The World Bank has indicated that Uganda loses an estimated $300m (over Shs10.8tn) annually in poorly planned infrastructure development programs.
In the 9th World Bank report on the Uganda economic update for the 2016/17 Financial Year that was launched today at the Ministry of Finance, World Bank officials revealed that although the government of Uganda spends highly on infrastructure development (over $1billion spent yearly on infrastructure development) there is still limited effects of this big expenditure because a big portion of the money is wasted in inefficient infrastructure spending.
Moses kibirige, the acting Uganda Country manager World Bank, said the money is lost through under pricing and the inability to finish projects with in the estimated cost and schedule as well as corruption.
“The government of Uganda is still in project implementation hence the inability to appropriately allocate funds for public infrastructure project. In the end, projects are always delayed and most times, there is need for additional finances,” kibirige said.
He added: “we recommend that government of Uganda leverage private resources trough public private partnership so as to improve on the levels of efficiently developing and implementing projects.
Rachel Sebudde, the task leader World Bank Uganda economic update team, said that there is also a deficit gap on the current infrastructure sector expenditure and what is really needed for Uganda’s infrastructure to fully grow and facilitate bigger economic growth rate.
“There is a deficit budget of $1.4billion to add on the $1billion that is currently being spent on infrastructure development. However, the debt per GDP ratio for Uganda is also worrying. That is why we recommend partnerships between public and private sector so that this gap can be covered,” Kibiringe explained.
She added: “if the private sector is involved, there is limited chances that all this money will be lost because the private sector under the watch of government, of course, has proved to be more efficient over time.”