SGR needs Shs76b to pay project affected persons

What you need to know:

  • Buyamba County MP Amos Mandela asked the ministry to also recall all the old Chinese equipment grounded at different district headquarters and repair them so that they can be given to other districts.
  • Briefing the same committee, Mr David Kakuba, the executive director of Civil Aviation Authority, decried the need for more land for future expansion of Entebbe International Airport.

Kampala. The Standard Gauge Railway (SGR) project is in need of Shs76b to clear compensations for project-affected persons (PAPs) between Mayuge and Tororo districts, authorities have revealed.

The SGR project coordinator, Mr Perez Wamburu, told the parliamentary Committee on Physical Infrastructure yesterday that the compensation for the land for PAPs already valued by the chief government valuer is Shs136.8b of which Shs60.8b has already been paid.

“One of our challenges is the compensation for land for right of way for the SGR project. The money needed is supposed to clear the compensation for the PAPs between Iganga and Tororo because they have not yet been paid since the challenge has been budget,” Mr Wamburu said.

Mr Wamburu was part of the team of technocrats who accompanied the State Minister for Transport, Mr Aggrey Bagiire, to present the Ministry of Works and Transport policy statement for Financial Year 2019/2020 before the committee chaired by Nakifuma County (NRM) MP Robert Ssekitoleko. The Committee heard that the entire SGR project compensation will cost Shs534.2b although the evaluation has so far covered Mayuge to Tororo only.
In the coming financial year, the Works ministry requested for Shs39.6b to clear part of the outstanding compensation claims but the Finance ministry has only planned for Shs32b.
“We are likely to see many PAPs taking the project to court because the money given to us will not be enough…,” Mr Wamburu said.

Uganda is yet to embark on construction of the SGR from Kampala to Malaba Border Post. Despite the delays, the cost for the SGR has since been cut from Shs8.5 trillion ($2.3b) to Shs8.1 trillion (Shs2.17b).
Minister Bagiire was, however, reluctant to adduce full information on the progress of the SGR but only said, the financiers of the project- the Exim Bank of China has put some conditions.

“The Exim Bank has insisted that they will not give us money if we have not got the entire right of way. We are seeking for support of all stakeholders to make sure we make SGR a reality,” he said.

Daily Monitor has learnt that the Chinese gave a condition that Uganda and Kenya go together to borrow when the later seeks loan to finance the Kisumu-Malaba phase. This means, until Kenya is ready to negotiate for a loan to finance the Kisumu-Malaba phase, Uganda would not be allowed to sign for the Shs8.1 trillion.

Mr Wamburu said what is happening at SGR now is the finalisation of the physical analysis of the project as required by Exim bank before the loan on the revised cost of the project is signed. He said Uganda needs to reach the SGR line at Malaba Border Post by October 2023, the same time Kenya will reach the same destination.

Meanwhile, MPs tasked the Ministry to avail a budget for the purchase of road equipment for the districts and municipalities that have not yet received the road unit.
This was after the engineer-in-chief, Mr Samson Bagonza, reported that districts which became operational in July 2018 are stuck over road maintenance.

Buyamba County MP Amos Mandela asked the ministry to also recall all the old Chinese equipment grounded at different district headquarters and repair them so that they can be given to other districts.
Briefing the same committee, Mr David Kakuba, the executive director of Civil Aviation Authority, decried the need for more land for future expansion of Entebbe International Airport.