KAMPALA – Rukiga County MP Hon. Patrick Kiconco Katabaazi has sought clarification from government on the utilisation of Uganda’s US$2 billion loan facility secured through the Uganda National Oil Company (UNOC), prompting Finance Minister Hon. Henry Musasizi to explain how the funds have supported national road construction and petroleum obligations.
Kiconco raised the matter during a meeting of Parliament’s Committee on Finance, Planning and Economic Development, where Musasizi, accompanied by officials from UNOC, appeared to brief legislators on the performance of the financing facility acquired by government in 2025.
Responding to the concerns, Musasizi revealed that approximately Shs1 trillion from the loan had been spent on completing national road projects, while US$461 million had financed petroleum-related obligations as Uganda advances its preparations for commercial oil production.
The Minister explained that the financing was intended to support critical national infrastructure and petroleum activities, making it possible for government to meet key obligations as the country moves closer to becoming an oil-producing nation.
Musasizi expressed optimism that Uganda would receive its first oil within the current financial year, describing the ongoing preparations as an important step towards unlocking the country’s petroleum potential.
He further disclosed that government was holding negotiations to identify and engage a company that will market Uganda’s crude oil internationally once production and shipments commence.
According to the Minister, the planned marketing arrangement will support the sale of Uganda’s crude oil on the international market after it is transported through the port of Tanga in Tanzania.
The engagement provided an opportunity for legislators to examine the performance of the substantial borrowing, particularly the utilisation of funds allocated to national infrastructure and petroleum development.
Kiconco’s intervention placed the utilisation of the US$2 billion facility and its contribution to Uganda’s development priorities before the committee, while the Minister’s response outlined the expenditure already undertaken and government’s expectations as the country approaches its first oil production.
The discussions come at a critical stage in Uganda’s petroleum development programme, with infrastructure completion, financing obligations and access to international oil markets remaining central to the country’s preparations for commercial production.
