The Ugandan Parliament has granted approval for the government to secure a loan of approximately Euros 207.75 million from financial institutions, including Citi Bank.
The funds are earmarked for the crucial design and construction of the Jinja-Mbulambuti-Kamuli-Bukungu road and various roads within Jinja City.
The government has received the green light from Parliament to procure a loan amounting to Euros 207.75 million. This significant funding, to be sourced from Citi Bank and other financial institutions, will be directed towards the design and construction of key infrastructure projects in the Busoga region.
The primary focus of the loan is the 127-kilometer Jinja-Mbulambuti-Kamuli-Bukungu road, identified as a vital transport artery. This corridor connects Busoga to Lake Kyoga and serves as an alternative route between northern and southern Uganda, linking several districts across Lake Kyoga and acting as a gateway to Amolatar, Kaberamaido, Soroti, Nakasongola, and Kayunga.
Additionally, the loan will finance the upgrading of 10 kilometers of urban roads within Jinja City. The government anticipates that these improvements will enhance urban mobility, facilitate industrial transport in Uganda’s primary industrial hub, and stimulate local trade.
While the Committee on National Economy recommended the loan’s approval, they stressed that the loan agreement should not be finalized until all Project Affected Persons (PAPs) are registered and their compensation is conclusively determined. Concerns were raised that the current valuation of PAPs, estimated at Shs112.8 billion, may not be up-to-date, posing a risk of project delays and increased costs if not resolved promptly.
A minority report echoed these concerns, urging that compensation issues must be settled before the loan is signed. Critics also pointed to the loan’s commercial components and short maturity period, raising questions about the escalating national debt and the potential need for further borrowing.
Despite these reservations, some Members of Parliament highlighted the potential economic and tourism benefits, particularly the boost to tourism activities along the Jinja-Mbulambuti-Kamuli-Bukungu road due to its proximity to natural attractions like Busowoko and Itanda Falls.
