World Bank extends $177 million for roads and other projects

The Ugandan government and the World Bank on Wednesday signed agreements under which the global financial institution would provide funding for development projects to help the country's private sector growth. "The project is intended to improve access to rural and economically-productive areas and to enhance road sector planning, design and management capacity," finance minister, Ezra Suruma, who signed the agreement on behalf of Uganda, said. "Road transport plays a key role in improving accessibility and mobility for rural Ugandans," Judy O'Connor, World Bank Country Director for Uganda and Tanzania, signing on behalf of the bank, said. "The provision of IDA [International Development Association] funding to the road sector will contribute to the government's poverty reduction efforts." The funds, from the World Bank's IDA, include US $67.6 million in the form of a credit that matures in 40 years and another $40 million as a grant. Another agreement was signed for the provision of $70 million in credit to support the country's private sector development. The money forms part of this financial year's IDA support to the Ugandan government, which totals $327.6 million. Suruma said the project was intended to upgrade and strengthen "three high-priority national roads", to rehabilitate another and to design about 300 km of district roads. The project would also help to finance the construction of a road authority headquarters. According to the World Bank, over the 10-year life span of the road development programme, some $385 million would be mobilised, $289 million of which would rehabilitate and upgrade a total of 830 km of national roads. It would also improve or rehabilitate 1,300 km of district roads. Suruma said the project would create sustainable conditions for enterprise creation and growth, and would respond to local and export markets. It would also help to reduce the cost of doing business and encourage investment. Support given to the private sector development would complement the ongoing poverty reduction programmes, O'Connor said, and would help public sector institutions involved in providing services to become more effective.