By David Mwanje
The government will not launch new road projects in the 2026/27 financial year, shifting focus to completing ongoing works as funding constraints tighten.
The Ministry of Works and Transport says only Shs 690.5 billion has been allocated for infrastructure projects, far below the Shs 2.3 trillion required, forcing a change in priorities.
Appearing before Parliament’s Committee on Physical Infrastructure, Works Minister Gen. Katumba Wamala said the ministry will concentrate on clearing arrears and addressing bottlenecks slowing down existing projects.
“Our priority now is to finish ongoing projects. We must secure land for contractors, clear backlog arrears, and eliminate delays,” he said.
The minister warned that delayed payments are attracting interest, pushing project costs higher.
“Backlog payments are accumulating interest. That is money lost. We need to clear these arrears and fast-track land acquisition so contractors can deliver on time,” he added.
Data presented to the committee shows persistent challenges across ongoing works. Out of 67 projects, 28 are behind schedule, while 13 have been suspended or abandoned.
Officials say the freeze on new projects follows a directive from the Ministry of Finance requiring all government agencies to prioritise clearing domestic arrears. Accounting officers who fail to comply risk penalties.
By the close of the 2024/25 financial year, the ministry had accumulated arrears of Shs 1.489 trillion. Of this, Shs 541 billion has been paid, leaving a balance of Shs 948 billion.
An additional Shs 218.456 billion is expected next quarter, but officials say this will still fall short of the required funding.
In the 2026/27 budget, the ministry’s allocation increased to Shs 6.573 trillion, up from Shs 5.920 trillion in the previous year. The increase is tied to planned works on the Standard Gauge Railway and recruitment of additional staff.
Despite this, the funding gap stands at Shs 1.923 trillion. Key projects remain underfunded, with the Standard Gauge Railway receiving Shs 149 billion against a requirement of Shs 515 billion. Uganda National Airlines also received less than requested.
The ministry is also seeking more funding for district and urban roads, which officials say remain critically underfunded.
With limited resources, the focus will stay on completing existing works, securing land, and clearing arrears to prevent further delays and rising costs.
“The message is clear. No new projects until ongoing works are fully funded and delivered,” Katumba said.
