Over Shs17bn local govt road fund could be returned to World Bank: report

A chunk of funding for a key local government road infrastructure project in Mbarara, Kable and Ntungamo districts could be returned to the World Bank because unless contractors can upstage time to complete works.

Works at Mbarara and Ntungamo are at 88 percent and Ntungamo 67 percent, respectively, yet the contract ends on June 30, the Inspectorate of Government said.

The struggling road works are part of he Uganda Support to Municipal Infrastructure Development (USMID) projects.

The Deputy Inspector General of Government, Dr Patricia Achan Okiria, said if the roads works are not complete, the local governments will have to return up to Shs17 billion to the World Bank.

The leaders of the three local governments shared their ordeal that the populace is going through with the incomplete roads.

The Ntungamo Municipal Council town clerk Isiah Tumwesigye expressed worry that the project could expire in June before the roads are complete.

“We initially had a contract at 11 billion and completion we are at 76 percent but the roads remain incomplete and we have so far paid the contractor for the work done of Shs6.4 billion,” Tumwesigye said.

"The money may be taken back to world bank since the contract expires in June and chances are high that the roads will still be incomplete because we have had more than three extensions.”

According to the Ntungamo Resident District Commissioner Geoffrey Mucunguzi, with the poor track record of the contractor, Multiplex, in joint venture with DITACO the contract will expire before they finish.

Kabale mayor Byamugisha Sentaro said the contractor is so thin on ground and the rate at which they are working makes it hard to see them completing the project.

"The same workforce is used in all the three local governments and if it continues we are likely to lose about 9 billion shillings that will return to the world bank,” Byamugisha said.

The General Manager Multiplex, Mr Sam Sserunkuma, said despite delays they experienced in the change of designs, utility service equipment relocation, insufficient machinery among other challenges they are committed to beat the June deadline.

“We have in the past experienced challenges but we are looking forward to getting the locals on board to increase the workforce because what is left is labour-intensive,” Sserunkuma said.

This project has had three extensions since May 2021 due to similar challenges of the contractor.

The contract that was supposed to last for one year and even had the world bank extend the project duration to June 30th, has run for four years and works remain incomplete.

Currently, the contractor uses similar equipment and workforce in all the three local governments that he shifts occasionally.

The USMID cluster six project was valued at about Shs55 billion for 7.96km of road network including solar security lights and beautification and only half of that has been used.