Ugandan is set to receive $500m funding from the China’s Export-Import (EXIM) Bank for the construction of critical oil roads in its oil belt, Albertine Graben, in South Western Uganda.
According to the Uganda’s ministry of Finance they have already sent a request to receive more than $500m (Shs1.8t) which will be supplemented by withdrawals from the Petroleum Fund and additional funding from the ongoing budgetary cuts.
Confirming the reports Finance minister Matia Kasaija said his trip to china was intended to seek funding for the project for roads in Uganda oil belt.
The delegation that headed to China also had a discussion on how the EXIM Bank will fund the multi-billion Standard Gauge Railway (SGR) but the arrangement has since suffered various setbacks.
“It is true we put in the request and discussions are ongoing; to see how they can help us,” Mr Kasaija told the media. “It is a matter of prioritizing, and we have made it clear that these roads are much needed to help us get oil out of the ground.”
According to the Uganda National Roads Authority (Unra) the roads are, Hoima-Butiaba-Wanseko road (111km), Masindi-Biiso (54km), Masindi-Bugungu via Murchison Falls National Park (80km), Kaseeta – Lwera via Bugoma Forest (16km), Hohwa-Nyairongo-Kyarushesha road (25km), and Wanseko-Bugungu (23km).
The Ugandan government is currently keenon increasing the number of roads in the country with Chinese companies expected to carry out and fund the projects.