Uganda's Parliament has received and referred two significant loan requests to the House Committee on National Economy for further examination.
The loans, tabled by State Minister for Finance Henry Musasizi, aim to support critical infrastructure projects in the country.
The loan requests include the US$20 million loan from BADEA. The Arab Bank for Development in Africa (BADEA) has offered a US$20 million loan to upgrade the 16km Nebbi-Goli Road. This project is expected to improve transportation infrastructure in the region, enhancing economic activity and connectivity.
The second one is US$121.96 Million Loan from African Development Fund: The African Development Fund has proposed a loan of UA91,700,000 (approximately US$121.96 million) to finance the construction of the South Sudan-Uganda Power Interconnection Project (SUPIP). This initiative aims to strengthen energy cooperation between the two countries and enhance Uganda's power supply.
The House Committee on National Economy will thoroughly examine these loan requests, ensuring that the terms and conditions align with Uganda's economic interests. This scrutiny is crucial in light of Uganda's growing public debt, which has reached Shs116.2 trillion.
Minister Musasizi emphasised the importance of these projects, stating that they will contribute significantly to Uganda's economic development.
He assured Parliament that the government will ensure the loans are utilised effectively to achieve their intended purposes.
The Minister says these loan requests underscore Uganda's commitment to improving its infrastructure and promoting economic growth.
As Parliament deliberates on these proposals, lawmakers will carefully consider the potential impact on the country's debt burden and the benefits of these projects for Ugandan citizens.