The total project investment was estimated at USD.49.56 million (UGX 128 billion) and Government, was required to pay in advance, the annual and quarterly support payments to KIS for ferry and road services respectively.
The Auditor-General John Muwanga has raised concerns on the
exorbitant costs of delivering services by Kalangala Infrastructure
The concerns are raised in the Auditor General’s report of the financial year
2018/2019 where more than 16 billion shillings is reported to have been wasted
on the company for the last 6 years.
In September 2005, the government signed a Memorandum of Understanding with
InfraCo Limited to develop, expand and maintain key infrastructure services on
Bugala Island in Lake Victoria.
Kalangala Infrastructure Services - KIS, a private operator was awarded a
contract to operate efficiently and serve the island residents with improved
access to safe water, safer transportation and more reliable solar-powered
128 billion shillings was earmarked to take on the project. The company
embarked on the construction for the upgrade of Luuku – Kalangala – Mulabana
(65.6 km) road from Class “C” to Class “B” gravel standards.
During the construction phase, Government paid 40.85 billion shillings in form
of road support payments against a total of 40.16 billion shillings reported to
have been incurred by KIS as actual road development costs upon completion of the
road construction works.
“In addition, with the road support payments spread over 13 years, projections
show that Government of Uganda will spend a total of 120.25 billion shillings which
is considered costly given that KIS is not responsible for maintaining the
road,” the report reveals.
The auditor general also noted that the oversight committee of the whole
project had not been operationalized as required under the Implementation
Similar concerns have severally been raised by Kalangala District Chairperson
Willy Lugoloobi who also requested for a review of the contracts between Uganda
and the company.
//Cue in “Kaakati fe kyebatugamba …
Cue out: … value for money”//
In 2011, Kalangala district authorities l
ed by then RDC Deo Kayiwa
Nsereko petitioned President Yoweri Museveni over exorbitant costs of operating
Kalangala main road by Kalangala Infrastructure Services Limited. The costs
according to the leaders needed to be reviewed by the Ministry of Works and
Transport and that of Finance.
“We were instead told to look at the services we are to receive as a district
instead of the cost of proving the services. That is the reason we kept silent
until now when the issue has been brought back. Now, the district is suffering
because both the Uganda National Roads Authority and the Ministry of works
cannot maintain our road just because of the exorbitant costs,” Kayiwa
In 2017, Uganda National Roads Authority-UNRA executive director Allen Kagina protested
the payment of an annual fee 17.2 billion shillings to KIS to operate the
ferries and a quarterly UGX 3 billion for the road reimbursements road
construction works undertaken by Kalangala Infrastructure Services Limited.
She said the cost is two times higher than the budget of operating the rest of
the 8 ferries operated by UNRA across the county.