Construction Guarantee Fund (CrossRoads)

The poor condition of Uganda’s road network is a major impediment to continuing economic growth and poverty reduction, especially for the largest part of the rural population which is dependent on agricultural produce. Rural people’s economic opportunities and access to markets and service delivery agencies is substantially hindered.

CrossRoads (Creating Opportunities for Sustainable Spending on Roads), a 5 year UKaid, has a goal of improving the quality of the Ugandan road network. CrossRoads offers a Construction Guarantee Fund (CGF) intended to strengthen the lender institution’s ability to finance the National road construction and maintenance sector, specifically performance bond guarantees, thereby stimulating economic growth, competition, profitability and cost effectiveness in the sector. The Construction Guarantee Fund is managed by aBi Trust on behalf of CrossRoads.


Quick facts about the Fund

  • Creating Opportunities for Sustainable Spending on Roads (CrossRoads) is a four-year programme (2011-2014) funded by UKaid and the European Union (EU).
  • The CrossRoads Construction Guarantee Fund (CGF) is a £2 million (UGX8 billion) facility established by CrossRoads to improve access to finance for contractors and consultants in the roads sector.
  • Financial institutions that have joined the CGF use the fund to underwrite the risk of bid securities and performance bonds for road construction and maintenance contracts.
  • The CGF recently extended its scope to include Insurance Companies.
  • By July 2013, nine Financial Institutions – Centenary, dfcu, Ecobank, Equity, Fina, Housing Finance, Ugafode, Pride Microfinance and Bank of Africa – had signed up to the CGF.
  • The CGF is managed by the aBi Finance

To be eligible for accessing the Crossroads performance bond guarantee facility, FIs must:

  • Be in Tier 1, 2 or 3 as defined by the Bank of Uganda
  • Be a reputable institution and have a good record or strategic intent to venture in road construction and maintenance financing.

Crossroads Qualified FIs can use the program to assist the target group of Micro, Small and Medium sized enterprises (MSMEs) in Road Construction.

A qualifying Contractor is defined as a legal entity (individual, company, registered group) that fulfils the criteria below;

Criteria Parameter
Current Member of relevant professional body UACE, UIPE, UNABCEC, UIPP
Value of Road Contracts to be executed Should not go above UGX10bn
Uganda Revenue Authority Up to date tax clearance certificate available
Credit Reference Bureau No adverse entry in previous two years

Basic requirements for assessing your institution for the purpose of approving access to the fund

Insurance Companies

Contractors seeking more information on the CGF should contact:
Mr. Alex Mugova at the CrossRoads Secretariat
Block 2, O_ce C-2, Nyonyi Gardens, Kampala
Tel: 0778 050 274

Financial Institutions

Financial Institutions including Insurance Companies seeking more information on the CGF should contact:
Ms Agnes Nakkazi, aBi Finance
2nd Floor, UMOJA HOUSE, Plot 2
Nakasero Road, Kampala

Tel: 0312 315 600

CGF Brochure