Parliament has tasked the Ministry of Finance to explain the mysterious Shs653.4Bn that was included in the 2025/26 budget for the Ministry of Energy and Mineral Development, without detailed workplans on what the money is intended to do.
The demand was made by Herbert Ariko, Chairperson, Committee on Environment and Natural Resources while presenting the report on the Ministerial Policy Statement for the Ministry before Parliament recently.
Ariko explained that the Ministry of Energy and Mineral Development’s budget for FY 2025/26 is projected to rise by Shs501.9Bn to Shs1.774Trn from Shs1.212Tn in FY 2024/25, with the artificial increase being on account of a project called Midstream Petroleum Infrastructure Development Project Phase II where Ministry of Finance has lumped up Shs653.4Bn as external finance without any detail in the project work plan.
“The Ministry has also increased the project Government budget from Shs10.4Billion in the Ministerial policy statement to Shs32.9Billion for the same project. It is worth noting that there is no detailed work plan, cash flow projections, and details of the external financing such as the funder. “The Committee recommends that: The Minister of Finance, explains the basis for budgeting Shs653.4Bn under Midstream Petroleum Infrastructure Development Project Phase II without any work plan and against the multiyear projects spending plan laid in the House.”
