Kampala — Roads: Where is the problem?

The establishment of the Uganda Road Fund (URF) raised expectations that the poor state of roads will finally be fixed. However, experts say the fund must put in place the necessary structures and avoid the usual red-tape and financial mismanagement if it is to achieve its objective.

In Kampala city, for example, a total of 75km were reconstructed between 1984 and 1994 with Europen Union and World Bank funding.

But most of these roads, like the rest across the country, are in a sorry state. This prompted the Government to prioritise infrastructure improvement starting with the road sector.

In the 2009/2010 financial year, sh1.2 trillion was allocated for the purpose. The Ministry of Finance injected sh80b more into the roads sector, with the works ministry's resources jumping to sh1.2 trillion, up from sh1.1 trillion the previous financial year.

This accounted for 17% of the budget. This was partly to bolster the rehabilitation of 395km and upgrading to tarmac of 1,061km of the national roads.

But the increased funding has only served to raise Uganda's expectations, says Dan Alinange, the Uganda National Roads Authority (UNRA) spokesperson.

"When people hear of trillions, they think it is too much money, but this may not cover all projects."

What is clear, though, is that the backlog of roads that need rehabilitation is overwhelming.

Road funding continues to be regulated by the finance ministry, one of the departments associated with 'red tape'.

However, in the run-up to the November 2007 Commonwealth Heads of Government's Meeting (CHOGM) a total of 95km of city roads were repaired.

To improve the city roads, the Government has, since the 2007/08 financial year, been advancing sh15b conditional grant from the consolidated fund to city authorities.

As a result, 8km were upgraded from gravel to bitumen, while 7km were worked on in the 2008/09 financial year, according to data from the works ministry. A total of 18km were resealed in the same period.

While the URF has been positively received, there is a disagreement over when it should be rolled-out.

Eng. Francis Baziraake, the URF board chairman, says the fund will be operationalised effective January 2010.

"We believe we will have the necessary structures to run the fund by then."

However, during the 5th joint transport sector review at Imperial Royale Hotel recently, development partners warned the Government against rushing the operationalisation of the fund.

"It has been mentioned that the road fund will be operational by January 2010. However, we do not consider this feasible and would advise against it," they said in a statement read by Vincent de Visscher, the head of the European Union delegation to Uganda.

The donors called for the operationasation of the fund in the 2010/2011 fiscal year, at the earliest, when all systems are developed to "provide a fresh start and the break from the past funding methodology."

They, however, reiterated their readiness to provide funds and expertise to support the road fund to establish itself.

"We also hope that the road users, through their private sector representatives on the board of directors, will demand accountability for the use of the road user charges," they noted.

However, Baziraake says there is 'absolutely' no contradiction with development partners and stakeholders on the fund's operationalisation.

The URF board, he says, is committed to an orderly process leading to a fully-functional URF.

"In this regard, the board will not engage in a hurried and irresponsible the disbursement of public funds without ensuring that there are adequate safeguards against misuse."

Consequently, the URF board has embarked on establishing structures, systems and procedures which will lead to a fully functional fund.

"For example, the fund's executive director was appointed in November while recruitment of other staff is ongoing. The Act to operationalise the fund is also being finalised in consultation with the Solicitor General," says Baziraake.

Eng. Peter Ssebanakita, the UNRA executive director, noted that there was widespread misunderstanding and misinformation about the fund.

"Over the last two years, there has been a lot of anxiety about the road fund," he says. "The understanding is that it is supposed to be disbursed by the secretariat, but it is not yet in place."

He noted that funds that have been collected from fuel levy in the past have been going to the consolidated fund coffers.

It will be too much to expect the road fund secretariat and other arms to be in place in the next two months, Ssebanakita says. "The sooner we expect that this can't happen, the better."

The establishment of the URF is one such direction the Government is taking to reduce over dependency on foreign funding.

State of roads in Uganda

The country's road network is divided into four categories; national roads, which total 21,000kms, district 22,500km, urban 4,800km and community access roads equivalent to 35,000km.

The national roads include the major highways that connect the districts and the country to its neighbours. They are managed by the roads authority.

District roads link communities and the countryside to major trading centers and national roads and are managed by the district councils, while urban roads are managed by urban local governments.

Community access roads are small feeder roads that are managed by the sub-counties and local people. They give access to markets and social service centres like schools and hospitals.

Roads financing in Uganda

According to data from the works ministry, funding for urban roads rose from sh4.6b in the 2006/07 fiscal year to sh11.4b in 2007/08 and 2008/09.

Consequently, a total of 43km of roads were resealed and built to bitumen in 23 urban councils over the past two years.

A further 20km were resealed using the ministry's urban roads resealing unit in Ibanda, Lyantonde, Tororo, Busia, Arua, Kalisizo, Kabwohe, Kanungu, Kira, Gulu, Lugazi, Mbarara and Njeru town councils.

However, with the abolition of graduated tax in 2005, community access roads' funding was limited. The only source of funding was from donors. The local service tax that was initiated in 2008 to replace graduated tax will not raise enough money required to improve the roads, experts say.

To boost community access roads, sh8b, as a conditional grant, was allocated in the 2009/10 budget.

With this, sub-counties with many roads will get funding of between sh14m to sh18m per year, while those with few will receive between sh4m to sh8m.

Sacrificial lamb?

It is because of the poor state of roads that in August, residents of Busabala protested and pounced on the Wakiso LC5 chief, Ian Kyeyune, humiliating him in a manner no other district had experienced before. The mob forced him to walk over five kilometres amidst scorning. Incidentally, the Busabala Road he is accused of not working on is one of the roads that were taken over by the Uganda National Roads Authority this financial year.

Operations of the Uganda Road Fund

URF's major source of income will be the fuel levy to be paid by fuel firms. The fuel levy is expected to be effected on July 1, 2010.

"This reform will enable timely response to funding for roads. Once UNRA makes plans and Parliament assents to them, works will start immediately," says Eng. John Nasasira, the works minister.

Other sources of URF financing will be grants, subsidies, donations and through parliamentary assent for consolidated fund use.

"Within the East African region, it is only Uganda that had delayed to launch a road fund," says an official. "But we finally did after the enactment of the Uganda Road Fund Act of 2008."

Sh268b will be allocated to the URF expected to start in January 2010, said finance minister, Syda Bbumba, in the 2009/10 financial year budget speech.

According to Eng. Baziraake, Parliament appropriated sh116b for maintenance of public roads through URF in the second half of 2009/10.

This requires that as of January 2010, the fund must be in operation. "However, by January 2010, the desired structures, systems and procedures for disbursing and monitoring the utilisation of the budgeted funds will not be ready," says Baziraake.

The URF board is negotiating with the finance ministry, its regulator, for a transition arrangement to utilise the existing systems to disburse and monitor the utilisation of funds until the close of 2009/10 financial year.

This is expected to be formalised in a deal between the two institutions to enable the board monitor the funds from January to June 2010.