Sh2.47 trillion funding gap stalls 27 road projects — Gen. Wamala

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Severe funding shortages amounting to sh2.47 trillion have disrupted Uganda’s national road construction and maintenance efforts, the Minister of Works and Transport, Gen. Edward Katumba Wamala, has told Parliament.

In a statement presented to Parliament on July 30, 2025, Wamala said the shortfall has affected land acquisition, the progress of ongoing projects, the maintenance of gravel roads, and the expansion of the paved road network.

The update followed his earlier statement on May 14, 2025, regarding the state of road infrastructure in Uganda. It outlined the impact of underfunding during the current financial year and reaffirmed the Ministry’s strategy to sustain progress amid financial constraints.

“The implementation of ongoing road and bridge projects has been significantly disrupted due to funding shortfalls,” Wamala said. “As of July 2025, 27 projects have been affected, 18 government-funded projects have either stalled or slowed due to delayed payments, while 9 externally financed projects are delayed mainly due to the Government’s failure to provide timely counterpart funding for land acquisition, taxes, and enabling works.”

Impact of funding shortfalls

The Minister warned that the funding gap has triggered multiple setbacks, namely the suspension or slowdown of projects, delays in land acquisition, accumulation of arrears, and growing fiscal exposure through interest and contractor claims.

He revealed that 2,460 kilometres of paved roads now require urgent intervention, with an additional 300 to 500 kilometres at risk of further deterioration within a year if no action is taken.

Uganda’s national road network spans 21,292 kilometres, with 6,912 kilometres paved and 14,980 kilometres unpaved. The Ministry is now fully responsible for the development, rehabilitation, and maintenance of this network following the repeal of the UNRA Act, which placed all road works under the Department of National Roads.

As of July 2025, the active road portfolio includes 28 road upgrading projects, 10 road rehabilitation projects, and 11 bridge construction projects. These are funded through a mix of government and development partner support.

Budget shortfalls and arrears

For the financial year 2025/26, the total funding requirement for the national roads programme is sh3.153 trillion, comprising sh2.082 trillion for ongoing works and counterpart obligations, and sh1.07 trillion in arrears carried forward from FY2024/25.

However, only sh682 billion has been allocated under the Medium-Term Expenditure Framework, covering just 22 percent of the total requirement and leaving a sh2.472 trillion shortfall.

Wamala noted that government allocations have sharply declined over the NDPIII period, from sh1.86 trillion in FY2020/21 to sh682 billion in FY2024/25, covering just 20 percent of that year’s target.

The Ministry currently needs sh843 billion for land acquisition on all ongoing projects, including donor-funded initiatives. Meanwhile, arrears from FY2024/25 now stand at sh1.071 trillion, covering completed or ongoing works with certified and approved payment claims.

Consequences of underfunding

The persistent underfunding has led to the suspension or reduced performance on 27 ongoing projects and the accrual of sh48 billion in commercial interest on delayed payments in FY2025/26.

Other consequences include the demobilisation of contractors, with claims estimated at sh10.8 billion per month, delays in donor-supported projects risking Uganda’s credibility with development partners, and erosion of private sector confidence, which is likely to increase future construction costs and elevate the risk of Uganda being labelled a high-risk infrastructure client.

Wamala emphasised that unless adequate funding is restored, the country risks further decline in its road network and strained relations with private contractors and development partners. Speaker of Parliament Anita Among, who chaired the House, guided that the House would debate the report the following Tuesday, noting that the Ministers of Finance were absent and therefore unable to provide their comments.