Government Plans To Procure 29 Loans Valued At Over Shs18Trn

The Ministry of Finance Planning and Economic Development has revealed plans to procure additional 29 loans, valued at over Shs18Trn in the near future to fund various public projects, amidst reports that Uganda’s public debt has grown to US$24.60 Billion (Shs93.38Trn) as at end December 2023.

The details are contained in the Report on Public Debt, Grants, Guarantees and other Financial Liabilities for Financial Year 2023/2024 that was released by Ministry Of Finance that highlighted several loans in the pipeline, and the report will be laid before Parliament, by the Finance Minister in accordance with the Public Finance Management Act, (2015) Sections 39(4),42 (2-3) & 44(5).Said  finance and planning state minister Amos Lugoloobi.

The Ministry of Finance is also holding negotiations with Citi Bank to fund the construction of oil roads including; (Lusalira-Nkonge-Lumegere-Ssembabule by Uganda National Roads Authority (UNRA) at a cost of US$130Mn (Shs 491.848Bn) and negotiations are currently on going with the Financier.

 Similar negotiations with the same funder are ongoing for the development of Kabwoya-Buhuka and Ntoroko-Karugutu) by UNRA at US$108.11 M (Shs409.028Bn), while another loan worth EUR150M (Shs 616.870Bn), is in the pipeline for the development of Kisoro Industrial Business Park by Uganda Investment Authority and discussions are said to be on-going with the financier.

Another loan in the pipeline is the Euro196M (Shs806.044Bn) for the development of Kasese Industrial Business Park in a project set to be handled by Uganda Investment Authority, & discussions are said to be on-going with the financier

Although some projects have prospective financiers, the Standard Gauge Railway project estimated at US$1,928.86 (Shs7.296Trn) features top on the list of loans in pipeline, however, the funder is yet to be identified according to the Ministry of Finance. He said

Another loan lined up is the US$414.8Mn (Shs1.569Trn) meant for the 2023/24 budget support, with the status of the loan indicating that discussions are on-going with the prospective financiers.

This comes as Government  is set to close the Financial Year on 30th June 2024.

Government has also earmarked the construction of Mbale-Bulambuli Transmission line at a cost of Euro40Million (Shs164.498Bn) and the project is expected to be overseen by Uganda Electricity Transmission Company Limited (UETCL) and the loan status indicates that discussions are on-going with prospective financiers.

In a bid to enhance agricultural production, quality and standards for Market Access Project, the Ministry of Agriculture has lined up a loan request of US$160M (Shs 605.352Bn), while another loan in the pipeline is the construction of Kidepo-Kitgum Road (tourism road 115km) by UNRA at Euro110.543 Million (Shs454.604Bn) with negotiations believed to be underway with the financier.

The French Development Agency has expressed willingness to fund the construction of Katuna-Muko Kamuganguzi Road (104.0 km) and Laropi-Moyo-Afogi & 1.2km bridge Road at US$206.15 M (Shs779.958Bn) in a project that will be overseen by UNRA and discussions are still ongoing with the financier.