Kampala — The government received the green light to finance major road works under the Upgrading of National Roads Project in Uganda, through loan funding worth US$325 million (Shs1.23 trillion).
This was during the plenary sitting chaired by Speaker, Anita Among, on Wednesday.
The loan will be secured from the Islamic Development Bank (US$295 million) and the OPEC Fund for International Development (US$30 million), whereas the government is expected to provide US$22 million for land acquisition.
The funding aims at rehabilitating the Masindi Port Bridge designed for 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 designed for 20 years of design life.
The Deputy Chairperson of the Committee on National Economy, Hon. Robert Migadde, observed that as much as Uganda’s public debt remains within sustainable levels, the country is rated at moderate risk of debt distress.
“The Committee recommends that the Minister for Finance renegotiates the risk premium to a lower rate and also have it fixed for the entire debt servicing period,” he said.
