Henry Musasizi, Minister of FinanceBy Prisca WanyenyaFollowing fresh renegotiations between Government and the lenders for the Jinja-Mbulamuti-Kamuli-Bukungu road and Jinja City roads, Government was able to save over UGX97.44bn, a move that will see the cost of the project reduce from the earlier Euro 230.45Million loan approved by Parliament in October 2025 to Euro207.77Million.This was revealed by Henry Musasizi, Minister of Finance during the 6th August 2026 plenary sitting, where he tabled the proposal to borrow up to Euro 207.77Million (UGX 892,642,251,000) from Citi Bank and other financial institutions to finance the design and build of the Jinja-Mbulamuti-Kamuli-Bukungu127km Road and Jinja City roods (10km) project in Uganda, land compensation and Supervision costs.The Minister explained, “My Ministry in consultation with the Ministry of Works and Transport reviewed the financing requirements and in addition undertaken extensive consultations and negotiations with CITI Bank and Africa Trade investment Development insurance (ATIDI). These discussions resulted in a reduction in the financing requirements for the civil works and an improvement in the financing terms, thereby reducing the overall financing requirements by Euro22.68 million (UGX97,440,084,000) from Euro230.45 million that was approved by Parliament in October 2025 to Euro207.77million.”The loan revision followed the 30th October 2025, decision by Parliament that authorized Government to borrow up to Euro230,454,687.23 from Citi Bank to finance the design and build of the Jinja-Mbulamuti-Kamuli-Bukungu road (127km) and Jinja City roads (10Km) project in Uganda.However, following the approval of Parliament, Citi Bank informed the Ministry of Finance that Sinosure changed its lending policy to the effect that they will only finance non-revenue/non-self-financing projects that are not more thon EUR100Million. The Jinja-Mbulamuti Road required more thon EUR 100Million i.e EUR 230million for implementation of the project and thus could no longer be guaranteed by SINOSURE –Musasizi noted, “This Ministry subsequently engaged Citi Bonk, the original arranger who provided fresh terms with African Trade and investment Development insurance (ATIDl) as the provider of the insurance cover.”Now, the Ministry of Finance has asked Parliament to borrow up to Euro207.77 million equivalent to UGX 842.7.l billion from Citi Bank and other financial institutions to finance the upgrade of the Jinja-Mbulamuti-Kamuli-Bukungu Road, which road connects to several districts across waters of Lake Kyoga.“The terminal end of the road of Bukungu is a gateway to the districts of Amolator, Kaberamaido, Soroti, Nakasongola and Kayunga; providing on alternative route between the north and south of the country. The road also includes design and build of 10km of Jinja City Roads,” as noted by Minister Musasizi.Documents tabled before Parliament indicate that the total estimated cost of the project is up to EUR 207.77 million and the loan will be provided in two facilities; Citi Bank will provide EUR 179.26 million (including insurance) under the Africa Trade investment Development insurance (ATlDl) covered loan for works; and there will be a Direct lending from CITI Bank under commercial terms is EUR 28.51 million for land compensation and supervision costs (owner’s engineer) .The Civil Works Commercial Contract of UGX649,567,379,245.15 (equivalent to Euro161.77 million) was signed with M/S Power Chino international Group Limited on l5th March 2023 for the Design and Build of Jinja-Mbulamuti-Kamuli-Bukungu Road (127km) and Jinja City Roods (1The post Gov’t Saves UGX97Bn After Renegotiating Jinja-Kamuli Roads appeared first on Business Focus.