Government is given the green light to borrow Euros207.75 million from Citi bank and other financial institutions to finance the design and building of the Jinja-Mbulambuti-Kamuli-Bukungu road and Jinja City roads.
The motion seeking approval of the loan request was presented by the Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi on Thursday, 03 September 2026.
He said that the 127km Jinja-Mbulambuti-Kamuli-Bukungu road forms a critical transport corridor linking Busoga to Lake Kyoga in Teso and provides an alternative route between Northern and Southern Uganda.
“The road connects to several districts across the waters of Lake Kyoga and the terminal end of the road at Bukungu is a gateway to districts of Amolatar, Kaberamaido, Soroti, Nakasongola and Kayunga,’ Musasizi said.
He added that the 10km Jinja city roads will enhance trade between Jinja city and the neighboring districts.
“Intervening in 10km of urban roads within Jinja city directly supports urban mobility, facilitates industrial transport within Uganda’s primary industrial city and boosts local trade,” Musasizi said.
In its report, the Committee on National Economy recommended approval of the loan but quickly added that the loan agreement should not be signed until the Ministry of Works and Transport completes registration of all Project Affected Persons (PAPs).
The Chairperson of the Committee, Hon. Jane Pacuto said that whereas the Works Ministry undertook land valuation in 2022 with compensation of PAPs estimated at Shs112.8 billion, the valuation report has neither been updated nor submitted.
“Consequently, the quoted values may vary once the updated valuation is completed. Given that the valuation reports are not yet complete, there is a risk of project delays arising from the fact that PAPs have not been conclusively engaged under the new policy,” Pacuto said.
The committee called for the expeditious determination, approval and disclosure of conclusive compensation amounts to PAPs, stating that this will ensure that financing becomes effective and minimise implementation delays.
“The Ministry of Finance should not source or commit to financing projects involving PAPs until resettlement impacts are fully assessed,” Pacuto said.
Presenting the minority report, Hon. Hassan Kirumira (NUP, Katikamu County South) objected to the loan request and recommended that the issue of compensation of PAPs should be concluded before the loan agreement is signed.
“It is risky to proceed with the loan request; PAPs are raising concerns considering land value has appreciated value. Without mutual agreements, the project will suffer high costs due to undisbursed loan,” Kirumira said.
He also urged government to consider concessional loans saying that commercial loans are expensive and yet the country is grappling with a heavy debt burden.
“The loan is expensive; part of it is commercial with a short maturity period of six years. We are not sure that after that, government will not borrow another loan,” Kirumira said-Ug. Parliament. Give us feedback on this story through our email: kamwokyatimes@gmail.com
