UGANDA SET TO LOSE ITS ONLY INTERNATIONAL AIRPORT TO CHINA OVER DEBTS
Reports indicate that Uganda is on the verge of losing its only international airport, the Entebbe International Airport, to China after a debt agreement with the Asian country expired on November 17.
The Ugandan Government had in November 17, 2015, signed an agreement with Export-Import Bank of China (Exim Bank) to borrow 207 million dollars at two percent upon disbursement, with a maturity period of 20 years including a seven-year grace period. Failure to pay back the loan, the deal signed with the Chinese lenders indicates Uganda would lose its only International Airport to them.
In a statement on Friday by the Uganda Civil Aviation Authority (UCAA), it 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.
Multiple reports indicate that President Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clauses.
The visit was however unsuccessful as China authorities refused to allow any alteration in the original terms of the deal.
The Entebbe International Airport is Uganda’s only international airport and handles over 1.9 million passengers per year.
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