Uganda is set to transform regional air transport and unlock new economic opportunities following the approval of €155.99 million by the African Development Bank Group’s Board of Directors.
The financing will upgrade the Arua Airport into an international-standard facility, under Phase 1 of the Uganda Airports Development Programme.
Located roughly 450 kilometres from the capital Kampala, Arua is a strategic gateway to Uganda’s West Nile region, and neighbouring markets in South Sudan and the Democratic Republic of Congo. However, limited domestic and international air-travel facilities within this region have hindered its growth.
The programme aims to improve domestic and regional connectivity through safer, more efficient and climate-resilient aviation infrastructure. It will involve the construction of a 3.5-kilometre paved runway capable of handling large aircraft such as the Boeing 777; new taxiways and aprons; a passenger terminal with capacity for 700,000 travellers annually, and a cargo terminal designed to handle 25,000 tonnes per annum. It will also have a new control tower, access roads, car parking and modern safety systems.
Of the total programme cost of €157.76 million, the Bank Group will provide an African Development Bank loan of €141.15 million, and a €14.84-million loan from the African Development Fund, the Group’s concessional lending arm. The Government of Uganda will provide an in-kind contribution of €1.77 million.
“This project is about more than an airport. It is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda’s role as a regional trade and logistics hub,” said Mike Salawou, the Bank Group’s Director for the Infrastructure and Urban Development Department.
The Uganda Civil Aviation Authority, which operates under the oversight of the Ministry of Works and Transport, will implement the project. The Authority’s Director General, Fred Bamwesigye, called the airport a “significant development for Uganda, which will strengthen aviation infrastructure and regional connectivity, and is expected to stimulate social and economic transformation for the region.”
“Arua Airport is currently the second busiest in the country after Entebbe International Airport and has immense growth potential,” Bamwesigye said. “The airport will also serve as an alternative to Entebbe International Airport during emergencies. We are highly grateful to the African Development Bank for its invaluable partnership and support in this transformative project.”
Arua, the regional capital of northwestern Uganda, is a region endowed with mineral wealth and has strong potential in agriculture, tourism, culture, trade, regional integration and logistics. It is also the farthest major city from the capital of Kampala; therefore, connectivity improvements will also impact these sectors. Improved air access will help farmers and businesses move perishable goods to regional and international markets more quickly and at a lower cost. The airport will also improve access to major tourist attractions in the region.
More than a half-million people in Arua City and District are set to benefit directly from the programme, while the wider West Nile region, home to more than 3.3 million people, will gain from improved transport and investment opportunities.
The programme is expected to create about 500 direct jobs during construction and more than 1,400 indirect jobs in tourism, agriculture and trade. It will also provide skills training for at least 100 young people, including women, in engineering, construction and equipment operations.
The initiative is aligned with the Bank’s Ten-Year Strategy 2024-2033 as well the transport and infrastructure priority area of the Uganda Country Strategy Paper 2022-2026, which emphasises developing well-maintained quality and sustainable infrastructure to improve market access, and competitiveness to bolster industrialisation.
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