Parliament has approved a motion authorising the Government to borrow up to EUR207.74 million from Citi Bank and other financial institutions to finance the design and construction of the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu road and a 10-kilometre road project within Jinja City.
The motion was presented during Thursday's plenary sitting chaired by Speaker Jacob Markson Oboth by the Minister of Finance, Planning and Economic Development, Henry Musasizi, who said the road is a critical gateway to Amolatar and Teso via Busoga.
"This road is the gateway to Amolatar and Teso via Busoga. Once completed, it will reduce transit time, enhance trade between Jinja City and other surrounding districts, in addition to linking Busoga to both Lango and Teso sub-regions via Bukungu in Buyende District," Musasizi told the House.
Presenting the report of the Committee on National Economy, its chairperson, Jane Pacuto, said while the committee supports the loan, the Ministry of Finance must adhere to the provisions of the Public Debt Management Framework 2023 to ensure minimal borrowing and debt-servicing costs.
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"Even when we are in support of this loan, we recommend that the Ministry of Finance should adhere to the provisions of the Public Debt Management Framework 2023 to ensure minimal borrowing and debt servicing costs and to safeguard debt sustainability," the chairperson said.
The committee further recommended that the project be fast-tracked to ensure timely realisation of its anticipated economic benefits, given the high cost of commercial borrowing.
"The project should be fast-tracked to ensure timely realisation of its anticipated economic benefits, given the high cost of borrowing," the report reads in part.
However, Hassan Kirumira, MP for Katikamu South, presented a minority report opposing the loan on the grounds that the commercial terms are not favourable and will burden taxpayers.
"The commercial terms are not favourable and this loan is a burden to the taxpayers. We cannot continue mortgaging this country with expensive commercial loans," Kirumira argued.
His minority report was, however, rejected by the majority of legislators, who overwhelmingly supported the loan, saying the road is strategic for regional trade, connectivity and socio-economic transformation in Busoga, Lango and Teso.
While passing the loan, legislators urged the Government to fast-track implementation of the project to ensure timely realisation of its anticipated economic benefits, given the high cost of commercial borrowing.
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The Jinja-Bukungu road project is expected to open up the islands and hard-to-reach areas of Buyende and beyond, easing the movement of goods and people and boosting trade between Jinja City and neighbouring districts.
