Transport infrastructure company Colas UK will support the construction of a new airport in Kabaale, Uganda, following largest ever UK Export Finance (UKEF) loan to an African government.
The €270m (US$318m) loan will help finance the construction of a new international airport – the second in the country – opening access for the delivery of equipment, materials and services. This will enable work to be carried out on large-scale infrastructure and energy projects planned in the region, providing long-term benefits for the country’s developing economy and energy independence. A second phase of development is planned to improve the airport’s capacity to support tourism and international trade at a later stage.
This is the first major project in Uganda supported by UKEF, which offers UK-government backed loans to overseas buyers in support of UK exports. The loan will support construction work on the runway, taxiway, cargo terminal and passenger terminal, with further developments to accommodate commercial flights taking place at a later date. Work is scheduled to commence in January 2018.
Carl Fergusson, director of strategic projects at Colas UK, said, “With huge untapped natural resources, rapid urbanization and attractive demographics, the requirement for investment in infrastructure to support continued regional development is clear, and this aligns well with the outward-looking international element of the Colas strategy, which seeks to expand our activities in East Africa. Colas is delighted to have been awarded this significant project.”
Dr Liam Fox, international trade secretary for the UK, said, “The UK is a global leader in the infrastructure sector and I’m delighted that UKEF is helping the Ugandan government and Colas on this significant project. As an international economic department, the Department for International Trade is proud to support our trading partners around the world as they invest in their countries’ infrastructure and economic development, and enable UK companies to contribute their expertise and share in the benefits of international trade.”