Ugandan Parliament Approves Shs152Bn for Hoima City Stadium, Oil Pipeline Equity

Summary:

• Uganda’s Parliament has approved a UGX 152 billion supplementary budget for constructing Hoima City Stadium, a key venue for the 2027 African Cup of Nations. Additional funds support Uganda National Oil Company’s stake in the East African Crude Oil Pipeline, financed from the Petroleum Fund.

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KAMPALA, (Examiner) – Uganda’s Parliament has greenlit a UGX 152 billion supplementary budget earmarked for the construction of Hoima City Stadium. This allocation forms part of the UGX 288.6 billion Supplementary Budget Schedule No. 03 for the fiscal year 2023/2024, sanctioned during a plenary session chaired by Speaker Anita Among.

The decision to approve this funding stems from Uganda’s co-hosting duties for the 2027 African Cup of Nations (AFCON) alongside Kenya and Tanzania. Hoima City Stadium is slated to be a pivotal venue for the tournament.

Hon. Henry Musasizi, Minister of State for Finance, Planning, and Economic Development, clarified that the UGX 152 billion will serve as an initial payment to kickstart construction at the stadium. The aim is to complete the project by December 31, 2025, in accordance with deadlines set by the Confederation of African Football (CAF).

In addition to the stadium allocation, Parliament also sanctioned UGX 132.6 billion for the Uganda National Oil Company (UNOC) to bolster its stake in the East African Crude Oil Pipeline (EACOP). This funding is critical due to delays from financiers, necessitating completion before July 2024.

To finance these ventures, Musasizi proposed utilizing the Petroleum Fund, currently holding UGX 400 billion. UGX 284.6 billion from this fund will be allocated to both the stadium construction and the equity acquisition in EACOP, aligning with Section 59(3) of the Public Finance Management Act, which permits such usage for infrastructure development.

Further budgetary approvals include UGX 2.5 billion for the Uganda Blood Transfusion Services to bolster blood-related services, and UGX 1.4 billion for Uganda’s Embassy in Geneva to cover accrued expenses. These allocations will be sourced from wage bill savings following an audit.

The supplementary budget faced opposition from Hon. Ibrahim Ssemujju, citing concerns that the stadium’s construction shouldn’t qualify as unforeseen expenditure under the Public Finance Management Act. He questioned why AFCON hosting bids weren’t factored into the original budget.

Responding, Attorney General Kiryowa Kiwanuka emphasized the necessity of prompt funding to meet contractual obligations and avoid delays in both stadium construction and UNOC’s equity acquisition.

With these measures, Parliament aims to ensure timely project completions and uphold international commitments, including preparations for AFCON 2027 and support for the oil sector.

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