Parliament Approves UGX 64 Billion for Masaka-Mutukula Road Insurance

The Parliament of Uganda has authorized the Government’s request for the payment of an extra UGX 64,779,400,239 for the construction of the Masaka-Mutukula road.

The UGX 64 billion will serve as insurance fees for the loan facility acquired by the contractor. A few months ago, Prime Minister Robinah Nabbanja launched the construction of the major trade highway.

Parliament’s decision will see the cost increase from Shs 691.68 billion to Shs 751.002 billion, representing an approximately 8.58% increase. The total cost for the Sinosure Insurance is UGX 64,779,400,239. This includes UGX 54,331,208,246 for the Masaka-Mutukula road section together with the Masaka town roads. Similarly, UGX 10,448,192,000 is for the Kikagate-Kafunzo road section.

However, the decision by MPs wasn’t unanimous as members of the Committee on National Economy advised differently. They had recommended that only Shs 38.8 billion be allocated by the government for insuring the loan facility. The Committee also did not have kind words for Uganda National Roads Authority (UNRA). The authority allegedly committed the addendum as part of the contract with the Chinese contractor. According to MPs, this is usurping their powers.

“We are paying commitment fees of close to Shs 430 billion on top of this money. We have paid close to Shs 5.5 billion in penalties for the cancellation of loans. You borrow and then you cancel. We need to bring the Ministry of Finance to order; otherwise, you are becoming a very big disgrace to this country as the Ministry of Finance. Minister Musasizi and his colleagues must know that Uganda isn’t dying tomorrow; this is a country that is here to stay.” said Goreth Namugga, MP.

Goreth Namugga said that before approving any new loans, the Minister must provide an explanation. She emphasized the need for a clear strategy to reduce the amount of loans borrowed and not utilized. Namugga also highlighted that there are currently undisbursed loans amounting to nearly Shs 14 trillion.

“Then I am seeing the one for insurance; you approved the loan here, and then you are saying you can’t approve the insurance component. Then it means you have to recall the whole loan.” Deputy Speaker Thomas Tayebwa disagrees with the Committee.