The European Union (EU) said it is withholding €40m ($52m) in funds from Uganda for its road projects in 2010.

The EU said the funds will be released for 2011 if the country improves its road managing policies and utilisation of funds, according to

The European Commission (EC) expects Uganda to improve direct flow of road user charges to the road fund, axle load control and monitoring and evaluation framework for the road sector in the country.

Other suggested improvements include better maintenance and supervision of roads and monitoring of investments in road equipment in the country.