Govt asks MPs to okay sh691b roads deal with Chinese firm

Dec 06, 2023

Accompanied by works and transport minister Gen. Katumba Wamala, Musasizi told the committee chaired by Bukedea County MP Ikojo John Bosco that the total project cost of sh691,680,000,000 will be prefinanced through a contract with CICO.

Govt asks MPs to okay sh691b roads deal with Chinese firm

Umar Kashaka
Journalist @New Vision

The Government has asked Parliament to okay its sh691b new deal with the Chinese firm, Chongqing International Construction Corporation (CICO), to work on five major roads in various parts of the country.

The roads to be reconstructed are Masaka-Mutukula road (89.5km) and Nyendo-Villa Maria (11km), while those to be upgraded are the access road to Uganda People's Defence Forces barracks in Masaka (3.5km) and another to Masaka Industrial Park (3.5km). 

The Kikagati-Kafunzo road, which is 28.5km, will also be upgraded if Parliament okays the deal.

Finance state minister for general duties Henry Musasizi made the call while appearing before the parliamentary committee on the national economy on Wednesday.

Accompanied by works and transport minister Gen. Katumba Wamala, Musasizi told the committee chaired by Bukedea County MP Ikojo John Bosco that the total project cost of sh691,680,000,000 will be prefinanced through a contract with CICO.

He also said the pre-financing will be done by the contractor for the first two years (24 months) of project implementation at zero interest and payment by the Government will be done within the last 2 years of project implementation, starting in the third year of the financial years 2025/26 and 2026/27.

The committee will examine the proposal and report to Parliament at the appropriate time. 

The major road from Masaka to Mukutula was built in the 1960s to link and boost trade ties and co-operation between Uganda, Tanzania and the rest of the East African partner states. 

However, it has deteriorated over the years, consistently affecting traffic flows, according to Paul Mpalanyi, the Kyotera County MP. 

He also said agricultural produce and cargo or transit-goods trucks often get stuck in the potholes.

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