Gov’t to Collect Toll Fees for 18 Years to Pay Off Loan for Entebbe Expressway

Uganda’s National Roads Authority (UNRA) has announced that the government will continue collecting toll fees on the Entebbe Expressway for over 18 years.

This extended period is necessary to repay the US$476 million (Shs1.853 trillion) loan obtained from the Exim Bank of China, which funded the construction of the road.

Isaac Wani, Director of Network Planning and Engineering at UNRA, explained that although the loan must be repaid within 13 years, the breakeven point, when the investment is recouped, will take up to 18 years. After this period, toll revenues will be directed towards financing road maintenance activities, including upkeep of the Entebbe Expressway.

“That money has to be paid within 13years, however the breakeven because of the optimum that we determined will go up to 18years. So the Ministry of Finance has to complete that payment and then the breakeven to recoup the investment, will take us up to 18years and thereafter, we will be collecting additional revenue to finance road maintenance activities including on maintenance of this road,” said  Wani

This revelation came during a meeting called to address queries raised in the December 2023 Auditor General’s report.

Medard Lubega, Chairperson of the Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE), questioned UNRA about the toll fee charges and the closure of lanes on the expressway when President Museveni travels.

Lubega expressed concern over the inconvenience caused to road users by closing lanes for the President’s passage, especially considering that he does not pay toll fees.

“When the President thinks of leaving his home to Kampala, you mean you have no mechanism of knowing when to close the road? He doesn’t pay in the first place, now you inconvenience people who pay and that isn’t to say that the President is less important. I personally appreciate the value of the President’s security that is why I have no quarrel with lining up his soldiers along the entire route, but the President is using one lane, you close even the next one, does it make sense to you whether economic or social sense? he questioned

UNRA Executive Director Allen Kagina responded that road closures are coordinated with security to ensure the President’s safety, but efforts are being made to minimize disruption to other users.

“We can work together with security to provide a response but it isn’t abnormal that when the President is going to a location that his security is present in advance to secure his passage. Some questions I can’t answer but what we are working on is that the time when that road is closed is reduced.” she said

In related news, UNRA announced that the contract for the construction of the Masaka-Mutukula Road will be signed soon, following approval by the Solicitor General.

The delay in commencing the project was attributed to funding constraints. Parliament had approved a pre-financing arrangement for the reconstruction of Masaka-Mutukula Road and other related projects at a cost of UGX 691.680 billion.

The project involves Chinese firm Chongqing International Construction Corporation (CICO) undertaking the works, with the government required to repay the funds within two years of project implementation.