Entebbe Expressway Project Plagued by Graft Allegations and Financial Woes

Uganda’s ambitious plan to repay the $350 million loan for the Kampala-Entebbe Expressway (KEE) faces considerable challenges, primarily stemming from persistent problems with the expressway’s toll collection system. A recent parliamentary committee investigation has uncovered a series of serious concerns, painting a bleak picture for the government’s financial projections.

Officials, including the former executive director of the Uganda National Roads Authority (Unra), Ms. Allen Kagina, have testified before the Parliament Committee on Physical Infrastructure, highlighting what they describe as the “incompetence” of Egis Road Operations SA, the French firm initially contracted for toll services. Ms. Kagina noted significant delays in critical system installations, such as the Independent Traffic Monitoring System (ITMS) and weigh-in-motion scales, and raised concerns about data discrepancies during financial reconciliations.

Further scrutiny has revealed that the projected toll revenues may not be sufficient to cover the loan obligations. Ministry of Works and Transport officials presented figures indicating that actual collections, while growing, fall short of expectations required for debt servicing. Compounding these issues are ongoing technological challenges that reportedly cripple the tolling process, leading to potential financial leakages.

Audits conducted by Unra and the Uganda Revenue Authority (URA) have corroborated these concerns, identifying systemic issues and “financial leakage conduits” within the toll operations. Despite these findings, the resolution of these problems has been slow, partly due to the complexities of dealing with a foreign contractor and diplomatic considerations.

The committee also learned that some former employees of Egis were subsequently hired by Pinnacle Security Limited (PSL), the local firm that took over toll operations. This transition has done little to resolve the fundamental issues, with PSL reportedly inheriting a manual system prone to errors and financial abuse. The government now plans to launch a “Name and Shame” campaign to deter habitual violators and enhance revenue collection.

Source: Daily Monitor (Uganda) https://www.monitor.co.ug/uganda/news/national/express-chaos-entebbe-motorway-project-dogged-by-claims-of-graft-5558640