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 worth of aid had been embezzled. The EU however has continued its funding.

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. (Reuters)