Uganda, an African country, may lose its only international airport due to non-repayment of a loan from China. It is reported that Entebbe Airport is in a position to be acquired by China due to the terms of the agreement as part of the loan taken in 2015. Under the agreement, China could seize the airport without international intervention.
In 2015, the Ugandan government borrowed $ 20.7 billion from China’s Export-Import Bank. The Ugandan government has taken a loan of 2% to develop Entebbe Airport to international standards. The loan term was 20 years, including a grace period of seven years. The agreement was signed by Uganda’s Ministry of Finance and the Ministry of Civil Aviation.
But many of the terms of the agreement will backfire on Uganda. The controversial terms included by China will have a decisive impact on the airport. One of the conditions is that the Ugandan Civil Aviation Authority must seek the approval of the lending bank for their budget and strategic plans.
The Ugandan Civil Aviation Authority said in a statement that the lenders had the power to seize Entebbe International Airport and other Ugandan assets if the loan was not repaid under certain terms of the financial agreement. This validates the airport’s transfer to Chinese control in the event of any dispute over the loan. China has reportedly rejected Uganda’s demand that the agreement be amended to avoid controversial provisions in the agreement.
Uganda, an African country, may lose its only international airport due to non-repayment of a loan from China. It is reported that Entebbe Airport is in a position to be acquired by China due to the terms of the agreement as part of the loan taken in 2015. Under the agreement, China could seize the airport without international intervention.
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