Gov't pinned on compensation funds for Kapchorwa-Suam road

Members of Parliament on the committee of national economy have today threatened not to approve the loan for Kapichorwa-Suam road if government does not release all the funds required for compensation of the people to be affected by the project.

The proposal was brought by Ruhinda MP Thomas Tayebwa and was embraced by the rest of the members.

The committee chairperson Syda Bumba had noted that out of sh22b required for compensation, government had only provided sh6.5b in the current budget.

"We keep getting reports of failure of government to compensate people for the various projects. This has to end. People have rejected the land amendment Bill party because of such weaknesses like delayed compensation," Bumba argued.

The state minister for finance David Bahati assured the legislators that the money that is required would be released by government because Kapichorwa-Suam road is one of those government wants to expeditiously construct.  

On Tuesday the state minister for finance, Matia Kasaija had informed the committee that he needs about sh2trillion for counterpart funding for loans for the various projects but the ministry does not have the money.

Government is seeking approval from parliament to borrow $95m (sh339b) from the African Development Bank (ADB) and the African Development Fund to fund construction of the road.

The road is part of the multinational project involving Uganda and Kenya dubbed the Kapchorwa-Suam-Kitale and Eldoret Bypass roads project.