Uganda Seeks €207.77m Citi Loan — FSX Business
Uganda’s government is seeking parliamentary approval to borrow 207.77 million euros from Citi Bank to finance the design and construction of the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu road and 10 kilometres of roads in Jinja City.
Finance Minister Henry Musasizi and Works and Transport Minister Fred Byamukama appeared before Parliament’s Committee on National Economy to defend the proposed borrowing.
The proposed loan will finance construction of the 127-kilometre road, roads within Jinja City, land compensation and project supervision, according to government documents.
The Jinja-Mbulamuti-Kamuli-Bukungu corridor is intended to improve connectivity within the Busoga sub-region and strengthen links between Jinja and communities towards Kamuli and Bukungu.
The committee is examining the proposed borrowing, including its financing terms, project costs and implications for government debt before making a recommendation to Parliament.
The loan proposal comes as Uganda continues to use external borrowing to finance major infrastructure projects, placing greater focus on the cost and sustainability of new debt.
The government has not yet disclosed the expected construction timeline for the project in the information provided.
Source: FSX Business News
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