Gulu District local government authorities are weighing whether to terminate a shs568 million contract awarded to construct an office block for the district’s production offices after the project stalled at foundation level, despite the expiry of the contractual completion deadline.

The district awarded the contract to Kilibbi United Construction and Supplies Company Uganda Ltd on June 5, 2026. The contractor was scheduled to begin work on July 15 and complete the project by October 5, 2026.

However, the project remains significantly behind schedule, with an estimate of only 15 per cent of the work has been completed since July this year, according to the district technical report dated October 14.

During a monitoring and inspection visit by district officials late last , the company’s director, Nyeko Ceaser Okema attributed the delays to financial mismanagement by a site engineer who had been entrusted with purchasing construction materials and paying workers.

He said the company terminated the subcontract after the engineer allegedly failed to account for funds intended for materials and labour. The company reported the matter to the authorities and said efforts to locate the former subcontractor were ongoing.

Nyeko cited difficulties in accessing the construction site, disagreements with local workers over payment, and delays in securing additional financing.

“We had challenges of our own, natural occurrences and the community. The first site engineer we deployed did not know what to do and was fired,” he said.

“The money we gave him for materials and labour vanished, and we are still looking for him. We reported the case. This resulted in delays, and labourers from the community laid down their tools. We reported the case to the area LC1 chairperson and he intervened.” Nyeko stretched further.

He said the company had since hired workers from outside the community and approached its credit financing institution for additional funds, although the process had taken longer than expected.

Nyeko assured the district officials that the company has now secured suppliers and is currently transporting construction materials to the site to speed up the work.

He pleaded to the district authorities to grant his company a three-month extension, until December 2026, to complete the project and hand it over for use.

“Pardon us and give us more time to complete the work and hand it over to the district. Our materials are already on site, and we are committed to completing the project,” he said.

Engineer Kilama Bosco, the project supervisor for Gulu district, said the district’s technical personnel and Contracts Committee would assess the project within a week before advising whether to terminate the contract or allow the contractor to continue.

Kilama, who was speaking from the site last week (October 14), however, observed that the three-month contractual period was too short for a project of this nature, arguing that six months would have been more appropriate.

He nevertheless expressed concern about the slow progress, describing the estimated completion rate of less than 20 per cent as unsatisfactory.

Gulu District Chairperson Obol Justin Simpleman expressed disappointment with the contractor’s performance, saying the district had expected the office blocks to be nearing completion by now.

“I am disappointed with the speed at which the work is progressing. The work was awarded in June, and by now we should be receiving the building, but nothing much has been done, tell us if you don’t have the capacity to do it,” Obol furiously asked.

He explained that the district is currently under pressure to provide office spaces for its staff in the new administration location in Awach town council.

According to Obol, its technical staff continues to experience difficulties in operating remotely from Gulu City, arguing that completing construction of production offices would help in improving service delivery and lower operational costs.

“Gulu District is squatting in the city because there is not enough office space here. Speedy completion of this project would ease that situation and reduce the cost of movement between the city and the district,” he added.

While delivering the State of the District Address during the second full council meeting of the 12th Council today, Obol urged the Ministry of Local Government to develop policy and funding mechanisms to support former districts still operating within newly created cities.

The Assistant Resident District Commissioner (RDC), Alanyo Florence Anna, advised the authorities to consider granting the contractor the requested three-month extension.

She argued that terminating the contract at this stage could result in losses for the company, particularly because it had already purchased construction materials.

However, she cautioned the contractor against rushing the work at the expense of quality, warning that doing so could result in substandard construction.

The Ministry of Justice and Constitutional Affairs has funded the shs568 million project. However, the construct awarded by Gulu district local government to Kilibbi United Construction and Supplies Ltd is a deferred payment agreement (DPA).

According to Obol, Gulu District Local Government received the funds from the Ministry of Justice and Constitutional Affairs under a memorandum of understanding in which the ministry agreed to fully fund the construction of the Production Department offices in exchange for land provided by the district for the ongoing construction of the Regional Court of Appeal in Gulu City.

Now, the district is expected to review the contractor’s performance by this week and decide whether to grant the request for extension or terminate the contract.

The decision will determine the next steps for a project intended to address the district’s shortage of office space and improve its administrative operations.