KAMPALA, Uganda — The Minister of Works and Transport, Gen. Edward Katumba Wamala, has reassured local contractors that the government remains committed to settling all outstanding payments, despite ongoing delays caused by systemic challenges. He made these remarks during the Construction, Procurement, and Finance Dialogue organized by the Uganda National Association of Builders, Suppliers, and Engineering Contractors (UNABSEC) in Kampala.
Held under the theme “Unlocking Sector Growth through Inclusive Procurement and Sustainable Financing Solutions,” the event brought together government officials, financial institutions, and contractors to promote collaboration and drive sectoral development.
Gen. Katumba acknowledged that delays in payments and project execution were partly due to the protracted transition from the Uganda National Roads Authority (UNRA) to the Ministry of Works.
“Transitioning from one system to another has not been easy. I recently reviewed our payment process and discovered it involves up to 12 steps before a contractor can be paid,” he said.
He emphasized that while the leadership structure has changed, operational continuity has been preserved, as many former UNRA personnel have now taken up roles within the Ministry.
“These are the same professionals you’ve been working with—just under different offices. Your businesses will not be disrupted by this transition,” he assured contractors.
The Minister revealed that the government had a payment backlog of approximately UGX 1.3 trillion. While Parliament has approved funding and a substantial portion has already been disbursed, around UGX 664 billion is still required to clear the remaining balance.
Two Major Infrastructure Projects highlighted
Gen. Katumba also highlighted two major infrastructure projects scheduled to commence in the upcoming financial year, encouraging local contractors to prepare and participate:
Standard Gauge Railway (SGR): The government plans to initiate construction of the 272-kilometer Malaba–Kampala segment of the SGR. A symposium for prospective service providers will be held on July 4 at Munyonyo to provide further details and promote partnerships. “This project is critical. If implemented successfully, we’ll move forward with the Kampala–Kasese and Mirama Hills extensions, subject to funding. I urge all interested contractors to attend the symposium.”
Kampala–Jinja Expressway: This Public-Private Partnership (PPP) project is in its final financial negotiation phase, with a contract signing anticipated in July. “We’re wrapping up talks with the selected contractor. Once concluded, construction will begin. This is another chance for local contractors to fully engage.”
Appeal to Financial Institutions
Minister Katumba urged banks and financial institutions to relax their lending criteria for local contractors, who often struggle with limited cash flow. “When a contractor secures a multi-billion shilling contract, a house should be adequate collateral. We need to engage banks to find practical ways of supporting our contractors, especially since most lack liquid capital.”
He warned that if local contractors continue to be overlooked, Uganda risks over-reliance on foreign firms for both construction and routine maintenance. “We can’t allow local companies to collapse. They must be supported to grow, or we’ll be stuck depending on foreign contractors—even for simple tasks.”
Call to Government Agencies
Gen. Katumba called for concerted efforts to eliminate inefficiencies that hinder local contractors and tarnish their credibility with financial institutions. “Delayed payments not only cause distress but also damage contractors’ reputations with banks. We must work closely with the Ministry of Finance and other stakeholders to address this. Contractors should not be labeled high-risk simply due to government delays.”
He concluded by thanking local contractors for their resilience and reaffirmed the government’s commitment to fostering their growth and involvement in national development.
Industry Stakeholders Weigh In
UNABSEC President Ms. Kiara Binta Nkuranga emphasized the importance of restoring trust between contractors and financial institutions. “Reliable, sector-responsive financing is essential. Countries like Nigeria and Singapore have demonstrated how public-private collaboration can transform the construction industry.”
Mr. Benson Turamye, Executive Director of the Public Procurement and Disposal of Public Assets Authority (PPDA), echoed similar sentiments, highlighting the central role of procurement in national development. He reaffirmed PPDA’s commitment to empowering local contractors through policy reforms and streamlined procedures.
