I know exactly how Uganda feels. My sister missed three payments to her exorcist, so she got repossessed. The vomiting doesn’t bother me because I am quick enough to dodge it, but I admit it still creeps me out when she spins her head all the way around. But, when you accept a loan with the Chinese Import/Export bank because you know it’s going to cost you if you can’t pay it back.
President Yoweri Museveni had sent a delegation to renegotiate with the Chinese government over the extreme penalties but to no avail.
The Chinese used Henry Potter (No relation to Harry) to negotiate for them, so it’s not a Wonderful Life for Uganda.
The Ugandan Entebbe International Airport is about 40 miles from Kampala, the capital. It is the country’s only international airport and is the site of the famous raid on Entebbe that freed Jewish hostages.
Former Alaskan Gov. Bill Walker signed an agreement with China to help build a natural gas pipeline with equally odorous conditions, but fortunately, he was out of office before the agreement could be finalized and his successor dropped the deal.
Walker is running for Governor again after partnering with a Democrat. When he dropped out, he endorsed the Democratic nominee. He is running as an Independent. The Ugandan deal could upset his apple cart in 2022.
Walker and former Alaska Gasline Development Corporation President Keith Meyer signed a joint development agreement with:
- Sinopec, one of the largest oil and gas companies in the world, generates $456 billion in annual revenue.
- Bank of China is one of the five largest banks, with clients in more than 50 countries and regions.
- With an estimated $813.5 billion, China Investment Corporation is the world’s third largest sovereign wealth fund.
The Ugandan government began the three-phase upgrade and expansion in a project that was scheduled to stretch until 2035 and cost $586 million in U.S. dollars. With the South Korean grant and the China loan, not all of the costs were covered. Financing wasn’t secured to complete the project.
“In desperation, Uganda in March 2021 sent a delegation to Beijing hoping to renegotiate the toxic clauses of the deal but the officials came back empty-handed as China would not allow the terms of the original deal to be varied,” the Sahara Reporter wrote.
“Last week, Uganda’s Finance Minister, Matia Kasaija, apologised to parliament for the “mishandling of the $207 million loan” from the China Exim Bank to expand Entebbe International Airport,” the news agency said.
The airport, built in 1972 and used by the Uganda military, has over 1.9 million passengers per year, and the renovation is said to be 75.2 percent complete.