At least 1 investment project com-•mencing every year of the strategic plan Activity reports •At least 10 members undertaking ex-•posure trips per yearAt least 2 development partner en-•gaged /year The SACCO portfolio increasing by •20% annually Members increasing at 10% per year•Level of borrowing at 30% of portfo-•lio Quarterly financial reports

5. ADVOCACY, VISIBILITY AND LOBBYING objective: To promote visibility, ad-vocacy and lobbying for favorable out-comes.

This will be achieved through;Scaled up company visibility by de-•veloping films on best practices and disseminate to stakeholders, scaling up Corporate Social Responsibility, continuing media engagements for information giving, publicity, mobi-lization, make a website usage as-sessment and identify action areas as well as creating a one stop center members’ gallery.Advocacy agenda through crafting •steps towards a stronger common voice for members on issues affect-ing them, particularly delayed pay-ments, interests on late payments, oppressive actions by foreign firms, educate members to have their pa-pers well prepared and smart; advo-cacy campaigns with local govern-ments, communities, civil society, and other bodies.Lobbying for favorable legal regimes •and political support by engag-ing with top echelons in relevant Ministries, engaging the relevant Parliamentary committees and Lo-cal Governments as well as orga-nizing seminars and invite partners like Uganda Law Society to educate members on laws; URA on taxes, PPDA on procurements, NEMA on environmental impact assessments among others.

Measurable indicators1 CSR per UNABCEC region per year •At least a specified media activity a •month50% repeat visitors a month New •info/monthA functional platform where mem-•bers are helped and supportedAdvocacy tools and reports on issues •affecting membersReports on LG and civil society ac-•tivities Appointment or engagement let-•ters




CoStiNg & reveNUe The tables below show a summary of the cost implications for implementing the strategic plan 2020-2024 by stra-

tegic objective and the revenue streams with an estimate of 5% adjustment per year.

coSTing For unaBcec STraTegic plan 2020- 2024

Summary By So year one year 2 year 3 year 4 year 5 running ToTal

Strategic Objective 1 353,862,025 437,956,577 356,052,887 475,342,642 394,377,080 2,017,591,212

Strategic Objective 2 170,870,012 194,413,512 188,384,188 214,303,396 207,693,567 975,664,675




Running Total 4,059,753,128

reVenue STreamS

year 1 year 2 year 3 year 4 year 5

Membership subscription

at 2019 150 members esti-mated to remain same in year 1 of this SP, took 2019 estimate.

593,250,000 622,912,500 654,058,125 686,761,031 721,099,083

Grants and Donations

No donation was estimated in 2019, for start of this SP 50m is set.

50,000,000 52,500,000 55,125,000 57,881,250 60,775,313

Training In-come

as starting index estimate of 2019 was far fetched, a moder-ate rate for yr 1 provided.

10,000,000 10,500,000 11,025,000 11,576,250 12,155,063

Contractor magazine

as starting index estimated atsame level of 2019.

70,000,000 73,500,000 77,175,000 81,033,750 85,085,438

Networking events

To raise funds through the investment in networking by directors and executives.

50,000,000 52,500,000 55,125,000 57,881,250 60,775,313

Other Income sources

as starting index estimated at same level of 2019 but was not realized so take 50%.

47,580,000 49,959,000 52,456,950 55,079,798 57,833,787

Total Revevues projections 820,830,000 861,871,500 904,965,075 950,213,329 997,723,995

Year projected expenditure 706,232,051 817,695,104 781,823,589 893,966,868 860,035,516

SurpluS /(deFiciT) 114,597,949 44,176,396 123,141,486 56,246,460 137,688,479

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UNABCEC_UGUNABCEC


AUDITEDFINANCIAL STATEMENTSFor The year ended 31 december 2018

JTM & Company Certified public accountant Plot 5 Sezibwa RdP.o. box 24345Kamala




CoNteNtS>

Business Information..................................28

Directors Report………………....................29

Auditors Report………….............................31

Balance Sheet …………............…….....…..33

Profit and Loss Summary…….................…33

Cash flow statement……….............….....…34

Notes to the Cash flow statement…........…34

Notes to the Financial Statements……....…36

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UNABCEC_UGUNABCEC


HeaD oFFice unabcec HeaDquarTers

PrinciPal Place oF business.

DirecTors

banKers:

HeaD oFFice unabcec HeaDquarTers

Plot M 764 Coronation AvenueUMA show grounds LugogoP. O. Box 34046 KAMPALA

UNABCEC HeadquartersPlot M 764 Coronation AvenueKAMPALA

Mr. Francis KaruhangaMs. Sybella NamirembeMs. Alice BongyeirweEng, Olonya JamesoneMr. Mark NsubugaMr. Moses TiberondwaEng, Ronald MugabiMr. Robert SenoziMr. Edwin Agaba Can, Eng. Jonathan MweddeMr. Agaba Collin.Ag EXECUTIVE DIRETOR Elizabeth Muhebwa

Standard Chartered BankP.O. Box 7111, Kampala Stanbic Bank Uganda LimitedP.O Box 496 Kampala DFCU BankPlot 26, Kyadondo Rd, NakaseroP.O. Box 70 Kampala

NC Bank (U) LimitedRwenzori Towers, Nakasero RoadP.O. 28707 Kampala

AUDITOR JTM &CO. Certified Public AccountantPlot 5 Sezibwa Road, NakaseroP.O Box, 24345 Kampala

bUsiness inforMation




inTroDucTionThe Directors submit their report and audited

financial statements for the period ended 31st December 2018 which discloses the statement of affairs of UNABCEC.

bacKGrounDUNABCEC is a non-profit, member-driven as-

sociation bringing together Building and Civil Engineering Contractors as well as construc-tion- related materials manufactures and or suppliers to promote their mutual interest.

The Association was registered as a company limited by guarantee in 1993. Through its mem-bership; UNABCEC has extended its consider-ation expertise in coordinating development projects that addresses sustainable initiatives, capacity building and policy issues within the construction industry.

Vision“To be the lead engine for growth and de-

velopment of the construction industry in the region”

Mission“To promote and protect the shared interests

of members and the construction industry as a whole, through mobilization, advocacy, net-working and innovative service provision.”

PrinciPle acTiViTiesThe Association exists to promote and pro-

tect the shared interests of members and the construction industry through mobilization, advocacy, networking, and innovative service provision, through shared values of profession-alism, integrity and honest transparency and accountability.

resulTsThe financial results for the year are as shown

in the statement of financial position on page 10.boarD oF DirecTors

The names of Directors who are in office to present this audit report are as set out on page 3 above

auDiTorsJTM & Co., Certified Public Accountant, have

expressed their willingness to continue as per the companies act 2012.

By Order of the Board

……………………………………………The Executive Director/Secretary to the

Board

Directors rePort

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UNABCEC_UGUNABCEC


The Companies Act requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Association as at the end of the financial year and of the operating

results of the company for that year. It also requires the Directors to ensure the Association keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the association. They are also responsible for safeguarding the assets of the association.

The Directors accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting standards for SMEs and in the manner required by the Company Act. The Directors are of the opinion that the fi-nancial statements give a true and fair view of the state of the Association’s affairs and of its operating results. The Directors further accept responsibility for the maintenance of accounting records which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial controls.

Nothing has come to the attention of the Directors to indicate that the As-sociation will not remain a going concern for at least the next twelve months from the date of this statement.

…………………………………………………………..

Secretary.

stateMent of Directors resPonsibiLities




To THe MeMbers oF uGanDa naTional associaTion oF builDinG anD ciVil enGineerinG conTracTors lTD (unabcec) in resPecT oF Financial sTaTeMenTs For THe Year enDeD 31 DecMber 2018

unqualified opinion We have audited the financial statements of UNABCEC, which comprise the statement of financial posi-

tion as at December 31, 2018, and the statement of comprehensive income, statement of changes in eq-uity and statement of cash flow for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In my opinion, the accompanying financial statements give a true and fair view of the financial position of the company as at 31st December 2018, its financial performance and its cash flows for the year then ended, in accordance with International Reporting Standards for SMEs and the Companies Act 2012.

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsi-

bilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Entity in accordance with the ethi-cal requirements that are relevant to our audit of the financial statements in Uganda and we have fulfilled our other responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

responsibilities of Directors and Those charged with Governance for the Financial statements

Directors are responsible for the preparation of the financial statements in accordance with Interna-tional Financial Reporting Standards for SMEs and for such internal control as Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, Directors are responsible for assessing the entity’s ability to con-tinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease opera-tions, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the entity’s financial reporting process.

auditor’s responsibilities for the audit of the Financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with International Standards on Auditing (ISAs), we exercise profes-sional judgment and maintain professional skepticism throughout the audit. We also: •Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherdueto

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence

INDEPENDENT AUDITOR’S REPORT

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UNABCEC_UGUNABCEC


that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve col-lusion, forgery, intentional omissions, misrepresentations, or the override of internal control. •Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproce-

dures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting •estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting •and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going con-cern.

We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficien-cies in internal control that we identified during our audit.

report on other legal and regulatory requirementsAs required by the Companies Act 2012, we report to you based on our audit, that:The business administration of the Association has been conducted;(a) Efficiently;(b) In accordance with company principles and the auditing and accounting provisions of this Act;

and(c) In accordance with its objectives. Bylaws and any other decisions made by the annual general

meeting.The Auditor on the audit resulting in this independent auditor’s report

CPA Tumwesigye Julius P0224JTM& CO




noTeS 2018 2017reVenue ugX ugXOPERATING INCOME 8.0) 527,006,432 621,755,967ToTal reVenue 527,006,432 621,755,967

eXpendiTure ADMINISTRATION EXPENSES 9.0) 237,267,391 277,352,210OPERATING EXPENSES 10.0) 241,850,389 475,981,274 FINANCE COSTS 11.0) 80,123,774 47,693,413-ToTal eXpendiTure 559,241,554 801,026,897

SurpluS/deFiciT (32,235,122) (179,270,930)

stateMent of coMPrihensiVe incoMe

stateMent of financiaL PositionnoTe 2018 2017

aSSeTS ugX ugX

non-currenT aSSeTSPROPERTY PLANT & EQUIPMENT 2.0) 426,587,117 578,061,673INTANGIBLE ASSETS 2.1) 13,410,452 17,633,722

439,997,569 595,695,395currenT aSSeTSTRADE AND OTHER RECEIVABLES 4.0) 54,416,537 47,022,241CASH AND BANK 3.0) 24,935,958 40,948,487

79,352,495 87,970,728

ToTal aSSeTS 519,350,064 683,666,123

Fund Balance and liaBiliTyFund Balance CAPITAL CONTRIBUTIONS 44,932,860 92,432,860REVALUATION RESERVE 37,616,413 37,616,413ACCUMULATED FUND (1,242,697) -34,191,298

81,306,577 95,857,975NON-CURRENT LIABILITIESLONG TERM LOAN 7.0) 206,462,510 309,592,832

CURRENT LIABILITIESTRADE PAYABLES 5.0) 139,899,084 154,214,707OTHER PAYABLES 91,681,893 124,000,609DEFERRED INCOME -

231,580,977 278,215,316

ToTal Fund Balance and liaBiliTy 519,350,064 683,666,123

These Financial Statements were approved by the Board of Directors on 2nd November 2019 and signed on its behalf by;- Chairperson……………………………… Treasurer………………………………… Board of Directors Board of Directors

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capiTal conTriBuTion

accumulaTedreSerVe

reValuaTion reSerVe

ToTal

uShS uShS uShS uShS

BALANCE AT 1ST JAN 2018 92,432,860 (34,191,298) 37,616,413 95,857,975

ADJUSTMENT ASSETS (LAND) 47,500,000) (47,500,000) SURPLUS (DEFICIT) FOR THE YEAR (32,235,122) (32,235,122)

ADJUSTMENT B/F 65,183,723 65,183,723

Balance aT 31ST dec 2018 44,932,860 (1,242,697) 37,616,413 81,306,576

2018

noTe uShS

NET CASH FLOW FROM OPERATING ACTIVITIES 1 77,117,793

INVESTING ACTIVITIES PROCEEDS FROM DISPOSAL OF THE ASSET

10,000,000

FINANCING ACTIVITIES LOAN FROM NC BANK

(103,130,322)

neT increaSe /decreaSe in caSh and caSh equiValenT (16,012,529)

stateMent of chages in eQUity for the year enDeD 31 DeceMber 2018

stateMent of chages in eQUity for the year enDeD 31 DeceMber 2018

notes to the cash fLoW stateMent for the year enDenD 31 Dec 20182018

uShS

caSh FloW From operaTing acTiViTieS

SURPLUS OR DEFICIT FOR THE YEAR (32,235,122)

adjuSTmenTS For non-caSh iTemS

DEPRECIATION CHARGE FOR THE YEAR 94,349,157

AMORTIZATION 4,223,250

0 CHANGES IN WORKING CAPITAL 66,337,285

INCREASE/DECREASE IN RECEIVABLES (7,394,296)

ACQUISITION FUND ADJUSTMENT 65,183,723 INCREASE /(DECREASE) IN CREDITORS (46,634,339)

DISPOSAL ADJUSTMENT (374,580)

neT caSh inFloWS (ouTFloW From operaTing acTiViTieS 77,117,793




( ii) anaLysis of cash anD cash eQUiVaLents 2018

uShS

BALANCE AS AT 31 DECEMBER 2018.

CASH AND BANK 24,935,958

BALANCE AS 1ST JANUARY 2018

CASH AND BANK 40,948,487

change in caSh and Bank (16,012,529)

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UNABCEC_UGUNABCEC


1.0 accounting Policies

a) basis of preparationThese financial statements have been prepared in ac-

cordance with the historical cost convention.

b) basis of accountingThe Financial statements are prepared on the Histori-

cal Cost accounting and are in Compliance with the International Financial Reporting Standards (IFRS)for SMEs, and Companies Act 2012

c) IncomeRevenue is recognized to the extent that it is prob-

able that economic benefits will flow to the company and the revenue can be reliably measured as the ag-gregate income from services rendered exclusive of Value Added Tax.

d) Property, Plant and equipmentProperty, plant and Equipment have been recog-

nized at cost less accumulated depreciation and ac-cumulated impairment loss. Donated items are recog-nized in accordance with sec 24.

Depreciation is calculated on straight line basis to write off the cost of property, plant, and equipment over their estimated useful lives from the date of pur-chase to the date of disposal as follows

• Motorvehicle 20%• Furnitureandfittings 12.5%• ComputersandIntangibles 33.3%• Machinery&Equipments 12.5%• Buildings 2%

d) Foreign currencies Assets and liabilities denominated in foreign curren-

cies are translated at the rates of exchange ruling at the balance sheet date. Transactions denominated in foreign currencies are converted at the rates ruling at the dates of the transactions. All exchange differences are dealt with in the profit and loss statement in which they arise.

e) income Tax

Taxation is provided on the basis of the results of In-come and Expenditure included there in and adjusted in accordance with the provision of the Income Tax Act 1997.

f) Trade receivables

Trade receivables are carried at anticipated realizable value. A provision is made for doubtful receivables, based on a review of all outstanding amounts at the year end.

Bad debts are written off in the year in which they are identified

g) Provisions

Provisions are recognized when the company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of re-sources embodying economic benefits will be required to settle the obligation and the estimate can be mea-sured reliably

e) cash and cash equivalentsFor the purpose of Cash flow statements, Cash and

cash equivalents comprise of cash on hand, Bank bal-ances and other comparable liquid assets.

accoUnting PoLicies anD notes to the financiaL stateMents




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UNABCEC_UGUNABCEC


notes to the financiaL stateMents for the year enDeD 31st Dec 2018

2018 2017

uShS uShS

COMPUTER SOFTWARE 33,786,000 33,786,000

AMORTIZATION (20,375,548) 16,152,278)

change in caSh and Bank 13,410,452 17,633,722

ACCOUNTS PAYABLE 139,899,084 154,214,707

139,899,084 154,214,707

2.1) intangibLe assets

3.0) cash anD banK

4.0) traDe anD other receiVabLes

5.0) traDe PayabLes

6.0) other PayabLes

PETTY CASH 261,000 5,400 STANBIC BANK COLLECTIONS 7,295,684 5,490,160 STANBIC BANK - BGV 0 576,147 STANDARD CHART TRAINING 0 382,403 DFCU BANK 17,404,734 6,408,177 NC BANK (25,460) 28,212,268 STANDARD CHART EURO 0 (126,068)

24,935,958 40,948,487

ACCOUNTS RECEIVABLES 50,247,890 40,948,212

EXPENSES PREPAID 1,384,952 3,489,734

PROMOTIONAL FUEL 0 4,600

WITHHOLDING TAX 2,783,695 2,579,695

54,416,537 47,022,241

SALARIES CONTROL ACCT 6,730,582 11,408,000 NSSF PAYABLE 1,511,549 7,688,500 PAYE PAYABLE 2,547,601 9,315,001 INSURANCE PREMIUM LOAN FROM NC 1,751,461 3,782,235 OTHER PAYABLES - PROVISION 75,000,000 79,000,000 LOCAL SERVICE TAX PAY 660,000

PASS THROUGH 170,000

AUDIT/PROFESSIONAL FEES INTEREST PAY-ABLE

3,970,700 3,970,700

8,176173

91,681,893 124,000,609




2018 2017

uShS uShS

LONG TERM LOAN/DEBT 150,999,745 254,759,876

DIRECTORS LOANS 25,000,000

VAT ON LEASED ASSETS 30,462,765 54,832,956

206,462,510 309,592,832

7.0) non-cUrrent LiabiLities

8.0) oPerating incoMe

9.0) aDMinistration exPenses

MEMBERSHIP FEES/SUBSCRIPTION 427,000,000 568,600,000

GRANTS AND DONATIONS 10,472,695 4,517,175

NETWORKING INCOME 13,700,000 1,700,000

ADVERTISING INCOME 6,200,000 - THE CONTRACTOR MAGAZINE 0 29,200,000

SACCO MEMBERSHIP 0 9,640,000

OTHER INCOMES 69,633,737 8,098,792

527,006,432 621,755,967

exPenDitUre

AGM/BOARD MEETINGS 25,836,520 10,841,760

SALARIES 141,127,200 168,781,886

NSSF 10% 13,649,700 15,037,471

STAFF MEDICAL EXPENSES 0 8,743,800

ELECTRICITY & WATER 2,454,875 2,553,020

COMMUNICATION & INTERNET EXP 8,293,930 6,586,706

OFFICE STATIONERY 11,227,900 14,533,524

NEWSPAPERS & MAGAZINES 800,000 1,029,500

INSURANCE 18,471,966 20,215,743

OFFICE SERVICES & SUNDRIES 2,161,800 1,894,800

LEGAL & PROFESSIONAL EXPENSES 9,878,500 19,769,000

AUDIT FEES 3,365,000 3,365,000

PROVISION FOR LITIGATION 0 4,000,000

237,267,391 277,352,210

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UNABCEC_UGUNABCEC


10.0) oPerating exPenses

11.0) financing exPenses

2018 2017

uShS uShS

TRAVEL AND PER-DIEM 6,716,600

MOTOR VEHICLE & GENERATOR FUEL 9,972,102 8,765,800

DEPRECIATION 94,349,157 95,117,465 AMORTIZATION EXPENSES 4,223,250 8,803,718

REPAIRS & MAINTENANCE 4,662,880 11,879,974

DUES & SUBSCRIPTIONS 4,906,944 2,140,000

GROUND RENT 124,000 124,000

BAD DEBTS 77,932,363 263,820,000

ADVERTISING COSTS 2,200,000 731,600 REGULAR SKILLS TRAINING 0 570,000

UNABCEC SACCO EXPENSES 10,620,000 8,716,300

LOBBYING & ADVOCACY 8,023,500 1,339,000

IMPROVED DELIVERY 6,589,346 0

CONTRACTOR MAGAZINE DISTRIBUTION 805,940 35,457,789 UNABCEC WEBSITE 400,000 120,000

MEMBERS TRAVEL EXPENSES 15,640,907 31,279,028

BROCHURES & DISPLAYS 1,400,000 400,000 241,850,389 475,981,274

BANK CHARGES 3,029,582 4,014,800 INTEREST PAID 77,094,192 43,678,613

80,123,774 47,693,413

eXpenSe ToTal 559,241,554 801,026,897

12.0) The association entered a finance lease with NC Bank Uganda Limited on 22nd December 2016 for two new Toyota Hilux pickups of Ushs 511,774,247=including lease interests at the effective rate of 23% for 36 months commencing February 2017 to February 2020. The finance is payable in equal quarterly instalments of principle, inter-est, and applicable tax. The Association has an option to purchase of 0.5 % of the financed lease amount at the end of the lease period.

13.0) contingent LiabiLities a) The Association has contingent liabilities as result of

legal claim of Terminal Benefits by Mr. Francis Xavier Mubuuke the former Executive Secretary of UNABCEC of Ushs. 111,080,429= as per Industrial Court Labour Ref. No. 86 of 2016

b) The association also has a contingent liability at-tached to the finance lease in the event of default or excess over the approved time limits or having arrears on any instalments, it will be charged a penalty interest at the rate of 33.5% per annum for Uganda shillings facilities on total outstanding balance at the time of default, excess, or arrears.




FinancialReport

01 January To 30 sepTember 2019

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CoNteNtS>Financial Performance............................43

Income and Expenditure Statement........49

Accounts Receivables ............................51




1. financiaL PerfroMance1.1 incoMe statUs for 2019

In the past nine months, Membership invoices amounting to Shs. 590,750,000 were raised and of these Shs 414,632,000 was collected, giving rise to 70%. In the same period, Shs. 28,072,136 was raised from adverts in The Contractor Magazine, Shs. 37,550,000 from the Stakeholders Engagement Forum and Shs.

5,075,213 from other sources. Nine former Members have returned under the Presidential Pardon Initiative. Overall, 68% of the total invoiced amounts were col-lected in the period. The numbers are summarised as shown in the table and figures below.

Member classes contribution

Figure 1: Financial Performance by member classes

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Figure 2: Revenue from other sources

Figure 3: Relationship of income segments

advertising/networking/other income

income segments

Membership fees others

85% 1%

8%

6%

networking

advertising




1.2 coMParison With 2018 PerforMance

By comparison total collections in 2018 were Shs. 349,022,789, Shs. 281,360,000 of which was Member-ship fees, representing 80%. There was no advertis-ing income as The Contractor was out of production. Similarly, no Networking Events/Engagement Fora took place and as such, no collections were made.

Notable was a one-off consultancy with World Wide Fund for Nature to supervise construction projects in the Rwenzori region that fetched Shs. 51,232,000, rep-resenting 15% of total collections of 2018. A summary of the comparison is illustrated in the figures below.

As compared to 2018, there has been a 47% increase in Membership fees, the mainstay of Association. Net-working Events Income and Advertising have grown from zero in 2018 to 100% in 2019, Consultancy has dropped due to non-occurence of the expected proj-ects with WWF. Overall, there has been a 40% increase

in collections in the period under review as compared to similar period in 2018.

The increase in income is partly attributed to revival of Networking Events, The Contractor Magazine and dedicated personnel.

Paid up membership 2018/2019

Figure 4: Membership collection comparison for 2018 & 2019

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1.3 aDVertising incoMe

1.4 netWorKing eVent

Invoices amounting to Shs. 42,714,136 were raised for adverts in The Contractor Magazine during the pe-riod. Shs. 35,300,000 relate to Issue 12 and the balance Shs. 7,414,400 were for Issue 13 of the Magazine. Shs. 28,072,136 was collected, Shs. 570,264 was withheld on payment by Advertisers and Shs. 5,250,000 is still

outstanding. Shs. 7,364,136 was advance payment on 13th Issue, which is undergoing printing in Dubai. De-tails of the adverts collected are illustrated in Table 2 in the addendum.

Side Note: The Magazine has since been printed and received. Distribution is currently on-going.

This arose out of the Stakeholders Engagement Forum held on 04 July 2019 at Kingdom Kampala. A cross-section of participants attended the function where Memoranda of Understanding were signed to offer discounts to UNABCEC Members. Shs. 42,850,000

was pledged in sponsorship. Of this amount, Shs. 37,550,000 was received during the period, Shs. 300,000 withheld on payment and Shs. 5,000,000 still outstanding from CGCOC, as shown in Table 3 of the Addendum.

2018/2019 further income comparison

Figure 5: 2018/2019 Income Comparison




contingent incoMe

3.1 PresiDentiaL ParDon effect

3.2 MeMbershiP consULtancy serVices

The European Union Delegation (EUD) in Uganda has offered UIPE funding to support the Scaling up of Train-ings at the Uganda Technical Colleges (UTCs) in order to strengthen the engineering profession. UIPE has in turn looked to UNABCEC to conduct the trainings and thereafter place the trainees among her Member firms for hands on engineering experience.

The amounts involved are not yet disclosed but will be at contract stage if the Understanding holds

ground. This is thus not yet in the control of the As-sociation, however, it could improve incomes greatly if it comes through. The Secretariat with the Directors’ guidance are pursuing the MoU to see it implemented successfully.

80% of the income in the period was collected from Membership Fees; the trainings could make a major contribution and reduce over-reliance on Membership fees, especially in the final quarter of the year.

So far, 11 Members have effectively utilized the Presidential Pardon and returned to UNABCEC. 2 of them have exercised the option of settling obligations

for the years prior to 2018. The members are further elaborated in the addendum – Table No. 5.

At 10% Commission on payments, the Secretariat contracted a Consultant, Hoxton Engineering Solutions to woo back old members as well as bring in new ones into the Association to beef up numbers and thus col-

lections. During the period under review, a number of members have been brought into UNABCEC through his effort. These members are detailed in the table at-tached in the addendum - Table 6.

A total of Shs. 923,920,000 was set for collections and an expenditure of Shs. 724,097,051 to leave a positive balance of Shs. 199,822,949 at 30th September 2019. This was compared with the actual collection of Shs. 489,829,349 and expenditure of Shs. 442,268,359 in the period.

53% of the budgeted collections was met whereas for expenditure it was 61%. This is because some of the activities like Training were not carried out and the anticipated consultancy with World Wide Fund for Na-ture did not come through.

2. financiaL PerfoMance against set bUDget

3. others

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UGANDA NATIONAL ASSOCIATION OF BUILDING AND CIVIL ENGINEERING CONTRACTORS

stateMent of financiaL Position

4. financiaL PerforMance

SEP-19 DEC-18

noTeS uShS. uShS.aSSeTScurrenT aSSeTSCASH AND BANK 1 72,667,048 24,935,958ACCOUNTS RECEIVABLE 2 293,589,426 50,247,890OTHER CURRENT ASSETS 3 7,079,014 4,168,647ToTal currenT aSSeTS 373,335,488 79,352,495

FiXed aSSeTSPROPERTY AND EQUIPMENT 4.1 426,587,117 426,587,117INTANGIBLE ASSETS 4.2 13,410,452 13,410,452ToTal FiXed aSSeTS 439,997,569 439,997,569ToTal aSSeTS 813,333,057 519,350,064

liaBiliTieS & equiTyliaBiliTieSnon currenT liaBiliTieSNC BANK LOAN FOR PICK UPS 79,880,104 206,462,510

currenT liaBiliTieSACCOUNTS PAYABLE 5 123,272,265 139,899,084OTHER CURRENT LIABILITIES 6 113,693,993 91,681,893

ToTal currenT liaBiliTieS 236,966,258 231,580,977ToTal liaBiliTieS 316,846,362 438,043,487

equiTyCAPITAL CONTRIBUTION 7 44,932,860 44,932,860REVALUATION RESERVE 8 9,138,615 37,616,413ACCUMULATED FUND 9 442,415,220 (1,242,698)

ToTal equiTy 496,486,695 81,306,575ToTal liaBiliTieS & equiTy 813,333,057 519,350,062




stateMent of incoMe anD exPenDitUre as at 30/09/2019

stateMent of cash fLoWs as at 30/09/2019

SEP-19 SEP-19 DEC-18noTeS USHS. USHS. USHS.

INCOME acTual inVoiced audiTedBALANCE B/F 24,935,958 - -memBerShip FeeS 10 414,632,000 590,750,000 427,000,000DONATIONS - - - 10,472,895TRAINING INCOME - - - -NETWORKING EVENTS INCOME 11 37,550,000 91,655,000 13,700,000The conTracTor magazine 12 28,072,136 42,954,400 6,200,000oTher income 13 9,413,213 3,435,679 69,633,537

514,603,307 728,795,079 527,006,432

eXpendiTureSTRENGTHENED INSTITUTION POLICIES 14 202,151,600 182,851,543 520,517,198DIVERSIFIED FINANCIAL BASE 15 33,151,600 33,151,600 -SUSTAINED MEMBERSHIP GROWTH - - - IMPROVED SERVICE DELIVERY 16 17,957,418 17,957,418 25,037,408LOBBYING AND ADVOCACY - - -ENHANCED VISIBILITY 17 50,335,260 51,356,298 13,686,948MOTOR VEHICLE LOAN REPYAMENT 138,340,381 - -ToTal eXpendiTure 441,936,259 285,316,859 559,241,554SurpluS / (deFiciT) 72,667,048 443,478,220 (32,235,122)

Sep-19 dec-18

uShS. uShS.

operaTing acTiViTieS:OPERATING SURPLUS/(DEFICIT) FOR THE PERIOD 443,478,219.00 (32,235,122)

adjuSTmenTS For changeS in Working capiTal:- (INCREASE)/DECREASE IN RECEIVABLES AND PREPAYMENTS (249,065,504) (7,394,296)- INCREASE / (DECREASE) IN PAYABLES AND ACCRUALS (15,242,960) 1,703,515neT caSh FloW From operaTing acTiViTieS 179,169,755 (37,925,903)

inVesTinG acTiViTies:(ACQUISITION)/DISPOSAL OF PLANT, PROPERTY & EQUIPMENT - 155,403,206neT caSh FloW From inVeSTing acTiViTieS - 155,403,206

Financing acTiViTieS:changeS in capiTal conTriBuTionS LONG TERM LOAN FROM NC BANK (131,438,665) (87,074,832)CHANGES IN CAPITAL CONTRIBUTIONS - (47,500,000)CHANGES IN ACCUMULATED FUND - 1,085,000 neT caSh FloW From Financing acTiViTieS (131,438,665) (133,489,832)

neT increaSe in caSh & caSh equiValenT during The year 47,731,090 (16,012,529)

add: caSh and caSh equiValenTS aT The Beginning oF quarTer 24,935,958 40,948,487

caSh & caSh equiValenT aT The end oF The period 72,667,048 24,935,958

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bUDget PerforM ance as at 30/09/2019yTd SepT 2019 yTd SepT 2019 yTd 2019 yTd SepT

2019 yTd 2019 yTd%oF

acTual buDGeT buDGeT Variance Variance buDGeTAMOUNT(UGX) AMOUNT(UGX) AMOUNT(UGX) AMOUNT(UGX) AMOUNT(UGX)

incomeBROUGHT FORWARD 25,268,058MEMBERSHIP FEES 414,632,000 500,000,000 631,250,000 (85,368,000) (216,618,000) 66DONATI ONS - - - - -TRAINING INCOME - 100,000,000 140,000,000 (100,000,000) (140,000,000) -

NETWORKI NG EVENTS 37,388,000 40,000,000 80,000,000 (2,612,000) (42,612,000) 47TCM 28,072,136 40,000,000 70,000,000 (11,927,864) (41,927,864) -OTHER INCOME 5,075,213 2,670,000 95,160,000 2,405,213 (90,084,787) 5

14 202,151,600 182,851,543 DI RECTOR'S LOA N 4,500,000 - - - - TOTA L INCOME 514,935,407 682,670,000 1,624,640,000 (167,734,593) (1,109,704,593) 32

eXpendiTure - -STRENGTH. INST. POLICI ES 194,094,244 426,547,051 615,543,068 (232,452,807) (421,448,824) 32DI VERSIFIED FIN. BA S E 33,151,600 71,900,000 73,400,000 (38,748,400) (40,248,400) 45SUSTAIN. MEMB. GROWTH - 6,300,000 8,400,000 (6,300,000) (8,400,000) - IMPROVED SVC DELIVERY 156,297,799 98,800,000 100,850,000 57,497,799 55,447,799 155LOBBYI NG & ADVOCACY - 18,800,000 25,200,000 (18,800,000) (25,200,000) -

enha nced Vi S i Bi l i Ty 58,724,716 101,750,000 148,000,000 (43,025,284) (89,275,284) 40

ToTa l eXpendi Ture 442,268,359 368,825,647 1,611,967,647 73,442,712 (1,169,699,288) 27

Surpl uS / (deFi ci T) 72,667,048 204,109,353 12,672,353 (131,442,305) 59,994,695




notes to the financiaL stateMents as at 30/09/2019noTe 1 SepTemBer 2018 decemBer 2018

caSh and Bank amounT (uShS) amounT (uShS)

PETTY CASH 117,800 261,000STANBIC BANK COLLECTIONS A/C 21,500,964 7,295,684dFcu Bank a/c 17,304,391 17,404,734

nc Bank a/c 33, 743, 893 (25, 460) 72, 667, 048 24,935,958

accounTs receiVables – MeMbersHiP FeesADT AFRICA LTD 4,000,000 2,000,000AFRIMECH (U) LTD 2,000,000 -ALLIED ENTERPRISES & CONSTRUCTION LIMITED 500,000.00 -AM AND ML INVESTMENTS LTD 1,000,000 500,000ARS CONSTRUCTION COMPANY (U) LTD. 1,000,000 500,000BABCON UGANDA LIMITED 5,500,000 -BLESSED INVESTMENTS LIMITED 2,000,000 1,000,000BYARUHANGA ROGERS AMIGO COMPANY LTD 500,000 -CENA TECHNICAL SERVICES 1,000,000 500,000CHAMIL INTERNATIONAL LIMITED 500,000CHINA GEZOUBA GROUP OF COMPANIES 10,000,000 -CHINA NATIONAL AERO-TECHNOLOGY INT. ENG. 10,000,000 -CHONG QING INTERNATIONAL 10,000,000 -CIVTEC AFRICA LIMITED 5,000,000 -CORONATION DEVELOPERS (U) LTD 5,000,000 -DAJ INVESTMENTS LTD 3,000,000 -DAVOG TECHNICAL SERVICES LTD 2,000,000 1,000,000EXCEL CONSTRUCTION LIMITED - 7,500,000GAT CONSULTS LIMITED 1,000,000 -GEOMAX ENGINEERING LTD 1,000,000 -GESES UGANDA LTD 3,000,000 -GETS TECHNICAL SERVICES (GTS) LIMITED 3,000,000 -GIGRACO ENTERPRISES (U) LTD 500,000 -HANDS UGANDA LIMITED. 10,000,000 5,000,000HOME BUILDERS LTD 1,000,000 -HORUS TELECOM LTD 2,000,000 - INFRACON (U) LTD 11,500,000 -JIMOKO INVESTMENTS (U) LTD 500,000 -KAMPALA CEMENT CO. LTD 5,000,000 -KATO CONTRACTORS LIMITED 3,000,000 -KENVIN COMPANY LTD 1,500,000 500,000LIVECO ENGINEERING & INVESTMENTS LTD 10,000,000 5,000,000balance carrieD ForWarD 116,000,000 23,500,000

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accoUnts receiVabLes – MeMbershiP continUeD30 Sep 19 31 dec 18

amounT (uShS) amounT (uShS)

Balance BroughT ForWard 116,000,000 23,500,000LUSA CONSTRUCTION & ENGINEERING CO LTD 3,000,000 -MASON CONSULT LTD 1,000,000 -MEJARUDA ENTERPRISES CO. LTD 1,000,000 -MULTIPLE INDUSTRIES LTD - 5,000,000MULTIPLEX LIMITED 7,500,000 -NATIONAL HOUSING & CONSTRUCTION CO. LTD 17,500,000 10,000,000PANAFRICAN TRUCKS&EQUIPMENT (U) LTD 2,000,000 -

PEARL ENGINEERING COMPANY LIMITED 15,000,000 7,500,000PESH HOLDINGS UGANDA LIMITED 4,000,000 2,000,000PHARM INVESTMENTS LTD 1,000,000 500,000PINCAS CONSTRUCTION LIMITED - 500,000

500,000.00 -PRAMUKH STEEL LTD - 5,000,000PRUDENCE LOGISTICS LTD 1,000,000 -RAPID CIVIL CONTRACTORS & FABRICATORS LTD 1,000,000 500,000REAL INVESTMENTS LTD 500,000 -REDDYS ENG AND SERVICES LTD 2,000,000 1,000,000REENBOOG CONSTRUCTION SERVICES LTD - 500,000RENOFIN LTD 1,000,000 -RHINO INVESTMENTS LTD 500,000 -RIM-NJEE BUILDERS LIMITED 500,000 500,000RITE-WAY SOLUTIONS LIMITED 1,000,000 -RMF ENGINEERING LTD 2,000,000 1,000,000ROBERTS ENGINEERING SERVICES LTD 1,000,000 -RUSHAKA INTERNATIONAL INDUSTRIAL CO. LTD 840,000 340,000S-M CATHAN CONSTRUCTION 500,000 -SANITATION AFRICA 500,000 -SANQUA ENGINEERING LIMITED 1,000,000 500,000SEMEO ENTERPRISES LTD 1,000,000 -SHAMMAH ASSOCIATES 5,000,000 -STARLITE ENGINEERS LTD 2,000,000 1,000,000STATEWIDE INSURANCE COMPANY LTD 1,000,000 -STEEL & TUBE INDUSTRIES LTD - 5,000,000TATA UGANDA LTD 2,000,000TECHNO THREE UGANDA LTD 12,500,000 -TEDMACK ENGINEERING WORKS LIMITED 500, 000 -Balance carried ForWard 205,340,000 64,340,000




accoUnts receiVabLes – MeMbershiP continUeD

30 Sep 19 31 dec 18

amounT (uShS) amounT (uShS)

BALANCE BROUGHT FORWARD 205,340,000 64,340,000THE COOPER MOTOR CORPORATION (U) LTD 2,000,000 THERMOCOOL UGANDA LTD 2,000,000 -TILE CENTRE LTD 2,000,000 -TMS ENGINEERING 1,000,000 -UGANDA MARTYRS HOUSING AND CONSTRUCTION C 5,000,000 -UNIT CONSULTS LTD 1,000,000UNIVERSAL ENGINEERING (U) LTD 6,500,000 1,000,000VAMBECO ENTERPRISES LIMITED 7,500,000 -WILLS INT. ENGINEERS & CONTRACTORS 5, 000, 000 -

237,340,000 65,340,000

accounTS receiVaBleS -neTWorkingcGcoc GrouP 5,000,000 -VicToria equiPMenT lTD 5,000,000 - sTanbic banK uGanDa lTD 29,405,000 -ManTrac uGanDa 10,000,000 -jcb 2, 500, 000 -ToTal 51, 905, 000 -

accounTS receiVaBleS - adVerTiSingCADD CENTRE (CYBER SCHOOL TECH. SOLUTIONS) - 1,500,000DIESEL PRO LTD 3,500,000 - ECO CONCRETE 1,500,000MORIAH MEDIA 200,000YOGI STEELS LIMITED 50, 000

5, 200, 000 1,500,000

ToTal accounTS receiVaBleS 294, 445, 000 66,840,000

LESS: CUSTOMER PRE-PAYMENTSARMPASS TECHNICAL SERVICES (855,572) (16,092,110)

JAMI CONSTRUCTION COMPANY LTD - (500,000)KREKEKA (500,000) -MOURPET (500,000) - (1,855,572) (16,592,110)

292,589,428 50,247,890noTe 3 - oTher currenT aSSeTS WITHHOLDING TAX 6,605,822 2,783,695PREPAID TRACKER FEES FOR VEHICLES 473,192 1,384,952

7,079,014 4,168,647

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scheDULe of ProPerty anD eQUiPMent for the year enDeD 30 sePteMber 2019

noTe 4.1

parTicularS land BuildingSplanT & machinery

oFFice equipmenT

moTor VehicleS

FurniTure & FiTTingS

compuTerS & acceSSo-rieS

ToTal

raTeS 0% 2% 20% 20% 20% 12.5% 33.3%coST/ValuaTion u ShS u ShS u ShS u ShS u ShS u ShS u ShS u ShSCOS T A S A T 01/01/2018

72,500,000 149,738,500 52,454,636 27,688,000 430,528,990 18,000,000 39,891,800 790,801,926

ADDI TI ONS - - - - - - - DI SPOSA LS - - - - - - - -PRI OR YEA R ADJ US TMENT

(47,500,000) - - - (27,115,000) - - (74,615,000)

ToTal coST 25,000,000 149,738,500 52,454,636 27,688,000 403,413,990 18,000,000 39,891,800 716,186,926

depreciaTionBalance B/F 01/01/2018

- 14,386,756 23,080,040 27,638,000 99,337,718 10,320,498 37,977,041 212,740,253

CHARGE FOR THE YEAR

- 2,994,770 6,556,829.5 - 80,682,798 2,250,000 1,864,759 94,349,156.5

DISPOSALS - - - - (17,489,400) - - (17,489,400)Balance c/F 31/12/2018

- 17,381,526 29,636,870 27,638,000 162,531,116 12,570,498 39,841,800 289,599,810

neT Book ValueaS aT 31/12/2018 25,000,000 132,356,974 22,817,767 50,000 240,882,874 5,429,502 50,000 426,587,117

aS aT 31/12/2017 72,500,000 135,351,744 29,374,596 50,000 331,191,272 7,679,502 1,914,759 578,061,873

noTe 4.2 inTangiBle aSSeTS

coST/ValuaTion 20% COST AS AT 01/01/2018

33,786,000

ToTal coST 33, 786, 000

amorTiSaTionBALANCE B/F 01/01/2018

16,859,298

CHARGE FOR THE PERIOD

3,516,250

Balance c/F 31/12/2018

20,375,548

neT Book ValueaS aT 30/09/2019 13,410,452aS aT 31/12/2017 16,859,298




noTe 5 - accounTS payaBle30 Sep 19 31 dec 18

BUSINESS IMPROVEMENT SERVICES - 50,000CHARLOTTE BEAUVOISIN 33,371,669 33,371,669DTI GLOBAL ENTERPRISE 400,000 -ELIZABETH MUHEBWA 5,000,000 17,495,000FEDERATION OF UGANDA EMPLOYERS (FUE) - 500,000KAMPALA CAPITAL CITY AUTHORITY - 2,156,944LITTLE RITZ IN AFRICA - -MTN UGANDA 1,000,161 1,076,744NAMBALE, NERIMA & CO - 3,000,000NATIONAL WATER AND SEWERAGE CORPORATION 62,116 -NEWVISION PRINTING AND PUBLISHING CO. LTD 2,200,000 2,200,000OSMAN INVESTMENTS (U) LTD 19,768,750 19,768,750PENINAH ASIIMWE BEGUMANYA 2,800,000 -PETER ALLAN MUSOKE 3,200,000 6,400,000PRIVATE SECTOR FOUNDATION UGANDA 500,000 500,000TEDMACK ENGINEERING WORKS LTD 54,805,500 54,805,500UGANDA MANUFACTURERS ASSOCIATION - 300,000UGANDA NAT. CHAMBER OF COMMERCE&INDUS - 1,000,000ToTal payaBleS 123, 108, 196 142,624,607

noTe 6 - oTher currenT liaBiliTieS

LOANS FROM DIRECTORS 27,731,250 25,000,000SALARIES PAYABLE 10,702,550 7,846,882NSSF PAYABLE 1,761,242 1,511,549PAYE PAYABLE 2,934,484 2,547,601INSURANCE PREMIUM LOAN BALANCE - 3,515,834TERMINAL BENEFITS 75,000,000 75,000,000BOARD OF DIRECTORS' FUEL REIMBURSEMENT - - ToTal 118,129,526 115,421,866

noTe 7 - capiTal conTriBuTionBALANCE B/F 44,932,860 92,432,860WRITE OFF OF KYABATANZA LAND - (47,500,000)TRANSFER TO ACCUMULATED FUND 44,932,860 44,932,860ToTal

noTe 8 - reValuaTion reSerVe

THE AMOUNT IS AN OPENING BALANCE WHICH HAS BEEN RETAINED FOR CONSISTENCY

noTe 9 - accumulaTed FundBALANCE B/F (1,242,697) 78,492,425PRIOR YEAR ADJUSTMENTS 419,962 (47,500,000)SURPLUS / (DEFICIT) FOR THE PERIOD 443,237,955 (32,235,122)

ToTal 442,415,220 (1,242,697)

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SepTemBer 2018 SepTemBer 2018 decemBer 2018amounT (uShS) amounT (uShS) amounT (uShS)

noTe 10 - memBerShip FeeS acTual inVoice d audiTe d41600 · M /SHIP ENTRY FE E S 19,500,000 20,000,000.00 31,000,000.0041610 · ANNUAL SUBS CRIPTION CLAS S INTA-1 98,200,000 130,000,000.00 130,000,000.0041611 · ANNUALSUBS CRIPTION CLAS S LOCA-1 88,422,000 142,500,000.00 90,000,000.0041612 · ANNUAL SUBS CRIPTION CLAS S A-2 75,000,000 110,000,000.00 71,000,000.0041613 · ANNUAL SUBS CRIPTION CLAS S A-3 51,000,000 66,000,000.00 15,000,000.0041614 · ANNUAL SUBS CRIPTION CLAS S A-4 28,000,000 34,000,000.00 20,000,000.0041615 · ANNUAL SUBS CRIPTION CLAS S A-5 11,000,000 20,500,000.00 18,500,000.0041616 · ANNUAL SUBS CRIPTION CLAS S B-1 20,000,000 25,000,000.00 20,000,000.0041617 · ANNUAL SUBS CRIPTION CLAS S B-2 17,760,000 36,000,000.00 22,000,000.0041618 · ANNUAL SUBS CRIPTION CLAS S C-1 1,500,000 1,500,000.00 1,500,000.0041619 · ANNUAL SUBS CRIPTION CLAS S C-2 2,250,000 2,250,000.00 750,000.0041620 · ANNUAL SUBS CRIPTION CLAS S D-1 2,000,000 2,000,000.00 2,000,000.0041621 · ANNUAL SUBS CRIPTION CLAS S D-2 - 1,000,000.00 1,000,000.0041000 · MEMBERSHIP SUBSCRIPTION - OTHE R - - 4,250,000.00

414,632,000 590,750,000 427,000,000.00

noTe 11. neT W orking incomeeVenTS SponSorShipICEA GENERAL INSURANCE - - 5,000,000JCB 5,000,000 7,500,000 4,000,000KAMPALA CEMENT CO. - - 4,000,000NC BANK 5,000,000 5,000,000 500,000OTHER NET WORKING SPONSORSHIP - SALARY DEDUC - - 200,000ACHELIS UGANDA LIMITED 5,000,000 5,000,000 -GO BIG HUB - 2,000,000 -BANK OF AFRICA 2,600,000 2,600,000 -PRAMUKH STEEL LIMITED 1,000,000 1,000,000 -CGCOC GROUP - 5,000,000 -AFRICA ROAD FURNITURE LTD 500,000 500,000 -TOYOTA UGANDA LTD 4,700,000 5,000,000 -MANTRAC UGANDA 1,500,000 1,500,000 -DOTT SERVICES LTD 5,000,000 5,000,000 -COIL LTD 5,000,000 5,000,000 -ARMCO SUPERLITE 1,250,000 1,250,000 -TYRE EXPRESS 1,000,000 1,000,000 -MANTRAC UGANDA - 10,000,000 -VICTORIA EQUIPMENT LTD - 5,000,000 -STANBIC BANK UGANDA LTD - 29,405,000 -

37,550,000 91,755,000 13,700,000




noTe 12. adVerTiSing income 30 Sep 19 31 dec 18NC BANK - 3,500,000NILE TRAC - 2,700,000

DOTT SERVICES LTD 7,500,000 -

AL-MUBARAK CONTRACTING 2,000,000 -METSO 2,700,000 -CARMIX 2,700,000 -MASSENZA 3,500,000 -MORIAH MEDIA 200,000 -TOYOTA UGANDA LTD 2,700,000 STEEL & TUBE INDUSTRIES LTD 1,000,000 -TERRAIN PLANT LIMITED 1,500,000 -MOTA-ENGIL ENGENHARIA CONSTRUCTION. 1,000,000 -MANTRAC UGANDA 1,500,000 -ECO CONCRETE 1,500,000 -EAST AFRICAN PILING COMPANY LIMITED 1,500,000 -DIESEL PRO LTD 4,500,000 -ADAPT TECHNICAL SERVICES LTD 1,500,000 -

42,954,400 6,200,000

noTe 13. oTher incomeWWF RWENZORI PROJECT CONSULTANCY - 52,963,968SALE OF MOTOR VEHICLE - TOYOTA NOAH - 10,000,000BOARD ROOM HIRE 2,580,000 3,400,000INSURANCE COMPENSATION ON LOSS OF MOTOR CYCLE - 3,123,300INTEREST ON NC ACCOUNT 135,377 91,469SALE OF OLD NEWSPAPERS 20,000 55,000AIRTICKET CLASS CHANGE 700,000 - 3,435,377 69,633,737

noTe 14STRENGTHENED INSTITUTION POLICIESORGANIZATIONAL STRUCTURING 15,455,560 29,563,660SECRETARIAT STAFFING COSTS 109,300,315 32,816,200SECRETARIAT EXPENSES 54,365,664 124,432,199BAD DEBTS 3,730,000 113,557,000ToTal 182,851,539 300,369,059

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SepTemBer 2018 SepTemBer 2018 decemBer 2018amounT (uShS) amounT (uShS) amounT (uShS)

acTual inVoiced audiTednoTe 12. adVerTiSing incomeNC BANK - - 3,500,000NILE TRAC - - 2,700,000DOTT SERVICES LTD 7,500,000 7,500,000 -AL-MUBARAK CONTRACTING 2,000,000 2,000,000 -METSO - 2,700,000 -CARMIX - 2,700,000 -MASSENZA - 3,500,000 -MORIAH MEDIA 200,000 -TOYOTA UGANDA LTD 2,538,000 2,700,000 -STEEL & TUBE INDUSTRIES LTD 940,000 1,000,000 -TERRAIN PLANT LIMITED 1,410,000 1,500,000 -MOTA-ENGIL ENGENHARIA CONSTRUCTION. 1,000,000 1,000,000 -MANTRAC UGANDA 1,410,000 1,500,000 -ECO CONCRETE - 1,500,000 -EAST AFRICAN PILING COMPANY LIMITED 1,410,000 - -ADAPT TECHNICAL SERVICES LTD 1,500,000 1,500,000 -ACHELIS UGANDA LIMITED 3,764,136 4,004,400 -YOGI STEELS LIMITED 3, 600, 000 3,650,000 - 28,072,136 42,954,400 6,200,000

noTe 13. oTher incomeWWF RWENZORI PROJECT CONSULTANCY - - 52,963,968SALE OF MOTOR VEHICLE - TOYOTA NOAH - - 10,000,000BOARD ROOM HIRE 2,580,000 2,580,000 3,400,000INSURANCE COMPENSATION ON LOSS OF MOTOR CYCLE - - 3,123,300

INTEREST ON NC ACCOUNT 135,377 135,377 91,269SALE OF OLD NEWSPAPERS 20,000 20,000 55,000AIRTICKET & OTHER CLASS CHANGES 2,177,836 - - DIRECTOR’S LOAN 4,500,000 - - 9,413,213 2,735,377 69,633,537

noTe 14STRENGTHENED INSTITUTION POLICIESORGANIZATIONAL STRUCTURING 29,100,560 15,455,560 29,563,660SECRETARIAT STAFFING COSTS 107,929,015 109,300,315 32,816,200SECRETARIAT EXPENSES 56,722,352 54,365,664 124,432,199DIRECTOR'S TRAVEL REFUND 8,399,673 -BAD DEBTS - 3,730,000 113,557,000 ToTal 202,151,600 182,851,539 300,369,059




SepTemBer 2018 SepTemBer 2018 decemBer 2018amounT (uShS) amounT (uShS) amounT (uShS) acTual inVoiced audiTed

noTe 15 - diVerSiFied Financial BaSeVENUE HIRE 4,000,000 4,000,000 -EVENT MANAGEMENT 11,356,000 11,356,000 -CATERING SERVICES 12,830,500 12,830,500 -MODERATION & MEDIA MANAGEMENT 2,350,000 2,350,000 -PRINTING SERVICES 2,380,000 2,380,000 -PHOTOGRAPHY 200,000 200,000 -COMMUNICATION & TRANSPORT 35,000 35,000 - 33,151,500 33,151,500 -

noTe 16 - improVed SerVice deliVeryTHE IS VAT PAID ON PROJECTS SUPPORT SEPTEMBER 2018 SEPTEMBER 2018 DECEMBER 2018AMOUNT (USHS) AMOUNT (USHS) AMOUNT (USHS) acTual inVoiced audiTedMARCH 5,990,126 5,990,126 5,990,126JUNE 5,983,646 5,983,646 5,983,646SEPTEMBER 5,983,646 5,983,646 5,983,646DECEMBER - - 5,983,646FINANCE COSTS - - 1,096,344 17,957,418 17,957,418 24,617,646

noTe 17 - enhanced ViiSBiliTyMEMBERS' TRAVEL - - 10,281,008MEDIA ADVERTISEMENT - - 2,200,000MAGAZINE EDITING SERVICES 7,478,962 8,500,000 -AIR TICKET & ACCOMMODATION 8,632,150 8,632,150 -MAGAZINE PRINTING 26,816,965 26,816,965 -FREIGHT 4,593,971 4,593,971 -CLEARING & TAXES 2,620,212 2,620,212 -COMMUNICATION & TRANSPORT 27,500 27,500 -DIRECT DISTRIBUTION COSTS 35,500 35,500 805,940WEBSITE 130,000 130,000 400,000 50,335,260 51,356,298 13,686,948

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5. aDDenDUMmemBerShip

FeeS paid up noT paidS. n raTe amounT amounT ToTal remarkS

no. mBrS no. mBrS1 ENTRY 500,000 19,500,000 500,000 20,000,000

39 1 WHT - 1,800,000

2 A1 I 10,000,000 98,200,000 30,000,000 128,200,000WHT - 600,000, ON A/C, DEPOSIT

10 33 A1 L 7,500,000 88,422,000 45,000,000 133,422,000

12 64 A2 5,000,000 75,000,000 35,000,000 110,000,000

15 75 A3 3,000,000 51,000,000 15,000,000 66,000,000

17 5 WHT - 240,0006 A4 1,000,000 28,000,000 6,000,000 34,000,000

28 67 A5 500,000 11,000,000 9,500,000 20,500,000

22 198 B1 5,000,000 20,000,000 5,000,000 25,000,000

4 19 B2 2,000,000 17,760,000 18,000,000 35,760,000

9 910 C1 1,500,000 1,500,000 - 1,500,000

1 -11 C2 750,000 2,250,000 - 2,250,000

3 -12 D1 2,000,000 2,000,000 - 2,000,000

1 -13 D2 1,000,000 - 1,000,000 1,000,000

- 1ToTal 121 414,632,000 58 165,000,000 579,632,000

Table 1: Summary of 2019 Income status

paid noT paid ToTal

adVerTiSing 28,072,136 5,250,000 33,322,136 8.9M - ADVANCE PAY, 732,264 WHT

neTWorking 37,550,000 53,905,000 91,293,000 462,000 WHT, B/ROOM, INTEREST, TICKET

oTherS 5,075,213 400,000 5,475,213

70,535,349 59,555,000 130,090,349

ToTal 485,329,349 224,555,000 709,722,349

paid % conTri-BuTion

noT paid ToTal

memBerShip FeeS

414,632,000 85% 165,000,000 579,632,000

adVerTiSing 28,072,136 6% 5,250,000 33,322,136

neTWorking 37,550,000 8% 53,905,000 91,293,000

oTherS 5,075,213 1% 400,000 5,475,213

485,329,349 100% 224,555,000 709,722,349




no. memBer claSS amounT remarkS

1 ASSURED ENGINEERING SERVICES LTD A2 5,000,000 FORFEITED PRIOR YEARS

2 KARK TECHNICAL SERVICES A2 5,000,000 FORFEITED PRIOR YEARS

3 RHINO INVESTMENTS LTD A1 Local 7,500,000 FORFEITED PRIOR YEARS

4 PIONEER CONSTRUCTION LTD A1 Local 7,500,000 FORFEITED PRIOR YEARS

5 BCR GENERAL LTD A3 9,000,000 PAID FOR 2017 -2019

6 MUGA SERVICES A3 3,000,000 FORFEITED PRIOR YEARS

7 PERFECT MULTIPLE ENGINEERING & CON-SULTANCY SERVICES

A5 1,500,000 PAID FOR 2017 -2019

8 HEAAT GENERAL ENGINEERS & CONTRAC-TORS

A3 3,000,000 FORFEITED PRIOR YEARS

9 ETA ENGINEERING WORKS & SUPPLY CO. LTD

A4 1,000,000 FORFEITED PRIOR YEARS

10 MG ENGINEERS & CONTRACTORS CO. LTD A3 3,500,000 FORFEITED PRIOR YEARS

11 SHEPHERD SERVICES (U) LTD A 4 1,500,000 FORFEITED PRIOR YEARS

Total 47,500,000

PresiDentiaL ParDon effect

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annex 1 > selected advocacy correspondence

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UNABCEC_UGUNABCEC



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annex 2 > selected recommendation letters




annex 3 > selected achievement from advocacy correspondence

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57.Uganda National Association of Building and Civil Engineering Contractors

UNABCEC CODE OF CONDUCTPreambleThe mission of the UNABCEC is to promote the quality of professionalism of the construction industry amongst building and

pursuing this mission, it has issued high quality ethical standards applicable to all our

UNABCEC is an Association that represents building and civil engineering contractors, promoting best practice, excellence and

This code is intended to set out standards of conduct and ethical behavior for all members

ScopeThis code has been drawn up to provide the minimum standards to be maintained

with all the requirements as set out in this

integrity, moral standards and sound reputation by subscribing and observing this

an undertaking that they have received a copy of this Code of Conduct as a condition

be issued from time to time on approval by

code of conduct is a condition of membership

Works Standards Expected Members shall perform works to meet or exceed these minimum standards, in accordance with good construction and engineering practice

Approved drawings:We shall ensure that all works to be executed have approved drawings as per relevant

Construction Methodology:Prior to commencement of any construction work, we shall carry out an inspection of the proposed work areas and provide a construction methodology which must be approved by client before works are

Testing and Quality Control:Every member shall establish a testprogram to ensure that all required testing

and performed under controlled and suitable environmental conditions, including

Environment, Health and Safety: Members must carry out their entire works in Such a way that provides healthy and safe working

On entire typical project site, employees must wear appropriate personal protection equipment (PPE)/ Protective gear which include: Helmets, Overalls, Safety Footwear, Gloves, Eye Protection (goggles, shield or glasses), Ear Protection (ear muffs or plugs),

Construction schedule:Clients need to know when work willstart, the particular implications of any stages of work and when work will be

appropriate information for each job prior to

fully aware of any alterations to timetables and explanations for changes should always

Members will keep and display on work

Construction completion and warranty period:

Members must apply and keep a

All work shall carry a guarantee for materials

by the Contractor prior to issuance by

Employment Standards Members commit to put in place a compensation policy to attract, retain, develop and equitably

The compensation package shall be non-

Employment shall be in accordance with Uganda labor laws in existence at any one

company without clearance will be reported to the secretariat and his details circulated

offered employment by any other member of

Fair Business PracticeWe commit ourselves:

To act at all times with honesty, integrity and responsibility and in the spirit of good faith and fair dealings;To engage in no conduct which is unfair, harsh or unconscionable;To engage in no practice which might tend to lower the standards applicable in the building and construction industry;To observe both the spirit and the letter of the relevant laws of Uganda and other countries in which we operate;To bring any known breach of the Code by a member to the attention of our Association without delay:To refrain from publicly expressing critical comment on the services, conduct or charges of another member

EthicsWe commit ourselves to:maintain integrity and independence in our professional judgement and conduct;Provide works, services and supplies of high

Deal honesty and fairly with our clients:Recognize that fair and genuine competition is a fundamental service to which our prospective clients are entitled:Maintain a high standard of work and comply with the plans and

works we undertake:Comply with the prevailing building and construction codes for construction and work towards their improvement

safety and health;Deal justly with our employees, and with those whom we contract;To conduct our business in such a way that the health and safety of our employees, of those with whom we contract and their employees, and of the community are safeguarded;Avoid all corrupt and fraudulent practices likely to discredit or do injury to the building industry or our Association;Give our informed and vigorous support to all sound legislation affecting the building and construction industry;

Co-operate in aiding the advancement of the building construction industry; and take every opportunity of rendering community service

Offer Quality InformationTo provide true and fair information,without intent to deceive or mislead in the process of procurement and performance of contracts

Confidentialityinformation received during the course of performance of contracts

Inducements, Gifts & Hospitality We shall not

procuring entity or in our execution of contract

FraudWe commit not to:

Utter false documents or misrepresent

processes or execution of contracts to the detriment of procuring or disposing entities

like double billing, bribery or any other fraudulent practiceUnlawfully obtain information in order

execution to the detriment of procuring entitiesWithhold information from our clients/procuring entities during contract execution, to their detrimentWe further commit not to do anything which is inconsistent with the Act, Regulations, Guidelines or the Code of Ethical conduct in Business

DISCIPLINARY ACTION PROCEDUREA Member of the Association maybe subject to discipline if the member’s

THE DISCIPLINARY COMMITTEEThe Disciplinary Committee is a standing committee of the Association consisting of three persons elected by the General

shall be members who in the opinion of the Annual General Meeting are persons

term of appointment of members of the Committee is two years, which may be

whose terms have expired will continue to

cases under consideration, but will thereafter

three is required to conduct business of the

HEARING PROCEDUREThe Executive Director shall receive a formal written complaint from the Complainant and pass it on to the Disciplinary committee, and the Respondent may submit to the Executive Director a written response within 21 days after receipt of the complaint and provide the

The recommended disciplinary action may be

may, in the judgement of the Committee, provide for reprimand, suspension from membership in the Association for a period of

‘Reprimand’ means that the Respondent

misconduct and that such conduct should be

‘Suspension’ means that the Respondent shall be advised in writing that the Respondent’s privileges as a member of the Association have been temporarily

‘Expulsion’ means that the Respondent shall be informed in writing that membership to the Association is terminated, with or without the option to reapply for membership under

A Respondent’s suspension or expulsion from the Association will be made known to the

The Chairman of the DisciplinaryCommittee shall send a copy of the decision to the Board of Directors, Complainant and to the Respondent together with the notice of the Respondent’s right to appeal the decision

and all other notices shall be sent via any

not appealed, the Disciplinary committee

document setting forth their decision and its

the Executive Director who shall provide copies of the decision to the Respondent and

appropriate steps to implement the decision

All materials concerned with these matters

release of information on any matter will

the matter, including appeal to the Board of

Disciplinary Committee or Board of Directors

This prohibition includes, but is not limited to any individuals who are in direct economic

APPEALSAppeals from decisions of the disciplinary Committee shall be made to the Board of Directors, while appeals from decisions of theBoard of Directors shall be made to an independent Tribunal consisting of three persons appointed by the Board of Directors

ACKNOWLEDGEMENT: This code of conduct and ethics was approved by an Extra Ordinary General Meeting held on the

with the above code of ethical conduct in our

Authorised Signatory

Name of Member




Our purpose as Stanbic Bank Uganda is driven by ‘Uganda is our home, we drive her growth’. Part of that purpose is ensur-ing we partner with local associations, such as the Uganda National Association of Building and Civil Engineering Contrac-tors (UNABCEC), to provide financing solutions that contribute towards the economic growth of our country. This support in turn delivers both public and private infrastructure projects.

At Stanbic Bank, we are committed to bridging the gap in the construction sector through fostering partnerships. We bring together key stakeholders such as the local contractors under their UNABCEC umbrella and leading employers such as the Uganda National Roads Authority (UNRA).

With a budget of UGX648 billion the financial year 2019/20, UNRA is constructing an additional 900 kilometres of paved roads across the country. Through a preferential contracting policy, UNRA is also supporting Uganda’s local construction firms to achieve these targets. We have been engaging with both UNRA and UNABCEC to see how best as Stanbic Bank Uganda, we can provide creative solutions that help both par-ties increase the capacity of local contractors.

Today, as we partner with UNABCEC, we are providing cus-tomized solutions to the members and help them become ef-fective partners with UNRA.

We provide a three-way engagement with UNABCEC and UNRA to tackle two key challenges. The biggest one is that local contractors frequently do not have the complete suite of road construction equipment. Our Asset Financing solu-tion ensures that we can provide the required combination of equipment, such as compactors, motor graders, water bowsers and buck hoes to the contractors. Currently we are partnering with equipment suppliers such as Mantrac Uganda -provid-ers of Caterpillar brand and General Machinery -providers of Komatsu brand to guarantee availability as well as regular servicing at affordable prices. This helps UNABCEC members to remain competitive in the industry.

Under our Asset Financing solution, we also give the con-tractor an opportunity to purchase the equipment and repay the bank over the life of the contract that they have won. The contractor contributes 20% of the total value of the equipment then the bank will pay the supplier the outstanding balance.

Additionally, all equipment is insured through our ban-cassurance solution that provides cover to the contractor’s

business to mitigate any risks rising from the type of work undertaken. Stanbic bancassurance has partnered with the top insurance companies in Uganda to enable the client to get very competitive terms and rates. We provide a ten-month financing loan that once again allows the contractor to match their repayments in receipt of funds from UNRA.

It is however not always sufficient to provide local contrac-tors only with financing without engaging UNRA to provide timely payments for completed work. We also commend UNRA for its efforts in ensuring local content of 30% for each contract awarded. We however need to take this further by making sure payments to contractors are made in a timely manner. Stanbic Bank has been engaging with UNRA to provide a sustainable solution that provides the contractor with a view of when pay-ment can be expected and actually paid. This helps contractors plan their businesses better.

As we look to assist with the follow up of payments with em-ployers of various projects, we are very happy to also provide cash flow relief by advancing funds of the invoices, to allow for continued performance on contracts towards completion. This we have seen has been of great benefit to contractors as they are able to deliver projects within the agreed timelines, thereby maintaining credibility in the market, which remains one if not the most important asset in the construction sector.

At Stanbic Bank, we recognize that for any construction company to succeed there is a need for financial institutions to provide bid, performance, advance payment and retention guarantees. We appreciate that access to these vital instru-ments has always been linked to the collateral provided, which usually hinders many construction companies from accessing them hence stagnating their growth in the sector. That is the reason as Stanbic Bank we pioneered the unsecured bid bond offering in the market and as it stands now, has allowed many construction companies to have an opportunity to bid for projects and win. We are looking to take this thinking a notch higher by supporting construction companies on the other guarantee requirements, without necessarily looking at collat-eral to guide the discussions and decisions to provide them.

As a bank, we are looking forward to partnering with you and making meaningful contributions to Uganda’s road con-struction sector.

Stanbic Bank supports local contractors to promote Infrastructural development

ANNUAL report 2019 - UNABCECunabcec.co.ug/upload/UNABCEC Annual report 2019.pdf · Review &...

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