Government Approves Shs1.5 Trn Loan Request from World Bank, China

In a cabinet sitting held Monday, ministers approved a proposal to borrow US$ 200 million (about Shs737 billion) from the International Development Association (IDA) of the World Bank Group.

The loan, according to a Tuesday statement from the ministry of ICT and National Guidance, will be used to upgrade 331 Health Centre IIs to Health Centre IIIs.

It will also be used in the construction of 373 Seed Secondary Schools in Sub-Counties with no secondary achools, over a period of five years (2019-2023).

Another loan of US$212,669,840.08 (about Shs784 billion) was approved by the ministers, and, according to the statement, it will be acquired from the Export-Import Bank of China.

The statement says the loan is meant for the implementation of the Project “Bridging the demand and supply balance gap through accelerated Rural Electrification Programme”.

Some of the items under the project are “the electrification of all the remaining 287 unconnected Sub-Counties in the country in order to boost the economy and service delivery to the people of Uganda”

Connection of over 170,000 customers directly onto the grid is also expected to be facilitated by this loan, according to the statement.

And with that said connection, government says, it will lead to an immediate growth in demand for electricity.


According to the statement, the money will enable the connection of all rural growth centers deliberately targeting Small and Medium Enterprises (SME) government institutions, commercial centers and agro-businesses.

The two loans bring the total borrowed money to approximately Shs1.5 trillion.

In the same siitting, the use of Vectoclor Acaricide, which had been blocked lawmakers so that it is first tested for effective before use by cattle farmers, was approved.

It will, according to the statement from the ICT ministry serve as “a stop-gap measure in the management of ticks as the Ministry of Agriculture, Animal Industry and Fisheries pursues a lasting solution to tick borne diseases and tick resistance to acaricides in the Country.”


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