Sh68b to revamp Entebbe Airport
Aug 12, 2007
THE Civil Aviation Authority (CAA) has secured a $40m (about sh68b) loan to finance the rehabilitation of Entebbe International Airport and Kasese Aerodrome.
By Sylvia Juuko
THE Civil Aviation Authority (CAA) has secured a $40m (about sh68b) loan to finance the rehabilitation of Entebbe International Airport and Kasese Aerodrome.
The loan was acquired from Stanbic, Standard Chartered, East African Development and PTA banks. It was sealed at the Kampala Serena Kampala Hotel last week. It will be repaid over a period of seven years.
Stanbic Bank is the lead arranger of the loan denominated in shillings and dollars.
It will finance part of CAA’s 20-year master plan aimed at modernising Entebbe Airport and other aerodromes.
However, some of the projects in the master plan were fast-tracked because of the November Commonwealth Heads of Government Meeting (CHOGM) in Kampala. The total cost of revamping the airport is estimated at sh84.6b.
The projects, most of which commenced last year, include the expansion of arrivals hall, renovations of the departure concourse, building of two passenger bridges, separation of the domestic and international passenger terminals.
Others are the construction of security watchtowers, air traffic and airspace management radar, new aircraft parking apron, new power supply system and the beautification of Entebbe/Kampala road.
Anne Aliker, the Stanbic Bank executive director, said the loan was the largest financing to be extended to a parastatal without a government guarantee.
“This transaction marks a coming of age for the Ugandan financial markets. Its importance goes beyond the immediate financing of CAA since it demonstrates we can finance crucially-needed infrastructure from domestic savings,†she said.
Ambrose Akandonda, the head of the CAA, said the financing reflects the level of confidence the financial institutions had in CAA.
He said most of the activities will be completed by September.
“The loan will finance 70% of the project which will meet CHOGM requirements,†he said.
Over $115m was budgeted to be spent in implementing the 20-year master plan until 2022. “We initiated a 20-year master plan in 1992 to be implemented in phases. However, we fast-tracked some of the projects because we will experience more traffic in November. We had to be prepared,†he said.
He said over 4,500 passengers were expected in November over a period of three days.
Akandonda said annual passenger traffic was projected to grow from 600,000 to 800,000 in the next two years. This will peak at 1.5 million by 2022.
“Our airport is congested at peak hours and if we don’t act quickly, the efforts of opening up the air transport industry will be frustrated by the constrained facilities. This programme is in line with what we project in terms of future traffic and cargo growth.â€
THE Civil Aviation Authority (CAA) has secured a $40m (about sh68b) loan to finance the rehabilitation of Entebbe International Airport and Kasese Aerodrome.
The loan was acquired from Stanbic, Standard Chartered, East African Development and PTA banks. It was sealed at the Kampala Serena Kampala Hotel last week. It will be repaid over a period of seven years.
Stanbic Bank is the lead arranger of the loan denominated in shillings and dollars.
It will finance part of CAA’s 20-year master plan aimed at modernising Entebbe Airport and other aerodromes.
However, some of the projects in the master plan were fast-tracked because of the November Commonwealth Heads of Government Meeting (CHOGM) in Kampala. The total cost of revamping the airport is estimated at sh84.6b.
The projects, most of which commenced last year, include the expansion of arrivals hall, renovations of the departure concourse, building of two passenger bridges, separation of the domestic and international passenger terminals.
Others are the construction of security watchtowers, air traffic and airspace management radar, new aircraft parking apron, new power supply system and the beautification of Entebbe/Kampala road.
Anne Aliker, the Stanbic Bank executive director, said the loan was the largest financing to be extended to a parastatal without a government guarantee.
“This transaction marks a coming of age for the Ugandan financial markets. Its importance goes beyond the immediate financing of CAA since it demonstrates we can finance crucially-needed infrastructure from domestic savings,†she said.
Ambrose Akandonda, the head of the CAA, said the financing reflects the level of confidence the financial institutions had in CAA.
He said most of the activities will be completed by September.
“The loan will finance 70% of the project which will meet CHOGM requirements,†he said.
Over $115m was budgeted to be spent in implementing the 20-year master plan until 2022. “We initiated a 20-year master plan in 1992 to be implemented in phases. However, we fast-tracked some of the projects because we will experience more traffic in November. We had to be prepared,†he said.
He said over 4,500 passengers were expected in November over a period of three days.
Akandonda said annual passenger traffic was projected to grow from 600,000 to 800,000 in the next two years. This will peak at 1.5 million by 2022.
“Our airport is congested at peak hours and if we don’t act quickly, the efforts of opening up the air transport industry will be frustrated by the constrained facilities. This programme is in line with what we project in terms of future traffic and cargo growth.â€