KAMPALA, October 29, 2025 — The Busega-Mpigi Expressway project works are expected to resume, following approval of a loan of Euros188.18 million [approximately Shs781billion] from the African Development Bank and Euros 28.31 million [Shs117.46 billion] from the African Development Fund.
The loan, approved by Parliament during plenary sitting on Tuesday is additional financing for the construction of the expanded 27-kilometre expressway.
The motion for the resolution of Parliament to approve the loan was moved by the Minister of State for Trade, Industry and Cooperatives [Industry], David Bahati.
Presenting the report of the Committee on National Economy, Deputy Chairperson, Hon. Robert Migadde, justified the additional financing, saying that government entered into an agreement with the contractor without adequate designs at an original cost of Shs 547.5 billion which later increased to Shs 1.35 trillion after the designs were submitted.
“In addition, the original project route alignment was re-aligned as the additional work items were considered integral to the functionality of the expressway as a toll road, resulting in an increased project scope of works,” said Migadde.
According to the committee’s report, additional financing was further required to cater for the increase of Project Affected Persons [PAPs] which was occasioned by the expansion of the project scope.
Migadde explained that the original PAPs were 2,885 but the re-alignment of the project route saw the number increase to 4,222 valued at over Shs 167.7 billion.
“Out of the 4,222 approved Project Affected Persons, 2,585 have been paid valued at over Shs 111.7 billion, leaving a total of 1,637 unpaid PAPs valued at over Shs5 billion,” said Migadde.
To mitigate further delays, the committee recommended that the works ministry should ensure that the contractor prioritises works in the unencumbered sections.
A minority report was, however, presented by Charles Tebandeke, the Bbale County legislator who urged fellow Members of Parliament to stand-over the loan approval until the government chief valuer carries out a fresh valuation of compensation for all PAPs to ascertain the current costs.
Muhammad Muwanga Kivumbi, the Butambala County legislator cautioned Parliament against approving the loan before ascertaining the exact funds required, saying that the project cost seemed exorbitant.
“What justification does government have to construct a kilometre at US$14 million. Parliament should move cautiously,” Muwanga Kivumbi said.
Kira Municipality Member of Parliament,Ibrahim Ssemujju, however, called for expeditious completion of the project, saying that the traffic on the Busega-Mpigi road is a nightmare.
“I am concerned that the Busega-Mpigi expressway has delayed and I will do anything to facilitate the completion of that road. I usually do not support loans but for this particular one, we need government to commit and the rest we shall investigate,” Ssemujju said.
Deputy Speaker, Thomas Tayebwa, said that completion of the project is crucial and urged the Minister of Works and Transport to give reassurance that the road works will connect to the Kampala-Entebbe Expressway, Ndeeba, Mityana and the Northern bypass.
In response, Minister, Edward Katumba Wamala, said that the new design includes auxiliary roads, connecting to Mityana and Kasangi.
“There will be a complex interchange around Kyengera which will connect the Entebbe expressway, Mityana and Northern bypass. All this will be treated by the interchange and it is part if the reason we require additional funding,” Katumba Wamala said.
He added that the expanded works include four toll gates and bridges which were not considered in the original design.
“I want to say that we commit to address all the issues raised in the minority report and main report and I want to assure Parliament that the funds spent will be recovered because it is a toll road,” he said.
The Busega-Mpigi Expressway is multinational project involving other countries like Rwanda, Burundi, Kenya and the Democratic Republic of Congo, whose works started in 2020.
Other approvals for infrastructure development
- EUR 9.4 million from UniCredit Bank Austria and USD 36.5 million from the Islamic Development Bank [IsDB] to construct and equip oncology centres in Mbale and Arua Regional Referral Hospitals, respectively. This will enhance health service delivery, especially cancer treatment.
- USD 20 million from the Arab Bank for Development in Africa [BADEA] for the 16km Nebbi–Goli Road upgrade. Upgrading this road will ease movement of people and merchandise
- EUR 115.8 million from Standard Chartered Bank for the Critical Oil Roads Package 6B, covering Karugutu–Ntoroko Road and adjoining routes.
- USD 121.9 million from the African Development Fund for the South Sudan–Uganda Power Interconnection Project [SUPIP].
- EUR 192.9 million from Citi Bank for Phase I of the Enhancing Agricultural Production, Quality and Standards for Market Access Project.
https://thecooperator.news/health-and-agriculture-projects-to-benefit-from-us-399mln-loans/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
-
-
-
-
