Govt to borrow Shs1.9 trillion from World Bank for Kampala roads

Parliament has approved a Shs1.9 trillion loan request from the government to finance the development and improvement of infrastructure in Kampala Metropolitan Area.

The loan request, which is being fronted to the International Development Association (IDA) of the World Bank, will help in implementation of Greater Kampala Metropolitan Area Urban Development Programme (GKMA-UDP).

However, the request came on the backdrop of World Bank’s suspension of new financing to Uganda over the latter’s passing of the Anti-Homosexuality Act, raising many questions from legislators.

The Deputy Speaker, Mr Thomas Tayebwa, asked for clarity from government on whether the particular loan request will not be affected by the World Bank’s decision.

But speaking on the floor of Parliament on Wednesday, the State Minister of Finance-in-charge of General Duties, Mr Henry Musasizi, assured legislators that the programme had already been approved by the World Bank.

“On May 31, 2022, the World Bank Board approved the greater Kampala Metropolitan Area Urban Programme and this approval is scheduled to expire on November 30, 2023; therefore, the assurance I want to give this House is that the project is not among those affected by the World Bank statement,” Mr Musasizi said.

Parliament also approved a government request to borrow Shs159 billion from France to facilitate the same Kampala metropolitan development project.

Metre gauge railway
And to facilitate the Kampala-Malaba meter gauge railway project, Parliament approved another loan request totalling Shs931 billion to be borrowed from the African Development Fund, African Development Bank and the Corporate Internationalisation Fund of Spain.

Several legislators supported the processing of the approval of the loans, reasoning that they would help in improving infrastructure development in the country.

Ms Cecilia Ogwal (Dokolo-FDC) said although she was very excited about the loans because they were targeting to revive the railway line and fix roads in the greater Kampala, there was a need to come up with an inter-ministerial committee for the purpose of implementation.

Meanwhile, the initiator of the recently enacted anti-gay law, Mr Asuman Basalirwa (Bugiri Municipality), informed legislators that he was contemplating suing World Bank over its suspension of funding to Uganda. He then wondered why the House had not been given an opportunity to react to the institution’s official statement.

But Mr Tayebwa responded that it was because the government was handling the matter.
“The matter is being handled by the Executive. If I allow debate on the matter, I know where the discussion will go and on that matter we stop there,” he said.

About project...Catalysts
Greater Kampala Metropolitan Area Urban Development Programme (GKMA-UDP)  will support infrastructure development, in Kampala, Entebbe, Kira, Makindye-Ssabagabo, Mukono and Nansana municipalities as well as Mukono, Mpigi and Wakiso districts.

The loan request also originates with a grant of Shs178 billion