MPs grill water ministry officials over project performance
The project is valued at sh250 billion, with 90 percent of the funds (sh225 billion) secured through an African Development Fund (ADF) loan and 10 percent (sh25 billion) as the Ugandan government’s counterpart funding.
Project manager Dr Felix Twinomucunguzi cited challenges such as the impact of COVID-19 lockdowns, disruptions in steel imports due to the Russia-Ukraine conflict, land acquisition delays, and adverse weather conditions, particularly in the mountainous regions of Kapchorwa and Bundibugyo. (Credit: Miriam Namutebi)
Nelson Mandela Muhoozi
Journalist @New Vision
Butambala County MP Muhammad Muwanga Kivumbi, also the PAC chairperson. (All Photos by Miriam Namutebi)
KAMPALA - Legislators have put the Ministry of Water and Environment to task over accountability concerns and irregular utilization of funds in the implementation of the Strategic Water Supply and Sanitation Project.
The project, which began on February 4, 2019, is expected to conclude on June 30 this year.
Its aim was to support Uganda’s efforts in ensuring sustainable access to safe water and hygienic sanitation for urban populations.
But the audit report from the Auditor General for the financial year ending December 2024 revealed lapses in the execution of the project.
This prompted intense scrutiny from MPs on the Public Accounts Committee (PAC) – COSASE, led by Butambala County MP Muhammad Muwanga Kivumbi.
The project is valued at sh250 billion, with 90 percent of the funds (sh225 billion) secured through an African Development Fund (ADF) loan and 10 percent (sh25 billion) as the Ugandan government’s counterpart funding.
According to the loan agreement, the government was expected to have invested in preproject activities, including purchase of land and compensation of landowners.
Accordingly, the government had spent sh17.53 billion in pre-project activities to bring the total cost of the project to sh267.53 billion. 
5 activities unachieved
The water and environment ministry attributed the project’s delays to factors such as the failure to disburse donor funds as initially budgeted.
Project manager Dr Felix Twinomucunguzi cited challenges such as the impact of COVID-19 lockdowns, disruptions in steel imports due to the Russia-Ukraine conflict, land acquisition delays, and adverse weather conditions, particularly in the mountainous regions of Kapchorwa and Bundibugyo.
Cumulatively, the project involved 28 planned activities valued at sh267.53 billion.
However, out of these, only 23 activities worth sh201.80 billion were completed, leaving five activities valued at sh65.73 billion unachieved.
Twinomucunguzi said the sh65.73 billion was not disbursed. further.
He also said the uncompleted activities were partially completed, with construction of Kamuli at 72 percent, construction of Buikwe at 95 percent and improvement works in Kapchorwa at 99 percent.
Emmanuel Mugunga, the ministry’s accounting officer, defended the delays by attributing them to external shocks such as supply chain disruptions and global economic instability.
'You contravened PFMA'
The project’s approved budget for external financing stood at sh22.7 billion, yet the ministry received sh48.01 billion, a 211% over-receipt.
Despite having sh58.11 billion available for expenditure, only sh58.08 billion was utilized, leaving sh0.08 billion unspent.
Lawmakers raised concerns over the excess receipt of funds and its mismanagement, stating that it contravened the Public Finance Management Act (PFMA).
They questioned why the ministry did not proactively notify the finance ministry about these funding discrepancies.
“Why were the extra funds not declared to finance ministry for budget revisions so that your budget is revised through a supplementary?" probed committee chairperson Kivumbi.
"You contravened the Public Finance Management Act (PFMA) by not declaring the funds that were not tagged to any project activities."
The MPs further grilled the ministry officials over failure to construct key infrastructure, including fecal sludge treatment facilities and bulk water supply frameworks, which were critical components of the project but remained unimplemented.
Additionally, despite funding availability, the construction of water and sewage systems in Kamuli, Kapchorwa, and Buikwe remained incomplete.
Funds diverted — report
According to the Auditor General’s report, certain funds were diverted to other activities, further exacerbating the inefficiencies within the project.
This raised red flags among legislators, who questioned the ministry’s commitment to prudent financial management and service delivery.
In response, accounting officer Mugunga assured the committee that delayed project activities had since been completed, and payments would be settled in the current financial year (2024/2025).
However, MPs expressed skepticism, insisting that systemic weaknesses within the ministry need urgent redress to prevent future financial mismanagement and service delivery failures.