Ministry Of Works And Transport Faces Financial Hurdles Post UNRA Integration

Posted by: lukwago J in Uganda news January 25, 2025

The Ministry of Works and Transport, led by Minister Gen Edward Katumba Wamala, has brought to light the financial challenges encountered post the integration of the Uganda National Roads Authority (UNRA) into its operations.

The inherited debt of approximately Shs 1.3 trillion from UNRA has cast a shadow on ongoing infrastructure projects, leading to a halt in work by many contractors due to unpaid dues.

With the debt accumulating an average daily interest of Shs 280 million, Minister Katumba Wamala emphasized the critical need to retire the debt to ensure the continuation of projects and prevent further financial strain.

Government’s RAPEX policy and agency integration

The integration of UNRA into the Ministry of Works and Transport is part of the government’s larger Rationalisation of Government Agencies and Public Expenditure (RAPEX) policy, aimed at enhancing efficiency and accountability by eliminating redundancies.

To tackle the financial challenges and support project continuity, Minister Katumba Wamala proposed solutions including debt settlement and budget realignment to facilitate the smooth operation of infrastructure projects.

Deputy Speaker Thomas Tayebwa assured prompt action in transferring funds to affected ministries as part of RAPEX, with considerations for exploring infrastructure bonds as a viable funding option inspired by successful models like Kenya’s tax-exempt infrastructure bonds.

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