JOINT PRESS RELEASE

FOR IMMEDIATE RELEASE

KAMPALA, 25TH SEPTEMBER 2013

Confirmation of an Additional EUR 112.5 million Support from the European Union Institutions, Aiming at Expediting Completion of the East African Northern Corridor Linking Uganda and Rwanda These funds are supplementary to the EUR 364.2 million grant already committed and contracted to rehabilitate the above mentioned corridor The European Union has formally agreed today to an extra EUR 112.5 million to widen the Kampala Northern Bypass and to construct the Mbarara Bypass, key parts to complete the Ugandan part of the East African Northern Corridor, linking Burundi, the Democratic Republic of Congo, Rwanda, Uganda and South Sudan to the port of Mombasa. The European Investment Bank has signed a long term loan of EUR 55 million with the Uganda National Roads Authority and the European Commission has confirmed EUR 16 million in interest rate subsidies on lending and EUR 1.5 million on supervision services which adds to the grant of EUR 40 million already committed for the widening of the Kampala Northern Bypass. EU financing is complemented by EUR 28 million support for the project by the Government of Uganda from national budget resources and works are expected to start in early 2014. UNRA is working towards an efficient road network essential for economic development. This will be achieved through an ambitious road development programme that includes new roads to reduce city centre congestion, like the Kampala and Mbarara projects, while decreasing time of travel for long distances goods transporters. The two by-passes under this funding will help us realise this dream. said Engineer Ssebbugga-Kimeze, Executive Director of the Uganda National Roads Agency. Poor transport connections hinder economic development and regional integration in East Africa and the European Investment Bank recognises the crucial importance in upgrading key road links in the region. The engagement confirmed today will enhance transport infrastructure critical for regional trade between Uganda and Rwanda and significantly improve transport links around Kampala. We congratulate the Ugandan National Roads Authority for their professional engagement and look forward to working with them over the years ahead. From a European perspective this marks a new step in cooperation between the European Investment Bank, European Commission and EU-Africa Infrastructure Trust Fund. said Pim van Ballekom, European Investment Bank Vice President responsible for lending in sub-Saharan Africa. The additional grant of EUR 16 million reaffirms our commitment to the Government to facilitate international and regional trade and boost social and economic development as well as integration. The use of interest rate subsidies on lending shows great promise as a way to attract leverage and multiply investments to accelerate completion of key infrastructure investment in Uganda and in the region. So far, EUR 380 million in grants provided by the European Commission under the EU Africa Trust Fund have boosted a total project financing of over EUR 12 billion in the continent. said Theo Hoorntje, Head of Cooperation of the European Union Delegation to Uganda. The works at Mbarara will involve the construction of a bypass of 14km and the rehabilitation of 27km of the existing road to national road standards. The investment in Kampala will upgrade the northern bypass to dual-carriageway standard along its 21km length. At present only 3.5km is dual carriageway. This is part of the EU's longstanding support to facilitate safe movement of people and goods along the Northern Corridor Route in East Africa.

Press contacts:
European Investment Bank: Press Officer Richard WILLIS +352 621 555 758, +352 4379 21000 willis@eib.org, press@eib.org Website: www.eib.org/press Uganda National Roads Authority Corporate Communication Manager Dan ALINANGE 031-2233111 or 041-4318111 roadinfo@unra.go.ug http://www.unra.go.ug European Union Delegation to Uganda Press & Information Officer Simon KASYATE 0414-701035 or 0772451728 simon.kasyate@eeas.europa.eu http://www.deluga.eeas.europa.eu

Note to Editors
Beside the additional EUR 112.5 million confirmed today, in the last ten years the European Union through the European Commission has provided the following grants to rehabilitate the Ugandan section of the East African Northern Corridor: EUR 125.5 million under the 10th EDF - out of an investment of EUR 170.5 million - to rehabilitate sections between Mbarara and the Katuna border; EUR 117 million grant under the 9 th EDF - out of an investment of EUR 127 million - for the reconstruction of the Masaka Mbarara section, commissioned in December 2012 (reconstruction of approximately 155 km of road including construction of climbing lanes); EUR 52.5 million under the 8 th EDF for the first construction phase of the Kampala northern bypass highway, completed in October 2009; EUR 69.2 million under the 7th, 8th and 9th EDF to rehabilitate the Jinja Bugiri road, commissioned in 2008.

The European Investment Bank has provided more than EUR 1 billion for investment in African transport infrastructure. This has included long-term lending for ports, air traffic control infrastructure, airports, railways and roads. In East Africa the European Investment Bank is currently financing upgrading of Nairobis Jomo Kenyatta airport and regional airports in Tanzania.