The African Development Bank (AfDB) and the African Development Fund (ADF) have committed to provide US$ 151 million (Ushs 528 billion) in loans to the government of Uganda for the construction of the Busega-Mpigi express highway. The four-lane highway will evacuate traffic from Kampala far afield onto the Masaka road which connects Uganda to Rwanda.
Matia Kasaija, Uganda’s Minister of Finance Planning & Economic Development signed the agreement on behalf of the government of Uganda, while Gabriel Negatu, East Africa Regional Development and Business Delivery Office Director General, signed on behalf of African Development Bank and African Development Fund, December 29, 2016.
The loans will finance the construction of the 23.7-kilometre four-lane express highway on a new alignment with four grade-separated interchanges.
Matia Kasaija said the road is of strategic importance because it will improve traffic flow and transportation services in central Uganda, and it will also contribute to regional integration, as it is a major highway link to Rwanda. He urged the Uganda National Road Authority, the executing agency, to ensure that the project is expedited timely. He pledged Government commitment to meet the counterpart obligations as well as ensuring compliance with safeguard requirements.
Negatu commended the government of Uganda’s commitment to development of infrastructure in the country. He pointed out that the Busega-Mpigi express highway project will cost in total US $192 million (Ushs 672 billion), with the Bank financing US $151 million.
Besides the civil works, the project has components for capacity building for the Ministry of Works and Transport, and training, capacity building for cross-border women traders at Mirama Hills and vendors (mainly women and youth in Busega Market).
Negatu said given the high traffic volume on the project road, the project will have an operations and maintenance concession in order to address its future maintenance requirements.
On the ongoing project of Kapchorwa-Suam road in eastern Uganda, Negatu said there was need to double efforts to ensure that the current delays are avoided. He emphasized the importance of fulfilling the loan conditions for disbursement effectiveness.
Monica Ntege Azuba, the Minister of Works & Transport thanked the Bank for its support in improving transport in the country.
