AfDB signs loan agreements to finance Busega-Mpigi express highway project linking Uganda and Rwanda

Uganda’s Minister of Finance Planning and Economic Development, Matia Kasaija, and Gabriel Negatu, East Africa Regional Development and Business Delivery Office Director General, signed African Development Bank and African Development Fund loan agreements of US $151 million for the Multinational Uganda-Rwanda Busega-Mpigi express highway project on December 29, 2016.

The loans will help finance the construction of a 23.7-kilometre four-lane express highway on a new alignment with four grade-separated interchanges. The ceremony was held at the Ministry of Finance and attended by Monica Azuba Ntege, Minister of Works and Transport, officials from the Ministries of Finance and Works and the Uganda National Roads Authority.

Matia Kasaija thanked Negatu for expediting the loans signature. He expressed appreciation for the Bank’s support and pointed out the strategic importance of the road in improving the transport services in central Uganda and its contribution to regional integration. He urged the executing agency to ensure timely implementation and pledged Government’s commitment to meet the counterpart obligations as well as ensuring compliance with safeguard requirements.

Negatu thanked the Minister and commended the Government of Uganda’s commitment to the development of infrastructure in the country. He pointed out that the Busega-Mpigi express highway project will cost US $192 million, with Bank financing of US $151 million. In addition to the civil works, the project has components for capacity building for Ministry of Works and Transport, training and capacity building for cross-border women traders at Mirama Hills and vendors (mainly women and youth in Busega Market). He further stated that, given the high traffic volume on the project road, the project will have an Operations and Maintenance Concession in order to address the project future maintenance requirements.

On the ongoing project, the AfDB Director General called up on for more efforts in order to ensure that the observed delays are avoided in future. With respect to this project, the Director General emphasized the importance of fulfilling the loan conditions for disbursement effectiveness as soon as possible, as this affects the processing of Kapchorwa-Suam.

The Minister of Works also thanked the Bank for its support in improving transport in the country.

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