The government has asked Parliament to approve a €207.77 million (about Shs842.7 billion) loan to finance the upgrading of the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu road and 10 kilometres of roads in Jinja City.
Finance Minister Henry Musasizi, accompanied by State Minister for Works and Transport Fred Byamukama, presented the loan request to the Parliamentary Committee on National Economy on Wednesday.
The proposed financing, to be sourced from Citi Bank and other financial institutions, will also cater for land compensation and construction supervision.
The project is expected to improve road connectivity in the Busoga sub-region while providing an alternative transport link between northern and southern Uganda.
Minister Musasizi told the committee that the project is economically viable, with an Economic Internal Rate of Return (EIRR) of 16.7 per cent, above the 11 per cent economic opportunity cost of capital.
Of the proposed loan, €179.26 million will finance civil works and insurance, while €28.51 million will cater for land acquisition and supervision costs.
He said the project has already been incorporated into the government’s debt sustainability analysis and the fiscal framework for the 2026/27 financial year, as well as the medium-term fiscal framework.
If approved, the project is expected to ease movement of people and goods, strengthen access to markets and services, and boost economic activity along the Jinja-Kamuli-Bukungu corridor.
