The proposed Kabaale International airport in Uganda is set for takeoff after receiving €270m from the UK Export Finance(UKEF). The project will be undertaken by Colas UK.
The loan will help support work on the construction of the runway, taxiway, cargo terminal and other necessary infrastructure.
Reports indicate that construction work is scheduled to start in January 2018. Additional financing will be provided by Standard Chartered which acted as the lead arranger for the deal.
Director of strategic projects at Colas UK, Carl Fergusson said that the Kabaale International airport presents an opportunity for the company to establish its footprint across East Africa.
“With huge untapped natural resources, rapid urbanization and attractive demographics, the requirement for investment in infrastructure to support continued regional development is clear, and this aligns well with the outward looking international element of the Colas Ltd strategy which seeks to expand our activities in East Africa,” said Fergusson.
It is part of the infrastructure to be built as Uganda prepares to develop its nascent petroleum industry.When completed, it would be Uganda’s second international airport, besides Entebbe International Airport.
The new airport is expected to facilitate mobilization of equipment for construction of the Uganda Oil Refinery and assist in the development of agriculture and tourism in Uganda’s Western Region.
Uganda has started construction of a major oil pipeline running from its oil fields in Hoima to Tanzania’s Tanga port to boost movement of crude oil.