Kampala — THE government of Norway has donated $37.4m (about sh80b) to boost Uganda's oil, energy, forestry and meat sector and bridge the budget gap.

Of this fund, $13m (sh28b) will help to strengthen the management of Uganda's oil and gas sector while $11m (sh24b) is for supporting the National Forestry Authority (NFA) with enhanced focus on planting more trees in northern Uganda.

A total of $10m (sh22b) will help to bridge the funding gap for the financial year (2009/2010) while $3m (sh6b) will be used to develop the meat processing industry in the country.

Another undisclosed amount has been earmarked for the feasibility study and processing of tender documents for six rural electrification projects countrywide.

Keith Muhakanizi, the deputy secretary to the treasury in the finance ministry, signed on behalf of Uganda while Leite Bjorg, the Norwegian envoy to Uganda , signed on behalf of her country. The ceremony took place at the finance ministry headquarters in Kampala on Wednesday.

Bjorg said: "Norway will continue assisting Uganda to develop its petroleum sector and rural electrification."

Muhakanizi said the support towards the rural electrification programme was timely since the Government was committed to improving energy access in rural areas.