Construction works on the 23.7 km long Busega- Mpigi express way is set to commence now that procurement processes have been concluded.
National Roads Authority (UNRA) Executive Director Allen Kagina made the announcement while addressing press in Kampala today.
Two firms, China Civil Engineering Construction Corporation (CCCC) and China Railway 19th Bureau Group have been selected to undertake works on the road.
This project, which is part of the Northern Corridor is financed by a $150 million loan obtained from African Development Bank (ADB) and African Development Fund.
Kagina says construction is expected to last for 3 years while the defect liability has been set for a year.
Upon completion, the road shall have 4 lanes, 4 interchanges and link roads measuring 20 kilometers.
However all has not been rosy ever since loan agreements for this project were signed on December 29, 2016.
Speaking at the signing ceremony, Allen Kagina expressed concern on a number of whistleblower complaints some which she says were unfounded. Majority of these, Kagina says had elements of selfishness and racketeering.
“Unfortunately most of these complaints have turned out to be false and lacking any merit. The cost on the country and the region in terms of delayed service delivery, commitment fees and delayed utilization of loan proceeds and loss in value of money due to inflation is big”, she said.
A preferred company to execute this project was ruled out after the Public Procurement and Disposal of Public Assets Authority (PPDA) cited inconsistencies in its bid documents in November 2018.
So far 70% of property owners have been paid to give way for the project.
The 547 billion soft loan from ADB loan is supposed to be repaid back in 50 years’ time with the grace period set at 10 years.