Gov’t gets parliamentary approval to borrow €207.75mln for Busoga roads
The motion seeking parliamentary approval of the loan request was presented to the House on Thursday by Finance Minister Henry Musasizi
KAMPALA, September 5, 2026 — Government has been given the green light to borrow €207.75 million from Citi Bank and other financial institutions to finance the design and construction of the Jinja-Mbulambuti-Kamuli-Bukungu road and roads in Jinja City.
The motion seeking parliamentary approval of the loan request was presented to the House on Thursday by Finance Minister Henry Musasizi.
Musasizi said the 127-kilometre Jinja-Mbulambuti-Kamuli-Bukungu road forms a critical transport corridor linking Busoga to Lake Kyoga in Teso and provides an alternative route between northern and southern Uganda.
“The road connects to several districts across the waters of Lake Kyoga and the terminal end of the road at Bukungu is a gateway to districts of Amolatar, Kaberamaido, Soroti, Nakasongola and Kayunga,” Musasizi said.
He added that the 10 kilometres of roads in Jinja City would enhance trade between the city and neighbouring districts.
“Intervening in 10km of urban roads within Jinja City directly supports urban mobility, facilitates industrial transport within Uganda’s primary industrial city and boosts local trade,” Musasizi said.
In its report, Parliament’s Committee on National Economy recommended approval of the loan but cautioned that the loan agreement should not be signed until the Ministry of Works and Transport completes the registration of all Project Affected Persons [PAPs].
The chairperson of the committee, Jane Pacuto, said that although the Works Ministry undertook a land valuation exercise in 2022, with compensation for PAPs estimated at Shs112.8 billion, the valuation report had neither been updated nor submitted.
“Consequently, the quoted values may vary once the updated valuation is completed. Given that the valuation reports are not yet complete, there is a risk of project delays arising from the fact that PAPs have not been conclusively engaged under the new policy,” Pacuto said.
The committee called for the expeditious determination, approval and disclosure of the final compensation amounts to PAPs, saying this would ensure that the financing becomes effective and minimise implementation delays.
“The Ministry of Finance should not source or commit to financing projects involving PAPs until resettlement impacts are fully assessed,” Pacuto said.
Presenting the minority report, Hassan Kirumira, the Katikamu County South MP, objected to the loan request and recommended that the issue of compensation for PAPs be concluded before the loan agreement is signed.
“It is risky to proceed with the loan request; PAPs are raising concerns considering land value has appreciated. Without mutual agreements, the project will suffer high costs due to an undisbursed loan,” Kirumira said.
He also urged the Government to consider concessional loans, saying commercial borrowing was expensive at a time when the country was grappling with a heavy debt burden.
“The loan is expensive; part of it is commercial with a short maturity period of six years. We are not sure that after that, Government will not borrow another loan,” Kirumira said.
James Waluswaka, the Bunyole West legislator, supported the loan approval but urged the Government to remove funding for road design, saying the design had already been completed by the ministry.
Kagoma County MP Moses Walyomu said the Jinja-Mbulambuti-Kamuli-Bukungu road would boost tourism in the Busoga region.
“The road is along tourism sites like Busowoko and Itanda Falls. This will help the tourism sector,” he said.
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https://thecooperator.news/mtic-holds-cooperative-clinic-in-jinja-to-revitalise-busoga-sector/
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