Parliament has okayed the government’s plan to borrow US$518 million (Shs1.925 trillion) from the World Bank for the construction of roads in Kampala.
The loan facility also comes with a grant of US$48 million (Shs178.497 billion) issued by the World Bank and a loan of Euro40 million (Shs161.271 billion) from the French Government.
The World Bank’s loan approval comes at a time when the April 2023 State of the Economy Report by the Bank of Uganda puts Uganda’s public debt as of March 2023 at Shs86.352 trillion.
Parliament’s decision comes a few hours after Asuman Basalirwa (Bugiri Municipality) threatened to drag the World Bank to court for refusing to lend to Uganda for passing into law the Anti-Homosexuality Act 2023.
The Minister of State for Finance, Henry Musasizi, assured MPs on Wednesday that the Kampala road construction project isn’t among the projects affected by the World Bank freeze of funds for Uganda.
Credit: Parliament Watch
