Gov’t withdraws UGX386Bn loan request for oil roads

Kampala, Uganda | THE INDEPENDENT | The Ministry of Finance has withdrawn from parliament a loan proposal of 386 Billion Shillings that was meant to finance the upgrading of oil roads in the Albertine graben.

The roads include the 54-kilometre Masindi-Biiso road, 25 kilometres of Hohwa-Nyairongo-Kyarushesha-Butole road, and 25.7 kilometres of Kabaale-Kiziranfumbi road.

The loan equivalent to Euros 96.3 million was tabled before Parliament last week by the Government Chief Whip, Thomas Tayebwa and government indicated that it was being sought from the China Construction Bank Corporation.

However, while appearing before Parliament’s National Economy Committee to defend the loan proposal, Henry Musasizi, the Minister of State for Finance-General Duties indicated that government has noticed that it can finance the project without borrowing externally.

He withdrew the loan request from consideration by the committee.

Allan Atugonza, the Buliisa County MP wondered whether the government has enough money to compensate the project-affected persons, saying that he was hopeful that the people would be compensated in time when the loan request was tabled before the House.

Nathan Byanyima, the Bukianga North MP said that the move by the government to withdraw the loan proposal has taken him by surprise yet the country is grappling with poor roads all over the country. He said that the government would have used this loan window to help with the oil roads and the money available at hand is used for road maintenance in different parts of the country.

Byanyima demanded an explanation from the Ministry of Finance in regard to the source of the new money that is going to be used for the oil roads and what their plan is regarding maintenance of the different roads across the country that are in a poor state.

Fred Kayondo, the Mukono South MP also said that the move by government to withdraw the loan request in a space of one week raises a number of questions in regard to planning by the ministry.

Before the Minister responded to the queries raised by the MPs, the committee asked journalists to leave the meeting room saying that they needed to have an internal interaction.

Construction work on the oil roads started in April 2019 by the China Railway Seventh Group Company Limited. It includes widening of the roads, light grading and opening up of drainage structures, offshoots, drainage drifts, filling potholes, rock blasting, crushing of base course and concrete aggregate, excavation, and clearing of topsoil.

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