If things keep falling apart, Uganda might loose her only International Airport in Entebbe to China because of a big expansion Loan it gained through the EXIM bank.
According to the finance ministry, Uganda got a loan of over UGX700 billion to expand the International Airport to be able to handle the increasing traffic.
However, members of parliament on the COSASE committee led by NUP’s Joel Ssenyonyi were left in shock when the minister Matia Kasaija revealed that the loan agreements particularly the one of expanding the Entebbe Airport had a lot of conditions that could lead to China ceasing the airport like it has done in other countries.
For example, the loan agreement was made in Chinese laws and everything incase of default by the Museveni government was to be handled in China not in Uganda.
Another issue that raised concern is that government was made to open up an account where they could deposit the loan collateral in Stanbic bank and China’s EXIM bank over sees the transactions of that account, meaning Uganda has no say but only to pay at all costs or risk loosing the airport.
This shocking revelation comes at a time when Uganda’s debt burden sits at over UGX60 trillion though Museveni’s government insists Ugandans are still able to pay that money.
Uganda's Entebbe Airport on high risks of receivership by China after @Parliament_Ug's COSASE discovered unfair terms in an agreement btn the two countries on
— Red Pepper Uganda (@RedPepperUG) October 28, 2021
about 740bn loan extended by EXIM Bank of China to upgrade the Airport. #PepperUpdatesUG pic.twitter.com/cM0obUxtNc
