Parliament Approves Two Critical Infrastructural Dev’t Loan Requests

Parliament has authorised Government to borrow Euro 232.67m from African Development Fund, African Development Bank and the Corporate Internationalization Fund of Spain for the refurbishment of the Kampala-Malaba meter gauge railway project.

This loan request was first presented to Parliament by the Minister of Finance on 4 May 2023 and was referred to the Committee on National Economy for scrutiny.

The Kampala-Malaba meter gauge railway project aims to improve rail transport services on the Northern Corridor and to lower transportation costs to enhance trade competitiveness for Uganda and the East African Community. While presenting the report during Wednesday plenary sitting, the chairperson of the Committee on National Economy, Hon John Bosco Ikojo recommended that Government fast-tracks implementation of the Standard Gauge Railway to enable Uganda move in tandem with other EAC partner states.

Hon. Benard Odoi (Youth MP, Eastern) said the Kampala-Malaba railway project will be a game-changer for the economy.

“Aware that in a single day we have thousands of trucks plying on that same route, this would be a game-changer for our economy. But the big question is, will this refurbishment streamline railway transportation?” he said.

Hon. Cecilia Ogwal (Dokolo District) said she is very excited about the revival of the railway line, while Hon. Jenipher Namuyangu, State Minister for Bunyoro Affairs said the railway line would cut the time wasted in traffic jam.

House also approved a loan request of US$560.66m from International Development Association (IDA) of the World Bank Group and Agence Francaise De Development (AFD) to finance the Greater Kampala Metropolitan Area Urban Development Program. Hon. Ronald Balimwezo (Nakawa East) said it is critical to have roads in Kampala revamped.

“Kampala has 2,110 kms of road network but only 300kms is paved and in better conditions. Majority of our roads are dilapidated and have outlived design life. It is indeed critical to have our roads revamped and made good to reduce the cost of monies spent in jam,” he said.

Hon. Hillary Kiyaga (Mawokota North) equally supported the loan request, saying, “If we are to decongest Kampala then we have to improve infrastructure of the neighboring districts in Kampala like Mpigi.”

Deputy Speaker, Thomas Tayebwa said it is critical to pay attention to oversight roles to prevent low absorption of loans. “KCCA, what is wrong? We give you a lot of money and now, we are adding you more, but the problem remains absorption…Uganda is ranking the worst in absorption of loans and yet we are paying interests,” he said.