MPs approve new Entebbe road loan
May 02, 2011
PARLIAMENT has allowed the Government to borrow $350m (about sh700b) from the Chinese Exim Bank to finance the construction of the Kampala-Entebbe express highway.
By vision reporters
PARLIAMENT has allowed the Government to borrow $350m (about sh700b) from the Chinese Exim Bank to finance the construction of the Kampala-Entebbe express highway.
The project involves the construction of a 37km road from the Busega-Mityana junction to the Entebbe road at Kajjansi. It will have a spur of 14.13km from Lweza connecting to Munyonyo.
The remaining part of the road to Entebbe International Airport will be upgraded to a dual carriageway.
The highway will measure 52.4km and will comprise a four-lane carriageway.
Stephen Biraahwa, the chairperson of the parliamentary committee on national economy, presented the report on the project to parliament last week. The committee observed that the project was long overdue.
The committee pointed out that the project would reduce the travel time and costs to Entebbe airport.
The MPs said the highway would ease the flow of traffic between the airport and Kampala city, which is the principle centre of commerce, industry and administrative headquarters.
They added that the express highway would contribute to the implementation of the Greater Kampala Metropolitan Area Transport Master Plan intended to decongest the city. Travellers will, however, be charged for using the highway.
All MPs supported the acquisition of the loan. However, several criticised the unfair terms imposed by the Chinese Bank, which chose the consultant to draw the designs and the contractor, China Communication and Construction Company.
The terms of the loan are that the sh700b be paid at an interest rate of 2% per annum.
It is expected that the country will pay back the loan in 20 years, with a grace period of five years.
Okello Okello (UPC) argued that the money is insulated from corruption characteristic of such big projects to the extent that sometimes the cost doubles.
John Kawanga (DP) said there was need to implement the Physical Planning Act so that the areas on the new highway are well planned and the inter-connecting roads are re-built.
Eng. Patrick Amuriat (FDC) and Geoffrey Ekanya (FDC) observed that the absence of competitive bidding in the award of the contract meant that laws were flouted.
Margaret Baba-Diri (NRM) asked the works ministry to let local engineers work on the project and block the contractor from ferrying labourers from China.
compiled by Henry Mukasa, Milton Olupot and Ruth Nakayima
PARLIAMENT has allowed the Government to borrow $350m (about sh700b) from the Chinese Exim Bank to finance the construction of the Kampala-Entebbe express highway.
The project involves the construction of a 37km road from the Busega-Mityana junction to the Entebbe road at Kajjansi. It will have a spur of 14.13km from Lweza connecting to Munyonyo.
The remaining part of the road to Entebbe International Airport will be upgraded to a dual carriageway.
The highway will measure 52.4km and will comprise a four-lane carriageway.
Stephen Biraahwa, the chairperson of the parliamentary committee on national economy, presented the report on the project to parliament last week. The committee observed that the project was long overdue.
The committee pointed out that the project would reduce the travel time and costs to Entebbe airport.
The MPs said the highway would ease the flow of traffic between the airport and Kampala city, which is the principle centre of commerce, industry and administrative headquarters.
They added that the express highway would contribute to the implementation of the Greater Kampala Metropolitan Area Transport Master Plan intended to decongest the city. Travellers will, however, be charged for using the highway.
All MPs supported the acquisition of the loan. However, several criticised the unfair terms imposed by the Chinese Bank, which chose the consultant to draw the designs and the contractor, China Communication and Construction Company.
The terms of the loan are that the sh700b be paid at an interest rate of 2% per annum.
It is expected that the country will pay back the loan in 20 years, with a grace period of five years.
Okello Okello (UPC) argued that the money is insulated from corruption characteristic of such big projects to the extent that sometimes the cost doubles.
John Kawanga (DP) said there was need to implement the Physical Planning Act so that the areas on the new highway are well planned and the inter-connecting roads are re-built.
Eng. Patrick Amuriat (FDC) and Geoffrey Ekanya (FDC) observed that the absence of competitive bidding in the award of the contract meant that laws were flouted.
Margaret Baba-Diri (NRM) asked the works ministry to let local engineers work on the project and block the contractor from ferrying labourers from China.
compiled by Henry Mukasa, Milton Olupot and Ruth Nakayima