BUDGET: Govt allocates Shs3.4 trillion for roads


The Government has allocated Shs3.4 trillion toward construction of national roads during the next financial year which starts July 1 2017.

Shs3.4 trillion is 75 per cent of the Works and Transport ministry’s Budgetary Allocation for the next financial year.

Finance minister Matia Kasaija said the Shs3.4 trillion will also provide for bridges and ferries on the country’s lakes and rivers.

“All the roads that were on the programme when I spoke last financial year are in the system ” Kasaija said during the Budget reading in Kampala yesterday.

The minister is presently reading the FY 2017/18 National Budget, which in total adds up to Shs29 trillion.

Among the roads to be worked on are at least 10 that will be used for oil-related activities.

For the 10 unidentified road projects, Kasaija said, the Government has allocated Shs125.28 billion.

The money will be drawn from the Petroleum Fund.

Altogether, the Government will need Shs1.7 trillion to construct 10 roads which altogether will add up to 556 kilometres.

The construction of the roads will be financed largely through debt financing.

To that end, the Government has already started engaging China to lend it $500 million (about Shs1.7 trillion) to finance the construction.

“The Government will continue the expansion of the paved roads network. Additionally, roads will be constructed in support of the commercial production of oil by 2020,” Kasaija said.

“The following ten roads will be upgraded in this respect: the Hoima-Butiaba-Wanseko road, Masindi-Biiso, Masindi-Bugungu via Murchison Falls, Kaseeta – Lwera via Bugoma Forest, Hohwa-Nyairongo-Kyarushesha road, and Wanseko-Bugungu. Lusalira- Nkonge-Sembabule, Kyotera – Rakai, Buhimba-Nalweyo-Kakindu-Kakumiro-Mubende and Kabale – Kiziramfumbi road.”

The Government will also rehabilitation of the Tororo – Pakwach Railway Meter Gauge line to support delivery of equipment for Oil production.

At this stage, it is still unclear how much the government will spend on the rehabilitation of the above meter gauge railway.



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