AfDB and Uganda Sign USD 136.6 Million Loan Agreements
Tunis, Tunisia, 15 April 2010 – The African Development Bank (AfDB) Group and Uganda have signed loan agreements amounting to USD 136.6 million (UA 90 million*) to fund two major projects in the country.
The Bank’s Uganda Field Office (UGFO) Resident Representative, Patrick Khaemba, and Uganda’s Finance Minister, Syda Bbumba, signed the loan agreements on 12 April 2010 in Kampala, to finance the country’s third Road Sector Support Project (RSSP3) and the Rural Income and Employment Enhancement Project (RIEEP).
Mrs. Bbumba commended the Bank for its support to Uganda, adding that “the Bank has become a reliable partner in Uganda’s development.” She noted that the RSSP 3 will facilitate Uganda’s poverty reduction efforts by improving road conditions, thereby opening up rural communities to economic activity and enhancing service delivery.
Regarding the RIEEP, Mrs. Bbumba said that “the project would contribute to the achievement of Uganda’s Prosperity for All initiative” which aims at improving productivity and household incomes.
Mr. Khaemba, for his part, urged the government to ensure value-for-money during the implementation of both projects, in particular, to ensure that conditions precedent to the first disbursement were urgently met to avoid delays.
He also underscored the need to observe some minimum road standards such as axle road controls so as to protect Uganda’s road investments. The event was attended by the Regional East1 Operations (OREA) Director, Diarietou Gaye; Senior Advisor/Alternate Executive Director, Mary Muduuli, and several government ministers.
The RSPP 3 will improve road access in rural areas in western Uganda by upgrading the Nyakahita-Ibanda-Kamwenge road (143 km) from gravel to bitumen standard at a total cost of UA 110.27 million (USD 167.4 million) to be financed with a UA 80 million (USD 92 million) African Development Fund (ADF) loan and a Ugandan government contribution of UA 30 million (USD 45.54 million)..
The RIEEP will expand access to financial services to 1.4 million clients, or 9% of the adult population above the age of 15 years and improve the livelihoods of approximately 7 million people, or 22% of Uganda’s population. The RIEEP will be funded with a UA 10.21 million (USD 15.5 million) ADF loan and a Uganda government contribution of UA 1.80 million (USD 2.73 million).
* UA 1 = USD 1.51824 as at 15/04/2010