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Shock As Gov’t Moves To Borrow Additional Shs777bn To Complete Busega-Mpigi Expressway

The Minister for Transport and Works, Gen. Edward Katumba Wamala

Members of the Parliamentary Committee on National Economy have expressed shock and concern after Government tabled a proposal seeking to borrow an additional Shs760 billion to complete the Busega-Mpigi Expressway, a key infrastructure project.

The substantial increase in the project’s cost has raised eyebrows among MPs.

The Minister for Transport and Works, Gen. Edward Katumba Wamala appeared before the Parliamentary Committee on National Economy to explain the 188 million Euro (about Shs777.3 billion) loan from the African Development Bank.

Gen. Katumba attributed the increased costs to changes made to the project scope, including added roads around the expressway. He also revealed that the contractor had stopped working, resulting in a monthly compensation cost of 4.5 billion Ugandan shillings for idle equipment.

The minister further explained that the road has been converted into a toll road with plans to build four toll plazas.

The contractor had initially promised to complete the work by August 2027, but the minister noted that this timeline is now uncertain, pending the loan approval.

However, MPs led by committee Vice Chairperson Robert Migadde Ndugwa questioned the significant cost escalation, wondering how the amount needed to complete the road had far exceeded the initial estimated total cost of Shs547 billion.

They noted discrepancies in the project’s scope, suggesting that some of the additional roads mentioned by the minister were part of the original plan.

Additionally, the proposal to introduce tolls on the road sparked debate, with some MPs seeking clarity on how the funds would be utilized.

If parliament approves the loan, the total project cost will amount to Shs1.35 trillion.

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