The Uganda National Roads Authority (UNRA) has been looking for some time to tarmac the Lusalira-Nkonge-Lumegere-Ssembabule road, a key part of the mining industry’s logistics system in the country’s west. The infrastructure is also expected to help unlock the potential of the local economy.

The Ugandan Ministry of Finance on Friday, November 8, signed a financing agreement with Citibank Uganda worth 534,9 billion shillings (USD 145,9 million) for the upgrading of the 97 km Lusalira-Nkonge-Lumegere-Ssembabule section.

The project is to build a road connecting the national network to the western region of the country, where mining, oil, gas and gold projects are based.

The loan will be provided by Citibank, with Shs479,8 billion and the Ugandan government providing Shs51,11 billion. The deal follows recent investments by the government to strengthen the country’s transport infrastructure to improve its internal and external connectivity and unlock its economic potential.

These investments include a contract to build 272 km of SGR railway awarded in October to Turkey's Yapi Merkezi (around $3 billion), and an agreement with Arab Contractor to build a section of a road corridor to Kenya.

The Lusalira-Ssembabule road is being touted as a key infrastructure to support the distribution phase of mining projects. According to the Ministry of Finance, it will help improve connectivity and boost the economy of the regions it passes through.

Henoc Dossa