Government and Citibank Uganda have signed a multibillion ten-year financing agreement for construction of the 97km Lusalira-Nkonge-Lumegere-Ssembabule Road, which is scheduled to start before the end of 2025.

The financing agreement signed on Friday is for the project expected to cost Shs534.9 billion (exclusive of VAT) of which Shs479.8 billion will be funded by Citibank and Shs55.11 billion (10.3%) of the project costs to be met by the Ugandan government, which will also be responsible for taxes.

Speaking at the conclusion of the agreement in Kampala, finance state minister Henry Musasizi revealed that M/s Technovia South Africa, in a joint venture with Technovia Angola, will undertake the construction of the road.”

Mr Musasizi said Citibank was the sole mandated lead arranger of the facility but stressed that the financing will be supported by African Trade and Investment Development Insurance (ATIDI) and the Development Bank of Southern Africa (DBSA).

“Banks in the syndicate include Absa Bank (Mauritius) Limited,” he added.

Musasizi used his remarks to explain that the Lusalira-Nkonge-Lumegere-Ssembabule Road is an existing Class A gravel road that connects the districts of Ssembabule and Mubende, all in central Uganda.

The road in mention starts at a junction along the Mubende–Fort Portal Road, through the ‘Y’ junction in Lumegere and terminates in Sembabule District, connecting to the Ssembabule-Masaka Road/

“The road is part of the national road network that links the rest of the network to the west by the Fort-Portal Road and to the south by the Ssembabule–Masaka Road,” the minister noted.

Government says the road will greatly stimulate and support local economic activities by improving connectivity to social economic facilities, reducing road maintenance costs, vehicle operating costs (VOCs) and travel time.

“It will also provide an alternative route connecting the Northern Corridor routes of Kampala – Masaka – Mbarara and Kampala – Mubende – Fort portal, thereby easing connectivity of the central region to the Albertine Region,” Musasizi emphasized.

“It will also offer a secure, environmentally sustainable, reliable and dependable transport system on the road that meets the needs and aspirations of the National Road Sector,” he added.

Citibank Chief Executive Officer and Banking Head for the Middle East and Africa cluster, Ms Ebru Pakcan acknowledged the Ugandan government for its “vision and commitment to advancing infrastructure that drives economic and social transformation.”