Parliament has authorised 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 offered 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 determination originated from a authorities proposal offered on 18 September 2024, searching for extra funding from the African Development Fund for a similar tasks. The proposal was referred to the Committee on National Economy for additional scrutiny.
Musasizi stated that the challenge goals to supply all-weather roads to spice up tourism flows from South Western Uganda and enhance entry to mines. It will even improve regional connectivity by a everlasting bridge at Laropi and a one-stop Uganda-South Sudan border put up.
“The challenge scope stays the identical as initially authorised in August 2020. It consists of 4 parts; street and bridge civil works, challenge 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 helpful as a result of its nationwide attain masking three areas of the nation.
“The US$73 million mortgage from the African Development Fund might 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 stability” he stated.
Parliament additionally authorised a authorities request to borrow over Shs171.63 billion from Agence Française de Development (AFD) for the Lake Victoria Water and Sanitation Project.
Musasizi stated the funding goals to develop the distribution community, improve the New Katosi Water System and enhance 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 beneath the Charter of Fiscal Responsibility.
