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Rt. Hon. Speaker,

In pursuance of Articles 90 and 155 (4) of the Constitution, section 13 (4) of the
Public Finance Management Act 2015 and Rule 177 of the Parliamentary Rules
of Procedure, the Sectoral Committee on Physical Infrastructure has inter-olio,
examined critically Government recurrent and development budget estimates
and mode recommendations and comments on policy mattersherein for
general debate on the Policy Statements of the Ministry of Works and Transport,
and the Ministry of Lands, Housing and Urban Development that falls under its
purview.

It is therefore my honor and pleasure to present for your consideration and


adoption, the Report of the Committee in respect to the Policy Statements and
Budgetary provisions for the Fiscal year 2017/18 for the following votes;

(1)Vote012 Ministry of Lands, Housing and Urban Development


(2) Vote 156 Uganda Land Commission
(3) Vote 016 Ministry of Works and Transport
(4) Vote 113 Uganda Notional Roods Authority
(5) Vote 118 Uganda Rood Fund
(6) Vote 500 Local Governments

The Committee employed the following methods in order to scrutinize the


Ministerial Policy Statements;

(1 ) Invited the respectiveMinisters to nts before


the
(2) Systematically went through and analyzed the Ministerial Budget Policy
statements in comparison with the relevant Legal and Policy instruments
to ensure conformity.

(3) Raised salient issues out of the Policy Statements and sought for
clarification from the relevant Ministers.
(4) Received and reviewed alternative policy briefs from the Shadow
Ministers of Lands and Works and incorporated feasible recommendations
and suggestions.

Rt. Hon. Speaker and Colleagues, this report is laid out under the following
sections;
(1 ) Mission and Vision delineated by sectors
(2) The previous Budget Performance, FY 2016/17
(3) Achievements scored per Sector in the FY 2016/17
(4) Planned activities, Projects and Programs for the FY 2017/18
(5) Proposed Budgetary Allocations delineated by Sectors, FY 2017/18
(6) Committee's Observations and Recommendations.

I beg to Report.

SIP ge
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To ensure sustainable Land management, planned Urban and Rural


development and decent Housing for all.

A sustainable Land Use, Land Tenure Security, Affordable, Decent Housing and
Organized Urban Development

The Ministry is delineated into two (02) Votes, namely;

Vote 012 Ministry of Lands, Housing and Urban Development, which is


subdivided in to the following Programmes;

I. Land administration and Management


II. Physical Planning and Urban Development
III. Housing
IV. Policy, Planning and Support services.
Vote 156- Uganda Land Commission with the following Programmes;
i) Government Land Administration
ii) Finance, Administration, Planning and Support Services

FY 2016-17 (UGX Bns)

Source: PBO

The total budget approved under Vote 012 Ministry of Lands, Housing and Urban
Development amounted to UGX 131.14bn. e end of Dec 2016, a to bl of
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UGX 73.3bn had been released representing 55.9% release performance. The
specific budget release performance for both the wage and non-wage
recurrent budgets was 48.5% and 43.0% respectively.
The Ministry registered a low release performance of 19% of the Domestic
Development Budget by half of the financial year, while 68% of the Donor
Development funds had been released.
Notably also, there was poor absorption of funds especially meant for
development, as GoU development funds were absorbed at 22.8% while Donor
development funds were absorbed at 29.6%.

Ultimately, only 55.6% of the total Budget UGX 131 .14bn was released and only
38.8% was absorbed by the Ministry.
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(1) Finalised the drafting of the proposed principles forRegistration of Titles


(Amendments) Act, Land Acquisition (Amendments) Act, Land
Information and Infrastructure Bill and Survey and Mapping Bills.
(2) Collected Non Tax Revenue amounting to UGX 2bn.
(3) Developed a Gender strategy on Land to promote Women's land rights
and commenced the development of the National Resettlement, Land
Acquisition and Rehabilitation Policy.
(4) Carried out public awareness on Land Rights in 14 Districts and continued
with the implementation of the National Land Policy.
(5) Appointed a taskforce on illegal land evictions to sensitise the public on
their land rights and equitable access to land.
(6) Approved valuation compensation rates for 20 districts to facilitate
implementation of Government projects among others.

) Developed System Architecture and pilot testing of the Geographi't


Information System (GIS) conducted in Entebbe Municipality, which will be
linked to Key Local Governments and Land Information System.
Monitored the implementation of Physical Development Plans (PDPs) in
the 14 Municipalities that are i ementing USMMID program, and 12
other Urban Councils.
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Carried out a state of land use compliance audit in 22 Municipalities and
40 Urban Councils and published a report.
Carried out monitoring of Urban Development trends in 16 Urban Councils
and produced a state of Urban Developmentin the respective urban
areas.
Carried out institutional capacity building of USMIDparticipating
Municipalities in Physical plan preparation, budgeting, own source
revenue (OSR) mobilization; procurement systems; accounting and
financial management systems.

(1) Launched the National Housing Policy (NHPL 2016 and commenced its
implementation. Ithas since then been rolled out to 17 districts.

(2) Collaborated with the Ministry of Defense and Veteran Affairs to prepare
a project proposal for the Construction of 30,000 institutional houses for
UPDF.

(3) Organized the National celebrations of the "World Housing Day" 2016 and
Habitat III activities.

(1) Submitted to Cabinet Secretariat for consideration and approval of a


Cabinet Memoranda on the draft National Urban Policy, Physical
Planners' Registration Bill, Registering and Recording Land Agents Bill.
(2) Reviewed the Ministry's Client Charter to be more client focused.
(3) Mainstreamed HIV/ AIDS, Gender and Equity, Environment and Climate
change initiatives in major Ministry activities.
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Source: PBO

The total budget under MoLHUD is projected to reduce to UGX 124.38bn in


FY2017-18. This is a 5% drop equivalent to UGX 6.768bn from UGX 131.14bn
approved for FY 2016-17. The observed decrease is attributed to the proposed
5% decrease in the Non-wage category equivalent to UGX 0.984bn, but also
because of the 58% reduction in the GoU Development budget from UGX
19.952bn in FY 2016/17 to UGX 8.316bn in the Proposed Budget. This is as a result
of budget cuts across some programmes in the Ministry, and also the reduction
in indicative figures of the externally funded project; Competitiveness Enterprise
Development Project.

The following has been prioritized as planned activities for the FY 2017/18 by the
Ministry of Lands for the different Vote Functions;

(1 ) Development and implementation of National/Sectoral Policies, Laws,


Regulations, Standards and guidelines.
(2) Rollout and implementation of the Land Information System in the
remaining 14 Ministry Zonal Offices.
(3) Implementation of Competitiveness and Enterprise Development P
(Land component).
(4) Reinstating the capacity building activity of land tribunals.
(5) Finalizing the development of the National Physical Development Plan
and Northern Uganda Physical Development Plan.
(6) Promotion of housing cooperatives and the implementation of Slum
redevelopment project in partnership with the National Housing
Construction Company.
(7) Review of the staff structure and filling of approved positons and
construction of new office space for the Ministry headquarters.

The Ministry lists the following key areas among many others, as unfunded
priorities for the consideration by Parliament.

(1) Support to staffing, retooling and capacity of the valuation function (UGX

17.8bn);

(2) Maintenance of 7 Ministry Zonal Offices (MZOs) and operationalization of


the additional 6 MZOs (UGX 8.2 bn);

(3) Survey of International borders and carrying out systematic land


demarcation (UGX 9.7bn);

(4) Training Land Management Institutions (UGX 2bn);

(5) Support the development and implementation of physical development


plans for orderly and planned developments (UGX 1.5bn);

(6) Support countrywide physical planning and physical development plans

implementation (UGX 63bn);

(7) Establishment of the Mortgage Liquidity Facility (Revolvi g Fund) (UGX

32bn) ;
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To effectively hold and manage all Government land and property thereon and
resolve historical land holding injustices.

All Government land and Property thereon secured and effectively managed
and historical land injustices resolved.

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Source: PBO Computations

The total budget approved under Vote 156 ULC amounted to UGX 15.86bn. By
the end of Dec 2016, a total of UGX 17.033Bn had been released representing a
release performance of 107.4%. The specific budget category performance was
as follows: Wage at 53.8%, non-wage at 75.7%, and GoU Development funds at
110.2%

Noticeably, there was an over-release budget performance of the vote, at


107.4%. This was due to a Supplementary Budget acquired by the Commission to
a tune of UGX 6.969bn to cater to the outstanding compensation claims to the
Catholic Archdiocese of Kampala. This was however accompanied by good
absorption levels at 98.7% where UGX 16.09bn had been spent of the UGX
16.30bn released.Overall budget performance was recorded at 104.1 %, as more
funds were spent compared to the approved budget, and 96.9% obsqrption of
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the released funds.


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The ULC reports the following as achievements scored in the FY 2016/17.

(1) Compensated 16,666 hectares of land from 53 landlords of which 26.23%


were female Landlords, with male Landlords being 63.9% and 9.8% were
jointly owned by both Male and Female.

(2) Collected UGX 0.7626 of Non Tax Revenue from Leases.

(3) Processed 85 Government leases of which 71 .8% were approved for Male
applicants. 17.6% for Female applicants, and 10.2%were approved for
both male and female together.

(4) Carried out sensitization in Kagadi, Kakumiro and Mbarara Districts on


Land Fund activities and regularization of land ownership for the lawful
and bonafide occupants where they had been compensated.

(5) Printed and disseminate 100 copies of the land Fund regulations and 1200
copies of the land fund management report to stakeholders.

Source: PBO

The total Budget for ULC is proposed to grow by UGX 0.159bn from its FY 2016-17
UGX 15.86bn to UG 16.02bn in FY 2017-18 representing a gro lh of 1%.
This is mainly attributed to the 60% increase in Wage recurrent budget to UGX
0.584bn from UGX O.366bn in FY 2016/17.Notably however,there will be a decline
in the non-wage budget of 8% from UGX 0.708bn to 0.649bn in FY 2017/18.
The GoU Development Budget has remained constant at UGX 14.789bn despite
the compensation claims owed to the Church of Uganda by the Commission.

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(1 ) Compensate both Male and Female Landlords to secure land tenure
for the bonafide and lawful occupants.
(2) Regularize and register land ownership to both Male and Female
Lawful and bonafide occupants.
(3) Regularize land ownership of occupantsl issue titles.
(4) Operationalize land fund loan scheme.
(5) Carry out continuous sensitization on Land Fund activities.
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(1) Compensating absentee Land Lords and registration of lawful and
bonafide occupants at a cost of UGX 50.00bn.
(2) Development of government land Inventory at UGX1.00bn

Over the years, the Committee has recommended for an increase in the sector
budget allocation of the Ministry of Lands and Housing. However, the
Committee is disappointed to note that not much heed has been taken despite
the importance of the sector to economic development. With Land being an
important factor of production, the sector was allocated a total of UGX124
bnfor the FY 2017/8, which is a decrease from the UGX 126bn allocated in the
last final year.
Although the Ministry has made strides towards the formalization of the much
awaited Land Laws and Policies, the Committee took great exceptions at the
slow pace in which the processing of this very important legal instruments have
taken. The Committee has over the years recommended that laws such as the
ULC Bill, Landlord Tenant Bill, Survey and Mapping Bill, Land Information &
Infrastructure Bill, Registration of Titles (Amendment) Bill, Surveyors Registration
(Amendment) Bill, be fast tracked to aide in avoiding the numerous land
wrangles.

Although Parliament had earlier recommended that the Land Fund be provided
with additional funds in order to correct the historical problem that had been
created by the colonial Government, this was not done leading to an
accumulative funding requirement of UGX 1.7 trillion. As noted in the National
Budget Framework Paper, there is still a funding gap of UGX 50 billionin FY
2017/18. This in a way has caused delays in land compensation and increased
instances of fraudulent land acquisition by speculators in anticipation of being
compensated.

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owners
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names so it can

The Committee notes with concern the meager resources the Ministry has
continued to budget for the development of Physical Development Plans with
only UGX 3.2bn being allocated for its development.Aware of section 3 of the
Physical Planning Act 2010 that declares the whole of Uganda as a planning
area, this money cannot do much. Most of the National and Local Government
Social and Economic Plans are not harmonized. This has resulted in most urban
centers not having Physical Development plans, leaving development to
happen in a haphazard manner. If this trend is continued, the Committee is
worried there is a likelihood of a surge in the proliferation of slums due to an
absence of a guiding framework for the rapidly developing centers and towns
in the Country.

as a

on
While scrutinising the Policy statement, the Committee noted with concern that
the Ministry has continued to budget for roads and bridges in the Albertine
region, an activity that is clearly outside their mandate. Notably, this is in a
region where UNRA has earmarked a significant percentage of its budget for
related activities. The Committee notes that this is a duplication of activity that is
concentrated in one region despite the glaring need for the same in other
regions of the country.

across

The Committee, well aware of the provisions in Section 77 of the Land Act that
calls for the rates for crops and "non-permanent" structures in assessing the
compensation award to be compiled and annually reviewed, noted that many
Project Affected Persons (PAPs) have contested compensation rates citing
unfairness and undervaluing of their properties especially for Road works and in
the Oil refinery areas (Albertine Grabben), despite verification by the Chief
Government Valuer. There are also wide spread complaints of delay in
compensations of tenants.
reserves

The annual housing need for the country is estimated at 200,000 housing units of
which 135,000 are needed in rural areas while 65,000 units are needed in urban
areas. Based in current construction estimates for reasonably good houses, the
NDP II envisages a deficit of 135,000 houses national represented by 95,000 units
and 45,000 units for rural and urban areas respectively. The NDP further
estimates that Uganda will need about 12.6 million new housing units over the
next 30 years (2015-2035). This implies that 420,000 housing units will be required
annual over the same period. There is no indication from the MPS that the
Ministry or the Lands Sector as a whole is paying attention to this potentially
evolving crisis.

While scrutinising the Ministerial policy statement, the Committee noted on


numerous occasions, the diversion of funds for activities not planned for during
implementationof activities. Aware that only Parliament has the mandate of
:J appropriation, this practice raises many questions of conformity and adherence
to planned activities.
on

The Committee noted with concern that most public land held in trust by the
Uganda Land Commission has no land titles which has led to rampart grabbing
of public land. Likewise, the Committee noted that there were no clear
procedures by which GoU allocates public land to investors, which has resulted
in foreign investors being allocated prime investment land at the expense of
Uganda nationals.

ensure

measures
user

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The Sector is delineated into the following Votes;

To promote adequate, safe and well maintained Works and Transport


Infrastructure and Services for Social Economic Development of Uganda

To provide reliable and safe works, transport infrastructure and services.

D
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Non Wage
45.057 16.957 15.973
GoU 241.713 192.229 192.066
Donor 11655 86.4 86.4
Total Development 358.26 278.63 278.47

Source: PBO

19 I age
In reference to the table above, the total budget approved under Vote 016
Ministry of Works and Transport amounted to UGX 403.64bn. By the end of Dec
2016, a total of UGX 278.63bn had been released representing 73.3% release
performa nce.
The Ministry registered a release performance of 79.5% of the Domestic
Development Budget by half of the financial year, while 74.1 % of the Donor
Development funds had been released. It should however be noted that, part
of the Government development funds released comprised of a Supplementary
Budget of UGX 24bn that was used to pay upfront fees and insurance fees for
the purchase of Japanese Earth Moving equipment for District and Urban roads.
The total budget for the Arrears was released, however only 84.1 % equivalent to
UGX 0.265bn out of UGX 0.315bn approved was absorbed by the end of the 1st
half of the financial year.
Generally, the Ministry registered good absorption levels as observed in the
table above, with an overall absorption performance at 99.6% of the funds
released by end of December 2016.
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(1) Under the SGR, 97% of Right of Way and 84% of Resettlement Action Plan

for Malaba - Kampala SGR route completed;

(2) Under the One Stop Border Post, 80% of construction works for Elegu OSBP
completed;

(3) 65% of construction works for Katuna OSBP completed;

(4) Construction works for exit roads at Busia OSBP completed; and 30%

construction works for exit roads at Malaba OSBPs completed.

(5) Entebbe International Airport; 93% of Earthworks for the new cargo centre
at EIA completed;

(6) Lot 1 of the 14 small idges (Enget, Balla, Agali, Abalang 3) completed;
(7) Lot 2 of the 14 small bridges (Nywa bridge completed and Koch 2 is
ongoing at 64%);

(8) Lot 3 of the 14 small bridges (Abalang completed, Olyanoi and Alipa
bridges at 95% progress, Akol and Airogo bridges at 98% completed);
Works are under Defects liability for Rushaya bridge in Mitoma District
ongoing; Soaka bridges Phase II - 90% completed; 30% of Okokor bridge in
Kumi completed; 94% of Orom bridge in Kitgum completed; 96% of
Kaguta bridge in Lira completed; 85% of Agwo bridge in Lira completed;
and 100% Kabuhuuna swamp crossing in Kibaale completed.

(9) Under Force Account for District Roads; 48km of District Roads under Force
Account cleared, shaped and compacted; 36.05 km of District Roads
under Force Account fully graveled; 1.8km of river corridor filled and
0.9km of river channel excavated in Namonve industrial park; and 1.39km
of the boundary service corridor filled with gravel in Namanve to improve
drainage and realignment of the River. Procurement of earth moving
equipment from Japan is ongoing.

(10) Construction standards and research: 102 no. of materials testing,


quality control and research on construction materials reports produced;
3 No. geotechnical investigation reports prepared; and Environmental
compliance audits of MDAs undertaken in 16 no. MDAs.
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Recurrent Wage 9.013 9.182 0.169 2%


Non Wage 36.044 39.226 3.182 9%
Development GoU 241.713 190.57 -51.143 -21%
Donor 116.55 236.564 120.014 103%
Arrears 0.315 0.35 0.035 11%

Source: PBO Computations

The total budget under MoWT is projected to grow to UGX 475.89bn in FY2017-
18. This is an 18% growth equivalent to UGX 72.25Bn (18%) from UGX 403.64Bn
approved for FY 2016-17. The GoU Development budget is however reducing by
UGX 51 .143bn (21 %). The observed growth is attributed to the proposed growth
in the Donor funding which is increasing by 103% from UGX 116.55Bn to
UGX236.564bn, causing an overall increment in the Development Budget of
19%. This is mainly on account of the Development of the Kampala Port in
Bukasa, which has its budget increasing highly by 1876.5% from UGX 4Bn to
79.06Bn in FY 2017/18and the Rehabilitation of the Entebbe International Airport
with a change in resource allocation of 40.5bn for the FY 2017/18.

During this Financial Year, the Ministry has set out to do the following;

I. Development of the Local Construction industry (Enactment of the UCICO


Bill and set up of the UCI Commission);
II. Construction of SGR (20% of Malabo-Kampala Route)
III. Rehabilitation of Entebbe International Airport; Revival of National Airline;
IV. Development of Bukasa port.
V. Complete design studies for Gaba, Bule and Butebo landing
new office premises for UgandaComputerized Driving Permits.
/#~-
VI. Rehabilitation and maintenance works of 120kms of roads.
VII. Gravelling of 80km of District Roads and clearing, shaping and
compacting of 50kms of District Roads under Force account.
VIII. Monitor operation of KIS ferry services and SGS; among others.

U UN

I. Counterpart funding and land acquisition for development of Standard


Gauge Railway and rehabilitation of Tororo - Pakwach Railway line at
900bn.
II. Maintenance fund for the new road equipment from Japan for district
road maintenance at UGX 22bn (at 70% equipment availability).
III. Preparatory activities for Lake Victoria Transport Programme (Studies)at
4.5Bn
IV. Operational expenses for EACAA flying school (Aviation fuel, Aircraft
repairs and Mobile ground lighting system) ,Reconstruction of the run way
at EACAA and upgrading of Upcountry Aerodromes (Gulu, Arua and
Kasese) at 40Bn
V. Implementation of Force Account scheme, construction of Bridges:
Rwamabale (Kyankwanzi), Kyabahanga (Rukungiri), Amua (Moyo),
Kanyeyite (Mbarara), Kikasa (Lyantonde), Bukwali (Kabarole), Kibira
(Nebbi), Bugibuni-Bunadasa (Sironko) and procurement of culverts for
districts and urban councils at 30Bn.

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To develop and maintain a national roads network that is responsive to the
economic development needs of Uganda to the safety of all road users and to
the environmental sustainability of the national roads corridors.

To operate a safe, efficient and well-developed national roads networ


E
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Recurrent Wage 71.105 35.553 26.216 50.0% 36.9% 73.7%


Non Wage 29.787 14.807 10.585 49.7% 35.5% 71.5%
Development GoU 1,264.32 724.074 599.305 57.3% 47.4% 82.8%
Donor 1,268.91 131.297 131.297 10.3% 10.3% 100.0%

Source: PBO

The total budget approved under Vote 113 UNRA for FY 2016/17 amounted to
UGX 2,634.12Bn. By the end of Dec 2016, a total of UGX 905.73bn had been
released representing a release performance of 34.4%. There was noticeable
poor budget release performance of the Donor development category
allocated to UNRA. Only UGX 634.45Bn had been released out of the UGX
1268.9bn approved reflecting 10.3% release performance as seen in the table
above.
Overall, only 34.4% of the funds allocated to UNRA had been released by end of
December 2016, with budget performance of 29.1 % and Absorption of 84.7%.
Notably, UNRA received a Supplementary Budget amounting to UGX 33bn to
cater for the PAPs on Fort-Portal Nyakahita road, and Kampala Expressway and
also to cater for the civil works on the Mukono-Katosi Road.

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i. Vurra -Arua -Koboko - Oraba (92km) - civil works for upgrading have been
substantially completed.
ii. Mukono-Katosi- Nyenga (72km) - Cumulatively, 3277 PAPs had
and 63.8% cumulative physical progress was achieved;
iii. Mpigi-Kabulasoka-Maddu (135 km) - 4014 PAPs have been paid in total
and 1160.88 acres have been acquired. Overall, 45.7% cumulative
physical progress has been attained;
iv. Ntungamo-Mirama Hills (37km) - A total of 1998 PAPs have been paid and
74.6% cumulative physical progress was attained as at end of Q2.
v. Kyenjojo-Hoima-Masindi-Kigumba (238km) - Bulima - Kabwoya (66 km): A
total of 1741 PAPs have been paid and 32.9% cumulative physical
progress was attained as at end of quarter 2.
vi. Nyendo - Sembabule (48km): Kanoni - Sembabule - Villa Maria (110 km):
46.3% cumulative physical progress was attained as at end of Q2,
representing 51 km-equivalents.
vii. Ishaka-Kagamba (35km): A total of 1884 PAPs have been paid by end of
quarter 2, representing 92.9% of the total number of PAPs.
viii. Reconstruction of Mbarara-Katuna road 82.1 % cumulative physical
progress was attained.
ix. Kampala Entebbe Express Highway (51 km): 592 PAPs were paid upto the
end of quarter two. 74.9% cumulative physical progress was attained,
representing 38.2 km-equivalents
x. Musita- Lumino-Busia/Majanji Road (104km): 1515 PAPs were paid and
121.5 hectares acquired. 9.0% cumulative physical progress was attained;
xi. Olwiyo-Gulu-Kitgum Road: Olwiyo-Gulu (70.3km): 27.5% cumulative
physical progress was attained,
xii. Mukono - Kayunga - Njeru (94km) - 30%, cumulative 60% Kiryandongo -
Kamdini (59km) -15%, cumulative 100%.
xiii. Mubende-Kakumiro-Kagadi Road: 8% cumulative physical progress was
attained, representing 8.6 km-equivalents.
xiv. Kampala Northern Bypass Phase 2: 275 PAPs have been paid and 21.149
acres acquired:
xv. Albertine Region Sustainable Development Project: Kyenjojo - Kabwoya:
861 PAPs were paid and 96.944 acres aquiredBulima-
xvi. Under project 0954 Design Muyembe-Moroto - Kotido (290km)6 hectares
and property therein procured and 15 PAPs have been paid with 18.58
acres acquired, among many other achievements mentioned.
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Recurrent Wage 71.105 71.105 0 0%


Non Wage 29.787 29.269 -0.518 -2%
Development GoU 1,264.32 1,546.80 282.479 22%
Donor 1,268.91 1,971.54 702.636 55%

Source: PBO

The total Budget for UNRA is proposed to grow by UGX 984.6bn from its FY
2016-17 level of UGX 2,634.12Bn to UGX 3618.71 Bn in FY 2017-18
representing a growth of 37%. This is mainly attributed to the 22% increase
in the GoU Development funds to UGX 1546.8bn from UGX 1264.32bn in FY
2016/17, and the Donor Development funds increasing by 55% to UGX
1971.54bn.
The increment in votes budget is attributed to the several on-going
infrastructural projects but also the 13 new Oil roads pro]
commence in the coming FY, proposed to cost UGX 1,342.11 bn.

I. Continuation with the ongoing road development programme will


295Km of National roads upgraded; 146Km of National Road network
rehabilitated; 100km of paved national roads maintained under
periodic maintenance; 300Km of paved national roads maintained
under routine maintenance; 2,225Km of national road maintained
under the periodic maintenance; 12,500Km of unpaved national roads
to be maintained under the routine mechanized maintenance; and
12km of unpaved roads upgraded to paved national ro
cost sealing; construction and rehabilitation of bridges and
procurement of ferry services.
li. Construction of 556km of roads by 2020 to support the oil sector (UGX
1.1 trillion has been provided in FY 2017/18)
iii. Payment of any outstanding debts;
lv. Land Acquisition/counterpart funding: Projects for which Government
has made commitments with Development Partners
v. Implementation of externally (donor) financed projects for which
funding is available
113
i. National road maintenance, projected at UGX 320Bn
ii. Road development, projected at UGX 818Bn

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To provide effective and sustainable financing of maintenance for public
roads through partnerships with stakeholders in the road transport sector

To provide Adequate financing for maintenance of public roads

E 6/17
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Recurrent Wage 2.511 1.256 1.256 50.0% 50.0% 100.0%


Non Wage 412.659 161.958 159.285 39.2% 38.6% 98.3%
Development GoU 2.67 0 0 0.0% 0.0% N/A
Donor 0.00 0 oN/A N/A

Source: PBO

The total budget approved under Vote 118 URF amounted to UGX 417.84bn.
By the end of ec 2016, a total of UGX 163.21 bn had been released
representing a release performance of 39.1 %. It should be noted however
that 98% of the funds released were absorbed.
URF disbursed UGX 102.723Bn to UNRA towards maintenance of national
roads while UGX 55.313bn was released towards maintaining DUCAR Roads.
Although UGX 2.67bn had been approved under URF development budget
category, there was 0% release by End of December 2016.

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1. During the first half of FY 2016/17, URF received UGX 163.214bn from
treasury. Of this amount, UGX52.82bn was disbursed to finance
maintenance of national roads, UGX25.409bn to finance maintenance of
DUCAR, UGX 3.033 for City roads and UGX5.178bn to finance secretariat
operations.

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Development

Source: PBO Computations

The budget for Uganda Road Fund (URF) is projected to remain the same
over the next FY 2017/18. There is a 7% decline in the funds allocated to
the vote for GoU Development causing a 0.1 % overoll decline in the
vote's budget as seen in the table above.
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I. Financing of National Roads Maintenance
II. Financing of DUCAR maintenance.
III. City Roads Maintenance
IV. Establishment of Technical Support Units for DUCAR designated
agencies.
V. Monitoring and evaluation of URF funded programs at designated
agencies.
VI. Conducting technical and financial reviews of designated agencies.

The total budget approved in FY2016/17 under Vote 500 Local


Governments amounted to UGX 22.84Bn. By the end of Dec 2016, a total
of UGX 15.1 7Bn had been released representing a release performance of
66.4%, as shown in the table below. This was expended under the Sub-
Programme Works and Transport for low cost sealing of 20kms of roads.

Development

On the other hand, the budget for Local Governments is remaining


constant for the next FY 2017/18, at UGX 22.84bn, to have District and
Urban roads rehabilitated. This is however meagre as it only represents
0.05% of the entire budget accorded to the Works and Transport sector.
1

The Committee observes that this flagship project under the water sub-sector
was approved by Parliament in April 2016, at a cost of Euros 50 million (UGX 190
billion), with the first phase expected to end in December 2017. In its submission
to Parliament during the loan request, the MWT provided timelines for
accomplishment of key deliverables as below:
i. Draft Master Plan Report- May 2017;
ii. Final Master Plan Report- July 2017; and
iii. Final Engineering Design Report- December 2017
In addition, the MWT was expected to spearhead the process by which
Parliament would degazette the forest reserve to be used for the project in
June/July 2016.
From its response to queries raised by the Committee on this project, the MWT
confirmed that it is seeking UGX 77.26 bn external financing in FY 2017/18 to
finalize preparation of Port Master Plan and Detailed Engineering Designs and
undertake dredging and surcharging works for Bukasa Port. Most of these
activities to be funded by the projected external financing of UGX 77.26 bn
should have been completed by now. This has been due to several factors
including delays by the MWT to grant timely site access to the Project Consultant
and yet a contract had already been signed. Currently, the project is behind
schedule, with key timelines not met yet.

The Committee observes that despite developments in the water sub-sector, the
policy and regulatory frameworks are obsolete and standards inadequate.
Likewise, the navigational ror tes are undeveloped and travel on the water is
risky, A key concern in the first Uganda National Development Plan (NDP I) was
that:
"Navigation on Uganda's water bodies remains risky largely because there
have never been any hydrographical surveys to determine the navigation
routes, except those conducted on L. Victoria and the lake charted ways, in
190 t, The charts on L. Victoria are too old to be relied upon for navigation
purposes and there are no navigation aids installed",
The Committee recommends that:
ensure a

The Committee established that procurement of Ferries has been a slow process
in the country despite the need for such services in areas that are not well
served by road network. Case in point is the Bukungu - Kamuli - Kagwara that
was pledged in a letter byHE the President in 2007. The design was undertaken in
2011 and procurement was planned in FY 2015/16. However to date, the
process is not yet complete. Several water sub-sector projects have been slow
and this has contributed to the belief that the water sub-sector is neglected.
In its submission to the Committee on the matter, UNRA has budgeted for
15 8 for purchase of specialized machinery and equipment
including ferries and related services. This money is expected to acquire land for
ferry landings in the areas of LugalaSigulu and Lolwe Islands, Wanseko and
Bukungu - Kamuli - Kagwara. Despite the progress on a ievernent- of these
projects, a lot more is required to be done.
The Committee has noted with concern that several landing sites are poorly
designed across the country despite the availability of ferries that are already
operational in such areas. Case in point is the Nakiwogo and Butobooka landing
sites for MV Kalangala, where the ships find difficulty to dock due to poor
designs and poor condition. In addition, Adjumani has poorly planned landing
sites on which ferries are already operational, while some landing sites lack
access roads.
The Committee recommends that:
ensure
across

access orno

The PPDA recently introduced requirements to ensure sufficient local content on


projects in the local construction industry. Foreign firms, employing expatriates,
have dominated the local road construction industry, including consultancy
and works contracts. The local works contractors and consultancy firms are
weak and have been largely underdeveloped. The enactment of the UCICO Bill
and the setup of the UCICommission are critical in the development and growth
of the local construction and consultancy industry.
a

The Committee noted that given the colossal amount of money government
continues to commit to the sector, there's need for close regulation of the
Construction Industry to get rid of speculators. The Ministry had planned to
operationalize the Building Control Act (2013) but the accompanying
regulations had not been developed to help operationalize it. Similarly, the
establishment of the National Building Review Board Secretariat planned by
June 2015 as per the Building Act {2013} 2103 had not been developed to help
ensure adherence to set rules and regulations of the sector.
ensure

it

The Committee observes that in FY 2016/17, and in earlier financial years, on


average only 7% of total funds received by the sector was used for road
maintenance purposes with the rest of the funding being used for development,
reconstruction and reha . itction purposes. It should be appreciated that
33 IP ge
to maintain the road network as per schedule, at the right time, leads to an
increase in the cost of any subsequent interventions by a factor of 2- 4 times the
original cost. While the road maintenance budget has been increased since
establishment of the Uganda Road Fund (URF) in 2008, the Fund has not been
capitalized, as it should be due to several factors.
In its response to the Committee on the matter of maintenance backlog, the
URF stated that inadequate spending on public roads over many years has now
resulted in a backlog of maintenance of up to 51,735 km on public roads,
estimated to cost UGX 1,084 billion. Incidentally, the URF was established to
address the road maintenance backlog that was being experienced at the
time. The cost of maintenance of the road network is expected to increase due
to failure to maintain them in a timely manner.

In order to assist with the road maintenance function, the Uganda Road Fund
Act, 2008, established Oistrict Road Committees (ORCs). In its response to the
issue to the Committee, URF reported that just over 50% of districts have
operational ORCs. The effective implementation of the road maintenance is
hindered by failure to establish functional ORCs.
The Committee recommends that:
The Committee notes that in MarchiApril 2017, Parliament based on a Report by
the Infrastructure Committee, passed recommendations on the Standard
Gauge Railway (SGR) construction process in Uganda. There were several issues
raised including the class of railway, the cost of railway, amendment of the
policy and legal framework, local content and training of personnel.
The Committee recommends that:
a on on
on

The committee observed the low and varied rates of remuneration for
equipment operators and road gangs at Local Governments that has resulted
into low turnovers and affected performance of routine maintenance activities.
Currently the highest paid road gangs earn UGX 100,000 per Kilometer per
month which is low compared to other vocations like plumbing and masonry.
Other Local Governments pay way lower than this amount. This has led to some
district to fail to attract workers under the road gangs .

.'Il"" ll:"::"lLA man

The Committee noted that there was inadequate funding committed towards
road safety and for training and sensitization of the public on road safety issues.
This is despite the numerous fatal accidents that have been witnessed on the
roads caused in part due to inadequate training of drivers, vandalism of road
furniture and poor sensitization about road use. Also, the Committee notes that
the Ministry has concentrated on regulating motor vehicles only and
disregarded the bodabodas that have become a menace to city mobility.

users
use.
new

Experience from equipment obtained earlier from China clearly indicates that
maintenance was not properly considered during operations, and this is
manifested in the number of breakdowns of the equipment acquired under this
arrangement. Analysis of the FY 2017/18 budget shows that there is no budget
for the maintenance of the road equipmentthat is being received from Japan.
The Committee further noted that Road Fund will be providing fuel and operator
costs up to 50% equipment availability. It should be noted that, a corresponding
maintenance cost at 50% equipment availability would translate into an annual
budget of UGX 16bn.

same

The Committee noted from the UNRA officials that the Feasibility studies of the 13
Oil roads are incomplete and still ongoing despite being budgeted for in the
coming FY. This shows inadequate preparation of projects which in turn leads to
slow absorption of funds. This has been a consistent problem realized in the
Works and Transport Sector, as most project funds are externally sourced. As a
result of slow disbursements, Government incurs commitment charges making
the projects more costly than already envisaged.

so as

11
Rt. Hon. Speaker, Hon. Members; in conclusion, The Physical infrastructure
Committee would like to underscore the importance of the sector that
includes Works, Transport, Land and Housing in the economic development
of the country. However this must be appreciated by the amount of
appropriation to these sectors which unfortunately has been very low,
especially to the Lands and Housing sector over the years. In the Works
sector, Uganda Road Fund continues to receive very meager appropriations
and yet their mandate is very crucial to the local common man in a sub
county somewhere in this country.
The Committee would like to call upon this August House to compel
government to fully fulfill its financial obligations in a timely manner in order
for these Ministries/ Departments to carry out their planned programs and
activities especially the critical unfunded areas such as maintenance of
roads and road equipment recently received from Japan.
There are a number of challenges that has continued to dodge these
sectors of which the Committee has proposed some recommendations
herein.
Rt. Hon. Speaker, Hon. Members it is therefore my prayer and that of the
Committee that this House adopts this report and approves the budget
estimates for the respective Government Ministries and Departments and
agencies for the FY 201 7/18 as follows below;
Expenditure Item Proposed Budget Ushs
24,940,626,000
o/w Pension& Gratuity;3,064,238,OOO
Recurrent Arrears; 232,594,000
Development 99,434,883,000

Expenditure Item Proposed Budget Ushs(OOO)

Recurrent 43,301,211,000

Development 427,133,828,000

Expenditure Item Proposed Budget Ushs(OOO)

Recurrent 131,723,938,000

Development 3,518,342,325,000

3,650,066,263,000

Expenditure Item Proposed Budget Ushs(OOO)

Recurrent 414,973,228,000

Development 2,470,000,000

417,443,228,000

Expenditure Item Proposed Budget Ushs(OOO)

Recurrent 1,151,292,000

Development 14,788,999,000
15,940,291,000

I beg to report

381 g
1
Programme FY2016!17 Spent Absorption FY 2017/18 Nominal Cha % Change % share
51 National Roads Mainatainance and Construction
Projects
0265 Upgrade Atiak - Moyo-Moji (104km 0 0 2 0.1~

0267 Improvement of Ferry Services 29 1.998 7% 17.243 -11.757 -41% 0.5~

0293 Construction of RD Agency HQs 2 0 0% 0 -2 -100% O.O~


0321 Upgrade Fort Portal - Budibugyo -Lamia (104I<m) 20 13.85 69% 0 -20 -100% O.O~
0952 Design Masaka-Bukakata road 5 2.214 44% 1 -4 -80% O.O~

0954 Design Muyembe-Moroto - Kotldo (290km) 30 28.851 96% 0 -30 -100% O.O~
0955 Upgrade Nyakahita-Ibanda-Fort Portal (208km) 60 38.484 64% 56.1 -3.9 -7% 1.6~

0957 Design the New Nile Bridge at Jinja 81.47 33.105 41% 44.686 -36.784 -45% 1.3~

1031 Upgrade Gulu - Atiak - Bibia! Nimule (104km) 19.72 8.725 44% 0 -19.72 -100% O.O~
1032 Upgrade Vurra - Arua - Koboko - Oraba (92km) 10.6 9.21 87% 0 -10.6 -100% O.O~

1033 Design Helma - Kaiso -Tonva (85km) 0 0 0 0 N!A O.O~


1034 Design of Mukono-Katosi-Nyenga (72km) 45 53 118% 40.5 -4.5 -10% 1.1~

1035 Design Mpigi-Kabulasoka-Maddu (135km) 35 12.366 35% 37 2 6% 1.0~

1037 Upgrade Mbarara-Kikagata (70km 0 0 7 7 N/A 0.2~

1038 Design Ntungamo-Mirama Hills (37km 38.77 16.289 42% 13.661 -25.109 -65% 0.4~
1040 Design Kapchorwa-Suarn road (77km) 87.196 0 0% 6.5 -80.696 -93% 0.2~

1041 Design Kyenjojo-Hoima-Masindi-Kigumba (238km) 149.39 16.786 11% 79.48 -69.91 -47% 2.2~

1042 Design Nyendo - Sernbabule (48km) 32 7.994 25% 26.5 -5.5 -17% 0.7~

1044 Design lshaka-Kagamha (35km) 25 14.559 58% 6 -19 -76% 0.2~

1056 Transport Corridor Project 259.613 151.291 58% 311.998 52.385 20% 8.8~

1104 Construct Selected Bridges (BADEA) 40.86 4.914 12% 0 -40.86 -100% O.O~

1105 Road Sector lnstitu. Capacity Dev 16.2 1.851 11% 69.473 53.273 329% 2.0~

[Pro] 1158. Reconstruction of Mbarara-Katuna road (155 Km) 26.618 27.458 103% 23.1 -3.518 -13% 0.7~
,:'",,; ,:, """.IL:' !!!
",;';;':;'j;.;
x" .......,, 'I'!,.I.:' '. :; ."' . !.. "'.'1;.;, .'Iii':':.:},' l,j: :,.',.,;.'. y,;::LO 'I:".,HI?''.ol'o9 .Wy.jl,..,'i,j.j"(jM ','i,.!''''''''''':':'';;:;'; 'l'!'!.,.x4q4D:i7~ .::"h';~'il.il!' .' ill2iJ3~
1180 Kampala Entebbe Express Highway 307.05 144.353 47% 231.322 -75.728 -25% 68
1274 Musita-lumino-Busia!Majanji Road 35 11.986 34% 52 17 49% 18
1275 Olwlvo-Gulu-Kitgum Road 115 56.794 49% 121.3 6.3 5% 3.4~

1276 Mubende-Kakumiro-Kagadi Road 30 20.577 69% 80 50 167% 2.3~

1277 Kampala Northern Bypass Phase 2 86.96 31.22 36% 48.035 -38.925 -45% 1.4~

1278 Kampala-Jlnja Expressway 59.7 0.164 0% 140 80.3 135% 3.9~

1279 Seeta-I<yaliwajjala-Matugga-Wakiso-Buloba-Nsangi 2 0 0% 0 -2 -100% O.O~

1280 Najjanankumbi-Busabala Road and Narnbole-Namilvango-S 2.09 0 0% 0 -2.09 -100% O.O~

1281 Tlrlnvi-Patllsa-Kumi/Kamonkoll Road 12 0.036 0% 10 -2 -17% 0.3~

1310 Albertine Region Sustainable Development Project 84 5.046 6% 87.058 3.058 4% 28


1311 Upgrading Rukungiri-Kihihi-lshasha!Kanungu Road 45.71 0.037 0% 26.666 -19.044 -42% 0.8~

1312 Upgrading mbale-Bubulo-Lwakhakha Road 40.72 0.019 0% 34.866 -5.854 -14% 1.0~
1313 North Eastern Road-Corridor Asset Management Project 101.51 0.495 0% 55.513 -45.997 -45% 1.6~

1319 Kampala Flyover 228.77 0.252 0% 83.601 -145.169 -63% 2.4~


1320 Construction of 66 Selected Bridges 58 16.557 29% 37 -21 -36% 1.0~

1322 Upgrading of Muyembe-Nakapiripirit(92 km) 123.63 0.01 0% 89.418 -34.212 -28% 28


1402 Aoac- Lira-Acholibur road 39.69 0 0% 93.327 53.637 135% 2.6~
,:"
'1,.\1.1,' ,.,.,.' . '" '.'.'.:,:"... .. . .'. ,: . ,.' .:.',. :. ,' ,.'." !
,X'Ji
."..,..'.'.".'i.''.'.'..' .'.O I,,".',',:\:x ',"'. 'X:"':,.,'. ,,'49 ...',.. ,
., " ......
, '1./hWA ,'h,.I:;(
1404 Kibuve- Busega- Mpigi 133.96 0.005 0% 158.665 24.705 18% 48
1445 Maslndl-Bltso Road (54km) 0 0 108.534 108.534 N/A s.i:
1446 Maslndl-Bugungu via Murchison Falls 0 0 152.209 152.209 N/A 4.3~

National Park (80km) 0 0 0 N/A O.O~

1447 Kaseeta-lwera via Bugoma Forest 0 0 34.525 34.525 N!A 1.0~

(16km) 0 0 0 N/A O.O~

1448 Wanseko-Bugungu Road (23km 0 0 50.962 50.962 N/A 1.4~

1449 Buhimba-Nalweyo-Kakindu-Kakumiro Road (100km) 0 0 195.504 195.504 N/A 58


1450 tusalira-Nkonge-Ssernbabule (97km) 0 0 190.876 190.876 N/A 5.4~
1451 Kabale-Kizlranfumbl Road (30km) 0 0 56.867 56.867 N/A 1.6~

1452 Kyotera-Rakai Road (20km) 0 0 43.316 43.316 N/A 1.2~

1453 Tangl Gate Bridge 0 0 39.135 39.135 N/A 1.1~

1454 Bridge After Paraa Crossing 0 0 8.749 8.749 N/A 0.2~

1455 Hohwa-Nvairongo-Kvarushesha (25km) 0 0 53.34 53.34 N/A 18


1490 tuwero- Butalangu 0 0 23.288 23.288 N/A 0.7~
O.O~

TOTAL PROJECTFUNDS 2533.227 730.535 29% 3545.445 1012.218 40% 100.0~


SIGNATURE OF MEMBERS ON THE PHYSICAL INFRASTRUCTURE COMMITTEE

NO NAME CONSTITUENCY SIGNATURE

1 Han. Sabiitl Denis Rubanda


West

2 Hon. Nakate Lillian Ssegujja.v/ Luweero


Chairperson

3 Hon.Angundru Moses Terogo West


County

4 Hon.Asaba N Paul Kyaka North County

5 Hon.Byandala Abraham James Katikamu County


North

6 Hon.Dulu Angel Mark Adjumani East

7 Hon.Kafeeero Ssekitoleeko R Nakifuma County

8 Hon.Kibalya Henry Maurice Bugabula County


South

9 Hon.Kumama Nsamba George Bbaale County

10 Hon.Burundo Musingo Alex Bulambuli County

11 Hon.Mandera Amos Buyamba County

12 Hon.Mbeiza Margaret Kaliro

13 Hon.Othieno Okoth Richard West Budama


County North

14 Hon.Musoke Paul Sebulime Buikwe County


North

15 Hon.Nabbanja Robinah Kibaale

16 Hon.Ninsiima Boaz Kasirabo Kooki County

17 Hon.Waluswaka James Bunyole West


County
//\

18 Hon.Wamala Namboozo Florence Sironko


~~t! ////,~

~
19 Hon.Mangusho Lawrence Kweeen County

20 Hon.Kasolo Robert Iki-lki County

21 Hon. Julius Ochen Kapelebyong


County

22 Hon. Anne Mary Tumwine Ntoroko County

23 Hon.Onesimus Twinamatsiko Bugangaizi East


County

24 Hon.Soyekwo Kenneth Cheborion Tingey County

25 Hon.Okwir Samuel Moroto county

26 Hon. Takirwa Francis (Brig) UPOF REP

27 Hon. William Nzoghu Busongora North

~JI')
28 Hon. Mwijukye Francis Buhweju County

29 Hon. Jonathan Odur Erute County South

30 Hon. Ssempala Kigozi Makindye -


Ssebagabo
Municipality

31 Hon. Elijah Okupa Kasilo County

32 Hon. Abacacon Charles Angiro Erute North

33 Hon Cecilia Ogwal Ookolo OWR