17 March 2013 – The Board of Directors of the African Development Bank Group (AfDB) approved on Wednesday, March 13, a loan in the amount of US $144.89 million in support of the Uganda road sector.
The road sector support project was financed by the African Development Fund (ADF) to the tune of US $110.49 million, with a contribution from the Ugandan Government amounting to US $34.40 million. The project will help improve road access to socio-economic infrastructure as well as the quality of road transport services to the western regions of the country by paving 135 kilometres of the Kigumba-Masindi-Hoima-Kabwoya road.
The project is expected to reduce transportation costs, improve access to social and economic infrastructure and increase mobility, thus contributing to upgrading the standards of living of the populations through better transport services and increased access to social services, such as daycares and markets. Some 870,000 people are expected to benefit from the project which aims to create about 1,200 jobs, of which 80 per cent will be reserved for local communities.
The project includes civil engineering works, the study and strengthening of the road sub-sector, as well as the compensation and relocation of people affected by the project in conformity with the relocation plans.
The Bank’s intervention is in keeping with the country’s aspirations to enhance road transportation in line with the engagement of other development partners in the sub-region.