The government has presented to Parliament a loan request of $456.37m (Shs1.7 trillion) to fund the upgrade and construction of national oil roads.
The proposal was tabled in Parliament on Thursday by the Minister of Finance in- charge of planning David Bahati. According to Bahati, they seek to achieve the oil target by establishing the enabling infrastructure, such as the road network.
He told Parliament that China Exim Bank will only cover 85% of the commercial contract for each package and therefore Government will finance 15% under each package.
The Minister told the Minister that the existing roads are predominantly gravel, narrow, swampy, and are structurally noncompliant to the kind of traffic envisaged that the oil sector will be adding during their operations saying it poses huge logistics challenges to the oil production timelines.
Once approved, the money will see the construction of roads under package 1, 2 and 3, covering a total stretch of 363 kilometres.
The total contract sum for the three packages is $536.92m (Shs2.02 trillion).
The Deputy Speaker Jacob Oulanyah forwarded the proposal to the National economy committee of Parliament to scrutinize the bill.
The committee is expected to report back within a period of 45 days.
In the proposal, the government premises its request on the projection of having its first commercial oil available by 2020.
“In order to achieve this target, key enabling infrastructure, such as road network, must be in place,” reads in part the letter addressed to the Speaker.
The total projection for oil roads is 700 kms.
The 12 oil roads are; Hoima-Butiaba-Wanseko Road, Hohwa-Nyaironqo-Kyarushesha- Road, Kabale – Kiziramfumbi road, Kabwoya-Buhuka all in Hoima districts.
In Masindi districts, the roads are; Masindi-Biiso, Masindi-Bugungu via Murchison Falls National Game Park. In Buliisa the roads to be upgraded are; Wanseko-Buqunqu Road, Buqunqu – Buliisa.
Others are; Buhimba-Nalweyo-Kaki ndu-Kakumiro-Mubende found in Mubende, Kibaale, Lusali ra- Nkonge-Sembabule found in Ssembabule, Mpigi, and Masindi.
In Nwoya district, the roads are Tangi junction – Paraa Including Tangi Gate & Emmi Bridges and Karugutu-Ntoroko via Semiliki National Park in Fort portal.
