China to takeover Uganda's only international airport over loan default: Reports

Anor nation has fallen prey to what is popularly called China's 'debt trap' strategy. Uganda is likely to lose its Entebbe International Airport to Communist country over its failure to pay back a loan that was ironically intended for its development. 

China’s Export-Import (EXIM) Bank lent Uganda $207 million at 2% upon disbursement in 2015 for  expansion of Entebbe airport. loan came with a maturity period of 20 years including a seven-year grace period. However, as per African media reports, for securing loan, Ugandan government waived off clause for international immunity, attaching its only international airport. This means that China, without any international arbitration, can take over  possession of Entebbe International Airport.

Foreseeing possible crisis, a delegation of Ugandan officials h been deployed to China earlier in March 2021 in an attempt to renegotiate clauses of loan agreement. However, deal fell through, and country was unsuccessful since China refused to alter original terms of deal. Entebbe International Airport is not only Uganda’s most successful airport handling over 1.9 million passengers but is also only international airport.

Chinese Embassy, Airport authority issue statement 

Meanwhile, Uganda Civil Aviation Authority Spokesman Vianney M. Luggya has categorically stated that country was not giving away its airport to China for 'cash'. " Uganda Government can't give away such a national asset. We have said it before and repeat that it has not happened. re isn't an ounce of truth in it," said spokesman on Twitter ding that loan provides a grace period of 7 years, and country was well within it.

Chinese Embassy in Uganda has also refuted reports of a takeover claiming that 'hype' surrounding Chinese ‘debt trap’ in Africa h 'no factual basis'. Interestingly, a similar situation was witnessed when Sri Lanka was forced to sign off Hambantota port to Beijing on a 99-year lease because it could not repay Chinese loans that it h taken to build  port.

“Why is money offered by Western countries to developing nations considered ‘assistance for development, while money offered by China is labelled as ‘debt trap’? This view is not logical or correct!”, said Wu Jianghao, Assistant Minister of Foreign Affairs, China.

Image: @KagutaMuseveni/Twitter