Shs11b Madi-Okollo works stall

A grader levels the ground for the construction of a playground and the district headquarter in Madi-Okollo District. The money for some USMID projects in the district will be returned to the Treasury in July. PHOTO/FELIX WAROM

What you need to know:

  • District leaders say some contractors lack the adequate financial muscle or capacity to handle projects. 

The completion of the Shs11 billion USMID projects in Madi-Okollo District hangs in the balance as the financial year comes to a close. 
Madi-Okollo District received Shs11 billion during the Financial Year 2021/2022 to execute various projects and advanced 30 percent of the contract sum to all the contractors as a startup. 

To date, the majority of these projects have stalled.
The Resident District Commissioner, Mr Swaib Toko, on Monday said all projects are behind schedule. 

“We are worried that the money might be taken back to the national Treasury by July 1. Some of the contractors do not have the financial capacity yet they presented clear and clean documents,” Mr Toko said.
Asked about the delays in the completion of the project, Mr Toko said some of the contractors had multiple contracts. 

“It will be a big loss for the district if the money is returned. Some of the contractors performed up to 30 percent,” he said.
The district chairperson, Mr Ismail Drabe, said there were no signs that any projects will be completed.

“When money is returned to the Treasury, it is hard to have it returned to the districts,” he said. 
Mr Drabe added that some contractors lack the adequate financial muscle to handle projects. 

“For how long shall this take place? We are now left with less than a month (June). The projects of two markets, a resource centre, and a football pitch are far behind. 
“By now, we should have completed the groundwork but to date, the works are still at the leveling state,” he said.

Mr Charles Otim, an environmental specialist attached to the Ministry of Lands Housing and Urban Development, said the leaders should not consider extending contracts for non-compliant contractors. 
“If the district says contractors have failed to do the work, they should not give an extension. The district should then look for other contractors that can manage the work,” he said.

Some of the contractors who declined to be named said they were faced with challenges of late disbursement of funds, hardships, and price fluctuations of materials. 
The government signed a loan of $335 million (about Shs1.237 trillion) with an additional $25 million (about Shs92.34 billion) as a grant from the World Bank in 2018 for a period of five years which is ending on December 31, 2023.

STATUS OF PROJECTS
     Construction of Matangacia Market in Rigbo Sub-county (Shs1.7b) by Rina One Investments Ltd (excavation and preparation for casting slab).  
     Construction of Ayavu Market, Inde Town Council, (Shs1, 482) by Kumakech Geoffrey Adubango Construction and Engineering Works (Walling). 

Construction of Resource Centre, the district headquarter (Shs1b) by Whimsy Uganda Limited (Preparation for casting slab).
    Construction of playground, the district headquarter (Shs1b) by Geomax Engineering Ltd (Ground leveling).       
      Construction of Resource/Community Centre, Inde Town Council (Shs806m) by Zimu Construction Company Ltd (Slab level).  Construction of Resource/Community Centre, Ogoko Sub-county headquarters (Shs 918m) by Dhekon Projects Ltd (excavation). 
 
     Construction of Resource/Community Centre, Rhino Camp Town Council headquarters (Shs895m) by Jagens Technical Services (Preparation for casting slab). And the construction of Resource/Community Centre, Rigbo Sub-county headquarters (Shs846m) by Siima Construction Company limited (Walling).