Recent revelations from Parliament highlight a critical situation regarding the ongoing construction of Kabalega International Airport. Lawmakers were informed that SBC (Uganda) Ltd, the contractor responsible for the project, has threatened to demobilize the site due to insufficient funding allocated in the government’s budget.
The alarming details emerged during the Public Accounts Committee’s examination of the Auditor General’s findings concerning the Ministry of Works and Transport. The committee underscored the urgency for the Ministry of Finance to allocate the necessary funds to ensure the project remains on track, particularly in light of the anticipated oil production set to begin in 2025.
“The Auditor General also noted that the Contractor had communicated to the Ministry the intention to demobilize from the site starting 19th December 2023,” stated Muwanga Kivumbi, Chairperson of the Public Accounts Committee. “The delayed implementation of government projects and its resultant consequences would jeopardize our competitive advantage in connecting Hoima and the Albertine region to the major oil processing ecosystem of East Africa and beyond.”
The project, which commenced on 5th May 2017 under a contract worth EUR 309,100,259.49 (approximately Shs1.235 trillion), was initially set for completion within 1,461 days (around four years), contingent upon funding availability through the United Kingdom Export Finance (UKEF) and commercial loans. However, the Auditor General’s report revealed that, as of November 2023, the airport’s construction remains unfinished despite significant payments totaling EUR 254,785,794.38 made to SBC (Uganda) Ltd, along with additional funds disbursed to supervising consultants.
The construction schedule aimed for the airport to be operational by 31st May 2021, yet it has been hampered by ongoing financial challenges. With the available funds now depleted, the Public Accounts Committee is calling on the Ministry of Finance to prioritize the necessary financing in the upcoming budget to avert any further delays.
The Kabalega International Airport project is seen as a vital infrastructure development that will enhance connectivity and support the burgeoning oil sector, fostering economic growth in the region. If the contractor’s demobilization proceeds, it could significantly disrupt progress, ultimately affecting Uganda’s strategic position in the East African oil market.
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