ADF’s loan will be used to upgrade and pave 34km of road. Credit: Jamar Penny on Unsplash.

The African Development Fund (ADF) has agreed to provide a loan of $71.5m for a road upgrade project in Southwestern Uganda.

ADF’s loan will be used to upgrade and pave 34km of the Kabale-Lake Bunyonyi-Kabeho circuit and the Kisoro-Mgahinga Park Gates road.

The amount will also be used for the construction of two roadside markets, a farm which will produce holding facilities and four ferry landing sites on Lake Bunyonyi.

Once completed, the project is expected to boost livelihoods, school attendance and rural connectivity in Southwestern Uganda.

The loan amount has been approved under ADF-15, the concessional lending window of the African Development Bank Group.

This loan amount approved by the ADF will cover 86% of the total project while the remaining cost of $11.9m will be provided by the Government of Uganda.

The loan is in line with Uganda’s third National Development Plan 2020/21-2024/25 under its Vision 2040. It is also consistent with the African Development Bank Group’s ten-year strategy 2013-22.

The funds will also underwrite the provision of two ferries with navigational aids, as well as technical assistance to the government for strengthening road safety regulations and supporting the implementation of the inland water transport aspects of the project.

African Development Bank Group Infrastructure and Urban Development director Amadou Oumarou said: “This innovative and integrated infrastructure development project is poised to increase market development, widen business opportunities and scale up food productivity, enhancing income levels in Southwestern Uganda.”

In November 2018, the African Development Bank (AfDB) agreed to finance the first phase of the Kampala-Jinja Expressway project in Uganda.

As part of this initiative, ADF agreed to offer a sovereign loan of $229.5m to support the government’s ‘Vision 2040’ agenda and position Uganda as a regional transit hub.