Parliament has approved a proposal for the government to borrow up to €207.75 million (about Shs900 billion) from Citi Bank and other financial institutions to finance the construction of the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu Road.
The financing will also cover the construction of 10 kilometres of roads in Jinja City, land compensation and supervision of the project.
The total financing package includes €17.47 million for the African Trade & Investment Development Insurance premium.
The project is expected to improve connectivity in the Busoga sub-region and provide an alternative transport link between northern and southern Uganda.
Presenting the proposal to Parliament, Finance Minister Henry Musasizi said the financing arrangement was the cheapest option available on the market and suitable for the project.
Minister Musasizi said improved road connectivity would boost access to markets and essential services for communities along the corridor.
“Improved connectivity will directly enable smallholder farmers, fishing communities around Lake Kyoga, and local traders to access commercial markets, healthcare services and educational facilities,” he told Parliament.
The minister said an economic assessment had established that the project was viable, with an Economic Internal Rate of Return (EIRR) of 16.7 per cent, above the 11 per cent economic opportunity cost of capital.
He added that the project had already been incorporated into the government’s debt sustainability analysis, the fiscal framework for the 2026/27 financial year and the medium-term fiscal framework.
The road is expected to ease movement of people and goods, strengthen trade within Busoga and improve access to key economic and social services.
