The Ugandan Government has signed an agreement with Export-Import Bank of China (Exim Bank) to borrow $207 million at two per cent interest upon disbursement.
The loan had a maturity period of 20 years including a seven-year grace period.
With the deal signed with the Chinese lenders, the Ugandan government on behalf of the nation has “surrendered” its most prominent and only international airport — Entebbe International Airport — to China.
The Uganda Civil Aviation Authority (UCAA) said some provisions in the financing agreement with China has exposed Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.
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It is also learnt 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.
Ugandan government had waived international immunity in the agreement it signed to secure the loans.