MPs Okay Govt Move To Borrow Sh42b For Agric

PARLIAMENT yesterday passed a resolution authorising government to borrow $24m (sh42b) to boost agriculture in south-western Uganda, report Hamis Kaheru and John Odyek. The sectoral committee on national economy chairman, Nandala Mafabi, said $13.2 (sh22b) would be obtained from the International Fund for Agricultural Development (IFAD) and $11m (sh19b) from the African Development Fund (ADF). State minister for finance (general duties) Mwesigwa Rukutana moved the motion. Mafabi said the money was meant to finance the Area Based Agricultural Modernisation Programme (AAMP). Mafabi said the programme is designed to promote increased participation of small holders in the market economy and to improve their income generation capacity. The programme will cover the 10 districts of Bundibugyo, Bushenyi, Kabale, Kabarole, Kasese, Kisoro, Mbarara, Ntungamo, Rukungiri and Sembabule. Mafabi said the programme was conceived within the framework of the Plan for Modernisation of Agriculture (PMA) and the Poverty Eradication Action Plan. Mafabi said it would be implemented over a six-year period through The Ministry of Local Government. The four components of the programme are agricultural commercialisation, rural infrastructure development, community mobilisation and programme facilitation. It is a follow-up of the South Western Uganda rehabilitation Programme (SWARP) which ended in 1996. The programme is to cost$25.6m (sh44b) and the Government is to contribute sh4b. Both the IFAD and ADB loans have a maturity period of 40 years, including 10 years of grace and interest charged at 0.75% per annum and the service 0.5% per annum. The ADB/F loan has a maturity period of 50 years. Ends