Road Compensation Costs Triple Construction Costs, Byamukama Says

[Archival Sense]

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Video courtesy of UBC

Works and Transport Minister Fred Byamukama has revealed that compensation costs for several major road projects have risen to nearly three times the actual cost of construction, largely because of inflated property valuations.

Byamukama cited roads including Nakawuka, Nateete, Kyaliwajjala, Kira and Matugga, where he said a significant number of the properties earmarked for compensation are owned by ministry officials who allegedly set the values at inflated rates.

A report into compensation along the Nateete-Nakawuka road confirmed the concerns, according to Byamukama, prompting arrest warrants to be issued against officials implicated in the alleged irregularities. He also said he dismissed officials suspected of taking bribes in connection with the compensation process.

Uganda has spent about $26.9 billion on road infrastructure since 2004, with 56 percent of the expenditure going towards compensation, Byamukama said.

The scale of the expenditure has renewed calls for reforms to Uganda's road acquisition and compensation system, including proposals to deny compensation to public officials who knowingly acquire or develop property after becoming aware that a government project is planned for the area.

Byamukama also disclosed that attempts had been made to inflate the cost of roads constructed ahead of the 2027 Africa Cup of Nations (AFCON).

“The AFCON roads were initially valued at Shs5.5 billion, but there was an attempt to falsely inflate the cost. Some people even met the President and requested an additional Shs238 billion, but they were rejected,” Byamukama said.