HOIMA – The Ministry of Works and Transport says mafias within government are frustrating the construction of Kabaale International Airport in the oil-rich Kabaale sub-county Hoima district.
Two weeks ago the contractor of the project halted works, saying government has failed to provide extra 40 million Euros for the project.
The Construction works for the first phase of the airport kicked off in April 2018 after the government acquired a loan of 264mln Euros from Standard Chartered Bank and UK Export Finance. SBC Uganda Ltd, a joint venture of SBC International Holdings AG and Colas UK is implementing the project.
However, the State Minister for Works and Transport, Fred Byamukama on Monday explained that government is investigating some people in government [mafias] whom he said are conniving with the contractor to frustrate the oil project. He said the investigations are based on information from a whistleblower.
According to Minister Byamukama, 26mln Euros is enough to complete the first phase of the project, yet the contractor insists on 40mln Euros.
He said the mafias have influenced the contractor to halt the construction works at the airport to put pressure on the government. The minister said government will not bow to the contractor’s demand.
The minister noted that mafias approached the Finance ministry officials to negotiate the 40mln Euros loan without the knowledge of the line ministry [Ministry of Works and Transport], noting his ministry has rejected to endorse the loan.
He accused the contractors of using variation in prices to demand extra funds yet they have failed to show the government how this figure was computed.
“Someone goes to Ministry Finance and identifies where the loan can be obtained and now they are forcing the Ministry of Works to borrow that money [40mln Euros]. We do not need that money. If we need it in future, we shall come and tell you. The money we have is enough to finish the first of the project,” he said.
He warned that if the contractor refuses to complete work, the government would have no other option but to terminate the contract, adding that the contractor is supposed to hand over the first phase of the project in June this year.
However, Amos Murisa, SBC Uganda’s public relation officer denied allegations of conniving with mafias in government to demand extra funding, saying that such allegations are only aimed at tarnishing the image of the company.
He said they only halted the construction works after the government failed to listen to their request for more funding.
According to him, the project faced a financial gap that resulted from the increase in prices of different commodities such as fuel and other construction materials such as iron bars, and cement among others.
“We have had demand for almost a half year in regard to the variation of prices and some compliance according to the contractual obligation; there was no response until we reached a point where we could not go on and decided to halt works for a certain period of as the matter is being resolved,“ he said.
The halting of the project works has affected over 40 workers who were briefly sent home. If the contractor fails to agree with the government the workers will be jobless.
The project was supposed to be handed over in December last year but it was pushed to February 2023. This failed and it has been pushed to June this year.
However, the construction of the 3.5 kilometers runway is complete, cargo terminal building and rescue firefighting system are complete while the airport apron which can host four big aircraft, ground lighting system, and taxi way are about to be completed.
Other works on the project such as construction of 15 housing units for airport staff, air traffic control tower, and turn pad are lined up in the second phase of the project.
The Hoima district chairperson urged both sides to settle the matter so that the project works resume, adding that the project is key in the development of the oil and gas industry. The project is currently at 90 percent progress.
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