The Ugandan government has asked Parliament to approve a EUR 207.77 million loan to finance the modernisation of 137 kilometres of roads, including the Jinja-Mbulamuti-Kamuli-Bukungu corridor in the east of the country.

The request for funding was presented to the Parliamentary Committee on the National Economy on 19 August by the Minister of State for Finance, Henry Musasizi, accompanied by the Minister of State for Public Works and Transport, Fred Byamukama.

The project involves the modernization of 127 km of road between Jinja and Bukungu and the development of 10 km of urban roads in the city of Jinja.

The financing, which should be mobilised from Citibank and other financial institutions, includes EUR 179.26 million for civil engineering and commercial insurance.

The remaining €28.51 million will be spent on land acquisition, compensation for affected populations and supervision of the site. The Government states that this new agreement reduces the amount of funding previously envisaged for the project by EUR 22.68 million.

According to Henry Musasizi, the project has an internal economic rate of return of 16.7%, higher than the opportunity cost of capital set at 11%. The Government also states that this loan was included in its debt sustainability analysis and in the budgetary framework for fiscal year 2026/2027.

Once modernized, the Jinja-Mbulamuti-Kamuli-Bukungu corridor must improve the movement of people, agricultural production and goods in the Busoga subregion.

It should also provide an alternative link between northern and southern Uganda. The loan proposal must now be examined by Parliament before any approval can be obtained.