The government withdraws a loan request of 96 million euros for 5 oil roads
The government has suspended plans to finance critical oil road construction with a € 96.3 million loan from the China Construction Bank Corporation.
The loan request had been submitted to parliament for the financing of roads including Masindi – Biiso (54 km), Hohwa – Nyairongo-Kyarushesha – Butole (25 km) and Kabaale-Kiziranfumbi (25.7 km).
The request was filed by Chief Government Whip Thomas Tayebwa and referred to the National Economic Committee for consideration.
The committee chaired by the Honorable John Bosco Ikojo (Bukedea County) is mandated, among other things, to make recommendations on all loan agreements in accordance with article 159 of the 1995 Constitution.
However, today, Tuesday December 21, 2021; Minister of State for Finance (General Functions) Henry Musasizi did in turn, revealing that the government no longer needed the loan.
“As a result of internal reviews on the project and financial performance, we believe that by using government resources, we can finance these roads without necessarily having to borrow from the outside. And in this regard, Mr. President, I wish to withdraw the loan request from the consideration of the Committee and the Parliament, ”he said.
Musasizi’s change of mind surprised some MPs including Nathan Byanyima (Bukanga County) and Fred Kayondo (Mukono Sud) who wondered how the government had suddenly mobilized resources for this purpose and yet the same government complained. repeatedly to be strapped for cash.
“Last week they presented this loan request to parliament and after a week they withdraw it…. You cannot convince this committee that in less than two weeks you have mobilized this money, ”Kayondo said.
In response, however, Musasizi said the loan application was filed in error due to “confusion”.
The construction of the oil roads, he said, “has already been provided for in the national budget and 51% of the works have already been carried out”.