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CICO provides loan -- via pre-financing arrangement -- for Masaka–Mutukula Road (89.5 km), Nyendo–Villa Maria Road (11 km), and Additional Infrastructure Project
| Funder | China Chongqing International Construction Corporation (CICO) |
|---|---|
| Recipient Organization | Uganda Ministry of Finance |
| Country | Uganda |
| Start Date | Dec 01, 2023 |
| End Date | Sep 15, 2033 |
| Duration | 3,576 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 106779 |
Grant Description
CICO provides loan -- via pre-financing arrangement -- for Masaka–Mutukula Road (89.5 km), Nyendo–Villa Maria Road (11 km), and Additional Infrastructure Project On November 29, 2023, the Minister of Finance, Planning, and Economic Development of Uganda proposed a pre-financing arrangement with Chongqing International Construction Corporation (CICO) for several infrastructure projects.
These projects include the reconstruction of the Masaka–Mutukula Road (89.5 km), rehabilitation of the Nyendo–Villa Maria Road (11 km), upgrading a 3.5 km access road to the Uganda People’s Defence Forces (UPDF) Barracks in Masaka, a 3.5 km access road to Masaka Industrial Park, and an additional 28.5 km for the Kikagati–Kafunjo Road.
Construction was originally anticipated to commence in the fiscal year 2023/24 and span four years.
The initial six months are allocated for mobilization, followed by the construction phase, and concluding with a one-year defects liability period. In December 2023, the Ugandan Parliament approved this pre-financing agreement.
Subsequently, in March 2024, the Prime Minister launched the reconstruction of the Masaka–Kyotera–Mutukula Road. However, in August 2024, the Uganda National Roads Authority (UNRA) was directed to renegotiate the contract with CICO to address concerns regarding an additional insurance component valued at UGX 38.86 billion.
This insurance, required by the China Export & Credit Insurance Corporation (Sinosure), was initially not included in the project's cost.
The Parliament recommended reducing this insurance component by 40%. As of April 2025, there have been no further publicly reported developments regarding the renegotiation outcomes or the project's current status.
Sources & References
- The Construction of Masaka – Mutukula Road (89.5 km) and Rehabilitation of Nyendo – Villa Maria (11 km)
- Cost of Masaka-Mutukula Road Construction to Increase by Shs64Bn
- Significant Cost Increase Hits Masaka-Mutukula Road Project
- PM launches reconstruction of Masaka – Kyotera – Mutukula Road
- House tells UNRA to renegotiate road contract with China firm
- House tells Uganda National Roads Authority (UNRA) to renegotiate road contract with China firm
- Tayebwa defends Shs534.91b loan for construction of Lusalira- Sembabule road
- Parliament Scrutinizes UGX 64Bn Cost Hike for Masaka-Mutukula Road Construction
- Report-on-the-Proposal-to-Prefinance-the-Construction-of-Masaka-Mutukula-Road-89.5-km-and-Rehabilitation-of-Nyendo-Villa-Maria-11-km Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
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Uganda Ministry of Finance
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