Reports have said that Uganda lost its only international airport, the Entebbe International Airport, to China for failing to repay the loan. The government has been unable to change the loan agreement made with China which had the repayment conditions for attaching the only airport.
In 2015, China’s export-import (EXIM) Bank had lent Uganda $207 million at two percent upon the disbursement. The loan, which is meant to expand the Entebbe airport, came with a maturity period of 20 years, including a seven-year grace period.
Failing to repay the loan:
Africa reported that Uganda had lost its only international airport, the Entebbe International Airport, to China for failing to repay a loan. However, as per international media reports, the Ugandan government waived off the clause for international immunity for securing the loan.
The Chinese lender can retake possession of Entebbe International Airport without any international arbitration. A statement from the Uganda Civil Aviation Authority (UCAA) reportedly suggested some provisions in the Financing “mishandling” the trolls.
The government, which is represented by the finance ministry and the civil aviation authority, had on November 17, 2015, signed an agreement with the Export-Import Bank of China to borrow $207 million at 2% upon disbursement, with a maturity period of 20 years including a seven-year grace period.
The report said that the deal signed with the Chinese lenders virtually meant Uganda “surrender” its key airport to China. The Uganda civil aviation authority said some provisions in the financing agreement expose Entebbe airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.
Daily monitor’s statement:
According to the daily monitor, the Agreement with China exposed Entebbe international Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.
The Ugandan government waived international immunity in its agreements to secure the loans, exposing the airport to take over. Last week, Ugandan Finance minister Matia Kasaija apologized to the parliament for the problem and loans from China bank to expand the airport.
However, according to a media report, China’s director-general to the African affairs, Wu Peng, has dismissed as “illogical propaganda” that they are confiscating facilities from African states because of indebtedness.
The Ugandan government has lost its major airport to China for failing to repay a loan. The government has been unable to reverse a loan agreement with the Chinese, which had repayments conditions of attaching its only airport. The Today News bulletin was reported.
About the Exim Bank:
The report said that Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders upon arbitration of the loan. According to the reports, President Yoweri Museveni had sent a delegation to Beijing hoping t renegotiate the statement’s toxic clauses.
The report said that the visit was not fruitful as China authorities refused to allow any alteration in the original terms of the deal. The Ugandan government, represented by the finance ministry and the Civil Aviation Authority at the time had on November 17, 2015, signed an agreement with the Export-Import Bank of China known as the Exim Bank.
The Financing Agreement:
It emerged that the agreement was signed with the Chinese lenders virtually means Ugandan surrendered its most prominent and only international airport. The Ugandan Civil Aviation Authority says some provisions in the Financing Agreement with China expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitrations in Beijing.
It also emerged that China had rejected recent plans by Uganda to renegotiate the clauses. The Daily Monitor said the Ugandan government waived international immunity in its agreement to secure the loans.
