Fresh reports indicate that the NRM government has quietly allocated 150 acres of Kitubulu Central Forest Reserve in Entebbe to Chinese billionaire Paul Zhang, the man behind the controversial Luzira Prison hotel project.
According to sources, the deal is valued at $500 million and comes with a 20-year tax holiday. Zhang’s company, Tian Tang Group, is expected to construct a mega government complex, a five-star hotel, a hospital, and a shopping mall — all within the protected forest reserve.
The development has sparked public outrage, with environmentalists and policy experts accusing the government of “auctioning off Uganda’s green heritage” to foreign investors. Critics argue that such a deal would never be allowed in China, especially involving a protected forest.
Sources further allege that State Minister for Investment, Hon. Evelyn Anite, played a key role in brokering the agreement.
However, Anite has defended the move, saying it is part of a broader plan to develop an “alternative capital city” in Entebbe, aimed at attracting large-scale investment and easing pressure on Kampala.


