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Govt to lose UGX300M daily in Kampala fly-over delays

Uganda to pay UGX300M penalty daily for the delay of the Kampala Fly Over. (PHOTO/File)

KAMPALA – Uganda National Roads Authority (UNRA) has warned that Ugandans risk paying UGX 300M daily in penalties if any delays are encountered during the construction of the Kampala fly-overs.

The revelation was made by Allen Kagina, Executive Director UNRA while appearing before the Committee of Commissions, Statutory Authorities and State Enterprises (COSASE).

The UNRA team had been summoned by the Committee to respond to audit queries raised in the June 30, Auditor General report and in her opening remarks, she lamented about delays in the project.

The UNRA boss pointed out Kampala fly-over whose contractual clause gives the contractor rights to fine Uganda USD 81,000 daily for idle equipment.

“That is 81,000 dollars per day and when you translate that it comes to UGX 300M per day if the equipment is standing idle. It is in the agreement, it is anticipated that when the contractor is given commencement, he must have access to land. Any delay means he will not work when he doesn’t work the contract requires that the charges,” said Kagina.

President Museveni officiated at the commencement of the Kampala Flyover construction, at Clock Tower. (PHOTO/File)

The Kampala Flyover is funded by Japan International Cooperation Agency (JICA) to a tune of cost UGX 224 billion and the works are set to last 36 months.

The project will pass through Clock Tower and will entail widening of the road from Shoprite at Queen’s Way towards Katwe as well as improve Nsambya Road, Mukwano Road and part of Ggaba Road.

The project will be implemented in two phases with the second phase to start the project will be on Jinja Road near the Centenary Park and Wampewo Roundabout with the Japanese government having committed to fund this second phase with projections indicating that UGX 659 Billion is expected to be injected in this phase.

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