Govt releases new procurement of road construction contracts guidelines

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The Government has announced that only contractors who have completed at least 75 per cent of civil works on their current contracts will be eligible to bid for new contracts. 

Kampala affairs state minister Kabuye Kyofatogabye says, "There is no law that forbids us from awarding a contractor a new contract, but we want to ensure that they can handle our road projects." 

This new guideline, originating from Cabinet deliberations, aims to reduce inefficiency and expedite construction work within the World Bank-funded Greater Kampala Metropolitan Area Urban Development Project (GKMA-UDP).

Kyofatogabye made this announcement during the closing ceremony of the GKMA-UDP workshop at SKYZ Hotel in Naguru, Kampala, aimed at building the capacity of ministry staff, journalists and communication officers to enhance consistent and coherent messaging regarding the programme.

In March, Prime Minister Robinah Nabbanja expressed her frustration regarding the slow progress of various construction projects in the city, cautioning that companies failing to meet deadlines could face contract termination.

She cited the Salama-Munyonyo Road, which President Museveni inspected in 2023 but has seen delays in its completion. 

“We cannot tolerate unserious contractors. We must ensure that Kampala shines with good roads,” she remarked shortly after touring city roads on March 1, 2025.

During the workshop on Thursday, May 22, 2025, Kyofatogabye emphasised, “We now want to confirm that you have reached 75 per cent completion on the basic work (before giving you another contract), as this typically leaves only drainage to be finalised. Only then will you be eligible for a new contract.”

2027 deadlines

The minister also provided an update on the programme, acknowledging some delays but asserting that the ministry is on track to complete significant works by the 2027 deadline.

“So far, we've covered two years, and soon we will begin our mid-term review after two and a half years,” he stated.

Advertised for bidding 

He reported that over 149 kilometres of a targeted 200 kilometres have already been contracted, with an additional 50 kilometres advertised for bidding.

“By September, we should have close to 200 kilometres finalised, allowing for additional work to commence next year. I have confidence that all contractors involved will deliver successfully,” he said.

The delays 

According to Kyofatogabye, the delays caused the ministry to miss the January 2025 target for starting work. This, he attributed to the entire year of 2024 being dedicated to design reviews, as well as challenges in right-of-way acquisition, primarily due to a lack of budget for compensation of project-affected persons. 

He expressed gratitude that most communities are now on board, enabling civil works to commence, with right-of-way acquisition nearing completion at 95 to 98 per cent. He indicated that all physical work and construction should start by June 1.

The GKMA-UDP was endorsed by the Cabinet in March 2020 and is valued at $566 million (approximately shillings 2.1 trillion), comprising a mix of loans and grants: $518 million allocated as a loan and $48 million as a grant.

Additionally, it will be supported by a loan of $42.66 million (shillings 156.4 billion) from Agence Française de Développement (AFD).

Programme for results 

The program is a Government of Uganda initiative implemented through the Office of the President and the Ministry of Kampala Capital City and Metropolitan Affairs (MOKCC&MA). 

The GKMA-UDP operates under the Program for Results (PforR) financing model, ensuring adequate safeguards for the proper utilisation of funds and promoting robust institutional performance in key areas such as budgeting, procurement, and financial management.

The GKMA-UDP is being executed by nine entities, including the Kampala Capital City Authority (KCCA) and the local governments of Wakiso, Mukono, and Mpigi, along with their respective municipal governments of Kira, Nansana, Makindye Ssabagabo, Mukono, and Entebbe.