REVEALED! Chinese Firm China Railway Seventh Group on Spot Over Sh500bn 47km Road Diversion as Compensation, Rock Deals Cited

A Shs504 billion oil-road project in Bunyoro has come under fresh scrutiny after the Works and Transport Ministry launched investigations into the alleged diversion of the 47-kilometre Biiso-Masindi road, amid claims the route may have been changed to trigger compensation payments or facilitate the sale of rocks.

The spotlight is now on China Railway Seventh Group Company Limited (CRSG), the Chinese contractor awarded the wider road package, after Works and Transport Minister Fred Byamukama ordered the firm to complete the long-delayed road by February 2027.

Byamukama issued the directive on Thursday while inspecting the road, which forms part of a wider network of critical oil roads being constructed in the Bunyoro sub-region.

But beyond the delays, the Minister revealed that government is investigating why the road was diverted from its original route through the Biiso community to Busingiro Hill in Biiso Sub-County.

COMPENSATION QUESTION

According to Byamukama, the diversion has not only delayed the project but has also increased the cost of completing the road.

The Minister said his office had received information alleging that some officials from Buliisa and Masindi districts may have connived with engineers to divert the road.

The alleged motive?

Compensation money and the sale of rocks to the contractor.

Byamukama said the claims would be thoroughly investigated and warned that anyone found responsible would face arrest.

The allegations have put the road project under a cloud as government seeks to establish whether the change in route was genuinely based on engineering considerations or whether other interests influenced the decision.

SHS504BN ROAD PACKAGE

The Biiso-Masindi road is part of a 106-kilometre critical oil-road package covering the Masindi-Biiso road, Kabaale-Kiziranfumbi and Hohwa-Nyairongo-Kyarushesha-Butoole roads.

The entire package is valued at about Shs504 billion.

CRSG was awarded the contract in 2019, with the project initially expected to be completed by 2022.

However, the deadline passed without completion.

CRSG later subcontracted the works to STC East Africa Investment Limited, while the project was hit by financial constraints and repeated extensions.

The contractor subsequently abandoned the works, citing government arrears of about Shs120 billion.

MINISTER: ENOUGH IS ENOUGH

Byamukama said the project was now far behind schedule and government was determined to complete long-stalled road projects.

The Minister questioned how a project initially designed for completion within three years could remain unfinished years later.

He ordered the contractor to ensure the Biiso-Masindi road is completed by February 2027.

However, the Minister’s inspection also uncovered another headache — water sources allegedly blocked or destroyed during construction.

Residents reportedly complained that several water sources had been affected by the road works.

Byamukama reacted angrily to the complaints.

“How do you block and destroy water sources?” he questioned, warning that government could not allow communities to suffer because of a road project.

He directed the contractor to address the problem and ensure residents regain access to their water sources.

CONTRACTOR BLAMES LAND, MONEY

CRSG Project Manager Wang Qiang said the road had reached about 90 percent completion and maintained that the remaining works would be completed by the end of this year.

Qiang attributed the delays to challenges involving land acquisition and delayed government funding.

His explanation comes as the Ministry investigates the circumstances surrounding the controversial route diversion.

The contractor’s position could now face scrutiny as officials attempt to establish who initiated the change, why it was made and whether the diversion resulted in unnecessary compensation or other costs to government.

OIL ROAD UNDER THE MICROSCOPE

The Biiso-Masindi road is strategically important to the region because of its connection to Uganda’s oil-producing areas.

Once completed, the road is expected to improve connectivity between Masindi and Buliisa districts, while making it easier for farmers to transport agricultural produce to markets.

Bujenje County MP Kenneth Kiiza Nyendwoha said completion of the road would significantly improve transportation and connectivity in the area.

But before motorists celebrate a finished road, government now has another job on its hands — finding out whether the route was moved for genuine engineering reasons or whether compensation and rock interests influenced the decision.