KAMPALA. Government has pleaded with Parliament to swiftly approve Shs865.4 billion loan needed to complete the stalled Busega-Mpigi Expressway .
The money needed is part of the Shs1.4 trillion ($380 million) loan which government seeks parliamentary approval to fund key infrastructure projects .Other projects include regional oncology centers in Arua and Mbale.
While tabling the request before parliament on Wednesday Minister of State for Finance, Planning and Economic Development Henry Musasizi the loan’s approval is urgent ahead of looming deadlines.
Shs37.6 billion ,according to Mr Musasizi is sourced from Unicredit Bank Austria for the Mbale Oncology Centre, $36.5 million (around Shs138.7 billion) from the Islamic Development Bank for the Arua center and radiotherapy equipment, and $99.56 million (about Shs378.3 billion) from the International Fund for Agricultural Development for the Resilient Livestock Value Chain Project.
The needed funds for Busega-Mpigi Expressway are expected to come from African Development Bank (ADB) and the African Development Fund (ADF) to complete the 23.7-kilometre dual carriageway, a four-lane expressway with four interchanges, 13 bridges, and four toll plazas.
Work on the project, which began in 2020 with an initial completion date of 2023, stalled due to funding shortfalls and technical challenges, delaying completion to 2027.
Auditor General Edward Akol previously flagged the project for slow progress and financial mismanagement.
“By May 2024, the original contract funds for civil works were fully depleted, with physical progress at only 40.86 percent, and certified works worth Shs30.8 billion remained unpaid,” the audit report noted.
As of July 2024, progress had only reached 42.28 percent, falling short of targets, the report added.
The expressway is expected to ease congestion on the Masaka Highway and facilitate trade along the Northern Corridor linking Uganda to Rwanda and the Democratic Republic of Congo.
Interchanges and connecting roads will also improve access to the Northern Bypass, Entebbe Expressway, and Mityana Road, according to the Ministry of Works and Transport.
Uganda’s public debt has risen sharply, reaching $30.19 billion (about Shs108 trillion) by March 2025, with domestic debt accounting for 51.19 percent and external debt at 48.8 percent.
The 2025/26 national budget of Shs72.1 trillion will rely heavily on both domestic and external borrowing to finance fiscal priorities, according to government data.