IDB Threatens to Withdraw Muyembe-Nakapiripirit Road Funding

3527 Views Mbale, Eastern Region, Uganda

In short
Recently, World Bank suspended funding for the Kamwenge-Fortportal road working citing the failure by UNRA to address social and environmental concerns from the locals affected by the works.

The Islamic Development Bank (IDB) has threatened to withdraw funding for the tarmacking of Muyembe-Namalu-Nakapiripirit road. 

Government acquired a loan of US $ 110 million from IDB in 2015 to upgrade the 92-kilometre road starting mid this year.
 
However, to date the work has not begun. Now, Finance, Planning and Economic Development Minister, Matia Kasaija, says IDB has written to government threatening to recall the loan citing failure to follow the agreed terms.

While addressing the business community during a tax education and community dialogue organised by Uganda Revenue Authority at Mount Elgon Hotel, Kasaija said much as the contractor has already been identified, there have been procurement delays.
  
According to Minister, IDB has warned to recall the loan should work fail to start by the end of this year. Kasaija says the threats from IDB come at a time when the country is grappling with a slow economy.

When contacted, Allan Twobe, the Media Relations Manager, Uganda National Roads Authority-UNRA declined to comment on the IDB threats, saying he wasn't privy to the details. "I need to get the details before commenting on this matter," he said.
  
Recently, World Bank suspended funding for the Kamwenge-Fort Portal road working citing the failure by UNRA to address social and environmental concerns from the locals affected by the works.
 
These concerns were related to workers' issues, noncompliance with social and environmental requirements, poor project performance and sexual misconduct by the labourers employed by the contractors.
  
In September this year, World Bank president, Jim Yong Kim also suspended further lending to Uganda citing delays in project implementation, weaknesses in safeguards, monitoring and enforcement, and low absorption of funds.