Land Acquisition Delays Hindering Progress of Kampala-Jinja Expressway Project

Land Acquisition Delays Hindering Progress of Kampala Jinja Expressway Project
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The Deputy Speaker of Parliament, Thomas Tayebwa, has expressed dismay over bureaucratic procurement procedures causing significant delays in the implementation of national strategic projects, specifically citing the Kampala-Jinja Expressway. Tayebwa highlighted concerns about the extensive five-year procurement process for the project, emphasizing the financial burden it places on taxpayers due to rising costs during the delay.

The Kampala-Jinja Expressway Project, funded by a loan of Shs842 billion from the African Development Bank, has incurred Shs3 billion in commitment fees without commencing any works yet.

According to State Minister for Transport, Fred Byabakama, the project will be executed as a Public Private Partnership (PPP) in line with the PPP Act of 2015. The developer is expected to mobilize private financing for the project’s implementation and recover costs over a 25-year Operation and Maintenance period. However, issues raised by bidders regarding project bankability have stalled progress, particularly regarding a Partial Risk Guarantee (PRG) crucial for securing private finance at competitive rates.

Byabakama informed Parliament that discussions with the Ministry of Finance regarding the PRG are ongoing, and once approved, procurement will proceed. Land acquisition, necessary for the project’s development, has faced delays due to insufficient funds for compensation. The government aims to acquire the full section from Kampala to Namagunga and the entire Kampala Southern Bypass by December 2024, with the remaining land planned for acquisition by December 2025, pending budgetary allocations for compensation.

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