A big chunk of the money (481 billion Shillings) is going to the Uganda National Oil Company for its portion of equity investment into the East African Crude Oil Pipeline (EACOP) Ltd for the construction of the crude oil pipeline for transporting Uganda's crude oil from Hoima to the Port of Tanga in Tanzania to enable access to international markets.
The government has secured a supplementary
expenditure request worth 695.5 billion Shillings for the current financial
year 2020/2021. The expenditure was approved by Parliament last evening, shortly before the tenth parliament closed its business.
A big chunk of the money (481 billion Shillings) is going to
the Uganda National Oil Company for its portion of equity investment into the
East African Crude Oil Pipeline (EACOP) Ltd for the construction of the crude
oil pipeline for transporting Uganda's crude oil from Hoima to the Port of
Tanga in Tanzania to enable access to international markets.
The others are 25 billion Shillings which will go to State House to
cater for classified expenditure and 3.35 billion Shillings to cater for operational
expenses at the secretariat of the project for the Presidential Scientific Initiative
on Epidemics (PRESIDE), and 730 million Shillings to complete the Surgical Complex at Mbale Regional Referral Hospital.
At least 101.9 billion Shillings will cater for External Financing
of three projects including the Hoima-Wanseko
Road Project, Kampala-Northern Bypass Project and the Mbale-Bubulo-Lwakhakha Project,
The approval followed a debate on a report of the Budget Committee which recommended that the supplementary
request is approved. Parliament has previously approved requests totalling 4.073 trillion Shillings since October 2020. Amos Lugoloobi, the Budget Committee Chairperson
says that funding of this Supplementary Schedule will be financed through
additional revenue, domestic borrowing and external financing.
Dokolo Woman MP Cecilia Ogwal together with Butambala County MP Muwanga Kivumbi had authored a minority report in which they
recommended that parliament rejects the supplementary request.
“The Ministry of Finance indicated that they intend
to finance the supplementary through domestic borrowing and proceeded to do the
same through the committee of National Economy to establish the source of
funding. As of now, the committee of National Economy has not approved this
borrowing, hence no source of funding,” said Ogwal.
She recommended that the supplementary request is
rejected until a time when the National Economy committee provides clarity on
the source of funding.
//Cue in; “unaudited historical costs…
Cue out…cost are established.”//
David Bahati, the Minister of State for Planning
clarified that the source of funding for the supplementary budget had been
approved already by the National Economy committee.
//Cue in; “what have told…
Cue out…we finance this.”//
The Opposition minority report was rejected after
MPs approved the main committee report hence approving the supplementary