By Criss
By Criss
A recent value-for-money audit conducted by Uganda’s Auditor General, John Muwanga, has exposed an excess payment of Shs25.7 billion by the government to Kalangala Infrastructure Services (KIS), the firm managing ferries on the Bugoma-Bukakkata Route. The overpayment was attributed to contractual obligations.
Contractual Changes and Passenger Numbers
The audit report highlights that an amendment to the contract between the Ugandan government and KIS altered the payment terms for ferry services from a per-passenger basis to a fixed rate per trip. However, KIS ferries transported fewer passengers than anticipated, resulting in a higher cost per passenger per trip for MV Ssese and MV Pearl.
Between 2018 and 2021, KIS planned 20,800 trips but ended up undertaking 21,128 trips, carrying only 2,353,229 passengers—equivalent to 54 percent of the expected 4,352,368 passengers during the same period. The additional trips were primarily due to medical emergencies, with referrals from Kalangala District Health Centre IV on Buggala Island to Masaka Regional Referral Hospital on the mainland.
Cost Disparities and Potential Savings
Comparing costs, the report reveals that in 2019, when passenger numbers were high for both MV Pearl and MV Ssese, the government spent Shs5.5 billion. In contrast, in 2020, with fewer travelers, the government paid Shs1.7 billion.
Furthermore, the cost of transporting a passenger per kilometer per trip on KIS ferries (on a 7km route) increased from Shs3,915 to Shs4,041. In contrast, MV Kalangala, which covers a 64km route, costs only Shs2,000 per passenger per kilometer per trip.
The report emphasizes that renegotiating the contract terms could lead to substantial savings. These funds could potentially be reinvested in opening new ferry routes to underserved areas or improving existing ferry infrastructure.
KIS Response and Ministry’s Stance
Joseph Mulindwa, the KIS spokesperson, declined to comment on the report, citing the need for further consultation. Meanwhile, Ministry of Works and Transport officials clarified that the payment terms with KIS were stipulated in the implementation agreement, accounting for factors like exchange rates and fuel prices.
However, since the implementation agreement expires in June 2015, the terms will be re-negotiated before considering contract renewal.
Background: Water Transport in Uganda
Water transport plays a crucial role in connecting islands within lakes and bridging shores separated by rivers and lakes. The 2008-2023 Uganda National Transport Masterplan prioritized investments in ferries and ports, resulting in an increase in public ferries from 14 in 2018 to 17 in 2023.
Of these ferries, Uganda National Roads Authority and the Ministry of Transport operate 15 on inland water crossings, while Uganda Railways Corporation manages two ferries on Lake Victoria, linking Port Bell and Jinja Port (Uganda) with the ports of Kisumu (Kenya) and Mwanza (Tanzania).
