Uganda gets $151m loan for expressway to Rwanda

The African Development Bank (AfDB) has agreed to loan Uganda $151m to build an expressway to Rwanda.

The loans will help finance the construction of a 23.7-km, four-lane, Busega-Mpigi express highway on a new alignment with four grade-separated interchanges.

Deal being signed on 29th December 2016 (AfDB)

Uganda’s Minister of Finance Planning and Economic Development, Matia Kasaija, signed the deal with AfDB’s regional director general Gabriel Negatu on 29 December 2016.

Matia Kasaija noted the strategic importance of the road in improving the transport services in central Uganda and its contribution to regional integration.

He urged the executing agency to ensure timely implementation and pledged Government’s commitment to meet the counterpart obligations as well as ensuring compliance with safeguard requirements.

The highway project will cost $192m, with AfDB lending $151m.

In addition to the civil works, the project has components for capacity building for Ministry of Works and Transport, training and capacity building for cross-border women traders at Mirama Hills and vendors (mainly women and youth in Busega Market).

Given the high traffic volume on the road, the project will have an Operations and Maintenance Concession in order to address the project future maintenance requirements.

The AfDB Director General called for more efforts to ensure delays are avoided.

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