Govt Seeks Shs843bn Loan to Upgrade 137km Jinja–Bukungu Road Network

What the report says

Uganda’s government has asked Parliament to approve a €207.77 million loan, equal to about Shs843 billion, to finance major road upgrades in the Busoga sub-region. According to Nile Post, the request was presented to the Parliamentary Committee on National Economy by Minister of State for Finance Henry Musasizi, who was joined by Minister of State for Works and Transport Fred Byamukama.

The proposed project covers the 127-kilometre Jinja–Mbulamuti–Kamuli–Bukungu corridor plus 10 kilometres of urban roads in Jinja City, for a total of 137 kilometres. The financing would come from Citi Bank and other international financial institutions. Musasizi told lawmakers the project is considered economically viable, citing an Economic Internal Rate of Return of 16.7%, and said the borrowing has already been included in the government’s debt sustainability analysis and fiscal framework.

Nile Post reported that €179.26 million of the loan would go toward civil works and commercial insurance, while €28.51 million would cover land acquisition compensation and construction supervision. The upgraded road network is expected to improve movement of people and goods across Busoga and provide a transport link between northern and southern Uganda.

The committee is expected to review the terms before sending its recommendation to the full Parliament. More broadly, road projects like this are often presented as part of efforts to support trade, regional connectivity and easier access to markets and services.