ADB threatens to suspend US$288 million worth of funding for city roads reconstruction
Tayebwa, who said to have read a letter to effect the suspension on February 1,2024, said it was urgent for the Committee on Physical Infrastructure to expeditiously assess the matter before the deadline.
The Deputy Speaker of Parliament, Thomas Tayebwa, has directed a house committee to intervene in a likely crisis, where the African Development Bank (ADB) may possibly suspend funding for the ongoing road reconstruction in the capital, Kampala.
Tayebwa, who said to have read a letter to effect the suspension on February 1,2024, said it was urgent for the Committee on Physical Infrastructure to expeditiously assess the matter before the deadline.
“The best way is for the committee to summon the minister in charge of Kampala Capital City Authority (KCCA), and the KCCA leadership and be able to report to this House this week on Thursday, because we want very clear updates on what has been done to address this matter,” Tayebwa said.
Tayebwa made this directive while chairing the plenary sitting on Tuesday, 30 January 2024, following a matter of national importance raised by Kibanda North County MP, Hon. Linos Ngompek.
Ngompek expressed concern that in the letter dated 17 December 2023, ADB was threatening to suspend US$288 million worth of funding after government failed to meet her obligations including counterpart funding, compliance with environmental requirements, and other social safeguards, and compensation of project-affected persons.
“The bank says they will suspend funding effectively 01 February 2024, the Minister for KCCA should explain to us the steps being taken, we do not want to lose the project, especially for roads under construction,” Ngompek said.
The Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, confirmed the development and said that government had just released Shs20 billion as counterpart funding to the same cause.
“I chaired a meeting involving the KCCA ministers, the Executive Director and ADB where we decided to provide counterpart funding. If you check well, we have released Shs 20 billion in this quarter,” Musasizi said.
