Uganda to Penalize Road Contractors Over Project Delays

The Ugandan government is set to impose penalties on road construction contractors who are falling behind schedule on key infrastructure projects.

This move comes as part of a review of contracts under the Greater Kampala Metropolitan Area Urban Development Programme (GKMA-UDP), a multi-billion-shilling initiative aimed at improving infrastructure in and around the capital.

State Minister for Kampala Metropolitan Affairs, Kabuye Kyofatogabye, expressed concern that while some contractors are meeting deadlines and standards, others are not. These lagging contractors risk sanctions, including potential contract reviews or termination.

The minister highlighted that some companies bid for projects without possessing the necessary capacity or equipment, leading to delays and the use of project challenges as excuses for extensions.

While acknowledging the good work of firms like China First Highway Engineering Company, which is reportedly on track with its road construction under the World Bank-funded GKMA-UDP, the government stressed that underperformance would not be tolerated.

The GKMA-UDP, launched in September 2024, has achieved about 45 percent progress. The program aims to construct 440.19 kilometers of roads, 19 markets, two slaughter facilities, and 54.5 kilometers of storm-water drainage systems across Kampala and its surrounding districts.

Source: https://www.monitor.co.ug/uganda/news/national/govt-to-penalise-road-contractors-over-delays-5454630