ALBERTINE RESORTS LIMITED INVESTMENT PROPOSAL

INTRODUCTION OF SHIPPING SERVICES ON LAKE ALBERT

TO ENHANCE BILATERAL TRADE BETWEEN UGANDA AND
DEMOCRATIC REPUBLIC OF CONGO, DRC
OCTOBER 2015
PREPARED BY
TWEBAZE BROWN
CAPACITY DEVELOPMENT SERVICES CDS
P.O.BOX 28209, KAMPLA, UGANDA
TEL:+256(0) 772428737/0703436454
Email:sedrabrown@gmail.com
Capacity20032001@yahoo.com.co.uk

ACRONYMS
DFO:

District fisheries Officer

DFR:

Department of Fisheries Resources

DRC:

Democratic Republic of Congo

F:

Fresh

FAO:

Food Agriculture Organization of the United Nations

FLS:

Fish Landing Site

FMP:

Fish Movement Permit

GOU:

Government of Uganda

MAAIF:

Ministry of Agriculture Animal Industry and Fisheries

P:

Price

S/C:

Sub County

S:

Sun dried

UWA:

Uganda Wildlife Authority

Wt:

Weight

INTRODUCTION
Fishing has been the main economic activity on several slopes of Lake Albert since time
immemorial.

In 1960s, fishing and general trading activities in the Albertine region was boosted by the
presence and utilization of a shipping facility on the Lake. Latest in just earlier than mid 60s the
shipping business collapsed because of natural calamities. Although fishing business and trading
across both country ports and lakes banks they declined significantly until today.

All supporting mechanism is considered to be in place for revamping.

The old glory for shipping business on the lake. For instance active liberalization of the economy
and privatization policies of government beholders.
There is a well instituted local Government unit of Burisa district whose roles strategically fit
well into the intended investment goal. Communities along the riparian countries are evidently
eager for such much desired services.
1.1 Objectives
a) Broad Objective
To increase scope and business activities revenue generation and improve community welfare
through increased households incomes.
b) Specific objectives
Devise ways and means of Boosting trade on Lake Albert through introduction of shipping
services
Present a historical experience that helps in the implementation of new development strategies
for successful conduct of the shipping services
Obtain views and opinions from selected persons who witnessed the successes of the 1960s
shipping services.
Present merits and recommendations associated with the investment plan.
1.2 Significance
This investment if well implemented shall raise standards of living and people through increased
household incomes. It will attract other services on mainly commercial basis. These include;
tourism , hotels, agricultural activities, to provide food stuffs, health services, clinics, health
centers, schools, private security services, land transport services, groceries, fish processors etc.

There is no doubt government has got vested interest in such development services.
Revenue through tax administration based on this investment deliverables must be a welcome
venture. It is possible that bilateral relationship between Uganda and DRC shall improve
significantly by mutual benefits.
1.3 Terms of Reference
The management of Albertine Resorts Limited, requested for services of the private consultant,
one Mr. Twebaze Brown to undertake a feasibility study to ascertain, the extent of achievable
development this investment plan can realize. The consultant conducted face to face interviews
with key respondents who had wide knowledge on the significance of implementing the shipping
investment

The consultant used primary data and some little secondary information, to c
2.0 THE CONTEXT
This section presents the description of the target investment location, fishing and trade activities
on the lake.
2.1 Fishing Activities at Butiaba
Butiaba Port provides a major source of both unprocessed and processed fish. Fish eating habits
among the surrounding communities Uganda at large are overwhelming. Mukene, among other
other fish types are a source of wealth for food and nutrition which make it an important non

animal protein source. As a result the ports fishing activities present a vibrant community
livelihood venture, because of the ready market available. Value added fishery products such as
the conventional chilled/frozen fillets and headed-gutted fish portions including skins and hides,
dried air bladders for Far East market, fish meal, fish oil and scale-on-skins for making leather
e.g. hand bags, shoes, and fancy crafts earn the country foreign exchange.

Fishing and fish handling standards ought to increase in order to have improved quality fish
products. This will be enhanced by introducing shipping services on the lake. This shall result
into increased market and tradable products including fish. Quality fish production spills over
marketing merits of fish products. This is followed by increased demand for fish on both
domestic and international markets. The number of group members registered for fishing is
15,334, which comprise of 76,348 individuals young and dynamic men participating in fishing
activities on the lake (Source: DFR, 2008).

2.2 Current Management System of Butiaba Port

Butiaba port is one of the fish landing sites whose fishing activities are controlled by Beach
Management Unit, BMU. This is mothered and registered entities by DFR as partners in the
development and management of the fisheries resources. Therefore the Rules for
operationalizing them are fisheries tailored. The local authorities have adopted them and find
then handy in many advantageous ways. BMU is mandated to offer useful services that ensure
quality standards of fishing and fish handling at landing site. Below are some of the functions
tagged to BMU activities:

Assist DFR in maintaining and keeping register of all boat owners and equipment
and BMU members on the beaches.

Participate in selection of boat owners for licensing and vetting of fishers in

collaboration with the local authorities.

Ensure licenses for fishers and vessels are owned and registered.

Enforce in collaboration with DFR or local government safety guidelines for fishing
operations.

Enforce in collaboration with DFR or local authorities fish quality assurance and
sanitary guidelines.

Formulate by-laws on fisheries related issues and enforce them.

Record, inspect and grant permission to visiting boats, crew and equipment to land
at the beach.

Participatory identification of prohibited fishing zones for purposes of fisheries

management.

Decide on local markings for identification of fishing gears and out-boat engines by
licensed fishers.

Carry out patrols within and outside its jurisdictional area with neighborhood
BMUs, fisheries staff and other security agents.

Determine the BMUs boundaries in collaboration with local authorities.

Attend statutory meetings and abide by the resolutions made.

Lobby government and other development agencies for services.

Plan, budget and collect revenues for BMU.

Arbitrate in all BMU disputes of their concern.

Keep and maintain records pertaining to the fisheries, finances/accounts/assets,

arbitrated cases and reports/minutes.

Based on the above ports activity management system the following development scenarios in
table are currently noted at Butiaba:
BUTIABA

1- Biiso S/county (S/c) is coming to participate in fishing business at

Butiaba. Because the local communities are increasing in numbers,
hence increased trade volume.
2- Two BMUs (PDA & PDB) serve Butiaba and both remit 350,000/- to
520,000/- per month from FMPs, otherwise Biiso S/c earns 1 m to 1.25
m more per month from other neighboring BMUs (Walukuba, Bugoigo
& Nyamuguta) and still more expected from landing site tenders.
3- Biiso S/c receives 30/- m from Fishing Vessel Licenses annually.
4- Butiaba has a 900 pupil Primary school and one seed SSS.
5- Challenges: Absence of DRC/Uganda border marks in L. Albert and
Net thefts and fisheries illegalities.
6- In 2005 it registered 50 insulated boat containers, but following opening
access roads to Tonya & Ndaiga, currently none and even the fish
Butiaba fish factory suspended its operations due to shift from slot size
of 16 upward to 20 for N. perch.
7- Fish catch: Landed N. perch is 50 kg/day for PDA and 107 kg/day at
3000/- per kg, landed Tilapia is 214 kg/day for PDA and 429 kg/day for
PDB at 2000/- per kg and Mukene 1,000 kg/day for PDA and 700kg/day
for PDB at 600-700/- per kg thus Mukene forms 70% of volume, Tilapia
20% and N. perch 10%.
8- New batch of BMU voted in June 2009 till now is not sensitized!

2.3 Current Revenue Generation Strategy at Butiaba

The revenue strategies that are to sustain and maintain the operations of Butiaba and other
ports in Uganda include:

Issuance of Fish Movement Permits as a means of tracking traceability of fish and

fishery products.

Collection of Fishing Vessel License fees from dully registered BMU boat owners
(currently Shs 10,000/- and 30,000/- is charged per boat for boats fishing in other
water bodies and L. Victoria respectively). Revenue is to treble (Shs 100,000/- per
boat) when the new Fish Act becomes operational.

Sales from tap water.

BMU membership fees.

Sales from ice.

Rent from dry fish stores and fish drying slabs.

User fees from boats using the jetty facilities.

Hire of board room facilities.

Seminars, films on fish related subject and exchange visits requested for at a fee
organized or initiated by management.

Auditing and making financial statements and budgets for the surrounding BMUs as a
requirement of BMU Statute.

Charge for study tours from schools and institutions for entrepreneurship or
otherwise.

Charge fees for demonstrating and obtaining fish fry from fish breeders for fish
farming enterprises in the catchment area.

Dealership in fishing in-puts e.g. timber, twines/cords, fishing gear and equipment,
etc

The sharing formula of the revenue is flexible. The cost of expenditure is to put into account of
the operations, maintenance, services, utilities, wages and salaries including taxes. This has to be

deducted before the sharing is done. Thus the sharing of the net benefits is proposed as follows:BMUs = 25%; Land Lord/Local Authorities = 30%; DFR = 10% and Development Fund =
35%.
The main purpose of presenting this revenue generation modality is to justify the importance of
inclusion of the shipping business that will tap the available financial gains. Traders shall be
transported to connect to other trading ports hence remitting worthwhile dues for this purpose.
3.0 FINDINGS
This section presents data characteristics of respondents who were interviewed.
3.1 Data Characteristics
a) Age of Respondents
Respondents aged between 15-30 years had limited idea on the importance of establishing
shipping services on the lake probably because they did not have basis for comparison since they
have never witnessed such business there. Respondents in the age bracket 30-45 years noted that
shipping services can improve profile of business on the lake they probably apply sense of
maturity for reasoning.
Respondents aged 45-60 and above years showed high optimism that shipping services would
not only develop the ports of the country but also increase human quality through increased ports
population. They do refer to the high potential the defunct shipping business had.
b) Duration of Residents on the port
Respondents who have lived on the port for less than 10 years had little knowledge of what value
the ship will add to community living. Those who have lived for over 20 years on the port have
high and positive development expectations of the investment plan. Higher ages and long
experience backup this investment opportunities. It requires mature and skilled planners to be
part of this investment development initiative.

3.2 Findings
a) Historical Perspective
i) Description of Butiaba port historical perspective
Butiaba port was most active in 1960s when there was a shipping facility that was connecting to
Mahagi port in DRC. It facilitated Bilateral Trade between Uganda and DRC.from Uganda to
DRC, the ship could export bitenge unprocessed tobacco etabbe, gold mineral, cooking oil
and agricultural produce-beans, maize for consumption along Ugandas lake Albert ports.
Commodities such as hides and skins and gold would be transported after crossing the lake to
Mombasa for exports to international markets.
From Uganda to DRC, traded products were; salt, paraffin, petro and several shopping
commodities such as sugar, soft drinks, beer, fish was however tradable between the two
countries.
Mzee Keeya Balam a resident of Butiaba for 7 years now, observes that trade and fishing
business were profiting both in Uganda and DRC citizens when the ship was operating. It is
further added that its operations where well facilitated by the East African railways and Harbor
Authority (EARHA).The authority owned several assets and liabilities. Proceeds from these
businesses were shared to East African community established system through EARHAs agency
mechanism.
b) Collapse of the shipping services
In1961-63, there huge hailstorms which led to the pushing and huge water waves causing the
flooding of the area that was serving as the ports business operations. Mzee Balam and Mzee
Murimba seremos, LC3 Chairman Butiaba, who has lived there for 50 years say that the stopped
operations for 3 years. They further noted that the floods which have never appeared since then
covered 2 meters high. Consequently, EARHA decided to stop shipping services, took away
some of their belongings and sold a few of them to Indians in Hoima town and left the

unfunctional ship on water body. The only surviving business on the port has been traditional and
rudimentary fishing by communities. This economic activity is supporting over 50,000 members.
C) Ship Business transaction centers in 1960-1963
Shipping services had their operating head quarters at Butiaba now in Bulisa district) but linking
to Katala (Bulisa), Panyimur (Nebbi) Sinyila and to Packwachi, Nebbi in Uganda. To DRC, the
ship could connect services to Mahangi port, the main centre on DRC side, Ndawe (DRC),
Mulcambu, Kasenyi and Chomya all in DRC.

Figure 1:1960-1963 Buhaba shipping Business Centers

d) Current strength of Butiaba port

The current situation at Butiaba is quite promising for successful business conduct if a new ship
is now introduced at the port. Ugandas public private partnership strategy for boosting
development initiatives is a conducive mechanism to enable a high profitable venture for
introducing shipping services at Butiaba. The community at the port has got over 45,000
dynamic young and youthful persons who derive income benefits from fishing activities. They
are surrounded by the following services that are available

Air strip
Primary school

Stadium
Hotels (low scale)
Buffer
Market/Tax Park
Tertiary institution
Play ground
Cemetery
Dumping site

Wild catch fishery

Lagoon
Health centers I & II
Town board office
Recreational Park
Surveyed Proposed Town Council

Albertine Resorts Ltd has got 300 acres of land in the Ports Vicinity.

Based on the above provisions, Butiaba has applied for local council Township status. It is to be
guaranteed soon as per, Mr. Mbidi the local council chairman of the areas.
Advantages of introduction and operation of shipping services of Butiaba.
a) The main purpose of this investment plan is enjoying economic benefits at the ports. Mzee
Keeya explains that the introduction of ship services shall boost fishing business that is currently
employing over 45,000 youths at Butiaba. The business, it is added, will link services well to the
current oil extraction preparation in Bunyoro sub region. The oil drilling site is about 5kms from
the port centre-Butiaba.oil business is expected to raise business opportunities in the area.
b) In connection with the meritsin (a) above, the area shall attract other services such as;
improved quality hotels, health services, transport means such as air services, schools and
tourists. These services are currently of low quality levels because of lack of re activated
business.
c) The Government shall benefit from fees imposed on the traders and passengers, using the
shipping services. Besides, the government shall find it necessary to set up a customs post to
administer and collect exercise taxes due on exportable product. Tax revenue is intended for
national development services. An addition some revenue shall be generated from immigration
services.

d) Tourists will increase in umber since there will be several services to keep them well at the
lakes ports. They will be a reliable source of foreign exchange earnings.
e) Local Government shall enjoy some revenue generation from boosted market dues, trading
licenses and local community service facilities.
Traders and passengers shall acquire the quicker means of transport to access exporting centers.
They will link their exports more easily to Mombasa. Imports will also access market
destinations faster than currently because the Lake Albert transport shall reduce the current
inland transport distances to DRCs Benil, Kisangani etc.
g) There will be noticeable business growths in the neighboring town. Markets in Uganda. For
instance Nebbi, Arua, Hoima, Bulisa, Masindi, Biiso, Bundibugyo, Fort portal and Kibale. This
may generate economies of scale such as increased employment opportunities, house hold
incomes and small income generating projects.
4.0 REQUIREMENTS OF OPERATING SHIPPING SERVICES OF LAKE ALBERT.
The following are proposed steps for making this investment plan feasible.
Step I: Albertine Resorts Limited submits the investment proposal to Government.
Step II: Albertine resorts limited discusses with Government on modalities for partnership of the
investment venture under PPP arrangements.
Step III: Albertine Resorts Limited and government sign memorandum of understanding for
venture partnership. For instance; the government may incur cost of the ship importation
assembling and commissioning it at the port. Whereas Albertine resorts limited may carry out
investment/business management, Revenue generation and any fees remittances to Government.
This shall depend on the mutual understanding of two parties.
Step IV Government procures the ship.
Step V Albertine resorts management opens operations head quarters at Butiaba.
Step VI Albertine Resorts Ltd does staff selection, interviews and recruitment

Step VIII Albertine Resorts Ltd develops and documents a 5-year investment strategic plan.
Note: The estimated cost of the desired ship is Us$ 3,000,000
SHIP TRANSPORT CAPACITY AND INVESTMENT RECRUITMENTS
a) Passenger section
The ship shall be tailor made to the demands of the procurement authority.
The economy shall have seating capacity of 150 persons
The executive shall have seating capacity of 30 persons
Suites shall have provision of 20 persons
This makes total passenger capacity of 200 at ago
b) Cargo section
The ship shall transport 6 containers of goods of 40ft each.
c) Crew cabinet
The crew cabinet shall have 3 staff
d) Restaurant
A ships restaurant shall have 3 attendants
e) Washrooms
f) 2 captains and 2 support staff
g) 6 cars shall be carried on the ship at a time
h) Will have cargo storage compartments
i) Will have a self loading ship
j) Fork lift

k) Container carrying truck

Supporting facilities

Fuel station
Customs and exercise services
Immigration services
Custom bonded ware house
Satellite communication
Crane excavator
Bull dozer
Loader
Grader
Roller, tipper, trucks
A bonded ware house for non toxic goods
2 support vehicles
Housing units for operations

Legal certifications

Investment license
Tax concessions
Uganda to DRC signed treaties
Official concent from Nivishy and works/local Government Bulisa district and other

stake holders in the PPP Framework

Legal name of the ship e.g. MV CALINDON II

Services
Specialized police unit
Emergency ambulance with two medical personnel and driver
Induction training and ship captains

Solar lighting
Sources of funding and investment management structure
The sources and funding are expected to be one or must of the following

Government
Donor communities
Albertine resorts limited
Well wishers

The investments structural obligations are reflected as follows;

Authority
Share ownership
Albertine Resorts Ltd
55%
Bunyoro Kitara Kingdom
10%
Uganda Government
15%
Oriented province of DRC Government
20%
Total
100%
Based on the indicated share capital structures a board of directors shall be constituted. Note that
share magnitude may not be as per any capital contribution because, riparian governments
(Uganda of DRC) may choose to fund the investment by 100%.this will depend on the signed
and mutually agreed treaty.

Proposed investments Board composition

INVESTMENTS

NO. OF

METHOD OF

ALBERTINE RESORT LTD-

REPRESENTATION
2

APPRINTMENT
BY THE PROMOTER

PROMOTER COMPANY
BUNYORO KITARA

COMPANY
BY BUNYORO KITARA

2
1

KINGDOM
BY MINISTER OF WORKS
PROVINCIIAL GOVERNOR

KINGDOM
UGANDA GOVERNMENT
ORIENTED PROVINCE OF

DRC GOVERNMENT
CHAIRMAN

OR MINISTER OF WORKSDRC.
BY RELEVANT

GOVERNMENT 2 YEAR
ROTATIONAL CONTRACT
FROM BOTH DRC OR
UGANDA GOVERNMENT
Source: proposed by the promoter company
THE INVESTMENT BUDGET
CAPITAL INPUTS
Cost of ship including
Self loading ship facility
Fork lift
Container carrying truck
Crane Excavator
Bull Dozer
Loader
Fuel station
Grader
Truck loader
Roller Tipper Truck
Bonded ware Houses
Ambulance
Service boat
Rescue boat
Solar lighting system
Subtotal
(b) SERVICES
Customer post
Immigration post
Satellite communication
Professional Technical survey on ports
Specialized police unit
Subtotal
( c) PERSONNEL
Crew staff
Staff recruitment and training
Staff and stake holder,consultative meetings
Subtotal
Others

QUANTITY
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
Na

UNIT PRICE$
3,000,000

TOTAL $
3,000,000

20,000
200,00
300,000
300,000
200,000
100,000
300,000
100,000
100,000
400,000
80,000
30,000
30,000
20,000

20,000
200,000
300,000
300,000
200,000
100,000
300,000
100,000
100,000
400,000
80,000
30,000
30,000
20,000

80,000
80,000
20,000
20,000
20,000
220,000

80,000
80,000
20,000
20,000
20,000
220,000

5,000
-

60,000
5,000
2,000
67,000

1
1
1
12
12
Na

Insurance services
Importation fees
Local licensing fees
Constituency

Na
Na
Na
Na

Na
Na
Na
Na

2,000
40,000
1,000

TOTAL INVESTEMNT COST

PROJECT SUMMARY
INVESTMENT TITLE

Introduction of shipping services on Lake

Albert to enhance Bilateral between Uganda

MAJOR OBJECTIVE COLLAPSED

and Democratic Republic of Congo(DRC)

To boost and revamp the old shipping transport
services of 1960s that to match current

MAIN STRATEGY

international standards.
To initiate and implement the investment plan
in partnership with Government of Uganda
with Bulisa district Local Government serving
as an active stake holder in the public private

LEADING LAKE ALBERT PORTS

INVESTMENT IDEA PROMO

partnership (PPP) frame work.

Butiaba in Uganda and Mahagi in DRC
Albertine Resorts limited
P.O.Box
Tel:...............
Email:.
CONTACT PERSON: MR. JACK AJUNA
Tel:.........................

DELIVERABLE

Email:..
Boosted trading and fishing business that
contribute national revenue to both Uganda
and DRC though taxes and fees remittances.

Key respondents:

Mr. Keeya Balam 0777396189

Mr. Murimba Seremos (LC3 Chairman) 0773 462604
Mr. Mbidi (LC2 Chairman)
10 other residents (Fish mongers)