KAMPALA, Uganda | The Uganda National Roads Authority (UNRA) has been ordered by the High Court to pay USD 2.5 million (approximately UGX 9.5 billion) in compensation to Joyce Lucia Burungi, an exploration license holder, for damages caused during the construction of the Hoima-Kaiso-Tonya Road. The ruling, delivered by Hon. Justice Esta Nambayo, also awarded general damages of UGX 5 million and the costs of the suit.

The plaintiff, Joyce Lucia Burungi, held an exploration license issued in 2011, granting her exclusive rights to prospect for bentonite deposits in the Kaiso-Tonya area. In 2014, while UNRA was upgrading the Hoima-Kaiso-Tonya Road, the agency’s excavation works disrupted Burungi’s licensed area, resulting in the loss of an estimated 25,426 tonnes of bentonite.

Burungi took legal action against UNRA and the Attorney General, seeking compensation for the loss of the bentonite and the violation of her exploration rights. The plaintiff argued that her license conferred exclusive rights to explore the mineral deposits, and the roadworks conducted by UNRA interfered with her operations without prior compensation.

UNRA initially raised objections, arguing that the case was time-barred under the Land Acquisition Act and the Limitation Act. The agency also contended that Burungi, as a holder of an exploration license, did not have a right to claim compensation for the minerals, which are owned by the government under the Mining Act.

However, the court dismissed these objections, ruling that the limitations did not apply since no compensation award had been issued to Burungi prior to the filing of the suit. Justice Nambayo emphasized that the exploration license granted Burungi exclusive rights to explore and assess bentonite deposits in the licensed area, rights that are legally protected and cannot be infringed upon without fair compensation.

The court found that UNRA’s roadworks, which involved extensive excavation in the licensed area, amounted to an unlawful interference with the plaintiff’s exploration activities. The decision was supported by legal opinions from both the Attorney General and the Solicitor General, who had earlier acknowledged the legitimacy of Burungi’s claim.

In her judgment, Justice Nambayo ordered UNRA to pay USD 2,542,600 as special damages for the excavated bentonite. This valuation was based on a geologist’s report, which estimated the mineral’s market value at USD 100 per tonne. Additionally, the court awarded UGX 5 million in general damages for the disruption and inconvenience caused to Burungi’s operations.

Legal experts believe this decision could influence resolution of future disputes involving exploration rights, sending a clear message to state bodies about the need for compliance with the law even in the context of national infrastructure projects.