Uganda Secures $325 Million Loan for Major Infrastructure Upgrade
KAMPALA, (UG)-Government has been cleared to finance the upgrading of major through a loan funding worth $325 million (Shs1.23 trillion).
This was during yesterday’s plenary sitting chaired by Speaker Anita Among.
The loan will be secured from the Islamic Development Bank (US$295 million) and the OPEC Fund for International Development (US$30 million), whereas government is expected to provide US$22 million for land acquisition. The funding aims at rehabilitating the Masindi Port Bridge to 100 years of design life, as well as roads including Katine-Ochero Road, Kiruhura-Bwizi-Rwamwanja-Kahunge road and Mpara-Bwizi road, each of which is designed for 20 years of design life.
The Deputy Chairperson of Parliament’s Committee on National Economy, Robert Migadde, observed that much as Uganda’s public debt remains within sustainable levels, the country is rated at moderate risk of debt distress. He added that ministries, departments and agencies should always undertake project designs prior to sourcing for money, in order to minimize project delays by effectively compensating project affected persons in time.
The House also authorized government to prefinance the reconstruction, rehabilitation and upgrading of major roads in Masaka and Ntungamo districts at a total cost of Shs691.6 billion.
The Speaker tasked the Committee to always follow-up on the status of implementation of projects under previous loans approved by Parliament.