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Factors Leading to the Delayed Construction of Infrastructure
Projects: A Case Study of Standard Gauge Railway Project in
Uganda
Alfred Area Obong*
University of East London - UK.
*Corresponding Author
DOI: https://dx.doi.org/10.51584/IJRIAS.2025.101100067
Received: 10 November 2025; Accepted: 29 November 2025; Published: 17 December 2025
ABSTRACT
It is more than Seven years since the four East African partner states signed the Regional Standard Gauge
Railway (SGR) protocol in (2014), providing ways for cooperation and critical timelines for SGR project
completion.
This study was carried out to determine the factors leading to the delayed construction of major construction
projects concerning the SGR development in Uganda. Documentary analysis was used in this study which looked
at an overview of literature from past research and studies reported on standard gauge railways, which were
available online. Policy documents, laws, regulations, and contract documents were also utilized in the study.
Findings were reported as themes in this study.
Various factors leading to the delayed construction of the SGR in Uganda were studied, like utilization of
traditional methods in procurement, length of feasibility studies and consequences, work scope and project
design uncertainties, deficiencies in the contract documents or contract uncertainties, political interference,
inadequate funding/resources, delayed compensation of Project Affected Persons (PAPs), delay in payments to
contractors and consultants, high inflation and interest rates, Bureaucracy/corruption, limited technology,
environmental factors such as regulations from NEMA, donor conditionalities in respect to ESIA such as
International Financial Credit (IFC) conditionalities, Equator Principle, COVID 19 pandemic that set in and legal
factors concerned with land acquisition, compensation, and work permits. The need to carry out market sounding
for a potential financier for the project was explored arising from the Chinese being hesitant in financing the
SGR as anticipated. However, this will accompany other financiers' conditionalities, which must be studied, and
mitigation factors sought. What the Government of Uganda needs to do to mobilize adequate resources or
allocate more resources or propose some special duty tax or else make budget cuts on some sectors of the
economy to cater for the infrastructure development (construction of the SGR).
Key words: SGR, Infrastructure Projects, Delayed Construction, and East African Partners
INTRODUCTION
Throughout history, railways have been identified as a major enabler of economic change due to their capacity
to propel production and improve the competitiveness of a country (Aritua, 2019). However, for a long time,
railway development has lagged behind demand in Uganda, yet it is a major driver of economic growth
(Hazlewood, 1966). In the recent past, the Government has prioritized chiefly the road transport subsector to the
extent that over 85% of the transport sector budget has been allocated to road sector (Ggoobi et al., 2020), where
the road network has improved significantly.
The existing Meter Gauge Railway (MGR) from Malaba to Kampala was built over 70 years back, characterized
by low freight capacity, very low speeds, numerous temporary speed restrictions, and low reliability and safety,
all resulting in poor railway transport services. As a result, railway services have generally needed to be more
efficient, reliable, and thus unattractive to the public, leading to a very marginal performance in cargo volumes
per year.
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To improve railway transport, the Government of Uganda, through the Standard Gauge Railway Project under
the Ministry of Works and Transport, sought funds from internationally recognized financial institutions to
finance the construction of the 273 Km Standard Gauge Railway “the Malaba-Kampala (Eastern) Route Project”
(SGR, 2016b). This SGR route starts at Malaba on the border with Kenya and traverses through 12 districts of
Tororo, Butaleja, Namutumba, Bugweri, Iganga, Luuka, Mayuge, Jinja, Buikwe, Mukono, Wakiso, and Kampala
affecting economic, social, cultural and environmental livelihood and echo systems that calls for lean
construction implementation. Currently, the selected SGR route traverses several human settlements and
sensitive ecosystems, including forest reserves, major rivers, major economic crop plantations, major
agricultural potential areas, and vast wetland systems (SGR, 2016b). This project has been delayed for close to
seven years, and yet Government treats it as the flagship project that should propel the country to a middle-
income country (Budget speech Government of Uganda 2015/2016).
Many factors contribute to delays in construction projects of infrastructure, and analysis of the case for the delays
is a big task that increases the chances of potential conflicts or claims as many researchers continue to attribute
all these to the high costs of the projects and risks associated with claims arising from implementation delays.
Few researchers have looked at the responsibility for infrastructural project delays. The construction sector in
Uganda has continued to grow for the past five years, although there is more sophistication across the supply
chain in the construction industry (Muhwezi et al., 2014).
It is more than seven (7) years now since the four (4) partner states (Kenya, Uganda, Rwanda, and South Sudan)
signed the regional SGR protocol in (2014) which provides ways for cooperation and critical timelines for the
completion of the SGR project. In March 2015, without exhausting numerous available procurement processes,
the Government of Uganda and China Harbor engineering company limited (CHEC) signed an MoU which later
culminated in an Engineering, Procurement, and Construction (EPC/ Turnkey) contract agreement by use of
single sourcing to develop the routes of Eastern and Northern SGR lines (SGR, 2016a). The intention was that
the Chinese company should help the GOU fast-track the acquisition of the concessional loan from the China
Exim Bank, and this was invaded as the express condition in the contract for the issuance of the commencement
of the project; it was also to design the SGR route to the little unknown Chinese standard which was not yet
adopted at international level.
In addition, a Memorandum of Understanding (MOU) was also signed with the Chinese civil engineering
construction company (CCECC) Ltd to establish the Kampala-Kasese line inclusive of the Kampala metro Area
railway system (SGR, 2016a). However, since then (2015), the project still needs to start its construction, with
most of the activities of pre-construction implementation like land acquisition, sourcing for financing, and
environmental studies progressing in a slow phase.
This project was meant to increase Uganda's competitiveness, reduce business costs, create socio-economic
transformations, and integrate Uganda with the international and regional economies, more specifically EAC,
by having easy and faster access to the seaport of Mombasa. This was also meant to reduce the stress of cargo
trucks which are on the roads in Uganda, which have a negative impact on the roads and other road users, like
rampant accidents, the risk associated with the theft of goods in transit, and low volume of cargo transportation
in addition to the high cost of transportation.
The continued delay of the project is likely to lead to increased stress on the roads, increased costs of
transportation of goods and services as a result of high transport costs from border points, and also worry about
the achievement of the Sustainable Development Goal 9 "Industry, Innovation, and Infrastructure" by 2030 and
Uganda's vision 2040, of "development of a modern, efficient, reliable, safe and affordable rail transport system
for both freight and passengers. Therefore, there was a need to investigate the causes of delays to find ways of
speeding up the construction of the SGR and other future infrastructure projects.
Specific Objectives
1. To determine the internal factors delaying the construction of the Standard Gauge Railway and propose
the method of avoiding the delays.
2. To identify the external factors delaying the construction of the Standard Gauge Railway and suggest
ways of minimizing the delays.
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3. To dig out and propose for mitigation the gap which is causing the major delay in the start of the
construction of the Uganda Standard Gauge Railway Project
METHODOLOGY
Study Design
This study used the qualitative method of data collection since some scholar punch holes in the mixed
methodology, reasoning that the philosophies are likely to be a recipe for confusion (MacIntosh and O'Gorman,
2015).
The qualitative method was adopted after comparing and analysing the relevance between quantitative and
qualitative to this study. The reality of the gap and problem the research intends to resolve has to be articulated
using a proper methodology (MacIntosh and O'Gorman, 2015). Data was got from published articles, and reports
available at SGR offices.
Study Area
The study was conducted in Uganda, which is located in East Africa. The study used the SGR as the case study
to identify the causes of the delay in its construction. The Uganda Standard Gauge Railway is a planned railway
system linking the country to the neighbouring countries of Kenya, Rwanda, the Democratic Republic of the
Congo, and South Sudan as part of the East African Railway Master Plan. The new Standard Gauge Railway
(SGR) will replace the old, inefficient meter-gauge railway system.
This SGR railway line was intended to ease the transfer of goods between the port of Mombasa and the city of
Kampala, and subsequently to Kigali in Rwanda and Beni in the Democratic Republic of the Congo and to
Nimule and Juba in South Sudan. Goods would travel from Mombasa along the Kenya Standard Gauge Railway
to Malaba, at the border with Uganda, and transfer onto this railway system.
Data Collection and Analysis
Data was collected from secondary sources and existing online material regarding the construction projects in
Uganda and published reports and articles on the construction of the SGR. Policy frameworks, budgets,
contracts, and other official documents were utilized online. The causes of the delays in the project were
documented in the contracts and reports of these companies; some causes of these delays were obtained from
available online videos regarding the railway from recorded videos on television which are available online.
These videos were recorded by media houses in Uganda and published on YouTube and other sites. It was
interesting to find such evidence; their references have been included in the bibliography.
ethical considerations
The Ethics and Research Committee of the University of East London ethical standard for research procedures
adopted. The study observed confidentiality aspects and anonymity of research writings. The source where the
data for the study was obtained was referenced. Permission to access the records and reports available at Uganda
SGR was obtained from SGR Uganda's management.
This study remained for academic purposes only, and no biased information was spread to the public to avoid
physical and emotional harm to the organization and its staff.
Research Findings
Internal Factors Delaying the Construction of the Standard Gauge Railway.
Utilization of traditional methods
The Uganda construction industry uses traditional methods of procurement. Clients usually employ consultants
to design and supervise construction projects (Abbas, 2006). Public procurement laws and guidelines govern the
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procurement of construction projects, but even these can be a source of contention. The traditional systems in
Uganda include manually managing the function, which is heavy dependence on paperwork, and handling this
voluminous paperwork leads to delays. Therefore, the use of modern methods of electronic procurement is
wanted in the country. However, e-procurement requires competent human resources and equipment, which
must be improved. Therefore, the use of traditional procurement method in Uganda, which are manual,
contribute immensely to delays in construction.
Public procurement in Uganda is regulated by the Public Procurement and Disposal of Assets Act (2003), which
requires all procurements to be taken openly and transparently to ensure competition, fairness, and value for
money, and of which the SGR falls short. The process requires preparing specifications, advertising and calls
for bids, registering all bids received, and publicly opening the bids witnessed by the bidders, and this constitutes
an evaluation committee, the objective is to reduce or avoid administrative reviews arising from complain from
public of non-transparency. The responsibility agency to implement the SGR is mandated to URC, However,
Cabinet created a special PMU to implement SGR.
Feasibility studies and their issues
Before any project is implemented, feasibility studies are a requirement to gauge the viability of the project. In
SGR Malaba-Kampala, the first prospectus company CCECC undertook feasibility studies under the MoU and
submitted it to the Ministry of Works and Transport, this was after the Preliminary Engineering Design has been
done in 2014 by German firm named HBG Gauff. However, the MoWT reported that the feasibility study was
inadequate and CCECC was incompetent to do the work, causing delays in the implementation plan. Another
Chinese company CHEC was introduced and single sourced under the directives with the recommendation that
they could undertake the SGR construction timely since they could also help secure for the financing from China
EXIM Bank and other export credit agencies (ECA).
Work scope and project design uncertainties
Project work scope changes that arise from lack of client awareness, delayed financing, poor planning phase,
and lack of geotechnical expertise, among others. Most construction projects have suffered from unforeseen
ground conditions forcing engineers to redesign or adjust during implementation. The redesign to cope with the
ground condition results in the issuance of contract price variations, and often an award extension becomes
inevitable. The factor leads to delays and cost overruns in a project. The consequences of inadequate designs
have proven severe for a project's engineering and construction phases. They are probably even more serious
when continued into full-life costing. The lack of the required unified design standard, and changes in design
from Chinese standard to EU standard, coupling with AREMA standard has resulted to the changes in the scope
of works, alignment design changes and speed restriction, meaning the that the contractor had difficulty
executing the works (Budget Monitoring and Accountability Unit, 2013), leaving the employer who lacks
knowledge on implementation and skills in these standards and which are difficult to acquire.
Poor monitoring and control
The need for more monitoring of the project's success in Uganda is still a major issue. Projects are laid down,
planned, and stopped on paperwork, leading to delays in the project implementation phase. Most of the resources
given at the start of the projects are very small and in many occasions misused or diverted, this was evident when
the SGR was Planned to get USD 300 Million in three financial years (Keith Makenzi Permanent Secretary/
secretary to Treasure Ministry of Finance letter 2014), however the SGR project received less than 100 million
(SGR PMU report to parliament). There has yet to be a committee set in Uganda to foresee the progress of the
Uganda SGR. The Parliamentary Committee constituted in November 2014, was temporary and would take 60
days to provide the report (Parliament of Uganda, 2015).
Deficiencies in the contract documents or contract uncertainties
Some of the projects of the SGR have been delayed due to the uncertainties of the contracts and termination of
the contracts, leading to delays in the construction. A study case is when the Government of Uganda terminated
the Memorandum of Understanding (MoU) with China Civil Engineering Construction Corporation (CCECC)
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for the eastern and northern Routes in 2014 in favour of another MOU with CHEC, which was again terminated
for failure to attract financing from EXIM Bank of China. Another Turkeish firm Yapi Makernzi is now
undertaking another study as a new contractor. Although the Government of Uganda reasoned that this
termination was necessary to cut on the expensive cost fronted by the firms, it resulted in delays in not only
procurement but also the start of construction (Parliament of Uganda, 2015).
External Factors Delaying the Construction of the Standard Gauge Railway.
Political uncertainty
The processes followed in procuring the SGR in Uganda have faced political interferences. The SGR
procurement in Uganda did not follow the PPDA Act and regulations (2003). the process lacks transparency and
no competition (Parliament of Uganda, 2015). As a result, the procurement process principles of transparency,
accountability, fairness, non-discrimination, competition, ethics, and value for money were compromised.
Furthermore, political interference in the SGR led to its delayed construction as all the companies that had to bid
could implement the project, but due to some political reasons the project continue to delay.
Economic Inadequate funding, inefficient equipment, and compensation of PAPs
The Ministry of Works and Transport attributed in February 2023 the slow progress in implementing the standard
gauge railway project to inadequate funds. According to the Ministry, it has affected pre-construction activities
such as land acquisition and compensation of Project-Affected-Persons (PAPs) on the first phase of the Malaba-
Kampala SGR project. 9 January 2023) (Parliament of Uganda, 2023).
Whereas acquiring the right of way for the SGR project is ongoing, the process could not be faster due to small
budgets.
The right of way from Tororo-Kampala was demarcated and gazetted in 2015 at a total land compensation cost
estimate of Uganda Shs 584.90 billion to be paid to 10,676 PAPs has taken close to eight years, and only 50%
of the land is paid and expropriated amounting to UGX 102 billion only in eight years.
Delays in compensation of the PAPs
PAPs have continued to write to the project expressing concern about delayed compensation and its effect on
their financial, social, and economic livelihood. PAPs issues raised and which were genuine includes.
Loss of business: Pap’s businesses have been constrained by delayed compensation due to guzette of their
affected land and properties by the Government for the construction of SGR. These include schools that have
lost half their student population, clinics that are failing to attract clients, landlords who cannot rent their
properties and, fish ponds that cannot be restocked, factories that cannot produce at total capacity have stalled.
Bank Foreclosures: some PAPs have taken bank loans and mortgages and have failed to pay.
Social Impact: PAPs claim they have no alternative land to bury their dead.
Stalled constructions: PAPs cannot continue constructing and renovating their properties, and these premises
are getting dilapidated and harbouring criminals.
Re-assessment of properties and land. Some land and properties were assessed three years ago, and the market
rates have changed. Consequences of delayed Compensation included; Litigation against the Government,
Political tensions and upheaval, Increased compensation costs to the Government as a result of revaluation,
acting contrary to the Constitution article 26, which requires timely compensation, Encroachment and Land
grabbing, the rise of speculators, delay in implementation of the SGR project and Hostility from PAP
communities (SGR, 2023), all amounting to delays in construction start.
Delay in payments to contractors: delays by the contractor in paying staff/ service providers and suppliers is
an issue that cuts across several projects. In addition, delayed payments by the development partners and GoU
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has had a knock-on effect on the activities of the contractors, subcontractors, and suppliers. Contractors tend to
transfer the burden of accumulated interest to the client, causing delays and cost overruns.
Delay of payment to contractors is usually caused by bureaucracy in the public sector, lack of proper
documentation, and deficiency in transparency. For example, in the fort portal construction project, the contractor
threatened to slow progress by citing financial constraints and claiming interest on unpaid sums, escalating the
project costs. Another knock on effect would be the additional time needed to complete the work. Payments
came in late on the Mbarara-Kikaga–Murongo bridge project and the contractor threatened to suspend work. All
these issues lead to project delays (Parliament of Uganda, 2015).
High inflation and interest rates: high inflation leads to the escalation of prices of materials such as fuel,
equipment costs, and other inputs to the projects. The development partners and GoU are also affected, as price
adjustment is allowed in most contracts. Cost overruns due to inflation which amounts to price adjustment
(Budget Monitoring and Accountability Unit, 2013).
Socio-cultural: bureaucracy and high level of corruption in the country
Uganda is also faced with high rates of corruption. The country is also characterized by a grand-scale theft of
public funds and petty corruption involving government officials and politicians at all levels of society. All these
have been the causes of the delay.
The poor and corrupt procurement processes in Uganda related to the SGR have led to the delay of its
implementation. In addition, many cases of collusion between companies; rivalry between CCECC and CHEC
have delayed in courts of law, leading to the delay in construction of the SGR in Uganda.
Technological: The various technological advancements needed in the construction of the Uganda SGR and
experience have also led to the delay in its construction. The SGR needs a lot of expertise and technology, which
was to be imported from Western countries with several railways and other big infrastructural projects
(Parliament of Uganda, 2015). The Government of Uganda also caused delays in its implementation while
looking for potential contractors to handle the job.
Environmental: The issue of prolonged heavy rains has manifested as a challenge on almost all projects. Heavy
rains have continued to slow down the construction works. However, earthworks like excavations and filling
have continued with difficulties due to wet weather on all the projects monitored, with some roads becoming
impassable to traffic.
The provisions of the National Environment Management Act 2019 and the National Environment (Wetlands;
Riverbanks and Lakeshores Management) Regulations, 2000 are very eminent in land acquisition, primarily for
constructing Roads sections and Bridges that fall within the reserve banks. The Act provides for procedures that
must be followed to obtain land and environmental clearance prior to construction works. These procedures are
time-consuming and thus negatively impact the project timeline and cost (The Environmental Act, 2019)—the
implication of the management of wetlands empowers the Government to hold wetlands in trust for the people,
and Government must protect the environment.
COVID-19 pandemic; Delays on construction projects are expected, given the variables involved. However, a
new wave of delay claims looms as the fallout from the COVID-19 pandemic unfolds. Site closures, supply
chain disruption, and workforce unavailability are only a few examples of how the pandemic affected the
construction industry. Owners, general contractors, and subcontractors were all left asking who would bear the
financial brunt of these delays (Alenezi, 2020). In addition, the COVID-19 pandemic limited all the processes
for the two years. These were compensation for PAPs, limited movement, and the effect of lockdown, which
reduced movement to homesteads to avoid spreading the virus. The COVID-19 pandemic left the construction
industry devastated as restrictions were put. Most country borders were closed (Lakuma et al., 2020), putting all
the SGR construction processes to a standstill. COVID-19 also forced some financial institutions to change
minds in investment directive, a case in point is when China EXIM Bank changes focus from investing in
infrastructure to financing of life saving projects like drugs for COVID-19
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Legal factors
The litigation on Land compensation caused by delays in negotiation and compensation to landowners results in
delays. Contractors can only take possession of sites after compensation issues are resolved. The situation is
worsened by some owners claiming exorbitant sums of money for their property, and these owners deny
contractors access to the site section.
CONCLUSION
In conclusion, this study was carried out to find out both the internal and external factors leading to the delayed
construction of the SGR in Uganda. This study identified a number of various factors which are; utilization of
traditional methods in procurement, length of feasibility studies and there consequences, work scope and project
design uncertainties, Deficiencies in the contract documents or contract uncertainties, political interference,
inadequate funding/resources, delay in compensation of PAPs, Delay in payments to contractors, High inflation
and interest rates, Bureaucracy and high level of corruption in the country, limited Technology, environmental
factors such as regulations from NEMA, COVID 19 pandemic and legal factors concerned with land acquisition,
compensation and work permits.
RECOMMENDATIONS
From the above study findings, the following recommendations are made.
The procurement of the SGR should be expedited and the necessary preparations should not be delayed any
further as the SGR is of benefit to the people of Uganda and will lead to more infrastructural developments in
Uganda and East African Region as a whole.
There is need to find potential funders for the project if the Chinese are still hesistant in financing the SGR. The
government of Uganda needs to lobby for more resources or else make budget cuts on some sectors of the
economy such as security so as to cater for the infrastructure development such as the construction of the SGR.
Negotiations can also be reached with contractors.
There is also need for the government of Uganda to strongly recommend a competent consultant to supervise
the project works and ensure that the desired quality of the SGR project is achieved. The ministry of works and
transport should identify a competent consultant to spear head the process. This would help the project to run as
per the schedule.
Conflict of Interest: This study did not have any conflict of interest.
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