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Gov’t Seeks Shs280bn Supplementary Budget To Buy Airplanes

The Uganda government on Wednesday presented to Parliament a  request for approval of  Shs280bn supplementary budget as down payment for the first phase of the two 2 Bombardier jets from Canada in a move aimed at reviving  Uganda airlines.

This was revealed by State Minister for Planning, David Bahati while interfacing with MPs on the Budget Committee, where the team fromn the Ministry of Finance had appeared to defend the Shs1Trn supplementary budget being sought by the government.

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Bahati told the Committee that the payment is required by the manufacturer in order to facilitate the delivery of two jets within 10 days so as to allow the airline embark on its operations soon. 

He added that the funds will be obtained from the consolidated fund and Petroleum Fund.

 “We need to pay Shs280bn; we have taken a decision and we are proposing that proceeds from the MTN license and also the capital gains tax from the proceeds from the Petroleum Fund be used to finance the Shs280bn required to complete the payment for the first delivery of the two Aircrafts and this payment is required in ten days,” Bahati said.

It should be noted that in 2018 government ordered for the manufacture of aircrafts to a tune of USD190M ( about Shs702.8bn) for the four CRJ 900 jets from Bombardier, a Canadian manufacturer for regional airliners.

Uganda Airlines is expected to take to the skies before April this year, with a number of regional routes using Bombardier CRJ900 aircrafts and later international routes when the Airbus A330-800 planes are delivered.

According to the available information, the airline will operate scheduled and non-scheduled passenger and cargo flights to destinations in Africa, Asia, Europe, Middle East and beyond as it expands its network across the world.

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