Business

Gov’t Ships in $156M Road Equipment

Minister Katumba Wamala explains the procurement

The State Minister for Works and Transport, cheap Gen. Katumba Wamala has Wednesday revealed that government through the Ministry has procured over 1151 units of earth moving equipment from Japan worth USD156M.

Appearing before the budget committee on Wednesday evening, look the Minister said the procurement is part of the pledge by President Yoweri Museveni in 2014 to procure and equip districts with robust equipment from Japan, to address complaints about fake equipment procured from China in 2011.

The Minister said that the first consignment of equipment of 102 units began arriving in Kampala on Tuesday April 18, 2017.

The equipment in the first consignment comprises of 44 motor graders, 4 wheel loaders (WA250-5), 2 wheel loaders (WA450-5), 47 Excavators ‘standard,  2 Bull dozers and 3 Excavators- long boom.

“As of 2nd May 2017, 45 Motor graders and 29 Excavators had been received at the suppliers’ yard at Bweyogerere- Kakajjo,” Katumba said.

Katumba said there will be monthly arrivals of about 100 units per month until the end of the delivery period in March 2018 adding that tax exemption on the equipment was secured from the Ministry of Finance, Planning and Economic Development.

“All districts will have complete road units of 1 Motor grader, 1 Wheel loader, 1 Vibro roller, 1 Water bowser and 2 Dump trucks after training of operators which will commence on May 15, 2017.”

The Ministry however highlighted that there is no source of funding for routine maintenance of the equipment during the 3 year warranty period of the equipment.

“The annual maintenance cost for the equipment was computed and estimated at Sh21bn; the annual fuel requirement for the equipment was estimated at Sh38bn which money needs to be factored in the road maintenance budget for Districts for its optimal utilization.”

The Minister appealed to legislators to help engage further the Ministry of Finance to avoid losing the equipment was the break down due to lack of maintenance fund.

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