Government has tabled a loan request of US$117.26 million (Shs446.7 billion) to be borrowed from Standard Chartered Bank to finance the construction of the Kitgum-Kidepo road.
The Minister of State for Finance, Planning, and Economic Development (Planning), Hon. Amos Lugoloobi, tabled the request during the plenary sitting on Thursday, April 18, 2024.
Speaker Anita Among noted that government has been improving tourism roads across the country to boost revenue generation from the sector.
“There is a need for us to work on tourism roads, and today we will receive a proposal to borrow money to finance a tourism road from Kitgum to Kidepo. This road, if constructed, will boost tourism in the Northern part of the country,” she said.
Among also expressed concern about the lengthy approval process for the loan, which has taken over a year and a half, resulting in the accrual of fees such as commitment fees.
“How can a loan take over a year in the approval process when all the feasibility studies have been done? The time value of money should be considered,” she said.
The Minister of State for Works, Hon. Musa Ecweru, highlighted the challenge of outdated road designs resulting from the delay.
“I can report to this house that there are so many roads that we have decided and by the time the resources come, the design has been overtaken by time due to the delays and challenges.” Ecweru said
Hon. Lugoloobi stated that they have evaluated the value chain of loan acquisition, approval process and actual implementation and evaluation of performance, noting serious concerns.
Speaker Among referred the proposal to the Committee on National Economy for consideration.
