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.
November 17, 2015, the Ugandan government signed an agreement with Export-Import Bank of China (Exim Bank) to borrow $207 million at two per cent upon disbursement. The loan had a maturity period of 20 years including a seven-year grace period. It has now emerged that the deal signed with the Chinese lenders virtually means Uganda “surrendered” its most prominent and only international airport.
Ugandan government signed an agreement with Expot-Import Bank of China (Exim Bank) on Tuesday November 17, 2015 to borrow $207 million at 2% upon disbursement. The loan had a maturity period of 20 years including a seven-year grace period. It had now emerged that Ugandan government signed the deal with Chinese lenders with its only prominent international airport as a collateral.
The Exim Bank of China is on a high road towards acquiring Uganda's only International Airport, Entebbe. The airport which was built in 1972 is at the mercy of the Chinese after the Ugandan government defaultted paying a loan that was meant to upgrade the airport. It all started on 17th November 2015 when Museveni's government sought the help of the Chinese Exim Bank to facelift the airport.