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Uganda is on the verge of losing it’s 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, on November 17, 2015, signed an agreement with Export-Import Bank of China (Exim Bank) to borrow $207 million at two per cent upon disbursement, with a maturity period of 20 years including a seven-year grace period.
And with a failure to pay back the loan, it has emerged that the deal signed with the Chinese lenders virtually means Uganda will surrender its most prominent and only international airport.
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A statement on Friday by the Uganda Civil Aviation Authority (UCAA), says “some provisions in the Financing Agreement with China exposed the Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.”
It also emerged that China has rejected recent pleas by Uganda to renegotiate the toxic clauses of the 2015 loan, leaving Ugandan President Yoweri Museveni’s administration in limbo.
