House Approves Shs313.2bn Pre-Financing for Kayunga–Galiraya Road Upgrade

Parliament has approved a Shs313.2 billion proposal to pre-finance the design and construction of the Kayunga–Bbaale–Galiraya Road (87km), clearing the way for the upgrade of the gravel road to paved standard by China Road and Bridge Corporation (CRBC).

The House during the plenary sitting on Tuesday, 16 December 2025 adopted the report of the Committee on National Economy on the project as presented by Chairperson, John Bosco Ikojo, endorsing the proposal together with the committee’s observations and recommendations.

The committee explained that the Kayunga–Bbaale–Galiraya Road had been prioritised for upgrading during the National Development Plan II period but was repeatedly deferred due to fiscal constraints.

“In response to these financing challenges, the Ministry of Works and Transport received a pre-financing offer from China Road and Bridge Cooperation (CRBC) to finance the design and construction of the road on what has been presented as favourable terms,” the report states.

Under the proposed arrangement, “the contractor will mobilise its own resources to execute the works, while Government undertakes to fully reimburse the contractor after project completion.”

The report adds that CRBC has committed to complete the works within 24 months and has requested “a 10 percent down payment of the contract sum excluding VAT and contingencies before commencement of works.”

The total project cost is estimated at Shs313.2 billion, inclusive of VAT. The committee noted that the Attorney General confirmed the arrangement “constitutes both a loan and a multi-year commitment that requires prior approval by Cabinet and Parliament.”

The committee also raised concerns over land acquisition and compensation for Project Affected Persons, warning that delays could expose government to penalties.

“The contract agreement requires Government to grant 100 percent access and possession of the site at commencement,” the report states, noting the risk of delay damages if access is not secured in time.

Hon. Amos Lugoloobi, Minister of State for Finance, Planning and Economic Development (Planning) who moved the motion, said that the offer is competitive with no interest, and with a grace period of two years, with payments starting at the third and fourth year.

“The principle price for constructing this road is very attractive with a maximum of 1 million dollars per kilometre including a landing site in Lake Kyoga,” he said.

AUDIO: Minister Lugoloobi

Hon. Charles Tebandeke (NUP, Bbale County) said that the road is very strategic and yet it had been ignored. He said it will reduce traffic in from Bombo road to Northern Uganda.

“It will benefit the business world and Uganda at large. After tarmacking the road, the Ministry of Works can now look at the connectivity from Bbale to Nakasongola, Masindi and the entire burden of traffic jam will be reduced,” he said.

He said it is a relief that a road which has forever been a promise to the people of Kayunga has finally come to pass.