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Government Releases USh90 Billion to Upgrade City Roads

A section of Nabuyonga rise in Mbale City that was commissioned three years ago has been diverted after it developed a large hole. Image source: The Daily Monitor

UGANDA, Kampala | Real Muloodi NewsThe government, through Uganda Road Fund (URF), has released over USh91 billion to maintain city roads, local governments, municipalities and town councils in the country.

This information was published in an announcement made by the URF Executive Director, Dr Andrew Naimanye to all accounting officers in a letter dated 2nd June 2022.

It is revealed that the 90 billion funds have been obtained from the 1.4 trillion supplementary budget released by the permanent secretary of the Ministry of Finance, Ramathan Ggoobi, on May 30th, 2022.

The supplementary budget is the last release of the fourth quarter for this financial year since the new financial year starts on 1st July.

Dr Naimanye encouraged the accounting officers to do the work that had not been implemented under the financial year 2021/2022 road maintenance plan.

According to the letter dated 2nd June 2022, the Uganda National Roads Authority (UNRA) took a share of USh70 billion, followed by Kampala Capital City Authority (KCCA) with USh9 billion, USh4.9 billion to 135 districts and their town councils, USh2.3 billion to cities and USh4.8 billion to 31 municipalities.

The sub-counties have not received the funds. Dr Naimanye said the funds have not yet been released to sub-counties due to the aforementioned budget constraints.

“The quarter four funds given to you should be used to improve conditions of the network by use of force account to immediately impement the works schedule in your respective programs in line with the Force Account Guidelines, August 2007,” the letter read.

Dr Naimanye also warned accounting officers against losing the funds in a way where Uganda Revenue Authority is attached to pay compensation for diversion or corrupt practices.

He added that the funds are a part of the 5th tranche of the financial year fixed at 6.29% of the annual budget.

Dr Naimanye also directed the Chief Administrative Officers (CAOS) to urgently transfer the funds for the town councils under their votes expeditiously, while the funds for maintenance of district roads should be transferred to the work account.

He cautioned the CAOs to remain accountable to the URF for funds as agreed in the performance agreements.

“Agencies should implement road maintenance works on only road schemes approved in the already signed performance agreements between designated agencies and URF. Priority should be given to removal of bottlenecks especially especially improvement works targeted at keeping the road network motorable throughout the year,” he advised.

The released letter also shows that the mechanical funds are part of the quarter for 2021/2022 funds released.

The funds can be submitted up to a maximum of 15% per the 2021/2022 yearly work plan already submitted to URF.

The accounting officers have been directed to use the mechanical funds for handling only minor equipment.

Major repairs should be done at the Regional Mechanical Workshops of Bugembe, Mbarara and Gulu.

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