The Chinese authorities have announced the construction of a new road worth $134 million in Uganda to ensure the transport of oil.
Based on the authorities of the two countries, the new infrastructure will be spread over 97 km and will include the Masindi-Biso, Kabaale-Kizirafumbi and Hohwa-Nyairongo-Kyarushesha-Butole axes. Planned to be completed within 3 years, the project should be carried out by the China railway seventh group.
The new road is part of a network of over 700 km planned to be set up in Uganda. It will serve the country's oil sites, which would enter production by 2021.
The project also aims to absorb the local workforce and enhance the expertise of Ugandan entrepreneurs. According to Allen Kagina, Director of the Ugandan national road authority (UNRA), almost 30% of the planned work should be entrusted to local companies.
"The contractual agreement between UNRA and the contract stipulates that the contractor will pre-finance and execute the work for a period of 12 months from the start date, while the Ugandan Government obtains the necessary funds to pay or perform the work. ", also indicated the Manager.