Arua — Uganda secured €155.99 million (Shs 677.4 billion) in financing from the African Development Bank Group to transform Arua Airport into an international gateway, a project aimed at boosting trade, tourism and regional integration in East and Central Africa.
The funding, approved by the lender's board, will finance the first phase of Uganda's Airports Development Programme, upgrading the airport in the country's northwestern region into a facility capable of handling international passenger and cargo traffic.
Located about 450 kilometres from Kampala, Arua serves as a key link to South Sudan and the Democratic Republic of Congo. The airport's expansion is expected to strengthen Uganda's position as a regional logistics hub while opening new markets for exporters and investors.
The project includes construction of a 3.5-kilometre runway capable of accommodating wide-body aircraft such as the Boeing 777, alongside new taxiways, aprons and a passenger terminal designed to handle up to 700,000 travellers annually. A cargo facility with capacity for 25,000 tonnes a year, a control tower and upgraded safety systems will also be built.
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The programme's total cost is estimated at €157.76 million (Shs 685billion). The African Development Bank will provide €141.15 million (Shs 612bilion), while the African Development Fund, its concessional lending arm, will contribute €14.84 million (Shs 64billion). Uganda will provide an in-kind contribution of €1.77 million (Shs 7.7billion).
"This project is about more than an airport. It is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda's role as a regional trade and logistics hub," said Mike Salawou, the Bank Group's Director for Infrastructure and Urban Development.
The Uganda Civil Aviation Authority will oversee implementation. Director General Fred Bamwesigye described the project as a strategic investment that will strengthen aviation infrastructure, support economic transformation and provide an alternative landing facility to Entebbe International Airport during emergencies.
Arua is currently Uganda's second-busiest airport after Entebbe and sits at the centre of a region rich in agricultural, tourism and mineral resources. Improved air connectivity is expected to reduce transport costs for exporters, particularly those shipping high-value and perishable goods to regional and international markets.
The project is forecast to create about 500 direct jobs during construction and more than 1,400 indirect jobs across tourism, agriculture and trade, while providing technical skills training for at least 100 young people.