The government has saved taxpayers UGX97.44 billion after renegotiating the financing terms for the Jinja-Mbulamuti-Kamuli-Bukungu Road and Jinja City Roads project.The savings were secured after the Ministry of Finance, Planning and Economic Development held fresh negotiations with Citi Bank and the Africa Trade Investment Development Insurance (ATIDI), resulting in a reduction of the project’s financing requirement.
Finance Minister Henry Musasizi revealed the development while presenting a loan proposal to Parliament on August 6, 2026.He said the government is seeking approval to borrow €207.77 million (about UGX892.6 billion) to finance the design and construction of the project, which includes upgrading the 127-kilometre Jinja-Mbulamuti-Kamuli-Bukungu Road and constructing 10 kilometres of roads in Jinja City.The revised financing reduced the loan requirement from the €230.45 million previously approved by Parliament in October 2025, saving €22.68 million, equivalent to about UGX97.44 billion.
“My Ministry, in consultation with the Ministry of Works and Transport, reviewed the financing requirements and undertook extensive consultations and negotiations with Citi Bank and Africa Trade Investment Development Insurance,” Musasizi said.The renegotiation became necessary after Sinosure, a Chinese export credit insurer, changed its lending policy and limited support for certain non-revenue projects to financing requirements below €100 million.The new arrangement involves ATIDI providing insurance cover, allowing the government to proceed with the project under improved financing terms.
The road project is expected to improve connectivity between Jinja, Kamuli and surrounding areas while strengthening access to districts including Amolatar, Kaberamaido, Soroti, Nakasongola and Kayunga through the Bukungu terminal.It is also expected to boost trade and movement of goods around Lake Kyoga.According to documents presented to Parliament, the revised project cost stands at €207.77 million, with Citi Bank providing €179.26 million and another €28.51 million covering land compensation and supervision costs.The civil works contract, valued at UGX649.5 billion, was signed with Power China International Group Limited in March 2023.The government says the renegotiated financing will reduce the financial burden on taxpayers while allowing the strategic road project to move forward.(For adverts, inquiries news, send us a message on +211929244599)
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