UNABCEC partners with NCBA Bank Uganda
Uganda National Association of Building and Civil Engineering Contractors (UNABCEC), a member driven national trade association representing companies and organizations engaged in construction contracting and NCBA Bank Uganda Limited have signed a Memorandum of Understanding that will see UNABCEC members receive up to Ushs. 500m worth of bid bonds in only 24 hours or less. This is in an effort to support the growth of the construction industry in the country. the partnership was launched during UNABCEC's 27th Annual General Meeting that took place on 10th December 2020 at Silver Springs Hotel Bugolobi.
NCBA Bank Uganda recently launched the 500million 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. In addition, a member who opens an account and qualifies for a credit facility will have the opportunity to request for an additional unsecured limit under the NCBA Reverse Factoring/Supplier Financing Product. The limit and tenor for this product will be based on supplier spend and credit terms with the suppliers. Maximum tenor shall be 180 days.
“This is an important step in the Association’s vision to be the lead engine for growth and development of the construction industry in the region.” Said Mrs. Elizabeth Muhebwa, Executive Director of UNABCEC. “We are delighted that a global financial institution such as NCBA Bank Uganda is stepping up to fill major gaps in the industry that constrain the growth of smaller contractors and impose barriers on their ability to tender for big work packages and thus improve capacity.” She continued
This partnership between UNABCEC and NCBA Bank will therefore go a long way in easing the financial load on the contractors by offering them the opportunity to access bid bonds of up to 500m to fund their projects.
On his part, NCBA Bank Executive Director Mark Muyobo, said that he was excited to be collaborating with UNABCEC, as the partnership is aimed at bolstering the construction industry as part of NCBA’s broader strategy to support the economy through infrastructural development. “By virtue of our strengths in our product offering, 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”.
This is one of the numerous partnerships under the UNABCEC Member Discount Programs initiated to offer UNABCEC Members with access to high quality services, latest technology and top-of-the-line products required in their day-to-day running of the business at discounted rates.