Key road project delays

Jan 30, 2003

THE Busunju-Kiboga-Hoima Road construction project, which started in 2001, has slowed down due to delayed payments to the contractors.

By Yunusu Abbey, Amlan Tumusiime and Fred Kayizzi

THE Busunju-Kiboga-Hoima Road construction project, which started in 2001, has slowed down due to delayed payments to the contractors.

Stirling Civil Engineering Limited, formerly Stirling International, which was contracted to upgrade and tarmac the 145-km road, is reportedly demanding about $2.6m from the Government for certified work done.

"The contractors cannot do much, because they lack the funds. They have to pay for fuel, lime and other items supplied to them on credit," said a source.

"The Government is still withholding all the money currently owed to Stirling as it checks on the company's legality after it changed the name," he said.

In July 2001, Stirling,was contracted to upgrade and tarmac the 145km road at about sh30b. Since the job started, Stirling has so far been paid about $8m.

The contract was divided into two parts. The 69-km Busunju-Kiboga stretch is supposed to be ready by February next year while the 76km Kiboga-Hoima section has to be completed by May 2004.

But, a Road Agency Formation Unit (RAFU) top official in Kampala told The New Vision there should be no cause for alarm over the matter.

“It's true the project has slowed down, because Stirling does not have the funds. But the Government and World Bank are still studying documents pertaining to Stirling's change of company name," said the RAFU official.

“The Italian-owned Stirling International changed its name to Stirling Civil Engineering. But in order to safe guard Government funds and the project, the owners were asked to provide legal documents and those from their bankers in the UK," he said.

“Stirling submitted all the documents mid last week and they are now being studied by the Ministry of Justice and World Bank. As soon as the documents have been read and a decision taken, then all the money owed to Stirling will be released." the RAFU official said.

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