Uganda loses its only international airport to China for failing to repay loan

Uganda loses its only international airport to China for failing to repay loan

Uganda loses its only international airport to China for failing to repay loan

Uganda has lost its only international airport, the Entebbe International Airport, to China for failing to repay a loan, African media reported.

The government has failed to reverse a loan agreement with China which had repayment conditions for attaching its only airport.

In 2015, China’s Export-Import (EXIM) Bank lent Uganda $207 million at two per cent upon disbursement. The loan, meant for the expansion of Entebbe airport, came with a maturity period of 20 years including a seven-year grace period, News X reported.

However, as per international media reports, the Ugandan government waived off the clause for international immunity for securing the loan, following which the Chinese lender can retake possession of Entebbe International Airport without any international arbitration.

A statement from the Uganda Civil Aviation Authority (UCAA) reportedly suggested that some provisions in the Financing Agreement with China exposed Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.

Last week, Ugandan Finance Minister Matia Kasaija had apologised to Parliament for “mishandling” the multi-million dollar loan.

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According to the latest media reports, a delegation of Ugandan officials also visited China earlier this year in an attempt to renegotiate the clauses of the loan agreement. However, the visit was unsuccessful as the Chinese authorities refused to allow any alteration in the original terms of the deal.

However, in a statement released on Saturday, the Uganda Civil Aviation Authority(UCAA) dismissed the reports as untrue.

“I wish to make it categorically clear that the allegation that Entebbe Airport has been given away for cash is false. The government of Uganda cant give away such a national asset .We have said it before and repeat that it has not happened. There isn’t an ounce of truth in it,”UCAA spokesperson, Vianney Luggya said.

Sheila

I love being a staff writer at Afromambo.com.I hold Diploma in Business Management .When I'm not writing, I'm busy gardening or picking up after my kids, or running after them! My biggest passion, next to my precious children, is writing and sharing Entertainment News and Information that matters with people online!

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