The stretch from Kampala to Gayaza is to be widened and upgraded to first-class tarmac, said President Yoweri Museveni while launching the project.
The road upgrade, Museveni said, was a â€˜payment of the debtâ€™ that the Government owed the people for their support over the years.
The road links Wakiso and Luweero districts.
He said over the years, Ugandaâ€™s revenue base has grown because of enhanced tax collection, which has facilitated the provision of social services such as education, improved road networks and energy.
He thanked the World Bank for lending Uganda sh7b to partly finance the upgrade of the road.
He said the road will be extended from Zirobwe to Wobulenzi town.
The Uganda National Roads Authority chief, Peter Ssebanakitta, said the Kampala-Gayaza section would be upgraded from a Class II tarmac to Class 1; while the Gayaza-Zirobwe section would be upgraded from gravel to a Class 2 standard road.
He said when complete, the Kampala-Gayaza-Zirobwe road would be 44.3km long.
The work is undertaken by a Serbian firm, Energo Projekt, at about sh70b. Work commenced on March 30 last year, and will be completed November 30, 2009.
Works state minister John Byabagambi said upgrading of the road would ease administration of the new districts in the region, and reduce the cost of operating vehicles on the road.
â€œApart from the direct economic benefits associated with the improvement of this road, there will also be improvement in the delivery of social services,â€ Byabagambi said.
After commissioning the road construction, Museveni held a rally at Namulonge where he campaigned for Robert Kasule, the NRM candidate in the Kyaddondo North by-election.
Earlier, at Busukuma, Museveni urged voters in Kyaddondo North to elect a Member of Parliament who would represent the Governmentâ€™s views in the House.
He said electing an MP was so important as it would help the Government deliver services to the voters. â€œBut if you vote badly, you will be orphans,â€ the President said.
Museveni said Kasule was an obedient supporter of the NRM party and promised to guide him.
Gayaza Road gets tarmac