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Home Business

Fear As UGX 16 Billion USMID Funds Might Return To Treasury

Insight Post Uganda by Insight Post Uganda
April 10, 2024
in Business
Reading Time: 2 mins read
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Fear As UGX 16 Billion USMID Funds Might Return To Treasury

Mbarara City authorities and the Deputy Inspector of Government, Dr. Patricia Achan Okiria, have expressed concerns that the funds allocated for the construction of three roads in Mbarara City might be returned to the treasury if the contractor fails to meet the deadline once again.   

The joint contract awarded in May 2021 between Multiplex Limited and Ditaco International Trade, under the Uganda Support to Municipal Infrastructure Development (USMID) project. 

It aimed at constructing Major Victor Bwana Road (0.95 km), Galt Road (0.65 km), and Stanley Road (0.78 km) in Mbarara City for 23 Billion Shillings. 

According to Mbarara City Engineer, Hillary Mugisha, the progress of the three road projects stands at 84%, with financial performance at 67.8%, amounting to over Shillings 16 billion out of Shillings 23 billion allocated. 

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Achan, during her tour of the construction sites, expressed concern over the remaining work and the limited time left before the end of the financial year.

She emphasized the risk of losing funds if the work is not completed within the stipulated time.

Mayor Robert Mugabe Kakyebezi echoed these concerns, citing the slow progress despite ongoing quality work, which has led to fears of missing the deadline for the fourth time. 

Originally scheduled for completion in January of this year, the USMID projects were granted an extension until the end of the current financial year. Kakyebezi warned that incomplete works would result in financial losses.

Isaac Businge, the civil engineer from Multiplex, assured the city leadership and the Deputy Inspector General of Government that the remaining auxiliary works on the roads would be 99% completed within the next thirty days, ready for handover upon completion.   


Among the remaining tasks are greening of the roadsides, installation of streetlights, road signs, road marking, and construction of commercial access roads. 

James Mwesigye, the Mbarara City Commissioner, urged the office of the IGG to start sensitizing contractors against offering bribes during bidding processes to secure contracts as part of the fight against corruption.


Tags: Development Physical PlanIGGMDFUSMID
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