The Kampala Capital City Authority has abandoned plans to purchase Eco Buses for the modern transport system to enhance transport efficiency in the city. KCCA is now diverting the USD 12M to the reconstruction of three roads in the city. But MPs have queried the diversion of funds without parliamentary approval.
KCCA officials have been quizzed by the parliamentary committee of the national economy on the alleged inflation of the cost of road construction.
The revelation was made by the Kampala Capital City Authority Executive director Dorothy Kisaka while meeting before the parliamentary committee of National Economy which is currently assessing the performance of government projects funded by loans. Kisaka noted that they were guided by the president to abandon the purchase of 50 Eco-buses and channel funds to three road projects including Mpererwe – Kiti 10.7km road, Ntinda – Kasaasi 2.7km road, and Bukoto Ntinda 1.8km road.
The purchase of 50 Eco Buses was under the USD 288m Kampala City Roads Rehabilitation Project (KCRRP) to enhance transport efficiency in Kampala they were planned to cost KCCA USD 12 Million. However, committee members protested the diversion of funds on grounds that KCCA was not cleared by parliament which approved the government to acquire this loan from the African Development Bank. MPs noted that for any virement to be done under this loan, parliament has to approve.
Legislators also questioned why the Bus component was removed from this project whose main objective is to relieve the city from traffic congestion. They asked KCCA to furnish the committee with evidence that they were cleared by the Bank to divert funds from procurement of eco buses to road construction.
Meanwhile, the committee queried KCCA over shoddy works on roads, drainage channels, and traffic rights done under the Kampala Institutional and Infrastructure Development Project (KIIDP). Out of the USD 183.75M project sum, KCCA so far utilized USD 154.97m to pave 385km of roads in Kampala and designed 185km of roads. But MPs are not impressed with the work done.
Legislators also questioned KCCA over alleged inflation of the unit cost of roads in Kampala. But KCCA blamed it on the high cost of land compensations. The committee also questioned the loss of over USD 17M which is approximately UGX62bn in poundage by KCCA. According to KCCA, while securing the USD 175M loan from the International Development Association, USD 17.08m which is (9.76%) was not disbursed due to exchange loss. But MPs were not moved by the explanation, wondering all that money was lost in forex exchange yet it would have been used on road construction
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