The Deputy Speaker of Parliament, Thomas Tayebwa, has instructed a parliamentary committee to step in to a potential crisis, where the African Development Bank (ADB) might suspend funding for the ongoing road reconstruction in Kampala, the capital city.
Having reportedly read a letter announcing the potential suspension on February 1, 2024, Tayebwa emphasized the urgency for the Committee on Physical Infrastructure to swiftly evaluate the situation before the looming deadline.
“The optimal approach is for the committee to summon the minister overseeing Kampala Capital City Authority (KCCA), along with the KCCA leadership, and report to the House this week on Thursday, providing clear updates on the steps taken to address this matter,” Tayebwa stated during the plenary session on January 30, 2024.
This directive came after Kibanda North County MP, Hon. Linos Ngompek, raised a matter of national importance, expressing apprehension over a letter dated December 17, 2023. In the letter, ADB threatened to suspend funding amounting to US$288 million due to the government’s failure to fulfill obligations, including counterpart funding, compliance with environmental requirements, social safeguards, and compensation of project-affected individuals.
“The bank has indicated they will halt funding effective February 1, 2024. The Minister for KCCA should update us on the actions being taken; we do not want to jeopardize the project, particularly the ongoing road constructions,” Ngompek stressed.
Hon. Henry Musasizi, the Minister of State for Finance, Planning, and Economic Development (General Duties), confirmed the situation, stating that the government had released Shs20 billion as counterpart funding. “I chaired a meeting involving KCCA ministers, the Executive Director, and ADB, where we decided to provide counterpart funding. If you check carefully, we have disbursed Shs 20 billion in this quarter,” Musasizi revealed.
