Gold-backed roads project faces scrutiny over cost, transparency

A South Sudanese policy analyst has raised concerns over the cost and transparency of the government’s newly approved $2 billion road infrastructure project to be financed using gold as collateral.

Speaking during an interview following a press statement by the Institute of Social Policy and Research (ISPR), Boboya James Edimon, the organisation’s Executive Director, questioned whether the project offers value for money and meets public finance standards.

The Council of Ministers, chaired by President Salva Kiir Mayardit, recently approved the project aimed at constructing and upgrading about 1,031 kilometres of roads across the country.

While welcoming infrastructure development as essential, Edimon said the financing structure raises serious accountability issues.

“At USD 2 billion for appropriation of about 1,031 kilometres, that implies the cost per kilometre appears significantly high when we compare, for example, to the benchmarking of other countries,” he said.

He cited regional comparisons, noting that similar road projects elsewhere cost far less per kilometre, adding that the disparity “raises legitimate policy and public finance concerns.”

Edimon also questioned whether due process had been followed in approving the project.

“Does the approved cost reflect competitive market rates? Was there an open and transparent procurement process?” he asked. “Does the agreement meet South Sudanese public procurement and value for money requirements? Have detailed technical and financial feasibility assessments been made public?”

“No answer to that,” Edimond added.

He warned that failure to address these questions could undermine public trust and place a heavy financial burden on future generations.

The analyst stressed that gold reserves are sovereign assets that require heightened scrutiny if used as collateral, calling for full disclosure of loan terms and stronger parliamentary oversight.

“Public infrastructure investments must align with principles of transparency, accountability, and physical sustainability. Any diversion risks undermining public trust and placing unsustainable burdens on the future generation,” he said.

Edimon said ISPR supports infrastructure development but urged authorities to ensure the project complies with procurement laws and sound fiscal policy.

“Developments must be guided by sound public policy, physical disciplines, transparency, and protection of national assets,” he added.

The government has yet to publicly respond to the concerns raised by the policy institute.