UK FUNDS THE CONSTRUCTION OF UGANDA'S SECOND INTERNATIONAL AIRPORT TO BE COMPLETED IN JUNE NEXT
United Kingdom has announced signing a deal with Uganda worth $287 millions geared towards building of the country’s second international airport to service the oil industry.
Lord Dolar Popat announced the signing of a £215 millions deal in Uganda, supported by the largest ever loan to any African government by UK Export Finance , to build a second international airport in Uganda. He added that Her Majesty’s UK Government stands ready to assist any UK business that is ready to do business with Uganda.
The Ministry of Works and transport last year said they had already started talks with UK Export Finance, the UK government’s export credit agency, and Standard Chartered Bank for a loan of 325 million euros ($365 millions).
According to the ministry, the money was going towards the second international airport in Kabale district by June 2019. The airport would transport equipment and goods for the oil industry.
As the Ugandan government embarks on accessing more loans and channeling them towards developing infrastructure, opposition legislators have been against the government securing more loans to invest in the infrastructure sector. The level of infrastructure development in the capital city has dropped drastically in the past 2 years compared to the momentum that had been maintained between 2015 and 2016.
He however said “local companies have to accept the standards and this requires them to undergo further training.”
Elly Karuhanga, who has been involved in the oil and gas sector for many years, said that “many Ugandans aren’t sufficiently aware of the opportunities” that exist in the Oil and gas sector. “We haven’t reached the core SMEs (Small and Medium Enterprises),” he said, adding that politicians also need sensitization-for many aren’t aware about the opportunities that exist in the sector.
He noted that access to finance by SMEs remains a nightmare in Uganda.“Many banks have not yet woken up to these opportunities. Oil and Gas is a capital intensive business which needs participation of banks and on reasonable terms,” he said.
Rubondo revealed that 500 suppliers have been certified to participate in the sector so far.
He added that this number is going to increase in 2018, revealing that about 2,500 have expressed interest in joining the Oil and Gas sector as suppliers and service providers
