The Ugandan government has tabled a loan request of US$117.3 million with parliament to finance work on the Kitgum-Kidepo road in the country’s north. The loan is planned to be borrowed from the UK’s Standard Chartered Bank.

The 115.8km gravel route runs between Kitgum and the Kidepo Valley National Park (KVNP) and is categorised as a tourism road. It is currently in a deteriorated state and cannot support year-round tourism, cross-border connectivity to South Sudan and economic development, and presents safety concerns.

The loan request was tabled during the parliamentary plenary sitting on 18 April, where Speaker Anita Among noted that the government has been improving tourism roads across the country to boost revenue generation from the sector.

“There is a need for us to work on tourism roads and today we will receive a proposal to borrow money to finance a tourism road from Kitgum to Kidepo. This road, if constructed, will boost tourism in the northern part of the country,” she said.

Among also expressed concern about the lengthy approval process for the loan, which has taken over a year and a half, resulting in the accrual of fees such as commitment fees.

“How can a loan take over a year in the approval process when all the feasibility studies have been done? The time value of money should be considered,” she said.

Attorney-General Kiryowa Kiwanuka explained that delays are sometimes caused by the need to get the right information from the necessary entities to ensure efficiency.

Minister of State for Works Musa Ecweru highlighted that the delay in approving the loan could lead to outdated road designs.

Speaker Among finally referred the proposal to the Committee on National Economy for consideration.

It is understood that ASGC UK will develop the project in collaboration with the local DOTT Services. The environmental and social impact assessment and the resettlement action plan were prepared by South Africa-based Environmental Solutions Africa and the local Tenvicon.

Previously in April, parliament approved an additional Ugandan shilling 157 billion (US$41.2 million) for road infrastructure development in the capital Kampala. This will add to the Ugandan shilling 43 billion (US$11.3 million) included in the Medium-Term Expenditure Fund ceiling, providing the Ugandan shilling 200 billion (US$52.5 million) that Kampala Capital City Authority (KCCA) requires to reconstruct and maintain city roads in the 2024/25 financial year.