Uganda Seeks $117 Million Loan for Kitgum-Kidepo Tourism Road Development

The Ugandan government has proposed borrowing US$117.26 million (approximately Shs446.7 billion) from Standard Chartered Bank to fund the construction of the Kitgum-Kidepo road, aimed at enhancing tourism in the northern part of the country. The loan request was presented by the Minister of State for Finance, Planning, and Economic Development (Planning), Hon. Amos Lugoloobi, during a plenary session on Thursday, April 18, 2024.

Speaker Anita Among emphasized the strategic importance of developing tourism infrastructure, noting that the proposed road would significantly bolster tourism revenue. “Improving access to tourism destinations through better roads is crucial for economic growth in these areas,” she commented.

However, Among expressed concerns over the prolonged loan approval process, which has already spanned over eighteen months, leading to additional costs such as commitment fees. She questioned the efficiency of the process given that all feasibility studies had been completed. “The delay not only incurs extra costs but also affects the economic benefits we aim to achieve,” she added.

The Attorney General, Kiryowa Kiwanuka, responded by acknowledging the delays but emphasized that thoroughness in the negotiation and vetting process was crucial to ensure the loan’s effectiveness.

Adding to the challenges, Hon. Musa Ecweru, Minister of State for Works, pointed out that the delays had resulted in the use of outdated road designs, which could potentially increase the project’s complexity and cost.

During the session, Hon. Lugoloobi also highlighted the government’s broader concerns about the overall loan acquisition and implementation process. “We have reviewed the entire chain from acquisition to performance evaluation and identified areas needing significant improvement,” he explained.

Following the discussion, Speaker Among directed that the loan proposal be sent to the Committee on National Economy for further scrutiny and approval.

In addition to the loan request, the Minister tabled a supplementary budget request amounting to Shs1.106 trillion. This supplementary expenditure, scheduled under the Public Finance Management (Amendment) Act (2015), primarily addresses financial commitments such as a large payment to DEI Pharmaceuticals, wage and pension shortfalls, and allocations to several governmental departments including State House and the Office of the Prime Minister. This proposal was also referred to the committee on Budget for detailed consideration.