Ministry owes firms sh22b
Jul 21, 2008
THE Ministry of Works is seeking sh22.5b to pay off over nine construction companies.
By Mary Karugaba
THE Ministry of Works is seeking sh22.5b to pay off over nine construction companies.
According to the June report, the ministry owes SBI China Chongging International sh9b, Reynolds Construction company sh3.9b, Roughton International sh380m and PUT Sarajevo sh4.8b.
Dott Services demands sh1.8b, M&B Engineers sh1.5b, SM Geoteam sh122m and Energo Project sh491m.
The Karuma-Packwach, Kyenjojo- Kyegegwa, Kagamba-Rukungiri and Ntungamo-Kagamba are some of the roads the firms constructed.
The Malaba-Busia road was repaired and the black spots on the Jinja-Kampala highway were improved.
According to the minister, John Nasasira, sh4.8b would be spent on upgrading the Sironko-Kapchorwa road this financial year.
Scrutinising the report yesterday, the parliamentary physical infrastructure committee proposed that companies with “exorbitant debts†be investigated.
Nathan Byanyima (NRM) said Dott Services charges high prices yet most of the road it worked on had depreciated fast. “It is high time we tightened our grip on the ministry and these companies. They need to be summoned.â€
Nasasira said high costs of road construction and maintenance were some the challenges the ministry was facing.
He noted that for the past five years, construction costs had doubled due to the escalating prices of oil and building materials.
This financial year, the Government allocated sh1 trillion to the ministry to construct and maintain roads. “I hope that this funding will be sustained to ensure reliable and durable road network throughout the country,†Nasasira said.
THE Ministry of Works is seeking sh22.5b to pay off over nine construction companies.
According to the June report, the ministry owes SBI China Chongging International sh9b, Reynolds Construction company sh3.9b, Roughton International sh380m and PUT Sarajevo sh4.8b.
Dott Services demands sh1.8b, M&B Engineers sh1.5b, SM Geoteam sh122m and Energo Project sh491m.
The Karuma-Packwach, Kyenjojo- Kyegegwa, Kagamba-Rukungiri and Ntungamo-Kagamba are some of the roads the firms constructed.
The Malaba-Busia road was repaired and the black spots on the Jinja-Kampala highway were improved.
According to the minister, John Nasasira, sh4.8b would be spent on upgrading the Sironko-Kapchorwa road this financial year.
Scrutinising the report yesterday, the parliamentary physical infrastructure committee proposed that companies with “exorbitant debts†be investigated.
Nathan Byanyima (NRM) said Dott Services charges high prices yet most of the road it worked on had depreciated fast. “It is high time we tightened our grip on the ministry and these companies. They need to be summoned.â€
Nasasira said high costs of road construction and maintenance were some the challenges the ministry was facing.
He noted that for the past five years, construction costs had doubled due to the escalating prices of oil and building materials.
This financial year, the Government allocated sh1 trillion to the ministry to construct and maintain roads. “I hope that this funding will be sustained to ensure reliable and durable road network throughout the country,†Nasasira said.