Parliament has permitted authorities requests to borrow US$15.22 million and US$73.15 million from the African Development Bank Group for the development of Laropi-Moyo-Afoji Road and the Katuna-Muko-Kamuganguzi Road.
The approval adopted a movement introduced by the Minister of State for Finance, Planning, and Economic Development (General Duties), Hon. Henry Musasizi, throughout a plenary session chaired by Speaker Anita Among on Thursday, 09 January 2025.
The choice originated from a authorities proposal introduced on 18 September 2024, looking for further funding from the African Development Fund for a similar tasks. The proposal was referred to the Committee on National Economy for additional scrutiny.
Musasizi mentioned that the undertaking goals to supply all-weather roads to spice up tourism flows from South Western Uganda and enhance entry to mines. It may also improve regional connectivity by way of a everlasting bridge at Laropi and a one-stop Uganda-South Sudan border put up.
“The undertaking scope stays the identical as initially permitted in August 2020. It contains 4 elements; street and bridge civil works, undertaking implementation assist companies, institutional assist, and compensation for project-affected individuals,” Musasizi acknowledged.
The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojo described the mortgage facility as useful resulting from its nationwide attain overlaying three areas of the nation.
“The US$73 million mortgage from the African Development Fund shall be repaid over 50 years with a 10-year grace interval. It carries no curiosity however features a 0.1 per cent annual service cost on the disbursed steadiness” he mentioned.
Parliament additionally permitted a authorities request to borrow over Shs171.63 billion from Agence Française de Development (AFD) for the Lake Victoria Water and Sanitation Project.
Musasizi mentioned the funding goals to increase the distribution community, improve the New Katosi Water System and improve clear water entry within the Greater Kampala Metropolitan Area (GKMA).
The mortgage approval will increase Uganda’s exterior debt publicity by US$252.83 million and raises the general public debt share of GDP by 0.13 per cent
However, Musasizi assured Parliament that the debt stays manageable underneath the Charter of Fiscal Responsibility.
