Uganda and Germany today signed an agreement that will see the former receive Euros 102m (Shs 350bn) in grants and affordable loans.
According to a statement from the German embassy, Finance Minister Maria Kiwanuka and German Ambassador Dr Peter Blomeyer signed for their respective countries. Uganda will first receive Euros 22m (Shs 75bn), of which Euros 10m will go to a ‘pro-poor’ water and sanitation project in Kampala.
Another Euros 12m will be used to start a programme to improve the living conditions of people in Gulu district.
“[The] objective of this programme is to provide the town of Gulu with a sustainable water supply and sewerage system,” the statement said.
The agreement also avails a loan of up to Euros 40m (about Shs 137bn) for the Muzizi Hydropower Plant project in Kibaale district. The German government also promised another loan of up to Euros 40m to Uganda for the Mbale-Bulambuli electric transmission line in eastern Uganda.
“The transmission line will help to improve the electricity supply in the region by evacuating power from hydro power plants which are lined up for construction. Two hydro power plants (Siti I and II) will be located in Bukwo,” said the embassy statement.
“Their construction is supported by the ongoing GET FiT Programme, which the government of Uganda and the Electricity Regulatory Authority (ERA) started together with KfW [German Reconstruction Bank] two years ago.”
The agreement has increased total commitments in loans and grants from the German government to Uganda to more than Euros 200m for the period 2013 to 2015.
Source : The Observer