Government has tabled a proposal seeking approval of Parliament to borrow USD 108,323,942 (Shs384.98bn) to construct oil roads.
The motion was tabled by Thomas Tayebwa (Government Chief Whip) who informed Parliament that the funds are going to be borrowed from China Construction Bank Corporation and will go towards the construction of several roads in the oil graben including; Masindi-Biiso Road 54KMs, Hohwa-Nyairongo-Kyarushesha-Butole 25KMs and Kabaale Kiziranfumbi Road 25.7Kms.
Speaker Jacob Oulanyah referred the request to Parliament’s committee on National Economy for scrutiny and report back to Parliament within 45days.
Theodore Ssekikuubo (Lwemiyaga County) wondered why it has been tabled by the government chief whip instead of the minister of finance, yet the Ministry of Finance has five Ministers.
Speaker replied saying the absence of Ministers wouldn’t stop Parliament from carrying out its duties, before Tayebwa informed parliament that the ministers of Finance are meeting the president to discuss the budget framework paper which has to be presented to parliament next week.
If the loan is approved, it is likely to increase Uganda’s public debt following a report by the Central Bank in the Monetary Policy Report for the period ended August, revealed that the stock of public debt had grown from USD17.96Bn equivalent to Shs65.83Trn as of June 2020 to Shs70.3Trn as of June 2021 representing an increase of Shs4.47Trn.
