Sunday, 28 November 2021 03:48

China reportedly takes over Uganda’s airport on account of loan default

In what is yet another move to acquire foreign assets on account of default of loans China allegedly has taken over the Ugandan Entebbe International Airport and other assets in the Eastern African country.

Ugandan President Yoweri Museveni had sent a delegation to Beijing for a renegotiation with the Chinese government.

Earlier the Museveni-led government had signed an agreement with China’s Exim Bank to borrow $207 million to expand Entebbe International Airport.

The loan had a maturity period of 20 years including a seven-year grace period, but it had now appeared that the transaction signed with China’s EXIM meant Uganda “surrendered” its only international airport, according to a SaharaReporters.com, a news portal that focuses on Africa.

Uganda, however, sought to renegotiate the deal but without success. Uganda in March 2021 sent a delegation to Beijing hoping to renegotiate the clauses of the deal.

“The revelation that Uganda government signed an agreement and, among others, waived immunity for its sovereign assets has raised questions about the level of scrutiny and due diligence that bureaucrats conduct before committing the country internationally,” according to a report in allafrica.com

Entebbe International Airport is Uganda’s only international airport and handles over 1.9 million passengers per year.

A number of countries, some in Africa, have had to forfeit national assets for direct control by China after failing to repay commercial loans signed with haste or without proper scrutiny.

[EconomicTimes]



 

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