SHs18BN WHITE ELEPHANT! Total Waste As ADB-Funded MATIP Project Facility Rots Away Under Local Government Ministry Watch
Pepper Intelligence Unit September 19, 2026
The Soroti High-Value Addition and Processing Facility, constructed in 2020 by Coronation Developers Uganda Ltd, was established under the Ministry of Local Government’s Market and Agricultural Infrastructure Programme (MATIP).
The project was co-funded by the African Development Bank (AfDB), which contributed 82%, while the Government of Uganda contributed the remaining 18%.
Despite the massive investment, local authorities say the facility has never become fully operational since its commissioning.
SHs18BN FACILITY SITS IDLE
According to John Enomu, the Division Mayor for Soroti City West, the contractor contracted by the Ministry of Local Government to operate the facility has allegedly abandoned the project.
“That’s a breach of contract because we don’t know why he is not operating the machines,” Enomu said.
Enomu said local leaders recently raised the matter with Minister of State for Economic Monitoring in the President’s Office, Sandra Santa Alum, who attempted to convene a meeting with the contractor in Soroti.
However, the contractor reportedly failed to turn up.
“He did not turn up. Since he refused to come, we think there is something wrong,” Enomu said.
CITY LEFT OUT OF CONTRACT
Enomu said Soroti City authorities were not consulted when the Ministry of Local Government entered into the agreement with the contractor.
He said this has created accountability challenges because the contractor is not directly answerable to city authorities, despite the agreement reportedly providing for payments to the city council.
“We are waiting for answers from the Ministry of Local Government on whether the contractor will take up the work, and if he can’t, let the contract be terminated and given to another person,” Enomu said.
The mayor said the continued idleness of the facility is denying Soroti City potential revenue that could help address pressing service-delivery challenges.
GARBAGE CRISIS

Enomu said one of the biggest challenges facing the city is garbage collection, which requires substantial financial resources.
“The biggest challenge we have is garbage collection, and the revenue collected from that value addition facility would support the city’s garbage collection, which requires a lot of money,” he said.
The facility was expected to generate revenue while providing farmers and produce dealers with modern services for handling, cleaning, drying, storage and marketing of agricultural produce.
FARMERS STILL STRUGGLING
The idle facility is also raising concerns among farmers and produce dealers who were expected to benefit from modern grain-processing infrastructure.
Enomu said farmers in Teso continue to face problems with aflatoxin and poor post-harvest handling because the facility’s machinery is not being used.
“We still have aflatoxin in our produce simply because we don’t handle them well,” he said.
He said the facility was intended to help cereal traders and farmers dry and process produce to required standards before taking it to market.
The project was designed to serve as a grain warehouse, support a warehouse receipt system, facilitate contract farming, provide weighbridge services and market information, and offer modern grain cleaning and drying services.
It was also expected to purchase unprocessed grains from farmers across the Teso Sub-Region.
“WE HAVE NEVER SEEN IT OPEN”
Harriet Akurut, a produce dealer operating near the facility, said residents have watched the multi-billion-shilling project remain closed despite repeated assurances that operations would begin.
“From last year, we’ve been here and have never seen it even being opened,” Akurut said.
“It’s always closed, and we wonder how those machines are because they need to be cleaned. We are eager to have the produce pass through the processing, and maybe the value will be added.”
Akurut said produce dealers continue to depend largely on sunshine to dry their produce while the modern facility remains unused.
“We hear this machine sorts even stones, and if it does, it would help us save time and resources,” she said.
“Teso can manage to sustain this facility with cereals because tons of produce leave Teso on a daily.”

MODERN MACHINES GATHER DUST
Paul Batanda, the Soroti City Town Clerk, said the facility has modern machinery capable of processing several crops, including soya beans, simsim, maize, groundnuts, sorghum and millet.
According to Batanda, the machinery can remove dust, metals and stones from grain before packaging.
The facility also reportedly has modern storage containers designed to keep grain dry for extended periods.
“Farmers would bring their products, pay a little fee, and package them before taking them to the market,” Batanda said.
He said the failure to operationalise the facility has disrupted the intended agricultural value-chain ecosystem.
“Farmers rely on private packaging, which may be expensive, and others have continued to use rudimentary local methods for cleaning and drying grains, which has made our grains in Teso uncompetitive in the market,” he said.
LETTERS, CALLS — NO RESPONSE
Batanda said city authorities have made several attempts to engage the contractor without success.
“We wrote a letter, and they didn’t respond,” he said.
“We have tried all possible means and failed, but we have communicated with the Ministry of Local Government to help, since it’s them who signed the contract with the contractor.”
Enomu similarly called on the Ministry of Local Government to explain what has happened to the project and what steps are being taken to get the contractor back on the ground.
“We want to ask the Local Government ministry what happened with the contractor, what they are doing to ensure that he comes on-ground, and why he is not coming, and what attempts are being made to ensure that this man comes on-ground because this facility has led to losses,” he said.
MINISTRY, CONTRACTOR SILENT
Efforts to obtain comments from officials at the Ministry of Local Government, including Permanent Secretary Ben Kumumanya and Minister of Local Government Balaam Barugahara Ateenyi, were unsuccessful.
Calls to the officials reportedly went unanswered.
Efforts to contact the contractor for a response were also unsuccessful.
