Gov’t Seeks World Bank Extension on USMID Project

Government has officially approached the World Bank, seeking an extension of funding for projects falling under the Uganda Support for Municipal Infrastructure Development (USMID) program.

The request follows the failure of Multiplex Construction Company Limited, the contractor responsible for projects in Mbarara City, Ntungamo, and Kabale Municipalities, to complete designated road construction within the agreed timeframe.

An inspection by USMID officials revealed that key roads, including Bwankosa Road (0.76 kilometers), Bushekwire Road (0.34 kilometers), and a road linking Kabale Diocesan Headquarters to the Katuna-Kabale-Mbarara Highway (2.47 kilometers), are only 53 percent complete. The Shillings 21.722 billion roads project, slated for completion within one year, has faced delays, prompting the government to seek an extension from the World Bank.

USMID Communication Specialist Sheilah Naturinda confirmed the formal request for a one-year extension and disclosed that an Adjudication ruling is awaited to determine whether the contractor’s involvement should be terminated. Despite a favorable ruling for the contractor in Ntungamo and Mbarara projects, allowing work to continue, termination remains a possibility in Kabale.

Naturinda outlined a plan where, after the program concludes in December, retention funds might be provided to the contractor to advance works to 70 percent completion, reaching substantial completion.

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