By David Muwanga

The World Bank has approved a $33.6m (sh65.9b) loan to promote local governments, accountability and investments. According to a report on the bank’s website, the project aims at strengthening the ability of ministries, departments, agencies and local governments to plan and manage resources in collaboration with communities for better service delivery.

The project will also support the public financial management reform programme, the local government sector investment plans, institutional and policy development.

The report also pointed out that Uganda had received $5.4b in loans and grants from the bank over the last 45 years.

The bank has extended $600m in grants and $4.8b in loans and credits to Uganda since 1963 when it joined.

By December 2008, the portfolio comprised 17 active projects with commitments of $1.223m in all major sectors, including $200m for budget support under the seventh Poverty Reduction Support programme.

The report pointed out that by March 2008, roads and energy accounted for 57% of the bank’s funding extended to the country, while 13% was extended to agriculture and environment projects.

The public sector and local governance projects 10%, education 2%, social protection and finance 8%, while the private sector got 8%.

It indicated that Uganda was the first country to benefit from debt relief under the Heavily Indebted Poor Country (HIPC) initiative in April 1998.

It is also eligible for 100% debt relief under the Multilateral Debt Relief Initiative (MDRI) approved by the World Bank board on March 28, 2006.

The MDRI cancelled Uganda’s IDA debt on July 1, 2006, at the start of the Bank’s new fiscal year.