The Ministry of Works and Transport faces severe financial problems after taking over the Uganda National Roads Authority. Minister Gen Edward Katumba Wamala told Parliament that his ministry now has a debt of Shs 1.3 trillion from UNRA.
According to the Works Minister, the debt grows by Shs 280 million every day in interest charges. This massive debt has forced many road contractors to stop their work across the country.
"If we do not retire that debt, then all the contracts we are running cannot carry on. Most of the contractors actually have laid down their tools as we speak," Minister Katumba said.
The huge debt came after the government merged UNRA with the Ministry of Works under a new policy called RAPEX. This policy, which started in February 2021, aims to make government work better by combining different offices.
The debt problem has stopped many road projects in Uganda. Several contractors have stopped working because they have not received their payments. The ministry now needs urgent funds to pay these contractors and restart the road works.
Deputy Speaker Thomas Tayebwa has promised quick action to help solve the money problems. He said Parliament would handle the transfer of funds to the affected ministries this week.
The Works Ministry has suggested two main ways to fix this crisis. They want special funds to clear the Shs 1.3 trillion debt. They also want UNRA's budget to go straight to the Ministry of Works.
Parliament is now looking at these suggestions. They are also thinking about creating special infrastructure bonds, like the ones used in Kenya, to raise more money for road projects.
The debt continues to affect Uganda's road development plans. Many important road projects remain unfinished as the ministry works to find solutions to this financial crisis.