Examining the effectiveness of pre-financing arrangements in physical infrastructural development in Uganda National Roads Authority (UNRA)

Abstract

This study examined the effectiveness of pre-financing arrangements in physical infrastructural development in Uganda National Roads Authority. The study was guided by three objectives which included examining the benefits for using pre-financing arrangements in physical infrastructural development, examining the challenges encountered when using pre-financing arrangements in physical infrastructural development and identifying recommendations suitable for handling pre-financing arrangements in physical infrastructural development. The study used a cross-sectional research design where both quantitative and qualitative approaches were used with a sample size of 44 respondents. Data was collected using questionnaires and interview guide. The study findings revealed that pre-financing allows sharing of potential project risks between the contractors and government, facilitates faster development of physical development and the government can gather funds to pay the contractor when the project is being executed. Major challenges encountered during pre-financing was lack of legal experts and high interest rates charged. The study also revealed that that there should be appropriate risk sharing between government and contractors and the government needs to strengthen its institutional capacity to negotiate to reach at favorable pre-financing agreements.