Kampala- The governments of Uganda and Germany have formalised bilateral negotiations that started in 2013 seeking funds to finance various projects in the country.
Under the negotiations that started in 2013, according to a statement sent to this news paper, Germany is supposed to provide €160 million (about Shs542 billion) for various development projects between 2013 and2015.
According to the statement, Finance minister Maria Kiwanuka and the Ambassador of the Federal Republic of Germany to Uganda, Dr Peter Blomeyer, signed the second financial cooperation agreement last Thursday.
“The agreement signed today (Thursday) will enable Uganda to obtain financial contributions totalling to €22 million (aboutShs73.7 billion). Out of that, €10 million (about Shs33.5 billion) will be used to continue the Pro-poor Water and Sanitation project in Kampala,” the statement reads in part.
It adds: “Another €12 million (about Shs40.2 billion) will serve to start the new Integrated Programme to improve the Living Conditions (IPLC) in Gulu.”
The objective of IPLC is to provide Gulu Town a sustainable water supply and sewerage system.
The agreement provides another €40 million (about Shs134.1 billion) for Muzizi Hydropower Plant project in form of a reduced-interest loan.
According to the statement, Germany has also committed an additional low-interest loan of up to €40 million to Uganda for financing the Mbale to Bulambuli transmission line.
The transmission line is expected to improve electricity supply in the region by evacuating power from hydro power plants of (Siti I and II) in Bukwo District.
SOURCE: Daily Monitor