Overview:
Councillors in Arua City are embroiled in a heated debate over the 2 billion shillings received under the Uganda Support to Municipal Infrastructure Development Program (USMID). The funds, allocated to the city for the 2024/2025 financial year, were intended to wrap up USMID projects as the program closed.
Councillors in Arua City are embroiled in a heated debate over the 2 billion shillings received under the Uganda Support to Municipal Infrastructure Development Program (USMID). The funds, allocated to the city for the 2024/2025 financial year, were intended to wrap up USMID projects as the program closed.
The controversy centers on a claim by China Railway Seventh Group, the contractor responsible for previous USMID projects in the city, demanding 1.5 billion shillings in unpaid contractual obligations for additional works. However, a technical assessment by former city engineer Anthony Dradria valued the legitimate balance at just 500 million shillings, raising suspicion among councillors that the contractor may be inflating the claim.
During a council sitting held on October 14, 2024, councillors resolved to allocate 1.5 billion shillings for the procurement of 192 solar street lights, while 500 million shillings was set aside to meet verified contractual obligations. The solar street lights were planned for strategic areas, including Ewuta trading center along the Arua-Pakwach Road, Manibe roundabout along Rhino Camp Road, and Palulu Road behind St. Mary’s Ediofe Girls’ Secondary School, extending past Ediofe Health Center and behind Sacred Heart Cathedral Ediofe before reconnecting at Sacred Heart Nursery junction.
The discrepancy between the engineer’s valuation and the contractor’s demand has paralyzed the implementation of the solar project. During a recent council session, tensions flared as councillors realized that months after their resolution, no solar lights had been installed. Godfrey Anguyo, the councillor representing Ayivu North, expressed frustration over the lack of supporting contractual documents to justify the 1.5 billion shillings demand when the council made its decision.
Moses Adriko, Secretary for Finance, Planning, and Administration at Arua City Council, warned that failure to implement the council resolution on the utilization of the funds could see the money swept back into the consolidated account, as the financial year nears its end.
Mayor Wadri Sam Nyakua explained that the delay in implementing the council resolution followed contractual concerns raised by David Kyansanku, Arua City Clerk, after the contractor formally wrote to the council demanding 1.5 billion shillings in unpaid dues.
Speaker Teddy Yako said councillors had resolved to carry out a field verification exercise on Wednesday, 25th February 2026, to physically verify the additional works China Railway Seventh Group claims to have completed.
Efforts to reach the contractor for comment were unsuccessful, with repeated calls going unanswered. The USMID program, funded by the World Bank and launched in 2013, aims to strengthen the institutional performance of municipal councils and improve urban service delivery.
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