Eastern Africa Transport Corridor

The project consists of road improvements on three selected sections (58km) of the Northern Road Corridor (NRC) including two bypasses for the cities of Kampala and Mbarara. The direct purpose of the project is to alleviate transport bottlenecks, generate savings in vehicle operating costs and travel time as well as to reduce the level of road accidents. The modernisation of this transport infrastructure is crucial for both national and regional road traffic and sustains economic growth in the area, trade expansion and investment, which are also vital to develop and support a dynamic and robust private sector. 

Uganda is a HIPC country, constrained to borrow on highly concessional terms. The ITF Interest Rate Subsidy will be used to lower the final interest rate of EIB’s loan of EUR 55m to the Government, providing the 35% IMF concessional element requested to Uganda for taking up additional debt. The loan to the Government will be passed on to the promoter, the Ugandan National Roads Authority (UNRA), in the form of a grant.