Kampala — THE Government of Iceland has donated $240,000 (about sh434.4m) towards the new sh4.2b Mukono district administration block.

The funds, advanced through the Icelandic International Development Agency (ICEIDA), will be used to complete the first floor of the block.

The district is expected to contribute 10% as its co-funding obligation, the community services secretary, Harriet Nankabirwa, said.

"The council has already revised its 2008/09 financial year budget to include the co-funding percentage," she told The New Vision.

Construction of the block started in 2000, but work stalled after the district failed to pay sh798m to Excel Construction Company, the building contractors, which forced them to seek legal redress.

An injunction was issued stopping the district from progressing with the construction until the debt was cleared.

The council also endorsed sh20m as co-funding towards the proposed Ssezibwa mini hydro-power project located in Nagojje sub-county.

The project is one of the five schemes being undertaken by the Japanese government through JICA, its aid agency.