The government has asked Parliament to approve a €207.77 million (about Shs842.71 billion) loan to finance the upgrade of roads in the Busoga sub-region.
Finance Minister Henry Musasizi, accompanied by Works and Transport Minister Fred Byamukama, presented the loan request to Parliament’s Committee on National Economy for consideration.
The funds will come from Citi Bank and other financial institutions and will support the rehabilitation of the 127-kilometre Jinja–Mbulamuti–Kamuli–Bukungu Road.
The project will also cover the upgrade of 10 kilometres of roads in Jinja City, land compensation and construction supervision costs.
The government says the project will improve transport links in Busoga and create an alternative route connecting northern and southern Uganda.
Musasizi said the project is economically viable, with an Economic Internal Rate of Return (EIRR) of 16.7 percent. EIRR measures the expected economic benefits of a project compared with its costs.
The minister said the return is above the 11 percent economic opportunity cost of capital, meaning the project is expected to generate more value than the government’s cost of using funds elsewhere.
Of the total financing, €179.26 million will cover road construction works and insurance, while €28.51 million will support land acquisition and supervision costs.
Musasizi said the project has already been included in Uganda’s debt sustainability analysis and the budget framework for the 2026/2027 financial year and the medium term.
The loan request now awaits approval from Parliament before the government can proceed with the financing arrangements.
