According to the country’s legal head, Uganda can meet China’s loan terms and keep its airport.
Uganda’s senior legal officer advised the Finance Ministry to desist from renegotiating the conditions of a $200 million Chinese loan as it is competent to satisfy its debt commitments.
The deal struck in 2015 with the Export-Import Bank of China to finance the expansion of the Entebbe Airport came with numerous problematic conditions, including one that could see the lender assume ownership of the facility in the case of a default.
It’s unnecessary to revise the sections as the government is capable of completing its duties, Attorney General Kiryowa Kiwanuka was reported as saying in a statement on the Parliament of Uganda’s website.
“Contracts in our perspective are harmful when you lay forth commitments which are unattainable of performance,” Kiwanuka remarked. “The duty under this contract is entirely capable of performance.”
Fears of the airport being taken over by the Chinese are baseless given Uganda has not yet begun repaying the 20-year loan, which came with a seven-year grace period that ends in April next year, he noted.