The African Development Bank (AfDB) has okayed a loan worth $144 million to support Uganda’s road sector.

The Tunis-based lender Board of Directors approved the facility March 13, 2013.

The AfDB said in a statement that “the road sector support project is financed by the African Development Fund (ADF) to the tune of $110.49 million, with a contribution from the Ugandan Government amounting to $34.40 million.”

The project includes civil engineering works, the study and strengthening of the road sub-sector, as well as the compensation and relocation of people affected by the project in conformity with the relocation plans.

According to the AfDB, the project will help improve road access to socio-economic infrastructure as well as the quality of road transport services to the western regions of the country by paving 135 kilometres of the Kigumba-Masindi-Hoima-Kabwoya road.

The project is also expected to reduce transportation costs, improve access to social and economic infrastructure and increase mobility, thus contributing to upgrading the standards of living of the populations through better transport services and increased access to social services, such as daycares and markets.

Some 870,000 people are estimated to benefit from the project when completed as it aims to create about 1,200 jobs, of which 80 per cent will be reserved for local communities.