Cabinet has approved a $71m loan request from the ministry of finance from the world bank to finance the grid expansion and reinforcement project which is in pursuit of the objectives of the Rural electrification strategy(RESP) for 2013-2022, which provides for the Road map to increase power access to 26% by 2022.
The loan will finance a series of investments in power distribution and off-grid solutions required to achieve the rural electrification 2013-2022 strategy. Some of the beneficiary districts include Gulu, Lira, Nebbi, ARUA, Kole, Oyam and Nwoya.
Sitting on Wednesday 3rd August 2016, at parliament building cabinet deferred a loan also presented by the ministry of finance on refugee hosting areas support. The loan amounting to $50m also from the World Bank is to finance and support the development response to displacement impacts project particularly targeting refugee hosting districts and communities.
While cabinet members appreciated the problem refugee hosting communities face, they noted the need for; the loan to be comprehensive and cover all refugee hosting areas of the country and a policy on how government can sustainably support refugee hosting communities with or without a loan.
“The loan will be brought back to cabinet after wider consultations have been carried out on the areas cabinet raised.”
Cabinet also discussed the plight of Ugandan exporters to South Sudan market that suffered non-payment on account of the instability there. The ministries of finance and foreign affairs were directed by cabinet to establish with the government of South Sudan modalities for repatriation of proceeds of Ugandan companies held in commercial banks AND also pursue Government of South Sudan to expeditiously form a joint cooperation commission to arbitrate the pending claims of Ugandans against South Sudan individuals.
A cabinet subcommittee comprising of Attorney General , Minister of Trade and Minister finance has been tasked to oversee the whole process of negotiations of the modalities with the government of South Sudan.
