Uganda denies reports that China could take over its international airport

By Godfrey Olukya

KAMPALA, Uganda (AA) - Uganda on Monday denied media reports that China could take control of its only international airport if the government in Kampala defaults on a US$200 million loan from Beijing.

The loan was taken to finance the renovation of Entebbe International Airport, which started in 2016.

Ugandan Civil Aviation Authority spokesman Vianney Luggya said in a statement that there is no truth to the reports.

“I wish to make it categorically clear that the allegation that Entebbe Airport has been given away for cash is false. We have said it before and repeat that it has not happened. There isn’t an ounce of truth in it. Those reports are not true,” Luggya said.

He said they only opened a sales collection account in Stanbic Bank and “it does not mean that anyone is to control our finances.”

He noted that the civil aviation authority enjoys the freedom and liberty of spending what is collected as per the budget. It said the lender’s monitoring of the account is only similar to what happens when one gets a salary loan or any other loan and the bank requests that the salary is channeled through their bank.

Luggya said the loan terms provide a grace period of seven years and they are still within that grace period in which only interest is paid and the government has not defaulted on its obligations.

Several media houses have since reported that China has also refuted the allegations, quoting the Chinese embassy in Uganda that the reports are false with no factual basis.