Martin Luther Oketch
1 October 2008
Kampala — The World Bank has approved an additional $5 million (about Shs8, 308,500,000) to support the Government of Uganda's capacity to develop a sound minerals sector to generate funds locally to support economic activities aimed at reducing the high poverty levels in the country.
The approved IDA loan has a maturity period of 40 years and the grace period is 10 years before the government of Uganda can begin repaying it.
Sitting on September 23 in Washington DC where the International Development Association (IDA) loan was approved, the Executive Board of the World Bank said:
"This additional financing extends the original Sustainable Management of Mineral Resources Project which is designed to support the Government of Uganda's capacity to develop a sound minerals sector, based on private investments and improvements in selected artisanal and small scale mining areas," Uganda is one of the few countries in the world blessed with abundant natural resources necessary for economic development, but it does not have enough funds needed to exploit these natural resources especially the mineral resources.
Since the domestic resources (funds) are not enough to cater for all the sectors. Uganda still finds it self overly dependent on donor funds when it comes to financing economic activities aimed at driving economic development forward.
The Executive Board of the World Bank explains that the overall objective of the Sustainable Management of Mineral Resources Project, is to assist the Government of Uganda implement its strategy to accelerate sustainable development, and reduce poverty by strengthening governance, transparency, and capacity in the management of mineral resources, with particular emphasis on community development in mining areas, and improve small-scale, and artisanal mining on top of promoting a socially, and environmentally sound sector, based on private investments.
The World Bank executive Board also stresses that strengthening governance and transparency in the management of the minerals sector will entail enhanced legal and regulatory framework of the sector, based on stakeholder consultations, as well as adequate institutional framework for the sector's management.
It will further include the rehabilitation of office buildings, the establishment of a mining cadastre ( an official statement of the quantity and value of real estate for the purpose of apportioning the taxes payable on such property) and, development of information technology.
The community development and small scale mining component, will focus on aspects, and actions linked to funding decentralisation of minor investments related to infrastructure, build the capacity related to the management of mineral resources, and, improve collection of mining taxes.
The third component will support the preparation of a mineral sector environmental, and social assessment to help identify, and determine protected areas, as well as locations for the development of mining operations. Sector specific environmental, and social policies, regulations and standards, shall be defined, including procedures for rehabilitation of areas, and resettlement after mine closure occurs.
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