Uganda plans to borrow $358m (R6.23bn) from regional and private lenders to finance various projects, including a power grid interconnection with neighbouring South Sudan, according to a finance ministry official.
While presenting the plan in parliament late on Tuesday. junior finance minister Henry Musasizi said the credit will be sourced from:
- the African Development Fund, an arm of the African Development Bank;
- the Arab Bank for Economic Development in Africa; and
- Standard Chartered Bank.
Deputy house speaker Thomas Tayebwa referred the request to a house committee, comprising of both ruling party and opposition lawmakers, that will study it and make a report before the full house debates and takes a vote on the request.
Other projects to be financed by the loan include:
- a road in the country's northwest linking Uganda to the Democratic Republic of Congo; and
- the expansion of clean water access.
Uganda, which now produces surplus power after commissioning a $1.7bn (R29.58bn) Chinese-funded hydropower dam last year, has been planning to start exporting some of its excess electricity to energy-starved South Sudan.
The east African country has already been in talks with the Chinese firm Sinohydro to develop the project, which will involve construction of a 138km high-voltage transmission line, expansion of two substations and construction of one new one.
Reuters
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