Uganda authorizes US $250m loan for construction of safe water sources

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The Ugandan cabinet has authorized US $150m loan from the International Development Association (IDA), a member of the World Bank Group, for the construction of safe water sources in more than 20 districts, municipalities, town councils and refuge hosting areas across the country.

According to Minister of ICT and National Guidance Mr. Frank Tumwebaze, many of these of areas have had problems with access to safe and clean water. This project will help in addressing the gaps and strengthening the national water and monitoring system.

“The Cabinet approved the proposal to borrow up to US $251m from IDA for financing integrated water development management project,” said the Minister.

Also Read:Togo to benefit from US $18m water project

Unsuccessful efforts

Uganda has in the past been unsuccessful in efforts to withdraw US $4.8bn which the country borrowed from external lenders of financial year 2016/2017.The commitment fees paid for debt contract but not yet exhausted had also increased by 281 per cent, an increase he ascribed  to the government’s failure to withdraw and use contracted debt.

Nonetheless, officials from the Finance ministry said they approved the loan request because the beneficiary agency, the National Water and Sewerage Corporation (NWSC), has always performed well when they requested for funds.