(PRESS RELEASE): Watchdog Group Raises Concerns Over South Sudan’s “Gold for Roads” Deal

1. (JUBA) – A leading research think tank, the Institute of Social Policy and Research (ISPR), has expressed concern over the South Sudan government’s proposed USD 2 billion “gold-for-roads” infrastructure project, which aims to construct and upgrade 1,031 kilometers of asphalt roads across the country.

The project was approved by the Council of Ministers chaired by President Salva Kiir Mayardit on Friday  and is intended to boost national connectivity by upgrading key road corridors, including:

• Juba–Yei–Kaya
• Yei–Faraksika–Maridi
• Juba–Lobonok–Moli Junction
• Wau–Raja–Boro Medina

Cost Concerns

Boboya James Edmond, CEO of ISPR, acknowledged the strategic importance of improving infrastructure but raised questions about the project’s overall cost and financing structure, particularly the decision to use national gold reserves as collateral.

At USD 2 billion for 1,031 km, the estimated cost translates to nearly USD 1.94 million per kilometer.

ISPR compared this to a similar regional project in Uganda — the Koboko–Yumbe–Moyo Road — which spans about 103–105 km at a cost of USD 130.8 million, or roughly USD 1.25 million per kilometer.

According to ISPR, this discrepancy raises legitimate concerns regarding:

• Value for money
• Fiscal sustainability
• Transparency in procurement
• Long-term public debt exposure

Gold as Collateral

ISPR emphasized that gold reserves are sovereign national assets, and any move to back a sovereign guarantee with gold must undergo heightened scrutiny.

The think tank is calling for:

• Full public disclosure of the sovereign guarantee terms
• Clear explanation of the repayment structure and risk exposure
• Strong parliamentary oversight
• Compliance with South Sudan’s Public Procurement and Disposal Act and resource management laws

Community and Environmental Considerations

ISPR further urged the government to ensure that communities in gold-producing areas are:

• Meaningfully consulted
• Recognized as primary stakeholders
• Protected through environmental safeguards
• Included in benefit-sharing arrangements

Call for Review

While reaffirming support for infrastructure development as a national priority, ISPR urged the Council of Ministers to reconsider the cost structure to ensure:

• Fiscal discipline
• Transparency
• Protection of national assets
• Alignment with procurement regulations

The organization stressed that development must not compromise future generations through unsustainable financial obligations.