By Our Reporter
NATIONAL
Government is seeking 207.77 million pound loan (about UGX 842.71 billion) from Citi Bank and other financial institutions for the construction of Jinja–Mbulamuti–Kamuli–Bukungu Road.
The Finance Minister, Hon. Henry Musasizi accompanied by Ministry of Works and Transport Minister, Fred Byamukama presented Government’s request to Parliament’s Committee on National Economy for approval of the proposed loan on Wednesday, August 19, 2026.
According to the Ministry of Finance, the funds will finance the upgrading of the 127km Jinja–Mbulamuti–Kamuli–Bukungu Road and 10km of Jinja City roads, including land compensation and construction supervision.
The road project is expected to improve connectivity in the Busoga sub-region and provide an alternative transport link between northern and southern Uganda.
The Finance Minister said the project is economically viable with an Economic Internal Rate of Return (EIRR) of 16.7%, above the 11% economic opportunity cost of capital.
Musasizi says €179.26 million will cover civil works and insurance, while €28.51 million will finance land acquisition and supervision costs.
The Minister said the project is already included in the debt sustainability analysis and in the fiscal framework for the budget for FY 2026/27 and the medium-term fiscal framework.
