Uganda's Ambitious Infrastructure Borrowing Plan: A Step Towards Regional Connectivity

Uganda intends to borrow $358 million from various lenders to fund infrastructure projects, including a power grid connection with South Sudan. The loan will also support road and water projects. The plan, introduced by Finance Minister Henry Musasizi, awaits parliamentary review and approval for implementation.

Uganda is set to secure a $358 million loan from regional and private lenders to bolster its infrastructure development, a finance ministry official has announced. This amount will facilitate the creation of a power grid interconnection with South Sudan, supported by the African Development Fund, the Arab Bank for Development in Africa, and Standard Chartered Bank. The announcement was made by junior finance minister Henry Musasizi during a parliamentary session.

A committee of both ruling party and opposition lawmakers will scrutinize the borrowing proposal, as Deputy House Speaker Thomas Tayebwa referred the loan request for review. The findings will be compiled into a report before a full parliamentary debate and vote. Additional projects to benefit from the funding include a road linking Uganda to the Democratic Republic of Congo and enhancements to clean water access.

Despite Uganda's surplus power supply, thanks to a $1.7 billion hydropower dam funded by China, the nation aims to export electricity to neighboring South Sudan. Discussions with Chinese company Sinohydro are underway to construct a 138-kilometer high-voltage transmission line, expanding current substations and building a new facility.

(With inputs from agencies.)