By Cyprian Musoke

The US has given Uganda a $246m (about sh461b) development grant.
The grant is aimed at improving health and the standard of living.

US assistant Secretary of State for African Affairs Johnnie Carson and state minister for finance agreement Ruth Nankabirwa signed the financing at State House Entebbe on Saturday.

President Yoweri Museveni presided over the event.

A statement from the American embassy said the agreement highlights the strength of the relationship between the two countries.

The support, it added, will be implemented by the US Agency for International Development (USAID).

“It will advance Uganda’s development goals as enshrined in the Poverty Eradication Action Plan, the Peace Recovery and Development Plan for Northern Uganda and the National Development Plan,” the statement said.

Over $170m (about sh319b) will be used to support the health and education sectors, particularly the HIV/AIDS, TB and malaria projects.

Others are maternal and infant health, family planning and reproductive health and basic education.

Over $35m (about sh5.7b) will be used to expand economic opportunities for farmers, encourage trade and investment, promote private sector competitiveness, and assist in environment conservation.

A total of $30m (about sh57b) will contribute to post-conflict economic recovery for the 1.8 million internally displaced persons returning to their homes in northern Uganda.

The statement added that $7m (about sh14b) will be used for more effective and participatory governance through consensus building and support to civil society.

The funds will also be used to promote conflict mitigation and reconciliation activities.

President Museveni assured the US delegation that revenue from Uganda’s oil resources would be used to create durable capacity for the country through investments in energy, the railway network, education and research and roads infrastructure.

Carson was accompanied by the commander of the US African command, Gen. William Ward and the deputy assistant secretary of defense, Ambassador Vicki Huddleston.

Carson said in May 2002, an integrated development plan was signed by the two countries.

He added that the $246m is part of the US’s continued partnership with Uganda.

Nankabirwa hailed the US government for the support and pledged to continue working for the development of the country and the continent.

The meeting was also attended by ministers Sam Kutesa (foreign affairs), Crispus Kiyonga (defence) and the army commander Gen. Aronda Nyakairima.