Cabinet approves gov’t proposal to borrow over Shs399 billion from China for the construction of oil roads

Ever since oil was discovered in Uganda, the government has been working hard to develop the infrastructure required to take the oil and its products to the market and use the revenue to develop the country.

This infrastructure includes refineries for value addition, tanks for storage, pipelines and roads for transportation among others. The government has tried to construct roads but more of these are still needed, and it is because of this that they have decided to run to our friends in the far east, China, to borrow money that will fund their construction.

In a meeting that was held on Monday, February 10, 2020, Cabinet approved the proposal by government to borrow €108.5 (about Shs399) from the Industrial and Commercial Bank of China for the construction of oil roads.

The roads in question include Masindi – Biiso, Kabaale – Kiziranfumbi, and Hohwa – Nyairongo – Kyarusesa – Butoole road upgrading project.

According to Cabinet, upgrading and constructing the national oil roads will facilitate the efficient development and production of the strategic national oil resources, and enhance the tourism potential of Murchison Falls National Park and the areas around by provision of a sustainable upgraded paved road solution which addresses the challenges faced in transportation in the area.

The roads will also be used for the importation of plant and equipment for production from the seaport/s, and movement of construction materials, workers and consumables from other parts of the Country.

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