HomeNewsUS$ 71.5m loan approved for road projects in southwestern Uganda

US$ 71.5m loan approved for road projects in southwestern Uganda

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The Board of the African Development Fund (ADF), has approved a loan amounting to US$ 71.5m for road upgrade & paving projects in southwestern Uganda.

The finance will be sourced under ADF-15, the most recent replenishment of the Fund, which is the concessional lending window of the African Development Bank (AfDB) Group that provides low-income Regional Member Countries (RMCs) with concessional loans and grants, guarantees as well as technical assistance for studies and capacity building in support of projects and programs that spur economic and social development.

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The loan represents roughly 86% of the project’s total costs and the government of Uganda will fund the remaining amount.

The central element of the road projects

The project in question involves the upgrade and paving works of a total of 34 km of the Kabale-Lake Bunyonyi-Kabeho circuit and the Kisoro-Mgahinga Park Gates road, as well as the construction of two roadside markets, farm produces holding facilities and four ferry landing sites on Lake Bunyonyi.

The funds will also finance the provision of two ferries with navigational aids and the provision of technical assistance to the government of the East African country to strengthen road safety regulations and support implementation of inland water transport aspects of the project.

Significance of the projects 

According to Amadou Oumarou, AfDB’s Director of Infrastructure and Urban Development, this innovative and integrated infrastructure development project is meant to increase market development, widen business opportunities and scale up food production, enhancing income levels in the South-western region of Uganda.

Other benefits of the project include increased school enrolment, stronger hospital attendance, and generally, a boost to livelihoods in the target area.

The loan facility is in line with the government of the Republic of Uganda’s third National Development Plan 2020/21-2024/25 under its Vision 2040.

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