Parliament Approves Shs 207 Billion Loan for Busoga Road Projects

Parliament has granted the government authorization to secure a substantial loan amounting to Euros 207.75 million. This funding, to be sourced from Citi Bank and other financial entities, is earmarked for the design and construction of key road networks in the Busoga sub-region. The approved projects include the 127-kilometer Jinja-Mbulambuti-Kamuli-Bukungu road and a 10-kilometer stretch of urban roads within Jinja City.

The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, presented the loan request, highlighting the strategic importance of the Jinja-Mbulambuti-Kamuli-Bukungu road. He noted that this route serves as a vital transport corridor, connecting Busoga to Lake Kyoga and offering an alternative link between northern and southern Uganda. The road’s terminus at Bukungu acts as a gateway to districts such as Amolatar, Kaberamaido, and Soroti.

Furthermore, the urban roads in Jinja City are expected to enhance trade and facilitate industrial transport within Uganda’s primary industrial hub. The Committee on National Economy recommended approval, with a crucial caveat: the loan agreement should not be finalized until all Project Affected Persons (PAPs) have been registered and their compensation concluded.

Concerns were raised regarding the delay in updating land valuation reports for PAPs, potentially leading to project delays and increased costs. The committee stressed the importance of assessing resettlement impacts fully before committing to financing. A minority report also echoed these concerns, advocating for the resolution of PAP compensation issues before loan finalization and questioning the cost-effectiveness of commercial loans amidst the country’s debt burden.

Despite these reservations, some Members of Parliament supported the loan, emphasizing its potential to boost tourism by improving access to sites like Busowoko and Itanda Falls. The debate underscored the need for careful financial management and timely compensation of affected individuals to ensure the successful implementation of these infrastructure developments.

Source: https://www.parliament.go.ug/news/4603/govt-given-go-ahead-aquire-loan-busoga-roads