Government withdraws UGX 386 billion loan request for oil roads :: Uganda Radionetwork

The roads include the 54 kilometer Masindi-Biiso road, the 25 kilometer Hohwa-Nyairongo-Kyarushesha-Butole road and the 25.7 kilometer Kabaale-Kiziranfumbi road.

The Ministry of Finance withdrew from parliament a loan proposal of 386 billion shillings intended to finance the modernization of the oil roads in the Albertine Graben.

The roads include the 54 kilometer Masindi-Biiso road, the 25 kilometer Hohwa-Nyairongo-Kyarushesha-Butole road and the 25.7 kilometer Kabaale-Kiziranfumbi road.

The loan equivalent to 96.3 million euros was tabled in parliament last week by Chief Government Whip Thomas Tayebwa and the government said it was being solicited from the China Construction Bank Corporation.

Today, while appearing before Parliament’s National Economics Commission to defend the loan proposal, Henry Musasizi, the Minister of State for Finance – General Duties said the government had noticed that it could finance the project without borrowing from outside.

He withdrew the loan application from consideration by the committee.

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Allan Atugonza, the MP for Buliisa County, questioned whether the government has enough money to compensate those affected by the project, saying he hoped people would be compensated in time when the loan application is filed before the House.

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Nathan Byanyima, the MP for Bukianga North, said the government’s decision to withdraw the loan proposal surprised him, but the country is struggling with poor roads across the country. He said the government would have used this loan window to help with the oil roads and the money available is used for road maintenance in different parts of the country.

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Byanyima demanded explanations from the Ministry of Finance on the source of the new funds that will be used for the oil roads and their plan regarding the maintenance of the various roads across the country which are in poor condition.

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Fred Kayondo, the MP for Mukono South, also said the government’s decision to withdraw a loan request within a week raises a number of planning issues by the ministry.

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Before the Minister responded to questions raised by MPs, the committee asked reporters to leave the meeting room saying they needed to have some internal interaction.

Construction work on the oil roads began in April 2019 by the China Railway Seventh Group Company Limited. It includes road widening, light grading and opening of drainage structures, branching, drainage galleries, filling potholes, blasting, crushing of base course and aggregate of concrete, excavation and clearing of topsoil.

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