In a ceremony held at BADEA’s Headquarters in Khartoum, on Thursday October 20, 2005, a loan agreement was signed between the Republic of Uganda and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to the Republic of Uganda a loan of US $ 7 million to help finance construction of Bridges in North and North Eastern Uganda (Phase I).

The signing ceremony was attended by Eng. Samson Bagonza, Director of Engineering/Engineer-in-Chief, Ministry of Works, Housing and Communications, H.E. Ahmed Abdallah El-Akeil, Chairman of BADEA’s Board of Directors, and H.E. Medhat S. Lotfy, the Director General of BADEA.

The project aims at improving the effectiveness of the road network in the country and to facilitating the movement of passengers and transport of goods. It also aims at improving the road safety and facilitating the access of the agricultural products to the markets, promoting tourism and combating poverty.

The loan will be repaid in 40 years including a grace period of 10 years and at an annual interest rate of 1%.

With this new loan, the total commitments of BADEA to the Republic of Uganda will amount to US $ 92.65 million.