Government has Friday signed loan Agreements with the African Development Bank (ADB) for financing of two regional infrastructure development projects.
The two projects which include the upgrading of the 73 kilometre Kapchorwa-Suam road and the implementation of the multinational Lake Victoria Maritime Communication Transport project will be jointly financed by Uganda and ADB at a total sum of USD 119.7 million (Shs 432 billion).
The Agreements were signed by the State Minister of Finance for Investment and Privatization, Evelyn Anite representing Finance Minister Matia Kasaija, together with the Director General of the African Development Bank for East Africa Regional Resource Centre (EARC), Gabriel Negatu at the Ministry of Finance headquarters in Kampala.
The road project that links Uganda to Kenya through the border post of Suam is estimated to cost USD 105.7 million (Shs 381 billion) and targets to benefit 1.4 million people including local and regional traders upon completion. Government says the improved road infrastructure will reduce the time and transportation costs to boost regional trade.
Furthermore, the upgrade of the road seeks to ease access to markets for commercial producers, improve household incomes as well as create jobs during the process of road construction.
On the other hand, the USD 14 million (Shs 50 billion) Lake Victoria maritime project which is to be implemented in 4 years is part of a tripartite project for the three countries Uganda, Kenya and Tanzania that fall in the lake basin. All the three countries combined will invest USD 24.7 million.
According to Telly Eugene Muramira, the Deputy Executive Secretary for the Lake Victoria Basin Commission, the project will provide critical safety on the lake which claims 5,000 lives annually, most of them fishermen.
He said that the communication system will enhance coordination by establishing search and rescue centres. With the main coordination centre located in Mwanza, the Ugandan side will have 12 stations set up, installed with audio and video surveillance devices to track all passenger boats.
In her remarks, Minister Anite underscored the need for regular supervision by relevant agencies and timely implementation of the two projects saying “we shall not accept any sort of delay or corruption”.
On the part of the African Development Bank, Gabriel Negatu said that both projects are in line with the East African regional integration and will drive economic development. He however asked that the resources be put to good use through proper implementation and supervision.
Elaborating on the progress for the Kapchorwa-Suam road project, the UNRA Executive Director, Allen Kagina said that the procurement process for both the contractor and supervisor is in its advance stages with contracts scheduled to be signed in less than a month.
At least 30.6% of the land to be used for the project will be acquired by commencement of works at the end of February.
The event was also witnessed by the Minister of Works and Transport, Monica Azuba Ntege.