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A look into the Oil Road Cost: the Hoima-Butiaba-Wasenko Road!

As the Budget Framework paper for Financial Year 2017/2018 in Uganda, the Uganda National Roads Authority (UNRA) requested for the roads a total of Shs. 1,779bn and the required just to build the road in this budget year alone where 1,107bn. This was seen as a strategic area from the state, as the road is seen as one of them Oil Roads. Which, is one of the most important projects the government has, as the future profits of these are soon all used before the drilling starts. This with the giant projects and the misuse of funds. This is epitome with the Hoima-Butiaba-Wasenko road! Just take a look at the reports collected on the road. But the official paper of the budget said otherwise than the framework, who was just nonsense.

While the Budget report to the Parliament of May 2017 Vote 113 UNRA Hoima – Wanseko Oil Road Shs. 29.00bn. This funds will be available after reconciliation of numbers. While the Ministry of Finance, Planning and Economic Development (MoFPED) where planning proposed numbers for the Oil Roads and the Hoima – Wanseko road where the length of 83 kilometers, and the budget was 444bn. Which is a bit more than the vote! And doesn’t fit with the records even. The numbers are staggering and confusing. As to put it further every unit or kilometers are estimated to cost 5,35bn. So the cost of the oil-road just in this budget year is insane.

Hon. Cecilia Ogwal expresses concern about the cost of the Hoima-Butiana-Wasenko oil road of shs53billion per kilometre” (Parliament, 31.05.2017). The Road that is under construction and is upgraded are 111 kilometers road. If the MP’s estimate is correct means the road cost shs. 5,883bn or Shs. 5.8 trillions. In the budget plenary session on the 31st May 2017 she was also very adamant that the roads who we’re budgeted without feasability studies should be cut and get other use of the funds. Still, that didn’t happen. One of these roads was the oil-road of Hoima-Butiaba-Wasenko. But with this years Budget report and actual feasibility study alone, proves the state will use 444bn on the road. As the other reports prove what they we’re planning to use. But this project started in 2015 and the reports of the misspending on it, seems so big as it gets. So the Road development and the Oil Road could be proof of another UNRA scandal. Take a look!

The works on Hoima-Butiaba- Wanseko road are expected to start during the second half of 2015. This is subject to availability of funding for the project,” said Dan Alinange, the UNRA head of corporate communications” (Rwothungeyo, 2014).

Hoima-Butiaba-Wasenko cost Shs. 454bn:

Works minister John Byabagambi and the new Uganda National Roads Authority (UNRA) executive director Allen Kagina have agreed to handpick a contractor for Hoima-Butiaba-Wasenko road despite an earlier petition on influence-peddling and fraud in the process. Mr Byabagambi has also changed from his earlier position where he opposed the move, when he was still a junior minister. A whistleblower had raised the red flag in a petition to Ms Kagina indicating that the project cost had been inflated by Shs66 billion ($20 million)” (…) “The 111km road stretches from Hoima to Butiaba on Lake Albert and one of the major corridors in the oil-rich Albertine Graben in south western Uganda. The project is expected to cost Shs454 billion” (Musisi, 2015).

UNRA on the Spot:

The third road project, pointed out by the whistleblower is the 55km Hoima-Butiaba-Wanseko road. According to the dossier, bids for the road were opened on January 22, 2016 and the deal was awarded to China Communications Construction Company (CCCC) at Shs 398 billion. According to the whistleblower, this would translate into $2m per kilometre, which is exorbitant. The whistleblower notes that this is way above construction estimates posted on the Unra website, which are at $960,000 per kilometre. Later, after an outcry from some bidders, Unra cancelled the deal, the whistleblower says. “The IGG should investigate the people who crafted this ignominious evaluation and bring them to book. They should even be interdicted as investigations continue,” notes the dossier. The whistleblower claims that roads in the oil sub-region of Bunyoro have been restricted to only Chinese firms because of the funding from Exim bank. Local and other foreign firms, the dossier noted, were left out” (Kiggundu, 2017).

So the prices of the budget framework and the budget report of 2017/2018, as the whistleblower of early May 2017 are clearly saying that the $2m per kilometers on the Hoima-Butiaba-Wanseko. If the US Dollars are Currency converted into Uganda Shillings which means the price per kilometers are Shs. 7,187bn, that means the price calculated by the budget and the MoFPED are Shs. 5,35bn. That means that are a difference in the price per kilometers which is Shs. 1.837bn. If the budget would be correct than the total price for the 83 kilometers, would e 596bn. I also find it strange that the UNRA budget and length on the FY 2017/2018 is 83 kilometers, as the initial length was 111 kilometers. That is also a length of roads that suddenly couldn’t disappear.

This road is surely more expensive than the government wants it to be, or certainly some lost public funds. Not shocking in the nation run by National Resistance Movement. The total tally of the cost will be revealed, but is not yet. Peace

Reference:

Kiggundu, Edris – ‘UNRA on spot over Chinese contracts’ (03.05.2017) link: http://observer.ug/news/headlines/52685-unra-on-spot-over-chinese-contracts.html

Musisi, Frederic – ‘Minister, Kagina hand-pick contractor’ (26.06.2015) link:http://mobile.monitor.co.ug/News/Minister–Kagina-hand-pick-contractor/2466686-2765360-format-xhtml-9uhqklz/index.html

Rwothungeyo, Billy – ‘Hoima-Butiaba-Wanseko road for upgrade’ (02.01.2014) link: http://www.newvision.co.ug/new_vision/news/1336203/hoima-butiaba-wanseko-road-upgrade

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One thought on “A look into the Oil Road Cost: the Hoima-Butiaba-Wasenko Road!

  1. How alocal people going to benefit from that project?

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