Runway at Kabalega International Airport
The contractor for Kabalega International Airport threatened to demobilize from site due to the failure by Government to provide funds in the budget for the works.
The details are contained in the report by Parliament’s Public Accounts Committee on the Auditor General findings on the Ministry of Works and Transport.
“The Auditor General also noted that the Contractor had communicated to the Ministry the intention to demobilize from the site starting 19th December 2023. The delayed implementation of government projects and its resultant consequences would jeopardize its competitive advantage of connecting Hoima and the Albertine region to major oil processing ecosystem of East Africa and beyond. The Ministry of Finance should provide money needed to complete the project in the next budget,” noted Muwanga Kivumbi, Chairperson, Public Accounts Committee.
On 5th May 2017, the Ministry of Works and Transport signed a contract with SBC (Uganda) Ltd for the development of Kabalega International Airport at a contract price of EUR 309,100,259.49 with the works expected to be completed within 1,461 days (approximately 4 years) from a commencement date that is contingent on funding availability under the United Kingdom Export Finance (UKEF) and commercial loans agreement.
According to the project construction schedule, the construction works should have been completed by 31st May 2021 with an operational airport. However, the Auditor General noted that at the time of audit in November 2023 that the works had not yet been completed despite funds to a tune of EUR. 254,785,794.38 being paid to the main contractor, SBC (Uganda) Ltd and UGX.4,501,110,335 and US$ 2,385,650.95 being paid to the supervising consultants and the available funds being depleted.
The delayed completion of the airport has also affected the ongoing oil activities, with the first oil production date set to shift from the earlier announced 2025.
