Chinese lenders, the Export-Import Bank of China, also known as Exim Bank, has taken over the Ugandan Entebbe International Airport and other assets in the country over the failure of the Ugandan government to repay a loan.
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 the Chinese lenders practically means Uganda "Surrendered" its most prominent and only international airport.
The Uganda Civil Aviation Authority revealed some provisions in the Financing Agreement with China that exposed Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon negotiation in Beijing.
According to the Daily Monitor, the Ugandan government waived international immunity in the agreement it signed to secure the loans, exposing Entebbe International Airport to take over without international protection.
In desperation, Uganda in March 2021 sent a delegation to Beijing hoping to renegotiate the toxic clauses of the deal but the officials came back empty-handed as China would not allow the terms of the original deal to be varied.
Last week, Uganda's Finance Minister, Matia Kasaija, apologised to parliament for the "Mishandling of the $207 million loan" from the China Exim Bank to expand Entebbe International Airport.
Entebbe International Airport is Uganda's only international airport and handles over 1.9 million passengers per year.
Sunday, November 28, 2021
China Takes Over Ugandan Airport, Other Country's Assets Over $207million Loan Deal
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