The Ugandan government has signed a financing agreement with Citi Bank worth EUR 126.44M (approximately $136.95M) to fund the design and construction of the 97km Lusalira-Nkonge-Lumegere-Ssembabule Road.
Minister of Finance, Planning and Economic Development, Matia Kasaija, signed the agreement.
He revealed that Citibank was the sole coordinating Mandated Lead Arranger of the loan facility.
The State Minister for Finance (General Duties), Henry Musasizi, revealed that M/s Technovia S.A, in joint venture with Technovia Angola, will undertake the construction.
The project is supported by African Trade and Investment Development Insurance (ATIDI) and the Development Bank of Southern Africa (DBSA), with Absa Bank (Mauritius) Limited participating in the syndicate.
Musaasizi said, the road, connecting Ssembabule and Mubende districts, will stimulate local economic activities, improve connectivity, reduce road maintenance and vehicle operating costs, and enhance socio-economic development.
Minister of Works and Transport, General Katumba Wamala, emphasized the road’s critical role in Uganda’s development, particularly in the oil project, and urged the contractor to respect the 30% local content policy.
Ebru Pakcan, Citi’s CEO for Middle East and Africa, noted that infrastructure development is crucial for economic and social progress.
“This transaction represents Citi’s strong commitment to sustainable economic development with the goal of enhancing social progress in Uganda and the broader East African region,” she said.
The 10-year loan facility will upgrade the road, enabling the transport of farmer produce to urban markets and stimulating rural economic growth.