China Speaks Out On Entebbe Airport Take Over Deal

The spokesperson of the Chinese Embassy in Uganda has responded to individual media hype “Uganda sacrifices core assets for financing China”.

This is the statement:

In the past ten years, China has become one of Uganda’s main development partners. The depth and breadth of Uganda’s cooperation in investment and infrastructure financing is unmatched by any country. This is also a response to Uganda’s own development needs. Any country has a huge capital demand during its economic take-off and the initial stage of industrialization, and Uzbekistan is of course no exception.

According to the wishes proposed by the Uzbek side, the Chinese side will provide financing support within its ability. The assistance provided is mainly used in the fields of agriculture, education, medical care, health, social infrastructure and other people’s livelihoods in Uzbekistan. The preferential loans provided are mainly concentrated in transportation, communication, In terms of major economic and social infrastructure projects such as electricity, it helps Uganda to improve people’s livelihood, promote economic and social transformation and development, and enhance its capacity for independent development.

China-Uzbekistan economic and trade cooperation, including investment and financing in the field of large-scale infrastructure, adheres to equal cooperation, mutual benefit and win-win results, and is carried out in accordance with the laws and rules of the international market and strictly abide by the laws of the host country. Every financial support provided by China to Uganda must undergo serious feasibility studies and market-oriented demonstrations to ensure that every cooperative project can achieve its due economic and social effects. It is also to ensure the healthy and healthy economic and trade cooperation between China and Uganda. sustainable development.

Entebbe Airport Reconstruction and Expansion Project is a preferential loan project financed by the Export-Import Bank of China and guaranteed by Uzbekistan’s national credit. The project signed a loan agreement in March 2015, with a loan amount of US$200 million, and officially started construction in May 2016. Despite the impact of the new crown pneumonia epidemic, with the solidarity and cooperation of CCCC and the Uzbek government, especially the Uzbek Ministry of Foreign Affairs, Ministry of Engineering and Transportation, Civil Aviation Administration and other relevant departments, the project progress has been smoothly advanced to 75.1%, and it is expected to be in December 2022. Completed and delivered monthly.

It should be pointed out that China-Uzbekistan cooperation has always adhered to the principles of openness, transparency, equality and mutual benefit. All loan agreements, including the Entebbe Airport Reconstruction and Expansion Project, are voluntarily signed by both parties through dialogue and negotiation. There are no hidden terms and no political conditions attached.. The terms of the agreement for the Entebbe Airport Reconstruction and Expansion Project are in full compliance with the prevailing conventions in the international financial market. The so-called malicious speculation that Uganda sacrificed core assets to finance China has no factual basis and distort the traditional friendship between China and developing countries including Uganda.No project in Africa has ever been “confiscated” by China because it could not repay its loan. On the contrary, China firmly supports and is willing to continue our efforts to improve Africa’s capacity for independent development.

Action speaks louder than words. China supports the reduction of the debt burden of African countries and actively implements the G20 initiative to suspend the debt repayment of the poorest countries. Among the members of the G20, China has the largest amount of deferred debt. Like African countries, China has had the painful experience of being controlled by foreign countries in its economic lifeline, and then suffering unfair treatment and even being exploited and oppressed. Therefore, whether it is assistance or cooperation with Africa, China will never repeat history, let alone impose it on others. Instead, it will always respect and help Africa, with both righteousness and interest, and righteousness first.Even in the face of extreme debt defaults, China insists on amicable negotiation and adopts methods such as debt restructuring, debt mitigation, and debt reduction to reduce the debt burden of African countries.

At this difficult time when terrorist attacks, riots, famines and epidemics are constantly emerging, for the common well-being of the two peoples, China and Uzbekistan need to strengthen cooperation more than ever. We firmly believe that most people understand that China-Uzbekistan cooperation is essentially mutually beneficial and win-win. A very small number of noises will not interfere with the determination of China-Africa unity and cooperation, nor will it shake the solid Sino-African friendship. We understand the public’s desire to benefit more from China-Uzbekistan cooperation. This is the goal we have been working hard on. We are willing to listen to useful suggestions in this regard.We will continue to work hard to ensure that China-Uzbekistan cooperation is more inclusive and benefit more ordinary people.

The upcoming 8th Ministerial Conference of the Forum on China-Africa Cooperation will bring more good news to China-Africa-China-Ukraine cooperation. We look forward to working with Uzbekistan to push China-Uzbekistan cooperation to a higher level.

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