Entebbe International Airport that is undergoing expansion with a loan from China.


The Chinese government has refuted as malice allegations that China could attach some of the asserts that protected by sovereign immunity since Uganda government, in the 2015 deal, waived the immunity on airport assets.

In a report by Daily Monitor newspaper, it is said that top Ugandan officials were boxed into a corner of bother after lenders in China rejected their request to re-negotiate ‘toxic clauses’ in the $200m (Shs713b) loan picked in 2015 to expand Entebbe International Airport.

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However, China has hit back saying it is malice targeted at their sponsored projects in Africa. Though, in their reply, they don’t specify malice from who.

“Which of the Chinese projects in Africa have been confiscated in Africa? None! The hype surrounding Chinese debt trap in Africa have no factual basis and is being pushed on malicious grounds” said @WuPeng MFAChina, Director-General Department of African Affairs, MoFA China.

Daily Monitor reported that a joint team from the Works, Foreign Affairs, and Finance ministries, as well as UCAA and Attorney General’s Chambers, was led by Dr Chrispus Kiyonga, Uganda’s Ambassador to China. In the meeting, the four Exim Bank executives reportedly rejected any amendments to clauses of the signed Financing Agreement and made it clear to the Ugandan executives that any attempts to make alterations would set a bad precedent. In addition, the Chinese told their guests that they saw no cause to warrant the amendment.

The lenders advised Dr Kiyonga and his team to accept “friendly consultations” from time to time, to ensure smooth implementation of the airport expansion project. They also agreed to keep the details of the meeting confidential.

China has funded a number of projects in Africa and more so in Uganda with examples like Karuma power dam project, expansion of Entebbe International Airport, roads sector and a host of others.