Kampala - The EU has given Uganda 112 million Euros (151 million dollars) in
credit and grants to help pay for roads meant to help boost trade in
east Africa, it says on Wednesday.
The EU has traditionally been a major source of financing for transport infrastructure for the prospective crude oil producer.
Uganda, however, has lately appeared to lean increasingly toward
China which has extended cheap loans to help finance projects including
highways, hydro power dams and public office blocks.
Uganda's national budget has been squeezed since major western donors
including Britain, its biggest source of bilateral aid, suspended
financial support toward the end of last year after allegations that 13
million dollars worth of aid had been embezzled.
The latest funds will help to improve the Kampala Northern Bypass and
construct the Mbarara Bypass, which would speed up the flow of cargo on
a highway linking Uganda, Rwanda, Burundi, the Democratic Republic of
Congo and South Sudan to Kenya's Mombasa seaport.