Shs650 billion approved for Arua Airport upgrade

The African Development Bank (AfDB) has approved €155.99 million (about Shs650 billion) to upgrade Arua Airport into an international-standard facility, a project expected to boost trade, tourism and investment in Uganda's West Nile region.

The financing was approved by the African Development Bank Group's Board of Directors under Phase One of the Uganda Airports Development Programme.

Arua Airport lies about 450 kilometres from Kampala and serves as the main air transport link for West Nile, one of Uganda's most strategically located regions. The area borders South Sudan and the Democratic Republic of Congo, two important markets for Ugandan exports.

Despite its location, West Nile has long faced transport challenges that have limited trade, tourism and investment opportunities. The airport upgrade aims to address these constraints by improving domestic and regional connectivity.

Under the project, authorities will construct a 3.5-kilometre runway capable of handling large aircraft, including Boeing 777 passenger and cargo planes. The project will also include new taxiways, aircraft parking areas, a passenger terminal with capacity to handle 700,000 travellers annually, and a cargo terminal designed to process 25,000 tonnes of goods each year.

Other facilities will include a new air traffic control tower, access roads, parking areas and modern aviation safety systems.

Of the total project cost of €157.76 million, AfDB will provide a loan of €141.15 million, while the African Development Fund will contribute €14.84 million. The fund provides concessional financing, which means loans offered on favourable terms to support development projects. The government of Uganda will contribute €1.77 million in kind.

Mike Salawou, the Bank Group's director for infrastructure and urban development, said the project would strengthen Uganda's position as a regional transport and trade hub.

"This project is about more than an airport. It is about connecting people to opportunity, opening new markets for businesses, supporting tourism, and strengthening Uganda's role as a regional trade and logistics hub," Salawou said.

The Uganda Civil Aviation Authority (UCAA) will implement the project under the Ministry of Works and Transport.

UCAA director general Fred Bamwesigye described the project as a major milestone for Uganda's aviation sector.

"Arua Airport is currently the second busiest in the country after Entebbe International Airport and has immense growth potential," Bamwesigye said.

He added that the airport would also provide an alternative landing facility when Entebbe International Airport faces operational challenges or emergencies.

The airport is expected to support key sectors in West Nile, including agriculture, tourism and trade. Faster air transport could help farmers and exporters move fresh produce and other time-sensitive goods to regional and international markets.

The region is also home to several tourism attractions, but limited transport infrastructure has constrained visitor numbers. Improved air access is expected to make the area more attractive to tourists and investors.

According to project estimates, more than 500,000 people in Arua City and District will benefit directly, while the wider West Nile region, home to more than 3.3 million people, will gain from improved transport links and economic activity.

Construction is expected to create about 500 direct jobs and more than 1,400 indirect jobs in sectors such as tourism, agriculture and trade. The programme will also provide technical training to at least 100 young people, including women, in engineering, construction and equipment operation.

The project aligns with Uganda's infrastructure development plans and AfDB's Ten-Year Strategy 2024-2033, which prioritises transport networks that improve market access, competitiveness and industrialisation.