PARLIAMENT
The Government has announced that it will not undertake any new road construction projects in the 2026/27 financial year, opting instead to prioritise the completion of ongoing works amid significant funding constraints.
The Minister of Works and Transport, Katumba Wamala, revealed the shift in policy while presenting the Ministry’s 2026/27 Ministerial Policy Statement before Parliament’s Committee on Physical Infrastructure.
The decision follows a major budget shortfall, with only UGX690.5 billion allocated for infrastructure projects against a requirement of UGX2.3 trillion.
“The Ministry is saying, let us finish ongoing projects as a priority. Let us get enough money to pay for land acquisition because we have contractors on site who have no access to land,” Katumba said.
He added that government will also prioritise clearing outstanding arrears to avoid continued accumulation of interest. “Let us pay all these backlog areas because they are attracting interest—free money going—let us clear them,” he noted.
Katumba Wamala
Project Delays and Rising Arrears
Officials from the Ministry defended the decision, citing widespread delays and financial strain across the sector.
Dr. Edward Ssimbwa, Commissioner for Public Structures, told legislators that out of 67 ongoing projects, 28 have experienced delays, while 13 have been abandoned or suspended.
He explained that the move aligns with directives from the Ministry of Finance instructing government agencies to halt new projects and prioritise clearing domestic arrears, warning that accounting officers risk penalties for non-compliance.
The Committee was informed that the Ministry closed the 2024/25 financial year with arrears amounting to UGX1.489 trillion. Although UGX541 billion has since been paid, an outstanding balance of UGX948 billion remains.
“We expect to receive UGX218.456 billion once arrears are released in the next quarter. However, there is no specific allocation for arrears clearance in 2026/27,” Ssimbwa said.
He warned that failure to clear arrears will lead to continued accumulation of interest, worsening the financial burden.
Budget Increase Still Insufficient
The Ministry of Works and Transport has been allocated UGX6.573 trillion in the 2026/27 budget, up from UGX5.920 trillion in the current financial year. The increment is partly attributed to the anticipated commencement of the Standard Gauge Railway (SGR) and planned staff recruitment.
However, officials noted that the allocation still falls short of the Ministry’s needs, leaving a funding gap of UGX1.923 trillion for key priorities.
Among the major shortfalls:
Additional funding gaps were also reported in railway rehabilitation, drainage systems, ferry services, and street lighting.
Digital Number Plates Rollout Progress
Meanwhile, Winston Katushabe, Commissioner for Transport Regulation and Safety, provided an update on the rollout of digital number plates. He revealed that 218,781 digital plates have been installed on motorcycles, while 71,472 have been fitted on vehicles. Katushabe dismissed reports of a shortage, attributing earlier delays to logistical challenges. “The supplier had challenges transporting some components, but they have assured us that stocks are now adequate. Our team will verify this in the course of the week,” he said.
Focus on Completion Over Expansion
The Ministry’s new approach signals a shift from expansion to consolidation, as government seeks to stabilise the sector by completing stalled projects, resolving land acquisition challenges, and reducing debt obligations.
With limited resources and mounting arrears, officials say the focus on ongoing projects is necessary to ensure value for money and restore efficiency in infrastructure development.
Torch Media Africa
