Government to borrow Shs 900 billion to resume construction of Busega-Mpigi Expressway

The Ugandan government is seeking to borrow EUR 216 million, or about Shs 899.7billion, to revive the long-stalled construction of the Busega-Mpigi Expressway.

Of this amount, EUR 188.18 million is to be sought from the African Development Bank, while EUR 28.31 million is from the African Development Fund 

The proposal will be tabled before Parliament tomorrow, Wednesday, September 3rd, as the house resumes its plenary following a recess.

The Minister of Finance, Planning and Economic Development is expected to table the proposal, which will then be subject to parliamentary scrutiny and debate.

A History of Delays and Cost Escalation

The Busega-Mpigi Expressway project, a 23.7-kilometre dual carriageway, has been plagued by delays since its initial commencement. 

Construction officially began in May 2020 with an initial budget of approximately Shs 547 billion, which was meant to be completed within 30 months. 

However, the project has faced numerous setbacks, leading to a substantial increase in its cost to more than double the initial budget. 

The new loan is an effort to address these financial shortfalls and bring the project to a close.

The Hurdles to Completion

Before its scapping, the Uganda National Roads Authority (UNRA) cited a number of challenges, including protracted disputes and legal battles over land acquisition, with some Project Affected Persons rejecting the compensation amounts. 

Additionally, the difficult, swampy topography of the area and the disruptions caused by the COVID-19 pandemic hampered progress.

As of early 2025, work was at just over 40 per cent completion, far behind schedule and requiring a major cash injection to get back on track.

Hopes for a Connected Future

If the loan proposal is approved by Parliament, the new funding is expected to allow the contractor, a Chinese consortium, to fully remobilise on-site and address the pending issues that have caused the delay. 

The expressway is a vital component of the Northern Corridor, a regional transport network connecting Uganda to neighbouring countries like the Democratic Republic of Congo and Rwanda. 

Its completion is expected to ease the severe traffic congestion on the Kampala-Masaka highway, drastically reducing travel time and boosting trade and economic activities in the central and western parts of the country.