Uganda loses most prominent airport to China for failing to repay loan


New Delhi, Nov 27 (IANS): The Ugandan government has lost its major airport to China for failing to repay a loan, African media reported.

The government has failed to reverse a loan agreement with the Chinese which had repayment conditions of attaching its only airport, Today reported.

Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders upon arbitration of the loan, the report said.

According to reports, President Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clauses, the report added.

The visit was unsuccessful as China authorities refused to allow any alteration in the original terms of the deal, the report said.

The Uganda government, represented by the finance ministry and the Civil Aviation Authority at the time, had on November 17, 2015, signed an agreement with Export-Import Bank of China (Exim Bank) to borrow U$207 million at two per cent upon disbursement; with a maturity period of 20 years including a seven-year grace period.

The deal signed with the Chinese lenders virtually means Uganda "surrendered" its most prominent airport to China, the report said.

The Uganda Civil Aviation Authority (UCAA) said some provisions in the Financing Agreement expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.

China has rejected pleas by Uganda to renegotiate the toxic clauses of the 2015 loan, leaving Ugandan President Yoweri Museveni's administration in limbo.

According to the Daily Monitor of Uganda, the Ugandan government waived international immunity in the agreements it signed to secure the loans, exposing Entebbe International Airport to take over without international protection.

Last week, Uganda's Finance Minister Matia Kasaija apologised to parliament for the "mishandling of the $207 million loans" from the China Exim Bank to expand Entebbe International Airport.

 

  

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Comment on this article

  • Victor Momah Chinenye Abuah, Dubai UAE

    Mon, Nov 29 2021

    African leaders needs to wake up from this evil loans being granted to Africans. They China plans to enslave Africa once again by granting them Some kind of crazy loans which they fully understand no one would be able to pay back.

    DisAgree Agree Reply Report Abuse

  • Mahmud, Lahore

    Mon, Nov 29 2021

    Strange that all comments are by Indians.

    DisAgree Agree Reply Report Abuse

  • Ganapathy Bhat, Uppinangadi

    Sat, Nov 27 2021

    Why to blame China! they helped them by giving loan. But Ugandas Govt. officials like our Chor Reddy looted countries wealth and put the country in problem. This punishment we too have if we buy house on loan and if we are not pay it back our house bank will take over without any mercy or pity. If we did this our people would have liked and justified it!!!!!!!!

    DisAgree [1] Agree [6] Reply Report Abuse

  • Thomas Andrade, Toronto

    Sat, Nov 27 2021

    It's a lesson to all the countries, especially poor ones, to be extremely careful while dealing with China. They are taking full advantage of your weakness. Pakistan is fully trapped by China and in my opinion if the country fails to make their timely re-payments to their Chinese masters, they will have tough time to come out of the clutches of this dragon. Sri Lanka is another country which is heavily burdened by Chinese loans. When Chinese are approaching you to help, they are not helping you but helping themselves.

    DisAgree Agree [17] Reply Report Abuse

  • mohan prabhu, mangalore/canada

    Sat, Nov 27 2021

    BEWARE OF WOLF IN SHEEP'S CLOTHES, goes the saying.

    DisAgree Agree [3] Reply Report Abuse

  • Veer, Nagpur

    Sat, Nov 27 2021

    China’s ‘Akhand China’ dreams. India’s ‘Khand Bharath’ dreams!?!?!?!?!…..

    DisAgree [7] Agree [17] Reply Report Abuse

  • John, Mangalore

    Sat, Nov 27 2021

    That's how communist chinese loot smaller nations specially our neighbouring countries, giving huge infrastructure loans, then spread virus, then lockdown bankrupt nations then come inside in the name of recovering loans and build their bases.

    DisAgree [1] Agree [20] Reply Report Abuse

  • mohan prabhu, mangalore/canada

    Sat, Nov 27 2021

    learning a hard lesson. other countries snared by China into taking loans BEWARE!

    DisAgree Agree [17] Reply Report Abuse


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