Uganda to borrow US$320m for infrastructure development

A section of Gulu road, Uganda
A section of Gulu road, Uganda

The Ugandan cabinet has approved the borrowing of US$320m for infrastructure development from the International Development Association of the World Bank. The proposal is awaiting parliamentary approval and it is expected to sail through.

A total of US$175m will be channeled into Kampala`s infrastructure development, while US$145m will be used for the oil roads and services in the Albertine region.

The project will include improving connectivity in the city and reduce traffic jams, and also link major roads to ease transport and traffic. The project will cover the districts of Nebbi, Nwoya, Buliisa, Masindi, Hoima, Kibaale, Kyenjojo, Kabarole and Ntoroko districts.

According to the Information and National Guidance Minister, Rose Ramayana, the funds set aside for Kampala will aid in the implementation of the second Kampala Institutional and Infrastructure Development Project (KIIDP II), while those for the Albertine region will be used for improving infrastructure and social services in Uganda’s oil-producing region.

According to Kampala Capital City Authority (KCCA), the city’s estimated 1,200km road network is made up of about 360km tarmac road with the rest being murram. This accounts for only 30% of the total tarmac road in the city. This has led to losses being incurred by motorists in terms of fuel wastage and the constant mechanical challenges due to bad roads.

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