Uganda risks losing Shs300 million daily for delays in the Kampala Flyover project that started last month.
The Shs224 billion project, sponsored by Japan International Cooperation Agency (JICA) includes the construction of flyovers at the Clock Tower, and at Kitgum House in a bid to decongest the city. The project will also cover widening of Nsambya and Mukwano Road and improvements of interfacing roads and junctions.
But the Executive Director of Uganda National Roads Authority (UNRA), Allen Kagina says that any delays in the project will be met with a fine of USD 81,000 (298.2 million Shillings), in line with the terms of the contract.
“When you translate that, it comes to 300 million Shilling per day if the equipment is standing idle. It is in the agreement, it is anticipated that when the contractor is given commencement, he must have access to land. Any delay means he will not work, when he doesn’t work, the contract requires that he charges,” said Kagina.
Kagina was on Wednesday appearing before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), where she was asked to explain a mischarge of Shs150 billion in UNRA expenditures for the financial year 2015/16. She blamed it on liabilities paid to contractors owing to penalties from idle equipment resulting from delayed projects.
She said a number of projects are some times delayed as a result of by failure to acquire land for works to commence, adding that UNRA had to reallocate money to pay arrears and liabilities. She said there are high chances for the country to lose money and delay of the project since some of the land required for the project has not been acquired.
