CURRRENT WORLD BANK LENDING TO UGANDA

By the time of this report, there were 16 active projects with a net worth commitment of US $ 1,472 million.  In line with Government’s priorities, a rough 60% goes to infrastructure, around one third to education, health and the social sector; and another 7% to private sector development.  The World Bank had by then provided over US$ 8 bn in financing, with more than US $ 7.30 bn in loans and credits, and another US $ 650 million in grants. 

 

 Ahmadou Moustapha Ndiaye, World Bank Country Manager, Uganda.

No.	Current World Bank Lending to Uganda	Closing date	Net Committed (millions of US dollars)
1	Program for control of Avian Influenza	6/30/2012	10.0
2	Agriculture Technical and Agri-business Advisory Services	6/30/2015	120.0
3	GEF: Agricultural, Technology and Agri-business Advisory Services (ATAAS)	6/30/2017	7.2
4	Millennium Science Initiative	12/31/2011	30.0
5	Uganda Post Primary Education and Training Project	7/31/2012	150.0
6	Sustainable Management of Mineral Resources	6/30/2011	30.0
7	Private Power Generation (Bujagali)	3/31/2011	115.0
8	Energy for Rural Transformation	6/30/2013	75.0
9	Electricity Sector Development Project		120.0
10	GEF: Energy for Rural Transformation	6/30/2013	9.0
11	Power Sector Development Project	7/31/2011	300.0
12	Protected Areas Management Project	6/30/2011	32.0
13	Environmental Management and Capacity Building Project 2	06/30/2012	37.0
14	Private Sector Competitiveness 2	1/31/2012	70.0
15	Financial Sector – Development Policy Operation (DPO)		50.0
16	Privatization and Utility Service Reform Project	2/15/2015	36.4
17	Health Service Strengthening Project	7/31/2015	130.0
18	Poverty Reduction Support Credit (PRSC) 8	3/31/2012	100.0
19	Public Service Performance Enhancement Project	6/30/2013	18.8
20	Emergency Demobilization & Re-integration	6/30/2011	29.0
21	Northern Uganda Social Action Fund Project (NUSAF) 2	8/31/2014	100.0
22	Road Development Project 3	10/31/2011	107.6
23	Transport Sector Development Project	6/30/2014	265.0
24	Kampala Institutional & Infrastructure Development Project	12/31/2010	33.6
25	Local Government Management and Service Delivery Project	12/31/2011	55.0
	TOTAL		2,004.5 ($2bn)

A Brief History:

Mr. Apollo Kironde

On 27 September 1963, in Washington DC, Mr. Apollo Kironde, Uganda’s Ambassador and Permanent Representative to the United Nations, signed the Articles of Agreement on behalf of the Government under the Articles, Uganda also became the 97^th member of the World Bank, the 75^th member of the International Finance Corporation (IFC) and the 83^rd member of the International Development Association (IDA).  

The 1^st World bank funding was in 1961 when Uganda was still a Protectorate – Eugene R Black who was the World Bank President then wrote: “I recommend that the Bank at this time make a loan to the Protectorate of Uganda in an amount in various currencies equivalent to $8.4 million for a total term of about 20 years, with interest (including commission) at 5-3/4% per annum.  Private investment in industrial ventures has been small.  But the Uganda Development Corporation (UDC), the Government’s main instrument for economic development, has been active in promoting both industrial and agricultural investment.  To accelerate its development, it will need an inflow of foreign capital, including official loans and grants.”

HIGHLIGHTS FROM THE 50 YEARS OF PARTNERSHIP OF WORLD BANK AND UGANDA 

No.	Milestones	Key Developments - Outcomes
1	2 December 1959: Uganda Electricity Power Development Project	The first World Bank project while Uganda was still a British Protectorate expended transmission and distribution systems supplied by Owen falls and Kikagati plants.  Upon completion in 1964, the dam produced 150MW operating at 50% capacity.
2	27 September 1963: Uganda becomes member of the World Bank Group	Uganda signs IBRD, IFC and IDA Articles of Agreement thereby becoming the 97th member of the World Bank, the 75th member of IFC and 83rd member of IDA.
3	1967 – 1973: Education project	Focusing on expansion and improvement of buildings and equipment for secondary education, the project led to a significant increase in secondary school enrollment to 33,200 after adding 13,900 new places, and with the diversification of science subjects and practical courses.
4	1967 – 1973: Uganda Highway Project	The first of many World Bank projects supporting road construction led to construction and rehabilitation of hundreds of kilometers of roads, including paving 113km of road from Mbarara to Katunguru.
5	1966 – 1970: Tea Project	The project supported expansion of tea growing by small – scale holders from 4,000 acres at end of 1965 to 13,700 acres by 1970.  The project helped to consolidate Uganda’s position on the World market (at the time about 1% of world production), providing about 3% of Uganda’s foreign exchange revenue.
6	1968: Beef Ranching Project	The project supported expansion a beef cattle development program operated by Uganda Livestock Industries (ULI) and resulted in development of five large ranches, each between 38,000 and 45,000 acres; benefitting one cooperatively  - owned ranch and about 50 existing privately operated ranches.
7	1980: Reconstruction Credit Project	The credit supported the economic reconstruction program and allowed Government to invest in replacement equipment for manufacturing enterprises, raw materials and spare parts, agricultural implements and inputs, vehicles and vehicle spare parts.
8	8 April 1998: Uganda receives debt relief	The World Bank provided US$ 650 million to Uganda as part of Heavily indebted Poor Countries (HIPC) debt relief initiative.  Uganda was the first country in the world to qualify for HIPC.
9	24 March 1998: Education Sector Adjustment Operation	The Education Sector Adjustment Operation financed tuition – free primary education with emphasis on girls, orphans, and children from poor or rural families.  Its mix of grants and interest free loans demonstrated new flexible lending policies and financing packages.
10	2 May 2000: More debt – service relief	The World Bank announced that Uganda had become the first country to meet the conditions the enhanced HIPC initiative, and began receiving US$ 1.3 billion in debt – service relief.
11	2000 – 2010: Poverty Reduction Support Credits (PRSCs) series	As a reflection of the Government’s commitment to macroeconomic reform and poverty reduction, Uganda was the first country to benefit from a Poverty Reduction Support Credit (PRSC).  The PRSC series was designed to assist the Government in achieving its poverty reduction strategy by providing direct budget support to the national reform program.
12	2006: Bujagali Private Hydropower Development Project	The project promoted private sector ownership and management of the energy sector and reform.  The Bank contributed US$ 115.0 million of total cost of US$ 862.0 million.  Bujagali is to date Uganda’s biggest power dam, supplying over 40% of the country’s electricity.

 

Source: Celebrating 50 years of Development Partnership

(The World Bank and Uganda 1963 - 2013)

A Publication by World Bank