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Gov’t seeks shs800bn loan to resume stalled works on Busega-Mpigi Expressway

by Musa Mbogo
in News
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Gov’t seeks shs800bn loan to resume stalled works on Busega-Mpigi Expressway
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Parliament will today, Wednesday, September 3rd, receive a proposal from the Ministry of Finance to borrow EUR 216 million (about Shs 899.7 billion) to resuscitate the long-delayed Busega–Mpigi Expressway.

According to the request, EUR 188.18 million will be sought from the African Development Bank and EUR 28.31 million from the African Development Fund. The proposal, once tabled, will undergo parliamentary scrutiny and debate before approval.

The 23.7-kilometre dual carriageway was launched in May 2020 with a projected cost of Shs 547 billion and a completion timeline of 30 months.

However, four years later, progress stands at just over 40 per cent. A mix of challenges—including costly land disputes with project-affected persons, swampy terrain, and COVID-19 disruptions—halted the project and more than doubled its initial budget.

In 2023, the Uganda National Roads Authority (UNRA) even suspended the works, citing lack of funds and unresolved compensation claims. The new loan is therefore seen as a financial lifeline to unlock construction and deliver the long-awaited road.

Once completed, the expressway is expected to significantly ease the chronic traffic gridlock on the Kampala–Masaka highway, cutting travel time and stimulating trade between the central and western regions of Uganda.

The debate in Parliament is anticipated to be spirited, with lawmakers set to weigh the urgency of infrastructure development against the mounting burden of public debt.

Tags: Busega-Mpigi ExpresswayUganda
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Musa Mbogo

Musa Mbogo

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