Uganda: Parliament approves Karuma borrowing

Parliament has given the government the go-ahead to borrow $1.4bn from the Export-Import Bank of China to fund the 600MW Karuma hydropower project on the Victoria Nile. The approval will allow construction to continue. Commissioning is expected in four years’ time. The loan will cover 85% of the $1.6bn cost of the project, with the remaining $253.26m being met by the government. Approval of the loan, which was granted on 25 March, followed heated debates in parliament over whether the deal offered value for money.