Frank Mugabi
18 August 2008
Kampala — NEBBI town council has appealed to the Government to help it complete work on a multi-million shilling office block that stalled in 2004.
The LC3 chairman, Festo Onen, said construction of the two-storey structure came to a standstill after the abolition of Graduated Tax, the main source of funds for the project.
Onen told environment state minister Jesica Eriyo and her finance counterpart Fred Omach, who toured the site last week, that the council had planned to erect the office using only local revenue.
"We had completed the slab level but local revenue has since dwindled drastically and worse still, the graduated tax compensation has not been forthcoming," he said.
Due to the setback, Onen added, the bill of quantities for the project had increased from sh460m to about sh1b.
"The situation has not been helped by the general increment in the price of construction materials."
The town clerk, Stephen Anewa, explained that they tried to get assistance from the Northern Uganda Social Action Fund but their proposal was rejected on ground that the fund supported projects other than office construction.
"Our only hope is in the Local Service Tax, Graduated Tax compensation and Hotel Tax.
"The council is also trying to devote some funds to the project but they are difficult to piece up to necessitate the calling of a contractor," said Anewa.
The council expected to raise about sh50m in Local Service tax and sh22m from Graduated Tax compensation but there was need for support from the mother (local government) ministry and other well-wishers, he added.
The town clerk was optimistic that President Yoweri Museveni's pledge to "look in the matter" would yield fruit.
The President made the commitment early this year during the World Disability Day celebrations at Nebbi football grounds.
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