BILLIONS, DELAYS & DESIGN CHAOS! Probe Exposes Cracks in M7’s World Bank Funded Mega Tourism Project as CEDP Boss Fires Back
Shockwaves are rippling through Uganda’s tourism and business sectors after the Auditor General released a hard-hitting Value for Money audit report exposing delays, incomplete works, design changes, underutilized facilities and implementation gaps under the multi-billion Competitiveness and Enterprise Development Project (CEDP).
The audit, covering ten financial years from 2014/15 to 2024/25, examined the implementation of the Business Registration and Licensing Reforms component and the Tourism Competitiveness Development component under the CEDP project that was implemented by the Private Sector Foundation Uganda together with agencies including Uganda Registration Services Bureau, Ministry of Tourism, Wildlife and Antiquities, Uganda Wildlife Authority, Uganda Tourism Board, Uganda Wildlife Conservation Education Centre, Uganda Hotel and Tourism Training Institute, Uganda Wildlife Research and Training Institute and Uganda Museum.
The project had been marketed as one of government’s biggest interventions aimed at modernizing Uganda’s tourism industry, streamlining business registration and licensing, improving tourism infrastructure and boosting competitiveness.
But the Auditor General’s findings paint a picture of serious implementation bottlenecks despite government eventually achieving headline targets.
One of the most explosive findings centered on the construction and equipping of the Crested Crane Hotel in Jinja under the Uganda Hotel and Tourism Training Institute (UHTTI).
According to the audit, there was a shocking delay of approximately 38 months in completing construction and equipping works at the hotel. By September 2025, installation of equipment, furniture and fixtures was still pending.
The Auditor General further revealed that several key facilities originally included in the approved scope such as hostels, a health club and a spa were never constructed despite being critical for the hotel to achieve the intended 3-star rating.
The audit warned that these gaps threaten the intended impact of the facility and recommended that Private Sector Foundation Uganda prioritize completion of outstanding works and address identified design and construction defects.
The report also raised alarm over the sustainability of UHTTI itself as a Centre of Excellence.
According to the Auditor General, the institute faces a major funding shortfall and government funding remains insufficient to meet the full cost of training. The report also pointed to shortages of qualified teaching staff, a challenge said to be undermining competency-based practical training.
The Board of UHTTI was advised to revise staffing structures, improve recruitment plans and diversify funding sources to ensure long-term sustainability.
However, in an interview with Red Pepper, CEDP Project Coordinator JohnMarie Kyewalabye defended the project and blamed the delays on approval procedures, financial conditions and evolving construction realities.
Kyewalabye said tourism has huge potential to support Uganda’s economic growth but government had historically neglected the sector.
He said Uganda’s tourism training institutions had been in a terrible state before the intervention.
“Go in [big] hotels around the country and you find managers from Kenya because our tourism training schools and facilities were in sorry state,” Kyewalabye told Red Pepper.
He said CEDP identified UHTTI as a strategic institution requiring urgent intervention.
“We identified UHTTI which was in sorry state. We said it required an investment to boost it to a three-star hotel with at least 85 rooms,” he explained.
Kyewalabye revealed that the old dilapidated structures had to be demolished completely before new facilities were constructed.
He further disclosed that the project was complicated by land grabbing disputes that threatened implementation.
“Because of passage of time and neglect it also had land grabbing related issues. Minister Kadaga intervened and helped a lot and finally we succeeded with the project,” he said.
According to Kyewalabye, financing limitations forced the project to be implemented in phases.
He also admitted that designs changed during construction.
Kyewalabye explained that CEDP contracted Roko Construction but the contractor later faced financial difficulties, forcing project managers to think outside the box.
Despite the challenges, Kyewalabye praised Roko for delivering quality work.
“But I must say Roko is one of the best construction firms here despite other challenges it faced. Nobody beats them on quality. We are glad they gave us a complete structure,” he added.
Kyewalabye insisted it is unfair to portray the institute as a failed project under CEDP.
He said massive improvements have already transformed training standards at the institution.
“On students laundry, this was a training facility. We put a demo kitchen with 40 stations for gas cookers. Previously they were only five. We put extractors. Kitchen is now inward. We put two demo kitchens which were not there before,” he explained.
He further revealed that international students are now visiting the institute and have praised the transformation.
“We also left room for future expansion. It is totally incorrect to say nothing has been done at the institute. There may be issues but let’s look at the broader picture. The facility now has over 700 students,” he said.
He added that financing for the project had dramatically expanded over time.
Kyewalabye explained that the project had to first create a masterplan because none existed before.
“We had to do a masterplan. It never existed. We went for priority ones especially instructional facilities. Others can be brought in by the private sector,” he explained.
On the issue of missing facilities like the spa and hostels, Kyewalabye said some elements were in the masterplan but were never part of the actual project scope.
“They were initially in the masterplan but not part of the CEDP project scope. But it will continue to be developed to all standards as government wishes,” he said.
The Auditor General’s report also highlighted serious concerns at the Uganda Wildlife Education Centre (UWEC), where refurbishment works were undertaken.
The audit found that the chimpanzee enclosure moat was incomplete and unable to retain water, creating a risk of chimpanzees crossing over to human areas.
The upgraded animal hospital was also found lacking a reliable electricity backup system, something auditors warned could disrupt veterinary services and endanger research materials.
The report advised UWEC management together with Uganda Wildlife Authority to urgently install a backup power system and fix drainage issues around the chimpanzee island.
But Kyewalabye defended the UWEC works and insisted the project had transformed the facility.
“We have redeveloped it,” he said.
He pointed to increased visitor numbers and growing revenues as proof of success.
“At the aviary a miracle happened recently. A shoebill bird has laid eggs. Visitor experience has improved. Revenue has multiplied,” he said.
Kyewalabye also revealed that UWEC was now involved in international wildlife exchange programmes including hunting dogs from Russia.
He said the rehabilitation of the wildlife hospital had turned it into the best facility of its kind in Uganda.
On the issue of backup electricity, Kyewalabye said that component had never been included in the original CEDP scope.
“Power backup was never in our scope of the CEDP project,” he said.
Regarding the defective chimpanzee enclosure moat, he acknowledged the issue but said it had already been identified and was being corrected within the defects liability period.
The Auditor General further raised concerns over the upgrade of the Uganda Wildlife Research and Training Institute (UWRTI).
Although infrastructure had substantially improved, auditors found that the GIS laboratory remained unused because GIS software had not been installed on computers.
The report also noted that a research boat acquired in November 2024 had not yet been put to use.
Auditors recommended that internet connectivity problems and training gaps for boat operators be addressed urgently.
But Kyewalabye defended the procurement process and revealed that CEDP had invested heavily in tourism transport infrastructure.
“CEDP procured three 45-seater boats in 2024 at Shs9.5bn to hold large numbers of tourists. We also bought five buses,” he said.
He explained that technical changes had been made to the boat engines under warranty arrangements.
Kyewalabye insisted the boats have already improved tourism experiences and revenue collection.
“Even the auditors traveled on these boats,” he said.
Kyewalabye also disclosed that the institute acquired new land and a new campus but faced major engineering challenges.
According to him, soggy soils forced major redesigns during implementation in regards to water tanks and solar heaters.
He insisted removed items were never paid for.
At the Uganda Museum, the Auditor General found that civil works were still ongoing with delays of six months caused by delayed contractor payments, slow design approvals and delayed VAT exemption approvals.
As a result, the museum remained closed to the public, delaying intended benefits such as increased tourist traffic and revenues.
The report called on Ministry of Finance officials to ensure timely payments and faster approvals.
Kyewalabye again blamed approval processes and financial conditions.
He insisted however that the museum modernization project was improving tourist experiences.
“We did our part and some activities are still ongoing there,” he added.
The Auditor General also examined the Tourism Information Management System (TIMS), which had been completed but was still not operational across government agencies.
The audit found that the system remained hosted on the developer’s domain because NITA-U lacked capacity to host it. Auditors also noted that TIMS had not been integrated with the Tourism Satellite Account and other government platforms.
The report urged the Ministry of Tourism to fast-track operationalisation and integration.
However, Kyewalabye insisted that CEDP fully delivered on its mandate under the project.
“We completed the pilot study and fulfilled everything that was within the project scope. The system hosting falls under the Tourism Ministry. We procured servers and other equipment for the ministry and the system will eventually integrate other agencies. From our side, the work was done,” he said.
The audit further reviewed reforms in the lands sector under the project and noted progress in improving land registration systems and related services.
Speaking to Red Pepper, Kyewalabye said a number of land administration activities were still continuing even after the close of the project.
“Some interventions are still ongoing, including systematic land adjudication. We also renovated the Institute of Surveyors and Land Management and a commendable job was done there,” he said.
Kyewalabye added that the reforms had already produced visible results in service delivery, especially in processing land titles and related transactions.
“Land registration timelines have now reduced to about 20 days,” he revealed.
Although the Auditor General highlighted numerous implementation weaknesses and operational gaps, the final audit report acknowledged that by July 2024, CEDP had successfully met all four of its key outcome indicators.
However, the report cautioned that some of the targets were attained even though several planned activities had not been fully executed, raising concerns about whether certain expenditures were essential to achieving the intended results.
Auditors warned that delayed completion of works, underutilization of some facilities and partially implemented reforms could undermine long-term sustainability and limit broader impacts such as better service delivery, higher tourist spending and stronger competitiveness within the sector.
Despite the concerns, Kyewalabye defended the project, describing CEDP as one of the most transformative interventions ever implemented in Uganda’s tourism and enterprise sectors.
“Overall, CEDP was a transformational project with visible and tangible results. The impact has been enormous. Even though the project officially ended, its work and influence will continue because the results are already evident,” he said.
He noted that one of the project’s major tourism targets had already been achieved within the planned timeframe.
“The target was to reach 1.5 million tourist arrivals within the ten-year period from 2014 to 2024 and that milestone was achieved,” he said.
Kyewalabye also disclosed that employment within the tourism sector had recorded massive growth during the implementation period.
“There was a 196.3 percent increase in tourism employment,” he said.
According to him, the interventions under CEDP played a critical role in improving tourism numbers and enhancing visitor experience across the country.
“We contributed through CEDP interventions that were specifically aimed at increasing tourist numbers and improving experience. Tourism is now operating within a tenfold growth strategy,” he said.
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