Uganda lost China’s most important airport for not repaying the loan

Nueva Delhi, November. 27 (Iance): African media reported that the Ugandan government lost its largest airport to China due to its failure to repay a loan.

The government has not changed the loan agreement with the Chinese, who have repayment terms to connect their only airport.

Entebbe International Airport and other Ugandan assets have been merged and agreed to be acquired by debt-brokering Chinese lenders, according to the report.

The report added that President Yoweri Museveni has sent a delegation to Beijing in the hope of resuming talks on toxic issues.

The report says the visit failed because Chinese officials refused to allow changes to be made to the original terms of the deal.

The government of Uganda, then represented by the Ministry of Finance and the Civil Aviation Authority, signed an agreement with the Export-Import Bank of China (Exim Bank) on November 17, 2015. With a maturity period of 20 years, including a grace period of seven years.

The report says the agreement signed with Chinese lenders means Uganda has “handed over” its most important airport to China.

Certain provisions of the Uganda Civil Aviation Authority (UCAA) financial agreement reveal the involvement of Ntabe International Airport and other Ugandan assets in Beijing by Chinese lenders.

China has rejected Uganda’s request to reconsider the toxic components of its 2015 debt, confounding Ugandan President Yoweri Museveni’s administration.

According to the Uganda Daily Monitor, the Ugandan government has lifted international immunity in signed debt protection agreements and seized Entebbe International Airport without international protection.

Last week, Ugandan Finance Minister Mattia Kasaiga apologized to Parliament for the “misappropriation of $207 million in debt” from China’s Exim Bank for the expansion of Entebbe International Airport.