The government has warned that it could terminate the contract for the long-delayed Kabale–Lake Bunyonyi–Kisoro–Mgahinga Road Upgrade Project if the contractor fails to resume works, following a high level meeting convened by Finance Minister Henry Musasizi to review the project’s stalled implementation.
The warning was issued on Friday after Musasizi chaired a ministerial and stakeholder meeting that brought together officials from the African Development Bank (AfDB), Members of Parliament from the Kigezi sub region, district chairpersons, mayors, ministers, private sector representatives, technical officials from the Ministries of Finance and Works and Transport, officials from the Attorney General’s Chambers and the Solicitor General’s Office, as well as local government leaders.
The meeting assessed the status of the strategic road project, which is expected to improve transport connectivity, boost tourism, facilitate cross-border trade with Rwanda and the Democratic Republic of Congo, and enhance access to the tourism attractions around Lake Bunyonyi and Mgahinga National Park.
Despite the government fulfilling most of its contractual obligations, the implementation of the project has remained far behind schedule.
According to the government, project progress currently stands at only 2.13 percent against a planned 37.15 percent, with construction works having remained suspended since 1 June 2026.
Government officials noted that substantial progress has already been made on obligations under its control, including financing commitments, acquisition of the Right of Way, and compensation of Project Affected Persons (PAPs), with approximately 80 percent of the required land compensation already completed.
“The Government has substantially fulfilled its contractual obligations, including financing commitments, acquisition of the Right of Way and compensation of Project Affected Persons, with about 80 percent of land compensation completed. However, project progress stands at only 2.13 percent against the planned 37.15 percent, and works have remained suspended since 1 June 2026,” officials told the meeting.
Following deliberations, the meeting directed the Ministry of Works and Transport to immediately take the necessary steps to restore progress on the project, while the Attorney General was tasked to urgently advise Government on the legal issues surrounding the contract.
Government also resolved to explore all contractual options available, including possible termination of the contract should the contractor fail to resume construction works within the required timeframe.
“Government will explore all contractual remedies, including possible termination if the contractor fails to resume works. A joint field visit will also be undertaken to guide the next course of action,” the meeting resolved.
Leaders from across the Kigezi sub-region expressed concern over the deteriorating condition of the road, warning that the approaching rainy season could further worsen accessibility and negatively affect transport, tourism, trade and the livelihoods of communities that depend on the corridor.
They urged the government to fast track interventions to ensure that construction resumes without further delay.
Musasizi reiterated Government’s commitment to completing the road, describing it as a strategic infrastructure investment that will unlock the region’s economic potential and improve connectivity.
He called upon political and local leaders to continue supporting Government efforts by helping resolve the remaining Right of Way issues that are delaying implementation.
“Government remains fully committed to delivering this important project. We also call upon regional leaders to support efforts to resolve the remaining Right of Way challenges, while those who have already been compensated should not reoccupy the project corridor as we work to expedite completion of this strategic infrastructure project,” Musasizi said.
Once completed, the Kabale–Lake Bunyonyi–Kisoro–Mgahinga Road is expected to significantly improve access to one of Uganda’s leading tourism circuits, strengthen regional trade, reduce travel time and transport costs, and stimulate economic growth across the Kigezi sub-region.
