Cabinet sat on Monday February 10, 2020 at State House, Entebbe and approved the proposal to borrow up to Euro 108,521,152.60(Shs435.3bn) from the Industrial and Commercial Bank of China.
This will to finance the Masindi-Biiso, Kabaale – Kiziranfumbi and Hohwa –Nyairongo – Kyarusesa – Butoole Road Upgrading Project.
According to government, upgrading and constructing the national oil roads will facilitate the efficient development and production of the strategic national oil resources, enhance the tourism potential of Murchison Falls National Park and the areas, by provision of a sustainable upgraded paved road solution which addresses the challenges faced in transportation in the area.
“At the regional level, (it will) add to the network of road infrastructure required for importation of plant and equipment for production from the seaport/s and movement of construction materials, workers and consumables from other parts of the Country,” Government says.
According to the Report of Budget Committee on 2019/20 budget estimates, Uganda’s total public debt stock increased by 12.5% to USD11.52bn (approximately Shs43.31 trillion) as at end December 2018 from USD10.24bn (approximately Shs38.5 trillion) at end December, 20l7.
The report further stated that the external debt stock increased by USD 0.78Bn to USD7.66Bn by end of December 2018 from USD6.88Bn at the end of December 2017, with the increase mainly from China (25 percent) and World Bank (40 percent).
This means that the debt has since increased considering the fact that government has been on a borrowing spree since then.
Uganda’s public debt ceiling is 50% of the GDP.
