Gulu Modern Market Set to Resume After Securing Additional Funding

Months of stalled construction at the Gulu Modern Market are expected to conclude soon, as Gulu City has secured a crucial Shs340 million in additional funding. This infusion of capital, facilitated by the United Nations Capital Development Fund (UNCDF) through the Ministry of Local Government under the Financing Durable Solutions Initiative, aims to bridge the gap that halted the Shs1.14 billion project at approximately 75 percent completion.

The original Shs760 million allocated for the first phase was depleted, leading to the work stoppage. The city has now mandated Rina One Investment Limited, the contractor awarded the 1.25-acre site in Bardege-Layibi Division in May 2025, to return to the site and finalize the outstanding tasks within a month.

This modern market is designed to accommodate over 720 vendors, including refugees and members of host communities, who have been operating in congested temporary locations. Upon completion, the facility will boast 71 lock-up shops, 90 stalls, a daycare centre, a banking hall, a pharmacy, and other amenities intended to boost household incomes and increase the city’s revenue.

Gulu City Engineer Christo Omara confirmed the new funding and expressed urgency, stating that the contractor has been instructed to resume work. However, a slight disagreement remains regarding the official start of the one-month completion period. Furthermore, the contractor has indicated that work cannot commence until the city approves a pending bill of quantities worth Shs120 million, which details the remaining tasks such as paving, septic tank construction, painting, and finishing.

The project is being implemented in phases, with UNCDF funding the initial stages. Future phases are planned under a Public-Private Partnership model, with the ambition of developing the site into a larger market complex akin to Onduparaka Market in Arua City. The project’s delays have been attributed to funding gaps, rising material costs, bureaucratic processes, and increased scrutiny on value for money.

https://nilepost.co.ug/news/371250/gulu-modern-market-works-to-resume-after-funding-gap