Government Issues 15% Cap on Project Cost Variations, Tightening Controls on Design Changes and Holding Accounting Officers Liable.

By Abraham Lincolns | Kampala

The Government of Uganda issued a directive aiming at curbing down the escalating project costs, cautioning accounting officers to strictly adhere to approved budgets and project scopes set at the feasibility stage.

The new Treasury directive limits cost variations on public projects to 15 percent from feasibility to

procurement stage, tightening controls on design changes and placing personal accountability on

Accounting Officers for breaches.

In a document released by Dr. Ramathan Ggoobi, the Permanent Secretary to the Treasury (PSST), all Accounting Officers national-wide have been instructed to ensure that any variation between the estimated project cost at feasibility stage and at procurement initiation does not exceed 15 percent.

Dr Ggoobi emphasized that cost deviations will only be tolerated under exceptional circumstances and must be fully justified in line with the Public Procurement and Disposal of Public Assets Act.

“Accounting Officers will be held personally accountable for any breach of these instructions,” he warned, signalling a stricter enforcement regime around public expenditure.

The directive also imposes tighter controls on project design changes, which have frequently been cited as a major driver of cost overruns where under the new guidance, design reviews will only be permitted where there is a clear, verifiable and justifiable need.

The move underscores a broader government effort to eliminate waste, enforce budgetary discipline and ensure value for money in public investments, an area that has long attracted scrutiny in Uganda’s public procurement processes.