The Government of Uganda is seeking approval to borrow up to €207.77 million, equivalent to about Shs842.71 billion, to finance the upgrading of the Jinja–Mbulamuti–Kamuli–Bukungu road and selected roads in Jinja City.
Finance Minister Henry Musasizi, accompanied by Minister of State for Works and Transport Fred Byamukama, presented the borrowing proposal to Parliament’s Committee on National Economy for consideration and approval.
The proposed financing will be obtained from Citi Bank and other financial institutions and will support the upgrading of the 127-kilometre Jinja–Mbulamuti–Kamuli–Bukungu road, together with 10 kilometres of roads in Jinja City.
According to Minister Musasizi, the funds will also cater for land compensation and construction supervision, which are key components of the planned project.
The Government says the road project is expected to significantly improve transport and connectivity across the Busoga sub-region, while also creating an alternative transport route linking northern and southern parts of Uganda.
Musasizi told the committee that the project is economically viable, with an Economic Internal Rate of Return (EIRR) of 16.7 percent, which is above the country’s estimated 11 percent economic opportunity cost of capital.
Of the proposed loan, €179.26 million will be used for civil works and insurance, while €28.51 million will cater for land acquisition and supervision costs.
The Finance Minister also assured legislators that the proposed borrowing has been incorporated into the Government’s financial planning. He said the project is already included in the debt sustainability analysis, the fiscal framework for the 2026/27 financial year, and the medium-term fiscal framework.
The proposed road upgrade is expected to boost movement of people and goods, improve access to markets and services, and strengthen economic activity in communities along the route.
The request now awaits consideration by Parliament’s Committee on National Economy, which will assess the proposed borrowing before Parliament takes the next step on the financing arrangement.
