Kampala, (UG):- A major scandal has erupted at Uganda’s Namanve Industrial Park, where a $100 million (about Shs 370 billion) 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 the 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.
Leadership Intervention Needed to Resolve Namanve Industrial Park Crisis
The Kampala Industrial and Business Park (KIBP) in Namanve is meant to be a cornerstone of Uganda’s industrial transformation, but the project has encountered numerous roadblocks that threaten its successful completion. With delays, conflicts among stakeholders, and funding issues at the heart of the problems, urgent leadership intervention is required to prevent the project from derailing completely.
KIBP is central to Uganda’s industrialization agenda, as outlined in the NRM Manifesto 2021-2026, and is a key component of the government’s drive to establish 25 industrial parks across the country by 2026. This park alone is expected to host over 300 factories, create 200,000 direct jobs, and contribute significantly to Uganda’s economic growth through value addition and increased export earnings.
However, the project, which began in 2020, is currently only 50% complete—well behind schedule. Originally slated to be finished by January 2024, the completion date has been extended by 20 months, to September 2025, but progress has stalled.
One of the main factors hindering progress is a breakdown in relationships between the project’s key stakeholders. The joint venture responsible for implementing the project, Lagan Dott Namanve Ltd comprising Lagan Group (UK) and Dott Services Ltd (Uganda) has seen internal conflicts escalate over time. Originally, Lagan Group was to handle 70% of the project, while Dott Services was assigned 30%.
Do you have a story or an opinion to share? Email us on: [email protected] Or join the Daily Express WhatsApp channel for all the latest news and trends or join the Telegram Channel for the latest updates.
