November 27, 2021
1 min read

DEBT-TRAP: China Takes Over Ugandan Airport

Ugandan President Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clause, reports Asian Lite News

The Ugandan government has lost its major airport to China for failing to repay a loan, African media reported.

The government has failed to reverse a loan agreement with the Chinese which had repayment conditions of attaching its only airport, Today reported.

Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders upon arbitration of the loan, the report said.

According to reports, President Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clauses, the report added.

The visit was unsuccessful as China authorities refused to allow any alteration in the original terms of the deal, the report said.

The Uganda government, represented by the finance ministry and the Civil Aviation Authority at the time, had on November 17, 2015, signed an agreement with Export-Import Bank of China (Exim Bank) to borrow U$207 million at two per cent upon disbursement; with a maturity period of 20 years including a seven-year grace period.

Ugandan
Ugandan President Yoweri Museveni (Tanzania State House/Handout via Xinhua/IANS)

The deal signed with the Chinese lenders virtually means Uganda “surrendered” its most prominent airport to China, the report said.

The Uganda Civil Aviation Authority (UCAA) said some provisions in the Financing Agreement expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.

China has rejected pleas by Uganda to renegotiate the toxic clauses of the 2015 loan, leaving Ugandan President Yoweri Museveni’s administration in limbo.

According to the Daily Monitor of Uganda, the Ugandan government waived international immunity in the agreements it signed to secure the loans, exposing Entebbe International Airport to take over without international protection.

Last week, Uganda’s Finance Minister Matia Kasaija apologised to parliament for the “mishandling of the $207 million loans” from the China Exim Bank to expand Entebbe International Airport.

ALSO READ: China’s debt-trap strategy in South Sudan

Previous Story

OMICRON VARIANT: Countries advised to step up surveillance

Next Story

Kashmir Ready to Join Indian Railways Canvas

Latest from -Top News

India, US Step Up Trade Talks

The development comes in the backdrop of the new US ambassador Sergio Gor taking charge in the US embassy is New Delhi….reports Asian Lite News India and the United States are progressing

Lanka Marks Next Phase of Indian Housing Drive

Phases III and IV of the Indian Housing Project highlight India’s commitment to supporting and empowering Sri Lanka’s Indian-origin Tamil community….reports Asian Lite News Sri Lankan President Anura Kumara Dissanayake on Sunday

Hamas Frees Captives

The Israeli Air Force announced that it has completed its preparations to receive hostages returning from Gaza to Israel….reports Asian Lite News The Red Cross has taken custody of the first group

China’s Grab for Africa

China’s investments aim to strengthen its geopolitical influence and its high-tech manufacturing sector in Africa…reports Asian Lute News China is further consolidating its dominance in the rare earth elements sector by expanding
Go toTop

Don't Miss

35 killed, 43 injured as car rams into crowd in China’s Zhuhai

The incident took place around 7:48 pm Monday, when citizens

Canada, after US and EU, mulls tariffs on Chinese-made EVs

Freeland said public consultations will help the government decide its