Uganda’s Multi-Billion Standard Gauge Railway Project Hangs in Balance as Museveni Gov’t Struggles to Secure Chinese Loan

The Minister for Works and Transport, Gen Edward Katumba Wamala, has made a request to Parliament to support funding for the compensation of project affected persons for the Standard Gauge Railway (SGR) project.

Katumba Wamala says construction work for the SGR project is scheduled to commence in the Financial Year 2023/2024, thus the need for all land to be acquired.

“I request that funds are found to complete land acquisition. A right of way free of encumbrances is a requirement by the bank before securing the loan and any further delay in land acquisition could lead to increase in compensation costs,” said Katumba Wamala.

He noted that up to five loan applications have been made to EXIM Bank of China since 2015, with responses made to issues raised by the bank, on the project.

The minister said this in a statement to Parliament on the status of land acquisition and required budget for land acquisition for the SGR project, in a plenary sitting on Wednesday, 09 March 2022.

He said a total of 4,700 acres of land are supposed to be acquired for the project with compensation costs for the mainline estimated at Shs581.7 billion for 10,696 project affected persons.

He added that reports worth Shs247.2 billion in Tororo and Buikwe were achieved by the Chief Government Valuer starting from 2016, but so far Shs95.6 billion has been paid out to 4,237 project affected persons.

“The total budget for the SGR project during the next Financial Year 2022/2023 is Shs26 billion yet reports worth Shs151.6 billion are pending payment. Some of these reports were approved over five years ago,” said Katumba Wamala.

The matter was previously raised by Busiki County MP Paul Akamba in a plenary sitting on Thursday, 03 March 2022.

The MP had tasked the Minister for Works and Transport to present a list to the House of SGR project affected persons and an update on when those who have not yet been compensated, will be catered for.

“For the last three years, budgeting for this issue has remained under unfunded priorities and it is not sufficiently budgeted for in the next financial year. The Minister should tell us why we are not funding this issue,” Akamba said on Wednesday.

Members of Parliament also raised concern on the way in which the compensations are being effected, saying the activity has to be more organised.

Kigulu County South MP Milton Muwuma, said some of his constituents have failed to be paid on account of lack of records.

“What is the fate of the people whose tiles/land agreements were taken over by the office in charge of SGR but have never been paid because their records cannot be traced?” Muwuma asked.

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Report: Parliament