It has been reported that the Uganda government signed an agreement with Export-Import Bank of China (Exim Bank) to borrow $207 million at two per cent upon disbursement, on Tuesday, 17th November, 2015.
According to reports, the loan had a maturity period of 20 years including a seven-year grace period.
However, It has now been disclosed that the deal signed with the Chinese lenders virtually means Uganda “surrendered” its most prominent and only international airport.
Further reports disclosed that, the Uganda Civil Aviation Authority says some provisions in the Financing Agreement with China expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.
Also, It was reported 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.
Reports from the Daily Monitor, disclosed that the Ugandan government waived international immunity in the agreement it signed to secure the loans, exposing Entebbe International Airport to take over without international protection.
Meanwhile, Uganda’s Finance Minister Matia Kasaija reportedly apologized to the parliament last week, for the “mishandling of the $207 million loan” from the China Exim Bank to expand Entebbe International Airport.
Findings revealed that Entebbe International Airport is Uganda’s only international airport and handles over 1.9 million passengers per year. Its seizure by China would greatly dent the legacy of the 77-year-old Museveni, who came to power on the back of an armed uprising in 1986, and expose him to election def.