UNABCEC and NCBA Bank deal to support construction industry, Uganda

The Uganda National Association of Building and Civil Engineering Contractors (UNABCEC), the leading association for the construction contracting sector in the East African country has signed a Memorandum of Understanding with NCBA Bank Uganda Limited in a bid to support the growth of the construction industry in the country.

Signed during the UNABCEC 27th annual general meeting at Silver Springs Hotel Bugolobi, the partnership will according to officials go a long way in easing the financial load on contractors by offering them the opportunity to access bid bonds of up to Shs 500m in less than a day to fund their projects.

Additional unsecured bid bonds

Moreover, a member who opens an account and qualifies for a credit facility will have the opportunity to request an additional unsecured bid bond under the bank reverse factoring/supplier financing product.

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NCBA Bank Uganda recently launched the unsecured bid bond offer to the public where customers would need to open up accounts and run them for three months in order to qualify for this service.

However, for the UNABCEC members, new account holders will immediately have access to the unsecured bid bonds as per the MoU. The limit and tenor for this product will be based on supplier spend and credit terms with the suppliers.

Aim of the partnership

Speaking during the meeting, NCBA Bank Uganda executive director, Corporate Banking and Structured Solutions, Mark Muyobo, said that the partnership is aimed at bolstering the construction industry as a strategy to support the economy through infrastructural development.

“This strategic partnership with UNABCEC presents a strong value proposition to corporate and SME businesses who get contracts to run big projects and have constrained cash flows due to ever-fluctuating economic situations in the business environment, “he explained.

Libitco Technical Supplies Uganda Limited which is a professional procurement company, specializing in worldwide sourcing and supplying of materials, equipment, and spare parts was also a part of the partnership.