TOURISM ROAD MESS! Works Ministry Caught Napping as Probe Exposes Shocking Bunyonyi–Mgahinga Project Failures…Govt Pays Heavy Charges on Idle Loan Cash
A storm is brewing at the Ministry of Works and Transport after the Auditor General’s latest report (2025) laid bare shocking failures, delays, and financial inefficiencies in the Kabale–Lake Bunyonyi and Kisoro–Mgahinga National Park Integrated Transport Infrastructure and Services Project, raising serious questions about the competence of those in charge.
The multi-billion project, designed to transform South-western Uganda into a tourism and economic powerhouse, is now crawling under the weight of slow implementation, idle funds, and costly delays that are bleeding taxpayers dry.
According to the Auditor General, out of the total project financing of UA 50 million, only UA 9.8 million, equivalent to USD 13.178 million, had been disbursed by June 30, 2025. This leaves a staggering UA 40.200 million, about USD 54.052 million, still undisbursed, translating into a disbursement rate of just 19.6 percent. For a project that was expected to unlock tourism potential and improve connectivity, this sluggish pace is nothing short of alarming.
The consequences of this slow progress are already biting. Due to delayed utilisation of loan funds, the government has already incurred commitment charges amounting to USD 1.252 million as of June 2025. Even worse, these charges are expected to increase after the project was extended to August 2029, meaning Ugandans will continue paying for money that is not being effectively used.
The inefficiencies do not stop there. Out of the total Government of Uganda funding of UGX 83.167 billion allocated for the 2024/2025 financial year, only UGX 34.503 billion had been spent. A massive UGX 48.663 billion remained unutilised, reflecting a low absorption rate of just 41 percent. This means billions meant to drive development are lying idle while critical infrastructure remains incomplete.
In one of the most shocking revelations, the civil works contractor was paid an advance of UGX 16.804 billion on March 24, 2025. But by August 2025, the contractor had not fully mobilised to commence capital works. In simple terms, billions were paid out, but there was barely any work to show on the ground, a scenario that raises serious accountability concerns within the Ministry.
While some progress has been registered in the procurement and construction of two merchant vessels and two search and rescue boats, the works had only reached 63.9 percent completion by August 2025, further highlighting the slow pace dogging the entire project.
The human cost of these delays is equally disturbing. Out of 1,873 Project Affected Persons valued at UGX 45.076 billion, a total of 203 individuals worth UGX 5.844 billion had not been compensated by August 2025. These are families whose land and livelihoods were disrupted for a project that is now stalling, leaving them in uncertainty and distress.
This project was supposed to upgrade 34 kilometres of roads to bituminous standards, construct four landing sites on Lake Bunyonyi, establish roadside markets and farm produce facilities, and introduce ferries and rescue boats to boost inland water transport. It was envisioned as a game changer that would unlock tourism, improve market access, and uplift over one million Ugandans in Kabale, Rubanda, and Kisoro.
Instead, the Auditor General’s findings paint a grim picture of a project plagued by poor planning, weak execution, and questionable financial management under the watch of the Ministry of Works and Transport.
The project, jointly financed by the African Development Fund and the Government of Uganda, was meant to run for five years from 2021 to 2025. But with delays now pushing completion to 2029, the dream of improved connectivity, tourism growth, and economic transformation is slipping further out of reach.
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