New Vision (Kampala)

Uganda: MPs Reject Sh88 Billion Loan for Local Governments

Joyce Namutebi and Cyprian Musoke

19 August 2008


Kampala — LEGISLATORS yesterday rejected a $55m (sh88.8b) loan request to fund the Local Government Management and Service Delivery Programme.

The MPs debating a report of the committee on national economy said the request should be repackaged. They cited several concerns like duplication of activities.

Committee chairman Ibrahim Kaddunabbi had said the 10-year programme worth a total of $520m (sh840b) was aimed at building classrooms, improving water supply and community and feeder roads

Others are improving drainage, construction of health centres, markets and solid waste management.

The money, said Kaddunabbi, would be used for supporting the local governments in war-ravaged areas of northern Uganda and Luweero Triangle.

This would involve the repair and construction of sub-county offices, staff houses and undertaking special training for chief administrative officers and town clerks, he said.

The programme would be implemented in two phases, he added.

"For the first phase, the $55m was to be secured from the World Bank's International Development Association, while the Government would give $143.7m and local governments $12.94m," explained the Butambala MP.

"The objective is to deepen decentralisation and consolidate public financial management."

It was also intended improve the ability of local governments to plan and manage human and financial resources for effective and sustainable delivery of basic services, said Kaddunabbi.

However, Pader Woman MP Judith Akello (FDC) complained that funds sought for the north had not benefited the people.

Betty Amongi (independent) pointed out that the scheme covered similar activities like the public service loan the MPs passed last week.

The Government chief whip, Kabakumba Masiko requested for some more time for a reconsideration of the loan.

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