China Eximbank provides $350 million preferential buyer's credit for Entebbe-Kampala Toll Road Construction Project in Uganda
Constant 2017 USD
Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Transport and storage (Code: 210)
Export Buyer's Credit
On May 5, 2011, the Parliament of Uganda ratified a $350 million preferential buyer’s credit (PBC) loan agreement [CHINA EXIMBANK PBC NO. (2011) 8 TOTAL NO. 159] for the 51 km Entebbe-Kampala Toll Road Construction Project. The terms of the loan were as follows: maturity of 20 years, interest rate of 2%, grace period of 7 years, 0.25% management fee, and 0.75% commitment fee. The 51 km expressway project was expected to cost $476 million USD, with $126 million of the funding coming from the Government of Uganda. Toll road revenue was to be deposited in an escrow account and used to service the China Eximbank loan.China Communications Construction Company (CCCC) was the contractor responsible for implementation of the the project. The project was supervised by Beijing Expressway Supervision Company. The purpose of the project was to construct a toll road from Entebbe Airport to the country’s capital, Kampala. It was part of Government of Uganda’s overall strategy for decongesting Kampala through construction of an inner beltway comprising the Kampala Northern and Southern Bypasses as well as an outer beltway along the edges of the Great Kampala Metropolitan Area. It also aimed to enhance trade and movement between the two cities. The four-lane highway also features at least four toll stations and four interchanges with overpasses, along with a connection to the new highway to Munyonyo, Uganda’s major international conference destination. The link between the new highway and Munyonyo includes a 3-km-long, two-lane bridge constructed to run over a Nile River marshland that cuts across the proposed road link. Construction was originally expected to begin around July 2012, with the project taking three years to complete. On November 21, 2012, President Yoweri Museveni Wednesday officially launched the project at a ground-breaking ceremony in Kyengera. The project was completed on June 15, 2018. Seventeen months later, the tolling system for the road was still not operational. Traffic levels were low, which cast doubt on whether the Government of Uganda would generate enough toll revenue to meet its principal and interest repayment obligations under the China Eximbank PBC loan. Also, as of April 2019, the Government of Uganda had still not passed a law to allow for tolling on the road. But its first loan repayment to China Eximbank was due on May 22, 2019.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Government of Uganda [Government Agency]
Implementing agencies [Type]
Beijing Expressway Supervision Company [State-owned Company]; China Communications Construction Co., Ltd. (CCCC) [State-owned Company]
Toll road revenue was to be deposited in an escrow account and used to service the China Eximbank loan.