Uganda is at risk of losing Entebbe International Airport over Chinese loan.
This comes after lenders in China rejected request to renegotiate some unfavorable terms in the contract of Ksh 22 billion.
According to Daily Nation, Uganda signed a contract the Export-Import (Exim) Bank of China on March 31, 2015, and if not amended, it exposes Uganda’s sovereign assets to attachments and take-over upon arbitration awards in Beijing.
In the turn of events, a law wouldn’t prevent the Entebbe take over because Uganda Civil Aviation Authority (UCAA) assets by the lender would not be protected by sovereign immunity since Uganda government, in the 2015 deal, waived the immunity on airport assets.
“The Exim Bank officials made it clear from the onset that re-negotiation and amendment of the loan agreement were not agreeable to them.” said Finance Minister Matia Kasaija.
Uganda now is at the mercies of the lender, Exim Bank, unless the government helps in giving a hand to stop them from taking over sovereign assets.
