Parliament has approved a request by government to borrow $325m (about Shs1.1 trillion) from China’s Exim Bank for the upgrade of Entebbe Airport.
Parliament yesterday approved the borrowing of $200m to cover phase I of the project on the promise that the balance of $125m would come in 2018/19 financial year for phase II.
The chairman of the Committee on National Economy, Xavier Kyooma, said air transport was critical for economic security and prosperity since Uganda is a land locked country.
Works and Transport minister, John Byabagambi, said the ministry has acquired land for the expansion of the airport.
He said the number of passengers had increased from 781,428 in 2007 to 1,343,963 passengers in 2013.
However, the Leader of the Opposition in Parliament, Wafula Oguttu, was not pleased by the fact that the country is borrowing a lot of money for only one airport yet other areas need airports too.
The shadow minister for Justice, Medard Sseggona, also warned that the government was mortgaging the country under the pretext of investing in infrastructure projects like the one seeking to upgrade Entebbe Airport.