Parliament Okays Shs330billion Loan for Nakapiripirit Road

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In short
Parliament's committee on National Economy evaluated the loan request and observed that the project had many positive impacts to the region and to the country. Committee Vice Chairperson Evelyn Kabuule Mpagi cited increased urbanization, reduced travel time, reduced transport costs, and improved access to social services among others.

Parliament has approved a request by government to borrow Shs 330billion (US$110million) from the Islamic Development Bank (IDB) to finance the upgrading of the 92km Muyembe-Nakapiripirit road project.

The loan is to cover 86% of the total project cost. The additional 14% of the cost, totaling to Shs 54billion Shillings (US $18m) will be financed by the Government of Uganda, to mainly cover the cost of compensation.

Parliament's committee on National Economy evaluated the loan request and observed that the project had many positive impacts to the region and to the country. Committee Vice Chairperson Evelyn Kabuule Mpagi cited increased urbanization, reduced travel time, reduced transport costs, and improved access to social services among others.

Masindi Woman MP, Bintu Jalia Lukumu said the road to Nakapiripirit will ease transportation of agricultural produce. She however urged government to address challenges affecting the construction of other roads financed through loans. She cited the Kigumba, Masindi, Kyenjojo road which she said hit a snag yet Parliament passed a loan a year ago to finance its construction.

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Leader of Opposition Wafula Oguttu requested for assurance from the government that the road is going to be strong enough saying that the Muyembe-Nakapiripirit road is a highly economic road.

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State Minister for Finance Aston Kajara told Parliament that government is to cater for compensation through Uganda National Roads Authority budgets every year for the lifespan of the project.

He added that Shs 15billon (US$5million) has been provided under the project for land acquisition and that for areas with interference with people's building.

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About the author

Olive Nakatudde
Olive Nakatudde is a URN journalist based in Kampala. Nakatudde has been a URN staff member since 2013.

Nakatudde started out in journalism in 2009 with Dembe FM radio in Kampala. In 2012, Nakatudde joined Voice of Africa as a political reporter. She has been a photographer since her journalism school days at Makerere University.

Nakatudde is interested in good governance and public policy, which she reports on intensively from the Uganda Parliament. She is a keen follower of cultural affairs in Buganda Kingdom and covers the kingdom's Lukiiko (parliament). Nakatudde also reports on education and health.

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