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Chinese Firm Gets Shs691bn Deal To Construct 89.5km Masaka-Mutukula Road

Henry Musasizi (Right), Minister of State for Finance (General Duties) and Minister of Works and Transport, Edward Katumba Wamala (2nd right) appearing before Parliament’s National Economy Committee

Government has reached an agreement with a Chinese firm to construct Masaka-Mutukula Road at a cost of Shs691.680Bn and have the money paid within two years after the completion of works.

Henry Musasizi, Minister of State for Finance (General Duties) made the revelation while appearing before Parliament’s National Economy Committee, where he had been summoned to defend the request by Ministry of Finance to pre-finance the construction of Masaka-Mutukula Road (89.5Km), rehabilitation of Nyendo-Villa Maria Road (11Km), upgrading of 3.5Km access road to Uganda People’s Defence Forces barracks in Masaka and an additional scope of 28.5Km for Kikagati-Kafunzo Road at a cost of Shs691.680Bn.

Documents before the Committee indicates that the civil works will be undertaken by China Chingqing International Construction Corporation (CICO) after the company expressed interest in pre-financing this road starting in the financial year 2023/2024 on the understanding that the costs of the civil works undertaken will be repaid over a period of two years starting in the financial year  2025/26.

“Masaka-Mutukula road is critical link to the port in Dar-es-Salaam and the road will facilitate the construction of the East African Crude Oil Pipeline (EACOP). Therefore, it is important that its reconstruction is prioritized before the EACOP construction works reach the Ugandan side of the border. The reconstruction of the road cannot be financed within the 2023/24 and 2024/25 budget ceiling for UNRA since it is over committed during the mentioned two fiscal years with ongoing road projects and those already considered to commence in 2023/24,” said Musasizi.

According to the Ministry of Works and Transport, the scope of works will include the construction of Bukora bridge, carry out swamp works, provide for climbing lanes, parking lanes as well as provide for street lighting, walkways, weigh station at Mutukula border as well as some drainage works.

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