Minister Gen Edward Katumba Wamala informs the Parliament about an overwhelming debt of Shs 1.3 trillion

The Ministry of Works and Transport in Uganda is grappling with a serious financial crisis following its merger with the Uganda National Roads Authority. Minister Gen Edward Katumba Wamala informed the Parliament about an overwhelming debt of Shs 1.3 trillion inherited from UNRA.

Every day, the debt increases by Shs 280 million due to interest charges, leading to a halt in numerous road construction projects nationwide. Minister Katumba highlighted the urgent need to settle this debt to prevent further disruptions in ongoing contracts. He mentioned that many contractors have already ceased their operations.

The debt issue originated from the integration of UNRA into the Ministry of Works as part of a new policy initiative, RAPEX, launched in February 2021. The policy was designed to enhance governmental efficiency by consolidating various agencies.

As a result of the financial strain, many road contractors have abandoned their work due to unpaid dues, leading to a standstill in road infrastructure projects. The Ministry urgently requires funds to compensate the contractors and resume road construction.

Responding to the crisis, Deputy Speaker Thomas Tayebwa assured that Parliament would expedite the process of allocating funds to tackle the issue within the week.

To address the financial dilemma, the Ministry has proposed two primary solutions: allocating special funds to clear the Shs 1.3 trillion debt and redirecting UNRA's budget directly to the Ministry of Works. Moreover, Parliament is considering the option of launching infrastructure bonds similar to those in Kenya to generate additional funding for road projects.

The ongoing debt issue continues to impede the progress of crucial road development initiatives in Uganda, with several key projects remaining incomplete as the ministry seeks viable solutions to this financial predicament.