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Govt to borrow sh120b for markets

By Vision Reporter

Added 11th December 2009 03:00 AM

PARLIAMENT has authorised the Government to borrow $67.8m (about sh120b) to finance the markets and agricultural trade improvement project.

PARLIAMENT has authorised the Government to borrow $67.8m (about sh120b) to finance the markets and agricultural trade improvement project.

By Joyce Namutebi and Cyprian Musoke

PARLIAMENT has authorised the Government to borrow $67.8m (about sh120b) to finance the markets and agricultural trade improvement project.

The motion for the loan request was moved by microfinance state minister Ruth Nankabirwa on Wednesday.

The Government decided to have central and auxiliary markets constructed after a feasibility study commissioned in March 2008 showed that markets all over the country were poorly managed, dilapidated and congested.

The report of the committee on national economy showed that these resulted in poor working conditions.

“All markets were found to be overly populated and lacking in basic social amenities, including toilets, drainage and sewerage systems,” the deputy chairperson, Wangwa Rutangye, said.

The money is to be borrowed from the African Development Bank (ADB) and the Arab Bank for Economic Development in Africa (BADEA).

Rutangye said the markets would be constructed in 26 municipalities and town councils.

She observed that about 4.5 million
people will benefit from the project, adding that the number of vendors to benefit from it is expected to rise to over 22,000 from 16,000.

The Government and ADB will finance the development of 15 central markets in Jinja, Busia, Tororo, Gulu, Mbale, Soroti, Lugazi, Hoima, Lira, Kitgum, Masaka, Mbarara, Fort Portal, Kasese and Arua.

Three auxiliary markets of Lopeduru in Moroto, Kitoro in Entebbe and Mwanjari in Kabale and three Kampala City Council markets in Ntinda, Wandegeya and
Nakulabye will also benefit.

The Government and BADEA will finance the development of five auxiliary markets in Kasubi, Busega and Kansanga, Kimaka market in Jinja and Nyendo market in Masaka.

The committee asked the Government to sensitise vendors to ease the underlying hostility between them (vendors) and local leaders.

“The contentious issues pertaining to land ownership and compensation should be fast-tracked for the Government to gain access to the loan and start the project,” MPs said.

The committee urged the Government to come up with a policy regarding ownership and management of its markets.

The MPs also urged the Government to seek more funds to ensure that the project is adequately financed.

Govt to borrow sh120b for markets

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