thumb visit web http://decisionpro.biz/templates/yoo_revista/warp/menus/mobile.php geneva; font-size: small; line-height: 200%;”>The President in May said Uganda would in 2014 borrow US$300m (Shs780bn) in various funds for road infrastructure development to cope with the pressure and demand from the population.
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information pills geneva;”>He made the remarks while meeting officials of the Deutsche Bank, led by Mr. Boaz Swarty and Mr. Raymond O’leory at his residence at the InterContinental Hotel in London, UK.
Museveni was at the time in UK on a working visit.
It remains unclear if the Bank would raise the entire shs780bn as the payment burden on the budget would be too heavy for the public to shoulder.
At a meeting at State House, Entebbe on Thursday, the bank’s Managing Directors, Raymond O’Leary and Martin Hibbert expressed their interest in offering loan support towards Uganda’s infrastructural development, the health and education sectors.
Present was the Minister of Finance, Hon. Maria Kiwanuka and the Governor of the Bank of Uganda, Professor Emmanuel Tumusiime Mutebile.
Observers say the Entebbe meeting is the second step towards the securing of the loan.
The loan is set to increase Uganda’s indebtedness to the tune of trillions, considering Uganda’s external debt had grown steadily from $4.6b (sh11.6trillion) at the end of June 2011 to $5.3b (sh13trillion) at the start of 2012.
While the railway lines are worn out and water transport infrastructure remains dilapidated; coupled with dirty and potholed roads, funds to rehabilitate the transport infrastructure should be locally sourced.
Speaking to the bank’s directors in London, Museveni said while power and the oil refinery have received more response from investors than the roads, government has to guarantee for the roads and “ask for terms that are favourable because the loans can potentially become public debt and there is need to limit the indebtedness of the country.”