Uganda: US$ 45 Million ADF Loan for Community Agricultural Infrastructure Improvement Programme – Project-1

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Uganda: US$ 45 Million ADF Loan for Community Agricultural Infrastructure Improvement Programme – Project-1

Tunis, 31 January 2007 – The African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group will support a Community Agricultural Infrastructure Improvement Programme Project-1 (CAIIP-1) in Uganda with a loan of 30 million Units of Account (UA*), equivalent to US$ 45.13 million approved by the Fund’s Board of Directors on Wednesday in Tunis.

The specific objectives of the project are to enhance farmers’ access to markets, attract competitive prices and increase incomes through improvements in rural infrastructures and their management by well mobilized communities. The overall sector goal is to contribute to poverty reduction and economic growth in Uganda through enhanced commercialization of agriculture.

The project consists of one core field component and two service components, with the following outputs:

  • Rural Infrastructure Improvement comprising; (i) rehabilitation of 390 km of district roads; 3,510 km of community access roads; annual routine and recurrent maintenance of 587 km of district roads and 5,267 km of community access roads; (ii) construction of 78 functional marketplaces (50 entry level and 28 comprehensive level marketplaces) and promotion of agro-processing in 78 sub-counties (78 produce stores, 78 cold rooms, 52 rice hullers, 78 grain mills, 39 milk coolers); and (iii) supply and maintenance of electricity in marketplaces (50 solar, 27 diesel and 1 micro-hydro).
  • Community Mobilisation through local participation in prioritization and maintenance of physical infrastructure;
  • Programme Facilitation, including supplementary support for existing project facilitation team (PFT), monitoring and evaluation, as well as financial management activities.

The proposed project is targeted to cover 26 districts in Central and Eastern Uganda, which represent about 27% of the country land area. The districts are: Sembabule, Masaka, Rakai, Lyantode, Mpigi, Mubende, Mityana, Kiboga, Nakasongola, Kibaale, Mukono, Kayunga, Iganga, Namutumba, Butaleja, Tororo, Kamuli, Kaliro, Pallisa, Budaka, Mbale, Sironko, Manafwa, Bududa, Bukwa and Kapchorwa.  The population of the districts put together is about 8.8 million belonging to 1.76 million households or 35% of the national population. The average size of rural households is five, with agriculture as the dominant occupation.

The total project cost is estimated at UA 34.20 million. The ADF loan will cover 87.7% of the total cost. The Ugandan government will contribute AU 3.76 million (11%). while the beneficiaries will contribute UA 0.44 million (1.3% of total costs).

The Bank Group's operations in Uganda started in 1968. To date, the cumulative commitment of the Group in the country amounts to US$ 1.27 billion in 100 operations.

* 1 UA = 1.50440 US$ = 2726.76 UGX as at 3/01/2007


Felix Njoku Phone: +216 71 10 26 12