Nairobi — Uganda and Kenya are planning to apply for a $5 million loan from the World Bank for the upgrading of Malaba border post.

"We are to present a joint request to the World Bank for a loan of $5 million to upgrade Malaba border post," Uganda Minister of Finance, Planning and Economic Development Syda Bbumba said.

"This will help the revenue authorities of the two countries to use modern technology leading to effective and increased revenue collection," she said.

Ms Bbumba had accompanied World Bank president Robert Zoellick on his visit to Tilda Uganda Ltd at Kibimba, east of Kampala.

The Tilda project is a beneficiary of the International Finance Corporation (IFC), the private sector lending arm of the World Bank.

IFC provided a long-term loan of $2 million and also mobilised an IFC investee company that provided $1.3 million.

Tilda managing director Vipul Thakrar said the loan helped the company acquire a new rice mill, agricultural machinery and rehabilitate and upgrade its facilities.

Zoellick said the company producing 20 per cent of the total rice production in the country would have the capacity to produce rice for the East African and Great Lakes Region once it completes its expansion programme.

Mr Zoellick advised the East African Community on priority projects they should explore further for the bank's support.

Mr Zoellick told ministers and deputy ministers in charge of EAC affairs from Rwanda, Kenya, Uganda, Tanzania, Burundi and the EAC Deputy Secretary General for Planning and Infrastructure Alloys Mutabingwa that the community should explore infrastructure development including exploitation of available energy resources for increased power supply.

He backed Rwanda's joint venture with Burundi and the DR Congo to exploit methane gas in Lake Kivu for power production.

He further urged the bloc to strengthen the capacity of the private sector and address the institutional issues affecting the freedom and competitiveness of the private sector.

The chairperson of the EAC council of Ministers Monique Mukaruliza briefed Zoellick on the EAC strategic policy direction in support of the integration process and appealed for support in key challenges.

She appealed for the bank's intervention in capacity building for the EAC Secretariat, especially in project planning, co-ordination, resources mobilisation, monitoring and evaluation.

She further appealed for the bank's support to the EAC partner states in finalising the Railways Development Master Plan and conclusion of the Public-Private Partnership for their construction and financing.

Zoellick, however, challenged the partner states to prioritize their viable projects in support of the integration process saying the bank had doubled its resources for regional integration under International Development 14 (IDA 14) and called upon the EAC to take advantage of the increased resources envelope.