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A major scandal has erupted at Uganda’s Namanve Industrial Park, where a $100 million infrastructure development project has stalled due to conflicts among stakeholders and lack of progress.
The project, which began in July 2020, was expected to be completed within 42 months but has only achieved 50% completion, prompting an extension of the completion date to September 2025.
At the heart of the dispute are disagreements between Lagan Group Ltd and Dott Services Ltd, joint venture partners in the project.
“The continued clashing of these parties has eventually spread down to other project parties and projects that they intend to implement together,” the document states.
Ugandan government officials are also embroiled in the conflict. Minister of State for Finance, Planning and Economic Development, Evelyn Anite, and Uganda Investment Authority Director General, Robert Mukiza, have clashed over payment of honoraria to UIA staff and a variation of price totaling Euros 8 million.
The document notes that Mukiza’s actions have been contentious, including his attempt to terminate Project Manager Alex Nuwagira’s contract.
“The DG took up a different piece of land other than the one that had been recommended for purchase by all project parties,” the document authored to President reads
The conflicts have also led to a breakdown in communication between the project stakeholders.
“To resolve the conflicts, the EPC contract needs to be revised to reflect the original scope sharing between Lagan Group Ltd and Dott Services Ltd,” the document suggests.
The Namanve Industrial Park is a critical component of Uganda’s industrialization strategy, with 190 operational factories currently employing thousands.
“If all the above conflicts are not immediately and quickly dealt with comprehensively, the actual project issues may never get resolved,” the document warns.
The document proposes several measures to resolve the conflicts, including enforcing reconciliation among stakeholders and appointing a liaison to monitor progress.
“If I were the President, I would interrogate the EPC contract and ensure that 70% of the project scope is fully implemented by Lagan Group Ltd,” the document concludes.
For now, the future of the project remains uncertain, leaving many to wonder if Uganda will ever realize the benefits of its $100 million investment.
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