AFDB approves loan for Kampala-Jinja Expressway project in Uganda.
Uganda has receive a loan worth US$229.5 million from the African Development Bank. This loan is to help finance phase one of the Kampala-Jinja Expressway project.
Meanwhile, the aim is to help Uganda reinforce its position as a regional transit hub. It will also help support its ambition to propel its economy into middle-income status by 2020.
The Expressway will form part of the northern trade corridor from Mombasa in Kenya through to Kigali in Rwanda. It will be a strategic corridor which serves as a trade link to the sea for land-linked countries of Uganda, Rwanda and DRC.
The project is worth US$1.55 billion with financing from sovereign and non- sovereign facilities. This facilities will finance infrastructure development, project implementation support and community livelihoods improvement activities. Meanwhile the propose 95-kilometre expressway will create over 2,000 direct and indirect jobs during the construction process.
The Kampala-Jinja Expressway will boost national economic productivity, competitiveness, regional trade and integration. It will also reduce travel time between the country’s two main economic hubs. The project also has a human capital development component, focused on skills development for Uganda and East Africa.
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