Parliament has raised concerns over Shs9.796 trillion in undisbursed loans borrowed for various road projects at the Ministry of Works and Transport. These funds, which remain idle, are imposing a financial burden on taxpayers, who are required to pay commission fees.
Robert Migadde, the Vice Chairperson, Committee on National Economy highlighted these concerns during deliberations on the government’s proposal to borrow €188,180,000 from the African Development Bank (ADB) and €28,314,513 from the African Development Fund (ADF) for the Busega-Mpigi Expressway Project.
Critics have faulted the government for ineffective economic management, citing unnecessary arrears and a significant increase in public debt. Uganda’s total public debt has risen to Shs116.2 trillion, comprising Shs55.9 trillion in external debt and Shs60.3 trillion in domestic debt.
The undisbursed loans have also caused delayed payments to contractors, leading to suspension of works on several projects. The Ministry of Works and Transport has struggled to maintain and refurbish road equipment due to reduced maintenance budgets.
Lawmakers are urging the government to prioritize the disbursement of funds for road projects to prevent further financial losses and ensure the timely completion of critical infrastructure.