KAMPALA, Uganda – The Committee on Physical Infrastructure has called on the government to urgently release Shs689 billion for the compensation of Project Affected Persons, warning that delays could stall critical projects and leave up to Shs3.7 trillion in external financing unused in the 2026/2027 financial year.
“A total of 7,767 PAPs representing 41% under government-funded projects remain unpaid, with outstanding compensation of Shs533.23 billion,” said Hon. Tony Awany, deputy chairperson of the House Committee on Physical Infrastructure, presenting the committee’s report on the Ministerial Policy Statement for the Ministry of Works and Transport.
Awany spoke during a plenary sitting chaired by Speaker Anita Among on Thursday, April 16, 2026.
He said 6,597 PAPs under donor-funded projects, worth Shs320 billion, also remain uncompensated. Affected projects include Bukasa Port, the Standard Gauge Railway, the Tororo-Gulu Meter Gauge Railway and the Gulu Logistics Hub.
Awany noted that failing to pay PAPs denies contractors access to project sites, delays work and disrupts payments.
“This also makes it hard for government to use funds from development partners, even when the money is available,” he said.
The committee recommended that the government release Shs689.513 billion in the first quarter of the 2026/2027 financial year alongside a clear payment plan for PAPs, with regular checks to ensure money reaches intended beneficiaries.
The report also linked compensation delays to growing arrears owed to contractors, saying both challenges continue to stall transport sector works. The Ministry of Works and Transport closed the 2024/2025 financial year with total arrears of Shs1.489 trillion. Although Shs541 billion has been paid this financial year through supplementary funding, an outstanding balance of about Shs948 billion remains.
The committee noted that despite Parliament approving Shs218.456 billion to clear arrears in the 2025/2026 financial year, no funds had been released by mid-year.
“This complete non-release directly caused the suspension of works on a number of national road projects and triggered additional interest charges,” the report said.
Lawmakers called on the government to restore arrears funding to at least Shs900 billion and commit to a clear three-year plan to clear the debt. They also urged the Ministry of Finance to release both the arrears budget and the remaining Shs1.696 trillion approved under supplementary funding to ease pressure on ongoing projects.
Speaker Among said the report raises critical concerns requiring further debate with the ministers of Works and Transport and Finance, Planning and Economic Development.
“Even after giving the sector much money (Shs8 trillion), we do not see roads worked on. I refer this report to the Budget Committee, but in the next sitting on Tuesday, we need to open a debate with the two ministers,” she said.
Among also raised concern over limited access to regional mechanical workshops for road equipment maintenance in many districts. She cited a recent presidential directive to provide an additional Shs1 billion and equipment to each of six large districts and tasked the committee to follow up on its implementation.
Ruhama East County MP Hon. Benjamin Kamukama criticized delays by the Finance Ministry in implementing road funding commitments, while Kiira Municipality MP Hon. Ibrahim Ssemunju proposed that future transport infrastructure financing be guided by return on investment.
