With only Shs13billion collected in five months from Kampala- Entebbe Expressway road tolls, how will the government manage to meet its Shs1.3 Trillion loan obligation in the agreed time?

On January 8, the government started collecting road tolls along the 51.4km Kampala-Entebbe Expressway, which is worth $476 million (Shs1.8 trillion).

Of that total money, $350 million (Shs1.3 trillion) was a loan from China Exim Bank, while the remaining $126 million (Shs474 billion) was provided by the government of Uganda.

While commencing the toll collection, the Minister of Works, Gen. Katumba Wamala, said that the fees collected will be used to help settle the outstanding loan and help in the maintenance of the road.

In the first month, the government collected at least Shs2.5 billion, while the Head of Communications of the Uganda National Road Authority, Stephen Kitenga, stated that Shs1 billion was collected in the first week.

In five months since the commencement of the road tolls, the government has managed to collect Shs13billion. This means the government approximately collects Shs2 billion per month. And the question remains, will the government be able to settle the loan in the 13-year repayment period.

The agreed payment schedule runs from July 21, 2019, to January 21, 2032. And the government plans to pay about $26.8 million dollars (approximately Shs102billion) every year meaning that government needs to collect at least Shs8 billion per month to be able to meet the loan obligations.

The Kampala Entebbe Expressway is a four-lane road with over 19 flyovers. The road toll payment plan is as follows; motorcycles with more than 400cc and not boda bodas pay Shs3000, light vehicles pay Shs5000, medium-goods vehicles (2-3 axles) shs10,000, large goods vehicles and buses (4 axles) pay Shs15000, whereas large goods vehicles pay Shs18000. 

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