Uganda To Borrow Shs780bn For Infrastructure


approved geneva;”>He said the country needs a total budget of US$1.5bn for 19 roads and that while it has some money it can borrow and pay back with interest locally; it can’t borrow more because the payment burden on the budget would be to big on the public.

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He urged banks to provide loans and other sources provided that the terms are good.

“The roads are disturbing us with the population increasing demanding for better and more,” he said.

He 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.

The President was on Monday meeting officials of the Deutsche Bank, a leading global investment bank with a substantial private clients franchise led by Mr. Boaz Swarty and Mr. Raymond O’leory at his residence at the InterContinental Hotel in London, UK.

They were accompanied by businessmen Tetah Aloni and Charles Tawil. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets.

With more than 100,000 employees in over 70 countries, Deutsche Bank offers unparalleled financial services throughout the world.

A follow up meeting between the bank and government of Uganda officials was agreed to understand the country’s needs.

Despite releasing trillions of shillings to the infrastructure sector, Uganda is still grappling with poor, dirty and potholed roads.

The railway lines are worn out and water transport infrastructure remains dilapidated.

Observers say 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.

The President who is accompanied by the First Lady and Minister for Karamoja Affairs Janet is on a three day working visit to the United Kingdom and Northern Ireland.

He was later addressed the International Conference on Somalia.


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