Colas UK to help build Ugandan airport with UKEF support
Transport infrastructure firm to support construction of a new airport in Kabaale following largest ever UKEF loan to an African government.
| About the transaction: Colas UK and the Government of Uganda | |
|---|---|
| Sector | Infrastructure: airport construction |
| Project location | Uganda |
| UKEF support | Direct lending |
The largest ever UK Export Finance (UKEF) loan (€270 million) to an African government will help finance the construction of a new international airport in the Kabaale region of Uganda. This will become the country’s second international airport, opening access for the delivery of equipment, materials and services.
By enabling vital work to be carried out on large-scale infrastructure and energy projects planned in the area, the airport will have significant long-term benefits for the country’s developing economy and energy independence. A second phase of development is planned to improve the airport’s capacity to support tourism and international trade.
This is the first major project we’ve supported in Uganda. The UK-government backed loan will support work on the construction of the runway, taxiway, cargo terminal and other necessary infrastructure to be undertaken by the UK arm of infrastructure firm Colas UK. Additional financing will be provided by Standard Chartered which acted as the lead arranger for the deal.
Director of Strategic Projects at Colas UK, Carl Fergusson, said,
With huge untapped natural resources, rapid urbanization and attractive demographics, the requirement for investment in infrastructure to support continued regional development is clear, and this aligns well with the outward looking international element of the Colas Ltd strategy which seeks to expand our activities in East Africa. Colas are delighted to have been awarded this significant project.
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