Govt Seeks Shs. 280Billion Approval From Parliament To Procure Ugandan Aircrafts

Cabinet is rushing for a supplementary budget of UGX280 billion approval by Parliament for procurement of two Bombardier CRJ 900 aero planes from Canadian Company as the first set to planes to revive the Uganda airlines.

State Minister of Finance for Planning David Bahati appeared before the Budget Committee of Parliament on Wednesday morning and affirmed that the money, which is part of USD190 million firm (UGX711 bn) for four jets, is required within 10 days to clear the two aircrafts so that they can be released and imported into Uganda.

The Bombardier CRJ 900. Government has requested Parliament to immediately approved UGX280Bn for the procurement of two Bombardier CRJ 900 planes in an attempt to revamp Uganda Airlines.

This amused the entire committee chaired by Hon. Amos Lugoloobi (Ntenjeru North MP) as they wondered how such a huge sum of money would solely be raised by the government of Uganda within merely 10 days.

However, Mr Bahati suggested that the money can be obtained from proceeds of the MTN license and the capital gains tax proceeds from the Petroleum Fund.

State Minister of Finance for Planning David Bahati

“Instead of borrowing externally we shall use proceeds from MTN license and capital gains tax to be used to complete the first phase required in the next ten days,” he said.

It’s almost 17 years ever since Ugandan Republic operated an international airport without its own Airlines. This was after liquidation of Uganda Airlines in 2001 which had been founded by deposed president Idi Amin in 1977.

The National Development Plan (NDPII) listed revival of a national airliner as third on a list of six public investment projects lined up for implementation in the air transport sector in the period between 2015/16 – 2019/20.

The revived national carrier has been registered as a limited liability company under a new name “Uganda National Airlines Company” as opposed to being established as a parastatal. Previously, Uganda Airlines was part of the Uganda Development Corporation, which was supposed to be the government’s investment arm.

Earlier this year, the manufacturers in Canada released a test flight video for the jets on their social media platforms.

We will keep you posted.

By Website writer