Published on 24/07/2025
Ministry of Works and Transport is struggling under the weight of UGX414.5 billion in inherited debt from the defunct Uganda National Roads Authority (UNRA).
Despite having already paid out UGX583 billion to contractors, many are still demanding payment and threatening to abandon ongoing road projects.
The Permanent Secretary of the Ministry of Works and Transport, Waiswa Bageya, voiced these concerns today while appearing before the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE). Bageya highlighted a critical miscommunication from the Ministry of Finance, Planning and Economic Development as a key factor exacerbating the challenge.
“Recently, when the Secretary to the Treasury, Ramathan Ggoobi, announced the release of funds for this quarter, I believe there was a mistake where he stated that UGX992 billion had been released to pay creditors,” Bageya explained. “I’ve tried to reach him to correct that error, but he hasn’t responded. That money was for external financing, not government funds. So, creditors are already knocking at our door asking where their money is.”
Emily Biryekeraho, Assistant Commissioner Accounts at the Ministry of Works, provided an update on the outstanding debt. As of June 30, 2024, UNRA had an outstanding debt of UGX997.7 billion. While UGX583 billion was paid in the last financial year (2023/24), a substantial UGX414.5 billion remains unpaid.
Bageya revealed that the Ministry had to issue a Cabinet memo detailing the dire situation in the road sector due to escalating arrears. “We wrote a cabinet paper to explain how grave the situation was regarding payments to creditors. Most contractors had abandoned sites,” he said. “Eventually, we received a supplementary budget which eased the situation, but UGX400 billion is still a significant amount of money.”
COSASE’s inquiry into UNRA’s debt situation was prompted by revelations from the Auditor General, Edward Akol. As of June 30, 2024, former UNRA management disclosed UGX997.722 billion in payables, with a staggering UGX781 million outstanding for over five years.
Akol further highlighted the costly consequences of these delays, noting that UGX27.660 billion in interest charges had accumulated on unpaid Interim Payment Certificates (IPCs). By November 30, 2024, ten contractors with outstanding IPCs worth UGX299.32 billion had suspended works.
“For instance, UNRA incurred interest charges totaling UGX27.66 billion on overdue Interim Payment Certificates (IPCs) that were not settled within agreed timelines,” Akol stated. “These delays resulted in an average daily interest payment of UGX0.075 billion and a monthly loss of UGX2.305 billion. These interest costs were unbudgeted for and diverted critical funds away from UNRA’s core mandate of executing road construction projects.”
The meeting also addressed concerns regarding over 8,000 land titles still held by the government for Project Affected Persons (PAPs). Isaac Wani, Commissioner National Roads at the Ministry of Works, confirmed that the Minister of Works and Transport received 8,606 land titles on behalf of the Ministry.
Francis Mwijukye (Buhweju County) questioned the fairness of assessments when land titles are held for extended periods, asking, “My concern is that after assessment has been done and land titles are kept for so long and the land appreciates, what happens? Do you do another assessment? Do you go by the assessment you made at that time?”
Denis Kanyesigye, a Ministry official, clarified that “most of these titles, the owners were compensated, so it was a matter of subdividing and returning.” He assured the Committee that the newly established land acquisition section, now fully staffed, will begin processing and returning these titles this quarter, stating, “Between January and June, we didn’t do any work because staff weren’t in place.”
The Auditor General had previously raised concerns about UNRA’s failure to compensate individuals for land acquired for road projects. As of October 18, 2024, government recorded unpaid liabilities totaling UGX3.491 trillion for PAPs under land acquisition programs managed by UNRA and the Ministry of Works and Transport. Additionally, 114 PAPs, owning 2.79 acres valued at UGX2.367 billion, remain uncompensated.
“Failure to settle these compensations poses risks to project timelines and may result in additional administrative costs for reassessments and potential litigation by affected PAPs, further escalating project expenses,” the Auditor General warned.
