China Now Owns Uganda's Entebbe International Airport

[Bluelaser]

China's debt trap strategy: Uganda set to lose its only international airport to Beijing
WION Web Team
NEW DELHI Published: Nov 28, 2021, 10:03 AM(IST)


Uganda might soon join the list of countries victimised by China's famed debt trap technique.
The country's only international airport, Entebbe International Airport, is under danger of being taken over by China.

In 2015, China's Export-Import Bank (EXIM) gave Uganda $207 million at a 2% interest rate upon distribution.
The loan, which was intended for the development of Entebbe Airport, included a 20-year payback schedule and a seven-year grace period.
The government has failed to modify the loan arrangement with the Chinese that had repayment restrictions that included the attachment of the country's sole airport.

According to reports in African media, Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders when the debt was arbitrated.
President Yoweri Museveni dispatched a delegation to Beijing in the hopes of renegotiating the harmful terms, the reports said.
The visit was fruitless because Chinese authorities refused to approve any changes to the deal's initial parameters.

On November 17, 2015, the Uganda government, represented at the time by the finance ministry and the Civil Aviation Authority, signed an agreement with the Export-Import Bank of China (Exim Bank) to borrow US $207 million at 2% upon disbursement, with a 20-year maturity period and a seven-year grace period.

The agreement reached with the Chinese financiers effectively "surrendered" Uganda's most important airport to China, reports said.
Some stipulations in the Financing Agreement, according to the Uganda Civil Aviation Authority (UCAA), subject Entebbe International Airport and other Ugandan assets to being attached and taken over by Chinese lenders following arbitration in Beijing.
Uganda's request to amend the loan's hazardous conditions was denied by China, putting Ugandan President Yoweri Museveni's administration in uncertainty.

The Ugandan government sacrificed international immunity in the agreements it made to acquire the loans, exposing Entebbe International Airport to takeover without international protection, according to the Daily Monitor of Uganda.
The government has failed to modify the loan arrangement with the Chinese that had repayment restrictions that included the attachment of the country's sole airport.

According to reports in African media, Entebbe International Airport and other Ugandan assets were attached and agreed to be taken over by Chinese lenders when the debt was arbitrated.
President Yoweri Museveni dispatched a delegation to Beijing in the hopes of renegotiating the harmful terms, the reports said.
The visit was fruitless because Chinese authorities refused to approve any changes to the deal's initial parameters.

On November 17, 2015, the Uganda government, represented at the time by the finance ministry and the Civil Aviation Authority, signed an agreement with the Export-Import Bank of China (Exim Bank) to borrow US $207 million at 2% upon disbursement, with a 20-year maturity period and a seven-year grace period.
The agreement reached with the Chinese financiers effectively "surrendered" Uganda's most important airport to China, reports said.
Some stipulations in the Financing Agreement, according to the Uganda Civil Aviation Authority (UCAA), subject Entebbe International Airport and other Ugandan assets to being attached and taken over by Chinese lenders following arbitration in Beijing.

Uganda's request to amend the loan's hazardous conditions was denied by China, putting Ugandan President Yoweri Museveni's administration in uncertainty.
The Ugandan government sacrificed international immunity in the agreements it made to acquire the loans, exposing Entebbe International Airport to takeover without international protection, according to the Daily Monitor of Uganda.
Uganda's Finance Minister, Matia Kasaija, apologised to parliament last week for the "mishandling" of the $207 million loan.

 

[World B Free]

The Black folks need to build another airport then........

 

[lightbright]

They own a whooooole lot of shit here too.... you can believe it

sidebar: Chinese are slant eyed crackers with a yellow tint to them.... and crackers been doing it to blacks here for a hunnid years
.

 

[MisterT]

The only smooth modern highway in Uganda was built by China as well, just a handful of years back. They were just finishing it two years ago. The highway runs between Entebbe and Kampala, the most important highway span in the country as air departures and arrivals coming from or going to the capital typically rely on that road. Entebbe is such a cool spot. Two years back they still had a crashed Israeli jet sitting on the grounds just outside the airport leftover from the raid on Entebbe fiasco. Don't know if it still remains. Entebbe is a better chill spot than Kampala. Lido Beach in Entebbe is the place to go. Chicks galore, bar, restaurant and you swim in the fabled Lake Victoria. But you gotta go to Kampala to buy anything more than groceries and the basics. Next, China will own the shipping ports in Kenya and Tanzania. They've been collateralized. Tanz owes China over half a BILLION. Kenya, I believe, owes about 3/4 BILLION. Africa as a continent is in hock to China for a total debt hovering around 150 BILLION! China will totally OWN the whole continent in due time. No fuckin' way they won't default! Every single country, most likely.

LIDO BEACH - LAKE VICTORIA

 

[CybaCipha]

Wait but a 2% loan? The income from the airport couldn't cover the loan payments? And they got a 7 year grace period? I'm confused at the accounting fuckery going on here.

And if you knew you couldn't pay it back, why not send a delegation every year to renegotiate? You don't let them keep the airport.

The repo man can come get my car but i'm not letting the bank take my house.

 

[RoadRage]

The Black folks need to build another airport then........

Where do they get the equity it takes 8 billion to build one, this is if you are paying experts to build one. If you are a country that hasn't built one and doesn't have the trucks, tools, and materials, that number could triple.
This logic is like not being able to pay your rent and someone suggests, why not build your own house yourself. Well if you had the skills money and tools to build a house, wouldn't you be building homes for others and making a killing with the profits. Well, the same logic applies to them not realistically being able to build their own airport.

 

[World B Free]

Where do they get the equity it takes 8 billion to build one, this is if you are paying experts to build one. If you are a country that hasn't built one and doesn't have the trucks, tools, and materials, that number could triple.
This logic is like not being able to pay your rent and someone suggests, why not build your own house yourself. Well if you had the skills money and tools to build a house, wouldn't you be building homes for others and making a killing with the profits. Well, the same logic applies to them not realistically being able to build their own airport.

What's the other option then? China is taking over the whole-ass airport!

 

[easy_b]

I have a strange feeling this is not going to end well but we’ll see

 

[CybaCipha]

I have a strange feeling this is not going to end well but we’ll see

I don't know brah, sounds like they gave up their rights... "exposing Entebbe International Airport to takeover without international protection, "

 

[easy_b]

I don't know brah, sounds like they gave up their rights... "exposing Entebbe International Airport to takeover without international protection, "

No I’m not talking about the contract stuff I’m talking about the Natives may get a little antsy.

 

[Hey Julian!]

The only thing they can do is make it extremely inconvenient to access said airport. Make it extremely hard for Chinese visas and immigration etc.

 

[CybaCipha]

No I’m not talking about the contract stuff I’m talking about the Natives may get a little antsy.

Worst case scenario
1. Airport gets shutdown cause the natives riot and they still owe 200 milly
2. China flies in their military and puts their own people in all positions at the airport.
3. Natives destroy airport
4. ??

I don't really see any way out of this without bloodshed or the natives suffering.

 

[easy_b]

Worst case scenario
1. Airport gets shutdown cause the natives riot and they still owe 200 milly
2. China flies in their military and puts their own people in all positions at the airport.
3. Natives destroy airport
4. ??

I don't really see any way out of this without bloodshed or the natives suffering.

Oh no China is not that stupid if they do that with the military all hell is going to break loose and most of Africa and they will be running out of that cart and it was their hair on fire. Some of those African countries can get very Grimy with you if you fuck with them the wrong way. South Africa apartheid did not end because of political pressure the black people started killing white people all over the place that is what end it.

 

[lazarus]

they got 14 years to come up with the money. just borrow from someone else and extend the loan with them. and if you really want to be a dick, the government can refuse to even have the airport and it will go bankrupt.

 

[Thegooch]

Ill give them a payday loan or they can pawn all of their beautiful women China.

Were the fuck is JG Wentworth when niggas need money now?

 

[older version]

Who hocks an airport in the first place as collateral?

I bet some fuckery was afoot with Ugandan flights coming in and out of China after the deal was done.
Like was China a big customer of international flights to and from there?

 

[RoadRage]

What's the other option then? China is taking over the whole-ass airport!

Man, I wish I or anyone else can give me the answer.
I will say this, China taking over the Airport isn't the end of the world, so what, airports are regulated by international forces anyways, and a good international has the potential to bring billions in tourist dollars and open up international business opportunities. So if they play their cards right and by making prudent and wise business decisions, it can still be a win for them.

 

[RoadRage]

Who hocks an airport in the first place as collateral?

I bet some fuckery was afoot with Ugandan flights coming in and out of China after the deal was done.
Like was China a big customer of international flights to and from there?

When you don't have 8 billion dollars of assets to put up then, yeah the airport that you agree for them to build becomes the asset.

 

[RUDY RAYYY MO]

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