China Takes Over Uganda’s Airport Over Failure To Repay Loan

The Ugandan government has lost its most important airport to China over failure to repay loan.

According to DAILY TRUST, the government of Uganda has failed to reverse a loan agreement with the Chinese government which had repayment conditions of attaching its only airport. Information Guide Nigeria

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DAILY TRUST reports that according to the agreement between the two countries, Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders upon arbitration of the loan.

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Reports reveal that the President of Uganda, Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clauses.

However, the visit was unsuccessful as China authorities refused to allow any renegotiation or alteration in the original terms of the agreement.

DAILY TRUST reports that the Uganda government, represented by the finance ministry and the Civil Aviation Authority at the time, had on 17 November 2015, signed an agreement with the Export-Import Bank of China (Exim Bank) to borrow U$207 million at two per cent upon disbursement; with a maturity period of 20 years including a seven-year grace period. Jamb Result

In a recent report, the Minister of Finance in Uganda, Matia Kasaija has apologised to parliament for the “mishandling of the $207 million loan” from the China Exim Bank to expand Entebbe International Airport.

According to DAILY TRUST, Daily Monitor of Uganda has reported that the Ugandan government waived international immunity in the financial agreements with China to secure the loans, exposing Entebbe International Airport to take over without international protection.

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