Parliament has approved a Shs313.2 billion pre-financing arrangement to facilitate the design and construction of the Kayunga–Bbaale–Galiraya Road, paving the way for the long-awaited upgrade of the 87-kilometre route from gravel to paved standard.The decision was reached during a plenary sitting on Tuesday, 16 December 2025, after legislators adopted a report by the Committee on National Economy, which supported the government proposal to allow China Road and Bridge Corporation (CRBC) to undertake the project.The committee noted that the road had been identified as a priority during the National Development Plan II period but faced repeated delays due to limited government resources.
The pre-financing arrangement is expected to provide a solution by allowing construction works to begin while government commits to payment after completion.Under the agreement, CRBC will use its own resources to carry out the project, while government will reimburse the contractor after the works are completed. The contractor has committed to delivering the project within 24 months.The committee reported that the Attorney General had confirmed the arrangement qualifies as both a loan and a multi-year financial commitment, requiring approval by Cabinet and Parliament before implementation.Minister of State for Finance (Planning), Hon. Amos Lugoloobi, said the financing arrangement offers favourable terms, including no interest charges and a two-year grace period before repayment begins.
He added that the cost of construction was competitive, with the price estimated at a maximum of one million US dollars per kilometre, including a landing site on Lake Kyoga.
The committee also highlighted the need for timely land acquisition and compensation of affected persons, warning that delays in providing access to the construction site could expose government to additional costs.Hon. Charles Tebandeke, the Member of Parliament for Bbale County, welcomed the approval, saying the road would improve connectivity, support businesses, and ease pressure on major transport routes connecting northern Uganda. He said the project marks the fulfilment of a long-standing demand by residents of Kayunga and surrounding areas.
