The Ugandan Parliament has approved a supplementary budget of UGX 152 billion for the construction of Hoima City Stadium. This funding is part of the UGX 288.6 billion Supplementary Budget Schedule No. 03 for the financial year 2023/2024, which was passed during a plenary session chaired by Speaker Anita Among.
The decision to approve this budget was driven by the upcoming 2027 African Cup of Nations (AFCON), which Uganda will co-host with Kenya and Tanzania. Hoima City Stadium is set to be one of the key venues for the tournament.
Funding Details and Rationale
Hon. Henry Musasizi, the Minister of State for Finance, Planning, and Economic Development, explained that the UGX 152 billion will serve as an advance payment to initiate construction works at the stadium. The goal is to complete the stadium by the deadline of December 31, 2025, set by the Confederation of African Football (CAF).
In addition to the stadium funding, Parliament approved UGX 132.6 billion for the Uganda National Oil Company (UNOC) to increase its equity in the East African Crude Oil Pipeline (EACOP). This funding is crucial to meet the financial commitments due to delays from financiers, with the payment required before July 2024.
Utilization of Petroleum Fund
Musasizi proposed using the Petroleum Fund to finance these projects. The fund currently holds UGX 400 billion, and UGX 284.6 billion will be used to finance both the Hoima City Stadium construction and the equity acquisition in EACOP. This utilization aligns with Section 59(3) of the Public Finance Management Act, which allows the Ministry of Finance to use these funds for infrastructure development.
Additional Budget Approvals
Parliament also approved several other budget allocations:
UGX 2.5 billion for the Uganda Blood Transfusion Services to support blood collection, processing, and distribution for the current quarter.
UGX 1.4 billion for Uganda’s Embassy in Geneva to cover accumulated expenses, including rent, salaries, medical insurance, and utilities. This funding is crucial to avoid legal action from landlords, service providers, and contract staff.
The budgets for Uganda Blood Transfusion Services and the embassy will be financed through savings from the wages after an audit of the wage bill.
Opposition to the Supplementary Budget
Hon. Ibrahim Ssemujju, the Member of Parliament for Kira Municipality, opposed the supplementary budget. He argued that the construction of Hoima City Stadium should not be classified as unforeseeable expenditure under Section 25 of the Public Finance Management Act. Ssemujju questioned why the bid to host AFCON was not factored into the original budget, given the urgency to pass the supplementary budget within a short timeframe.
Attorney General’s Response
Attorney General Kiryowa Kiwanuka explained that the Ministry of Education and Sports requires signed contracts to begin construction at the stadium. However, the lack of evidence of available funds has constrained this process. Kiwanuka emphasized the importance of timely funding to meet deadlines and avoid delays.
Regarding UNOC’s funding, Kiwanuka noted that partners in EACOP were initially expected to finance the equity acquisition. However, due to changes in the global economic environment, Uganda now needs to provide the necessary equity.
With these approvals, Parliament aims to ensure the timely completion of critical infrastructure projects and meet international obligations, including hosting AFCON 2027 and supporting the oil sector.
