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Director-General, East Africa Regional Development and Business Delivery Office of the African Development Bank, Gabriel Negatu, and Uganda’s Minister of Finance Planning and Economic Development, Matia Kasaija, have signed a USD151 million loan agreement for the construction of the Uganda-Rwanda Busega-Mpigi highway project.

According to a statement released on Tuesday, the loan agreement was signed on December 29, 2016 at the Ugandan Ministry of Finance at a ceremony attended by other government officials, among them was the Minister of Works and Transport, Monica Azuba Ntege.

The express highway is 23.7-kilometres long with four lanes and four grade-separated interchanges.  

The AfDB Director-General thanked the Ugandan Finance Minister and commended the government of Uganda for its commitment to the development of infrastructure in the country. He pointed out that the Busega-Mpigi express highway project will cost USD192 million, with the AfDB providing USD151 million. Negatu also called on the government to ensure project delays are avoided.

On his part, the Finance Minister thanked Negatu for his role in expediting the loan agreement, while expressing appreciation for the bank’s support. Kasaija emphasized the strategic importance of the road in improving the transport services in central Uganda and its contribution to regional integration. He urged the executing agency to ensure timely implementation and pledged government’s commitment to meet the counterpart obligations as well as ensuring compliance with safeguard requirements.

The project is expected to enhance cross-border trade between the two countries and support women traders as well as capacity development for the youth.