Parliament has granted executive approval for the government to borrow €207.75 million (approximately Shs840 billion) from Citi Bank and international commercial lenders to construct key road corridors across the Busoga sub-region.
The loan will finance the engineering design and dualization of the 127-kilometer Jinja-Mbulambuti-Kamuli-Bukungu road and a 10-kilometer urban road network within Jinja City.
The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, presented the borrowing request during Thursday’s parliamentary session.
Minister Musasizi emphasized that the Jinja-Bukungu corridor connects southern Uganda through the Busoga sub-region directly to Lake Kyoga and the northern trade routes.
“The road connects to several districts across the waters of Lake Kyoga and the terminal end of the road at Bukungu is a gateway to districts of Amolatar, Kaberamaido, Soroti, Nakasongola and Kayunga,” Minister Musasizi said.
He noted that the Jinja urban road interventions will ease freight congestion in Uganda's primary industrial city, supporting factory logistics and regional commerce.
Presenting the majority report of the Committee on National Economy, Committee Chairperson Hon. Jane Pacuto recommended loan approval but attached strict conditions regarding land acquisition.
Hon. Pacuto warned against signing final loan documentation until the Ministry of Works and Transport completes updated land valuations and registers all Project Affected Persons (PAPs).
She revealed that initial land assessments conducted in 2022 estimated total compensation at Shs112.8 billion, but outdated valuation records risk triggering costly project delays.
“Consequently, the quoted values may vary once the updated valuation is completed. Given that the valuation reports are not yet complete, there is a risk of project delays arising from the fact that PAPs have not been conclusively engaged under the new policy,” Hon. Pacuto said.
“The Ministry of Finance should not source or commit to financing projects involving PAPs until resettlement impacts are fully assessed,” she added.
Presenting a minority report, Katikamu County South MP Hon. Hassan Kirumira opposed the loan terms, citing heavy debt servicing costs associated with commercial borrowing.
“It is risky to proceed with the loan request; PAPs are raising concerns considering land value has appreciated value. Without mutual agreements, the project will suffer high costs due to undisbursed loan,” Hon. Kirumira said.
“The loan is expensive; part of it is commercial with a short maturity period of six years. We are not sure that after that, government will not borrow another loan,” he cautioned.
Bunyole West County MP Hon. James Waluswaka supported the infrastructure funding but called for the removal of the road design budget component, stating that preliminary engineering designs were already completed by ministry engineers.
Kagoma County MP Hon. Moses Walyomu welcomed the approval, noting that upgrading the Jinja-Bukungu stretch will unlock tourism opportunities around Busowoko and Itanda Falls along the River Nile.
