Cost of roads alarms finance
Feb 17, 2009
THE finance ministry has expressed concern over the escalating costs of road construction.
By Samuel Balagadde
THE finance ministry has expressed concern over the escalating costs of road construction.
Dr. Ezra Suruma, the former finance minister, said the increases would undermine the Government’s efforts to improve roads.
“Despite the monitoring of price indices by the Uganda Bureau of Statistics and other measures that have been implemented by the works ministry, the cost of road construction has continued to rise,†he said.
This was during a workshop to review the unit costs of road construction at Statistics House in Kampala last week.
Suruma also said the government accords importance to provision of a sound, well-coordinated and complementary transport system as a prerequisite for ensuring socio-economic development and consolidation of national unity and security.
The rising unit cost of road construction was attributed to the high transport costs due to the landlocked nature of Uganda and limited competition because few local contractors have the capacity to handle large projects. Others include high interest and inflation rates and currency variations, restrictive tendering processes, perceived and realised risk of change in scope of projects and corruption.
Fred Omach, the state minister for finance (general duties), said plans were underway to harmonise road standards in Africa, adding that this would reduce unit costs of road construction in Uganda.
“though the government has allocated a significant sum of money to the road sector, the high costs hinder its effectiveness,†he said.
Eng. John Nasasira, the works minister, called for a self regulatory policy among the road construction engineers so that those who err are punished.
On the issue of increasing road accidents, Nasasira said this was not due to poor roads, but human error.
“Over 80% of road accidents are a result of human error, but not poor roads as some people say,†said Nasasira
THE finance ministry has expressed concern over the escalating costs of road construction.
Dr. Ezra Suruma, the former finance minister, said the increases would undermine the Government’s efforts to improve roads.
“Despite the monitoring of price indices by the Uganda Bureau of Statistics and other measures that have been implemented by the works ministry, the cost of road construction has continued to rise,†he said.
This was during a workshop to review the unit costs of road construction at Statistics House in Kampala last week.
Suruma also said the government accords importance to provision of a sound, well-coordinated and complementary transport system as a prerequisite for ensuring socio-economic development and consolidation of national unity and security.
The rising unit cost of road construction was attributed to the high transport costs due to the landlocked nature of Uganda and limited competition because few local contractors have the capacity to handle large projects. Others include high interest and inflation rates and currency variations, restrictive tendering processes, perceived and realised risk of change in scope of projects and corruption.
Fred Omach, the state minister for finance (general duties), said plans were underway to harmonise road standards in Africa, adding that this would reduce unit costs of road construction in Uganda.
“though the government has allocated a significant sum of money to the road sector, the high costs hinder its effectiveness,†he said.
Eng. John Nasasira, the works minister, called for a self regulatory policy among the road construction engineers so that those who err are punished.
On the issue of increasing road accidents, Nasasira said this was not due to poor roads, but human error.
“Over 80% of road accidents are a result of human error, but not poor roads as some people say,†said Nasasira