Uganda, China agree on road, camera projects worth $2.45bn

  • Written by  Pie Kamau

President Yoweri Museveni has said that a number of Government of Uganda funded contracts worth $2.4bn have been given to Chinese companies especially on roads and recently security cameras worth $120 million.

On Security and Defence, the President also said negotiations are underway on construction of forensic laboratory and two military artillery systems by Chinese companies.

The President was speaking during a bilateral meeting he held with his Chinese Counterpart Xi Jinping.

On the economic relations, President Museveni thanked President Xi Jinping for support towards the construction of the Karuma and Isimba dams which are on-going, noting that completion of the Karuma dam is at 79.2% while Isimba is at 80%.

“In the transport sector, we have agreed with a Chinese company called China Harbours Engineering Company (CHEC) on the Standard Gauge Railway.  We are soon signing the agreement and together with CHEC, we will approach EXIM bank for financing,” he said.


President Museveni informed his counterpart that in order to lay the pipeline from Kabale in Hoima (Uganda) to Tanga in Tanzania, there is a need to construct a number of roads including the Masindi-Tangi-Paraa-Bulisa road; Hoima-Butiaba-Wanseko road; Buhimba-Buramagi-Kakumiro road; Lusarira-Nkonge-Lumegere-Ssembabule; Masindi-Bisso-Kabaale-Kizirafumbi road; Hohwa-Nairongo-Kyaruseha road and Kabwoya-Buhuka and Ntoroko –Karugutu road; on this, negotiations have been going on between the Government of Uganda and some Chinese companies.

“A number of them have been identified, due diligence is going on which will lead to signing of the agreements,” he said.

In the private sector, the President said there are a number of Chinese Companies investing in Uganda.

He said a company called 'Guanzhou DongSong Energy Group, which is undertaking construction of the phosphate fertilizer, glass and sulfuric acid factory have been supported by the Government of China Insurance company which gave them insurance cover, which then facilitated them to go and acquire a loan from the Commercial Bank of China worthy $650M to invest in Uganda.

The President urged the Chinese government, for a government to government line of credit, which would support Uganda’s private companies to buy factory machine tools from China especially for processing of agricultural products and mineral beneficiations that the government can guarantee. Requests have also been made for Electrification for Industrial Parks.  The cost is $182M for (Kapeka, Sukuru and Mbale Industrial Parks).

On his part, Chinese President Xi Jinping said that China is ready to deepen friendly and mutually beneficial cooperation in various fields with Uganda.

He commended President Museveni for his long-term dedication to the promotion of the development of China-Uganda relations as well as China-Africa relations.

Xi stressed that China and Uganda have seen sustained and rapid development of bilateral relations in recent years.

“The development strategies of the two countries are compatible and present each other with important opportunities. Our two countries should maintain the momentum of high-level exchanges and continue to support each other on issues of their core interests and major concern,” he said.

Xi called on China and Uganda to keep close communication on major international and regional hotspot issues and safeguard the common interests of the two countries and developing countries as a whole.

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