China To Take Over Uganda’s Lone International Airport Over Failure To Repay Loan



The Ugandan government has lost its most important airport to Chinese loan…....

By Abdulyassar Abdulhamid



The Ugandan government is on the verge of losing its major airport to China for failing to repay a loan.

The government has failed to reverse a loan agreement with the Chinese which had repayment conditions of attaching its only airport.

Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders upon arbitration of the loan.

According reports, President Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clauses.

The visit was unsuccessful as China authorities refused to allow any alteration in the original terms of the deal.

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 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.

The deal signed with the Chinese lenders virtually means Uganda “surrendered” its most prominent airport to China.

The Uganda Civil Aviation Authority (UCAA) said some provisions in the Financing Agreement expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.

The rejection of Uganda’s plea to renegotiate the toxic clauses of the 2015 loan has left Museveni’s administration in limbo.

According to the Daily Monitor of Uganda, the Ugandan government waived international immunity in the agreements it signed to secure the loans, exposing Entebbe International Airport to take over without international protection.

Last week, Uganda’s Finance Minister Matia Kasaija apologised to parliament for the “mishandling of the $207 million loan” from the China Exim Bank to expand Entebbe International Airport.

“I apologise that we shouldn’t have accepted some of the clauses,” Kasaija told members of the committee in response to questions asked by the legislators.

There were also questions over the interest rate that was set by the China Exim Bank for the funds placed in an off-shore Standard Bank account that was used as collateral for the project.

Built in 1972, Entebbe International Airport handles over 1,9 million passengers per year.

https://dailytrust.com/china-takes-over-ugandas-lone-international-airport-over-failure-to-repay-loan


Lalasticlala

chaina too like money i trust my country

Will Nigeria suffer this fate, too? Cos there's no hope in sight that our supreme leaders will pay back all these loans Bubu has accrued.

Same will happen to Nigeria soon.

Thank God none of their loan was used in the East.

North and West get ready to repay your train and other amenities loans.

What is the faith of Nigeria with unreasonable and incessant borrowing ,how can a group of people decide to mortgage the destiny of their unborn children because of selfish and immediate satisfaction.

Igbodicool:
Same will happen to Nigeria soon.

Thank God none of their loan was used in the East.

North and West get ready to repay your train and other amenities loans.

I think second naija bridge is now in South West or North ?

Igbodicool:
Same will happen to Nigeria soon.

Thank God none of their loan was used in the East.

North and West get ready to repay your train and other amenities loans.

.... It's not necessary where the loan was used as long as it was used in Nigeria and east is part of Nigeria..... And nobody knows what the federal government use as collateral... Don't be surprise when China will come and take over a Anambra and Imo, saying that's what the FG use as collateral in building North and West railways...