Sunday, July 21, 2024
Home > News > Gov’t Eyes 18 More Loans To Finance Budget In 2023 & 2024
News

Gov’t Eyes 18 More Loans To Finance Budget In 2023 & 2024

Government through the Ministry of Finance, Planning and Economic Development has revealed plans to acquire additional 18 loans mainly to finance key infrastructure projects.

The Ministry of Finance’s plans are contained in the Report on Public Debt, Grants, Guarantees and Other Liabilities for 2022/2023 published in March 2023, but was only made public in May 2023, in which it outlined 18loans in the pipeline, with some having already been approved by Parliament to finance the current budget, while other loans are still under appraisal and negotiations, while the rest are before cabinet for scrutiny.

Among the loans in the pipeline include; Greater Kampala Metropolitan Area Under the Integrated transport infrastructure and services being funded by the World Bank worth US$518Mn (Shs1.942Trn and the loan is before Cabinet for consideration.

Another loan Government is eyeing from the World Bank is the US$325Mn (Shs1.218Trn) to implement the Climate Smart Agriculture Project under the Agro-industrialisation, and this loan is under scrutiny in Cabinet.

Government is also holding negotiations with the International Development Bank (IDB) to secure a US$295Mn (Shs1.106Trn) loan to upgrade some National Roads including;  (Kyenjojo-Bwizi-Rwamwanja-Kahunge/Mpara-Bwizi, Katine-Ochero road and Masindi Port Bridge) under the Integrated transport infrastructure and services.

For the construction of the second phase of Bukasa Port under the Integrated transport infrastructure and services programme, Government is seeking for funding from the Trade and Development Bank to a tune of US$492.8Mn (Shs1.848Trn) and both the loan and project are under appraisal.

The plans by Government to refurbish Kampala-Kasese meter gauge under the Integrated transport infrastructure and services, the World Bank has indicated a loan facility of US$450Mn (Shs1.689Trn) which facility is also still under appraisal.

The Ministry of Finance is seeking for a financing partner alongside the Trade and Development Bank to finance the construction of Moroto-Kotido, Kotido-Kaabong Road with TBD having provided funding o a tune of US$174.74Mn (Shs655.337Bn).

Another road that Government is seeking to construct through a loan is the construction of Ishasha – Katunguru Road (88km) with the Trade and Development Bank having availed a loan amounting to US$100Mn (Shs375.337Bn) and Government is seeking For a Financing Partner to help in the execution of this project.

Bank of Uganda’s State of the Economy April 2023 Report put Uganda’s provisional total public debt stock as at end March 2023 at Shs86.352Trn.

Leave a Reply

Your email address will not be published. Required fields are marked *