The Arab Bank for Economic Development in Africa (BADEA) and the Republic of Uganda signed, today, Sunday, February 19, 2017, at BADEA’s Headquarters in Khartoum a US $ 11.50 million, Loan Agreement to finance Upgrading of Luwero – Butalangu Road Project and a Guarantee Agreement for two Lines of Credit amounting to US $ 6 million and US $ 10 million in favour of Uganda Development Bank to contribute towards financing private sector projects and financing imports from Arab countries to African countries, respectively.
The loan for the road project will support the Upgrading of Luwero – Butalangu Road, within the framework of the Government of Uganda’s program, so as to develop the transport sector in general and the national roads network in particular and the integration of the regional roads network. The road will connect the central eastern regions in “Luwero” and “Nakaseke” with the rest of the country and the Capital “Kampala”. It will also ease the transport of goods and passenger in the region and in achieving the food security and secure the access to the centers of the social services (schools and health centers).
The project will also improve the efficiency of traffic and security on the current road, reduce the travel time and cost for trips, as well as operational cost for vehicle which will lead to reducing the transport cost and help in reducing poverty in the project region. The two agreements have been signed by H.E. Dr. Sidi Ould TAH, Director General of BADEA and by H.E. Mr. Matia Kasaija, Minister of Finance, Planning and Economic Development for the Republic of Uganda.
It is worthy to note that, including these new loans, the total commitments of BADEA towards the Republic of Uganda reached US $ 184,59 million dollars to finance (38) development operations consisting of (20) projects, (14) technical assistance operations (2) operations in the field of external trade, private sector and (2) Special Arab Assistance for Africa (SAAFA) loans.