Uganda Civil Aviation Authority says if not amended, some provisions in Financing Agreement for the loan the country obtained to expand Entebbe International Airport, expose the airport and other government assets to potential attachments and take-over by China upon arbitration awards in Beijing.
Top Ugandan officials have been boxed into a corner of bother after lenders in China rejected their request to re-negotiate ‘toxic clauses’ in the $200m (Shs713b) loan picked six years ago to expand Entebbe International Airport. Planning Minister Amos Lugoloobi admitted that the loan was poorly negotiated and signed as the Chinese bank was granted powers to approve annual and monthly operating budgets, which it could reject, and the rights to inspect the government and UCCA books of accounts.
Attorney General Kiwanuka Kiryowa playing down the fears of the airport takeover says there is no cause for alarm because no property of Uganda has been mortgaged. He added that the loan was a commercial contract with an obligation to both parties.
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