The Ministry of Finance has revealed plans to hit the credit market and procure 29 more loans valued at over Shs18.7Trn in the near future to fund various public projects amidst reports that Uganda’s public debt has grown to US$24.60 Billion (Shs93.38Trn) as at end December 2023.
The details are contained in the Report on Public Debt, Grants, Guarantees and other Financial Liabilities for Financial Year 2023/2024 that was released by Ministry Of Finance and is set to be laid before Parliament, by the Finance Minister in accordance with the Public Finance Management Act, (2015) Sections 39(4),42 (2-3) & 44(5).
Although some projects have prospective financiers, the Standard Gauge Railway project estimated at US$1,928.86 (Shs7.296Trn) features top on loans in pipeline. However, the funder is yet to be identified.
Another loan in the pipeline is the US$414.8Mn (Shs1.569Trn) for the 2023/24 budget support with the status of the loan indicating that discussions are on-going with the prospective financiers.
Government has also earmarked the construction of Mbale-Bulambuli Transmission line at a cost of Euro40Million (Shs164.498Bn) and the project is expected to be overseen by Uganda Electricity Transmission Company Limited (UETCL) and the loan status indicates that discussions are on-going with prospective financiers.
The Ministry of Finance is also holding negotiations with Citi Bank to fund the construction of oil roads including; (Lusalira-Nkonge-Lumegere-Ssembabule by Uganda National Roads Authority (UNRA) at a cost of US$130Mn (Shs 491.848Bn) and negotiations are currently on going with the Financier.
Similar negotiations with the same funder are ongoing for the development of Kabwoya-Buhuka and Ntoroko-Karugutu) by UNRA at US$108.11 M (Shs 409.028Bn), while another loan worth EUR150M (Shs 616.870Bn) is in the pipeline for the development of Kisoro Industrial Business Park by Uganda Investment Authority, with discussions on-going with the financier.
Another loan in the pipeline is the Euro196M (Shs 806.044Bn) for the development of Kasese Industrial Business Park by Uganda Investment Authority, whose discussions are said to be on-going with the financier.
In a bid to enhance agricultural production, quality and standards for Market Access Project, the Ministry of Agriculture has lined up a loan request of US$160M (Shs 605.352Bn), while another loan in the pipeline is the construction of Kidepo-Kitgum Road (tourism road 115km) by UNRA at Euro110.543 Million (Shs 454.604Bn) with negotiations believed to be underway with the financier.
The French Development Agency has expressed willingness to fund the construction of Katuna-Muko Kamuganguzi Road (104.0 km) and Laropi-Moyo-Afogi & 1.2km bridge Road at US$206.15 M (Shs779.958Bn) in a project that will be overseen by UNRA and discussions are still ongoing with the financier.
The Ministry of Local Government has lined up two loans including the US$19.24 M (Shs 72.793Bn) and US$32.1 M (Shs121.448Bn) to finance the Markets and Trade Agricultural Improvement Program with discussions reported to be on-going with the financier, who is believed to be the African Development Bank.
In the health sector, plans are underway to secure a Euro8.5 M (Shs34.955Bn) for the establishment of Regional Oncology and Diagnostic Center in Mbale Institute from Australia, with the project set to be managed by Uganda Cancer Institute, while talks are ongoing to secure additional funding to finance the ongoing expansion of Uganda Cancer Institute Project worth US$14 M (Shs 52.968Bn).
The Ministry of Health has planned to rehabilitate Bugiri Hospital at a cost of US$20 Million (Shs75.669Bn) and discussions are said to be on-going with the financier who has been identified as BADEA.
