The Committee on Physical Infrastructure has called on government to urgently release Shs689 billion for the compensation of Project Affected Persons (PAPs), cautioning that delays could stall critical projects and leave up to Shs3.7 trillion in external financing unutilised in the 2026/2027 financial year.
“A total of 7,767 PAPs representing 41 percent under government funded projects remain unpaid, with outstanding compensation of Shs533.23 billion,” said Hon. Tony Awany, the Deputy Chairperson of the House Committee on Physical Infrastructure, who was presenting the committee’s report on the Ministerial Policy Statement for the Ministry of Works and Transport.
This was during the plenary sitting chaired by Speaker Anita Annet Among on Thursday, 16 April 2026.
Awany said that 6,597 PAPs under donor-funded projects, worth Shs320 billion are also yet to be compensated.
The affected projects include Bukasa Port, the Standard Gauge Railway (SGR), Tororo-Gulu Metre Gauge Railway, and the Gulu Logistics Hub.
Awany noted that failure to pay PAPs denies contractors access to project sites, delays works 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 government releases Shs689.513 billion in the first quarter of the 2026/2027 financial year, alongside a clear plan showing how PAPs will be paid, with regular checks to ensure the money reaches the intended beneficiaries.
The report further linked delays in compensation to the growing stock of arrears owed to contractors, noting that both challenges continue to stall works across the transport sector.
According to the report, 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 in the current financial year through supplementary funding, an outstanding balance of about Shs948 billion remains.
The committee also 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 stated.
MPs called on 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 balance of Shs1.696 trillion approved under supplementary funding to ease pressure on ongoing projects.
Speaker Among said the report raises critical concerns that require further debate with the Minister of Works and Transport and the Minister of 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 of Tuesday we need to open up a debate with the two ministers,” she said.
Among also raised concern over limited access to regional mechanical workshops for maintenance of road equipment 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 its implementation.
Ruhaama East County MP, Hon. Benjamin Kamukama, criticised delays by the finance ministry in implementing road funding commitments, while Kira Municipality MP Hon. Ibrahim Ssemujju, proposed that future financing for transport infrastructure should be guided by return on investment.
