Uganda is set to improve a key transportation link in its central-eastern region with the help of a $ 30 million loan from the OPEC Fund for International Development. The loan agreement, signed on February 9, 2024, will support the upgrading of the Katine-Ochero road from gravel to a paved road.
The 70 km road project is co-financed by the Islamic Development Bank (IsDB) and the government of Uganda. It will allow for faster and safer travel, offering local rural communities improved access to social services, markets, and economic opportunities. The development will also benefit local small businesses by providing access to marketplaces and shops.
“Reliable infrastructure is a precondition for complex supply chains and the ability to move goods and services across borders. This improves socioeconomic opportunities, especially for rural communities. We are pleased to upgrade this vital connectivity link and look forward to further expanding our long-standing cooperation with Uganda,” said OPEC Fund director-general Abdulhamid Alkhalifa.
The Katine-Ochero road is located in the Soroti district, which is part of the Teso sub-region. The area is known for its agricultural potential, especially in the production of cereals, cassava, and fruits. However, the poor condition of the road has hampered the movement of people and goods, resulting in high transport costs, post-harvest losses, and low incomes.
The road project is expected to enhance the productivity and competitiveness of the agricultural sector, as well as stimulate other economic activities such as trade, tourism, and manufacturing. It will also contribute to the reduction of poverty, inequality, and environmental degradation in the region.
The road project is aligned with Uganda’s Vision 2040, which aims to transform the country into a modern and prosperous nation. It is also in line with the OPEC Fund’s strategic priorities of supporting sustainable development and regional integration in Africa.
The OPEC Fund is the development finance institution established by the member states of the Organization of the Petroleum Exporting Countries (OPEC) in 1976. It works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in low- and middle-income countries around the world.
To date, the OPEC Fund has provided about $ 290 million to support sustainable development in Uganda, financing more than 20 projects in education, health, transportation, agriculture, and energy.
The loan agreement for the Katine-Ochero road project is part of a larger package of $ 124 million approved by the OPEC Fund’s Board of Directors for development projects in Africa, Asia, and Latin America. The funds will support road, energy, water, and sanitation projects that will benefit millions of people.
Source: Engineering News
