The Board of Directors of the African Development Bank Group (AfDB) has approved a Unit of Account (UA) 70 million (about $109 million) loan to the Government of Uganda.

Uganda has received a $109 million loan to finance its Road Sector Support Project V which supports the country’s National Development Plan (NDP) and Vision 2040 of Uganda.

The project’s objective is to improve road access to socio-economic facilities and the quality of transport service levels in south-western and eastern parts of Uganda. To achieve this, the Rukungiri-Kihihi-Ishasha/Kanungu and Bumbobi-Lwakhakha roads will be upgraded from gravel to bitumen standard.  This will help to improve standards of living of the beneficiaries, support the tourism industry and promote regional integration and cross border trade.

The expected project outcomes are a reduction in transport costs, increased mobility, improved access to economic and social facilities, provision of clean water to households, and increase in income of women vendors in the roadside markets.

The project conforms to the key development policies of the AfDB which approved the loan to Uganda’s government. It is in line with the AfDB’s 2011-2015 Results Based Country Strategy Paper (CSP) that focuses on infrastructure for development and increased agriculture productivity.

Presenting the project to the AfDB board of directors, the director of the Department for Transport and Information and Communication Technologies at the AfDB, Amadou Oumarou, said, “With this project, the African Development Bank is addressing a pressing demand for the provision of good quality and reliable transport infrastructure needed by Uganda for its socio-economic development and poverty reduction agenda.”