Uganda government tightens grip on road contractors, requires 75% completion for new bids

KAMPALA — The Ugandan government has put a halt to awarding new road construction contracts to firms that haven’t substantially completed their ongoing projects. Only contractors who have finished at least 75% of the civil works on their current contracts will now be eligible to bid for new ones.

State Minister for Kampala Affairs and Metropolitan Area Kabuye Kyofatogabye announced the new directive Friday at the close of a workshop for the Greater Kampala Metropolitan Area-Urban Development Projects (GKMA-UDP) at Skyz Hotel in Naguru, Kampala.

“There is no law that forbids us from awarding a contractor a new contract, but we want to ensure that they have the capacity to handle our road projects,” Kyofatogabye said.

He explained that the new guideline stems from cabinet discussions and aims to reduce inefficiencies and speed up construction works under the World Bank-funded GKMA-UDP.

The move follows Prime Minister Robinah Nabbanja’s frustrations in March regarding the slow pace of various construction projects in the city. She had warned that companies failing to meet deadlines could face contract termination, citing delays on the Salama-Munyonyo road, which President Yoweri Museveni inspected in 2023.

“We cannot tolerate unserious contractors. We must ensure that Kampala shines with good roads,” Nabbanja stated after touring city roads in March.

Kyofatogabye reiterated the government’s stance at the workshop. “We now want to confirm that you must have reached 75% completion on the basic work before giving you another contract, as this typically leaves only drainage to be finalised,” he said.

While acknowledging some delays with the GKMA-UDP, Kyofatogabye maintained that the ministry is on track to complete significant works by the 2027 deadline.

“So far, we’ve covered two years, and soon we will begin our mid-term review,” he noted, adding that over 149km of a targeted 200km have already been contracted, with an additional 50km advertised for bidding.

“By September, we should have close to 200km finalised, allowing for additional work to commence next year. I have confidence that all contractors involved will deliver successfully,” he said.

The minister attributed the delays, which caused the ministry to miss the January 2025 target for starting work, to a full year in 2024 dedicated to design reviews and challenges in acquiring right-of-way. The latter was primarily due to a lack of budget for compensating project-affected persons.

Kyofatogabye expressed gratitude that most communities are now cooperating, allowing civil works to commence. He said right-of-way acquisition is nearly complete at about 98%, and all physical work and construction are expected to begin by June 1.

Endorsed by the Cabinet in March 2020, the Greater Kampala Metropolitan Area-Urban Development Projects (GKMA-UDP) is valued at $566 million (approximately 2.1 trillion Ugandan shillings). This funding comprises a $518 million loan and a $48 million grant from the World Bank, supplemented by a $42.66 million (156.4 billion Ugandan shillings) loan from Agence Française de Développement (AFD).

The program is a government initiative implemented through the Office of the President and the Ministry of Kampala Capital City and Metropolitan Affairs. It operates under a “program for results” financing model, ensuring adequate safeguards for fund utilization and promoting robust institutional performance in budgeting, procurement, and financial management.

The GKMA-UDP is being executed by nine entities, including the Kampala Capital City Authority and the local governments of Wakiso, Mukono, and Mpigi, along with their respective municipal authorities of Kira, Nansana, Makindye Ssabagabo, Mukono, and Entebbe.