The Parliament of Uganda is in fear after the letter from the African Development Bank (ADB) threatening to suspend funding amounting to around US$288 million (approximately Ugx1.07 trillion) due to the government’s failure to fulfill obligations, including counterpart funding, compliance with environmental requirements, social safeguards, and compensation of project-affected individuals, came to the attention of Parliament.

During the plenary session on January 30, 2024, the Deputy Speaker of Parliament, Thomas Tayebwa, having read the letter announcing the potential suspension on February 1, 2024, emphasised the urgency for the Committee on Physical Infrastructure to swiftly evaluate the situation before the looming deadline.

“The optimal approach is for the committee to summon the minister overseeing Kampala Capital City Authority (KCCA), along with the KCCA leadership, and report to the House this week on Thursday, providing clear updates on the steps taken to address this matter,” Tayebwa stated.

This directive came after the Kibanda North County MP, Linos Ngompek, raised a matter of national importance, expressing apprehension over a letter dated December 17, 2023, where the bank set the deadline of February 1, 2024.

“The bank has indicated they will halt funding effective February 1, 2024. The Minister for KCCA should update us on the actions being taken; we do not want to jeopardise the project, particularly the ongoing road constructions,” Ngompek stressed.

The urgency was confirmed by Henry Musasizi, the Minister of State for Finance, Planning, and Economic Development (General Duties), who reported that the government had released Ugx20 billion as counterpart funding.

“I chaired a meeting involving KCCA ministers, the Executive Director, and ADB, where we decided to provide counterpart funding. If you check carefully, we have disbursed Shs 20 billion in this quarter,” Musasizi revealed.

However, Lord Mayor Erias Lukwago, the Mayor of Kampala Capital City, said during a stakeholder meeting on road funds in Kampala held at City Hall on Tuesday, January 30, 2024, that KCCA asked the division leadership to send their bidding list so as to get the priorities, and they expect a decision that will be forwarded to the African Development Bank for approval. He added that they anticipate covering approximately 100 to 120 kilometres.

The African Development Bank started funding Kampala Road projects in July 2021. The Kampala City Roads rehabilitation project is worth US$288 million, funded by ADB and the African Development Fund.