European Union (EU) has lent 112.5 Million Euros to the government of Uganda for road construction in the state, CEOAFRICA.com gathered.

This money, according to sources, will go to widening the Kampala Northern Bypass (Phase II) and construction of the Mbarara Bypass.

Disclosing this, Works Minister , Abraham Byandala pledge to ensure good work. ”We appreciate this support and our mandate is to ensure value for money.  This shall boost the 28 million Euros that was previously earmarked by the government for this project. The works are expected to commence in March 2014. The agreement complements the 364.2 million Euros, already committed in 2008 to construct the Ugandan side of the East African northern corridor.”

The corridor links Burundi, DRC, Rwanda, Uganda and South Sudan to Mombasa. The European Investment Bank Vice President for learning in the Sub-Saharan Africa, Pim Van Ballekom, pledged more of the same supports in future.

“Poor transport connections hinder economic development and regional integration in East Africa and European Investment Bank appreciates the importance of the upgrading key road links in the region,” he said.

The executive director of the Uganda National Roads Authority, Eng. Ssebbugga Kimeze, explained that the works at Mbarara would involve the construction of a bypass of 14km and the rehabilitation of the existing road to national road standards.

“This funding shall be vital in completing the Mbarara and Kampala project which will eventually lead to reduced time of travel from long-distance goods transporters,” he said.

The investment in Kampala, on the other hand, involves upgrade of the Northern Bypass to 21km dual carriage.