Road construction and maintenance

Road construction and maintenance

Photo by Shutterstock

Road construction and maintenance
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Business Model Description

Construct and maintain road transport infrastructure like roads, pavements, tunnels and bridges through public-private partnership (PPP) schemes.

Expected Impact

Facilitate grater social mobility and positively contributing to livelihood opportunities especially for remote and low income communities.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
20,000 km of Uganda's roads require pavement by 2030.
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Responsible Consumption and Production (SDG 12)
Sector Sources
  • (I) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (II) Schwab, K. (2016). The Global Competitiveness Report 2015–2016. (III) National Planning Authority (2020). National Development Plan III (NDPIII) 2020/21 – 2024/25. (IV) Government of Uganda. Uganda Vision 2040. (V) Ministry of Works and Transport. Works and Transport Sector Development Plan (WTSDP) 2015/16 – 2019/20. (VI) Ministry of Finance, Planning and Economic Development. Strategic Plan 2016-2021.
IOA Sources
  • (1) Uganda Bureau of Statistics (2020). National Road Network In Uganda (km) 2012/2013 - 2018/2019. (2) Adiki, G. (2015). Uganda’s Poor Road Network Is Threatening Regional Trade And Development. Development and Cooperation D+C. (3), (4), (8) Uganda Bureau of Statistics (2015). National Service Delivery Survey 2015 Report. (5) Uganda Bureau of Statistics (2020). Statistical Abstract 2020. (6) Muzira, S. and Hernandez de Diaz, D. (2014). Rethinking Infrastructure Delivery: Case Study Of A Green, Inclusive, And Cost-Effective Road Program In Nicaragua. Transport Papers. (7) Thompson, T. and Eijbergen, B. (2020). Uganda: Building Resilient And Community-Responsive Road Infrastructure. World Bank Blogs. (9) National Planning Authority (2020). Third National Development Plan (NDPIII) 2020/21-2024/25. (10) Ministry of Works and Transport (2017). Works And Transport Sector Development Plan 2015/16 - 2019/20. Republic of Uganda. (11) Ministry of Works and Transport (2009). National Transport Master Plan 2008-2023. Republic of Uganda. (12) National Planning Authority (2013). Uganda Vision 2040. The Republic of Uganda. (13) Uganda Bureau of Statistics (2020). National Road Network In Uganda (km) 2012/2013 - 2018/2019. (14), (15) National Planning Authority (2020). National Development Plan III (NDPIII) 2020/21 - 2024/25. (16), (17), (18), (19), (41) Ministry of Works and Transport (2017). Works And Transport Sector Development Plan 2015/16 - 2019/20. Republic of Uganda. (20) Daigle, P. (2010). 'A Summary Of The Environmental Impacts Of Roads, Management Responses, And Research Gaps: A Literature Review', BC Journal of Ecosystems and Management. (21) Marzouk, M., Abdelkader, E. and Aboushady, A. (2017). 'Assessing Environmental Impact Indicators In Road Construction Projects In Developing Countries', Sustainability. (22) Ugochukwu, S., Mbakwe, C. and Ajator, U. (2017). 'Construction Externalities: A Theoretical Insight And The Nigerian Scenario', International Journal of Developing and Emerging Economies. (23) Government of Uganda (1998). Traffic And Road Safety Act 1998. (24) Government of Uganda (2000). Access To Roads Act 350. (25) Government of Uganda (2006). Uganda National Roads Authority Act. (26) Government of Uganda (2008). Uganda Road Fund Act. (27) Government of Uganda (2019). Roads Act. (28) Ministry of Works and Transport (2020). Our Philosophy. (29) Uganda National Roads Authority (2020). Who We Are. (30), (31), (32), (33) Uganda Revenue Authority (2019). A Guide On Tax Incentives/Exemptions Available To The Uganda Investors. (34) UKAid (2015). Ghana country case study: Mobilising Finance for Infrastructure - A Study for the UK Department for International Development (DFID). (35) Forster, A. and Mensah, C.A. (2013). Enhancing Urban Roads Maintenance in Ghana: Implications for Sustainable Urban Development, Civil and Environmental Research. (36) Luiu, C. , Torbaghan, M.E. and Burrow, M. (2018). 'Rates of return for railway infrastructure investments in Africa', K4D Research. (37) Africa Development Fund (2003). Road Infrastructure Project (Eastern and Wester Region) - Appraisal Report. (38) African Development Fund (2019). Project: Eastern Corridor Road Development Programme - Phase 1. (39) UNDP/PwC stakeholder interviews, 2020. (40) Asian Development Bank (2018). Guide to performance-based road maintenance contracts.