Uganda Signs US$107 million Agreement for Road Sector
Development
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In Uganda:
Steven Shalita (256-77) 738-620
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Kampala, February 23, 2005 – The Government of Uganda today signed a financing agreement with the World Bank worth a total of US$107.6 million
to support road sector development in the country. The funds are part of the International Development Association (IDA) support to the Government of
Uganda in the fiscal year 2005, which totaled to US$327.6 million of which US$190 million was grants.

The agreement signed today includes an International Development Association (IDA) financing of US$67.6 million in the form of a credit* and US$40
million in the form of a grant, which was approved by the World Bank Board of Executive Directors, on September 2, 2004.

The Roads Development Program (RDP) aims to improve access to rural and economically productive areas and to continue to improve road sector
planning, design and management capability. The Program supports the country’s ten-year rolling Road Sector Development Program by helping to
remove constraints to efficient transport services on the country’s road network.

The current IDA support is for Phase 3 of the RDP, which is expected to rehabilitate the Busega – Mityana Road (57 km); upgrade from gravel to paved
bitumen standard the Kampala-Gayaza – Bugema – Zirobwe – Wobulenzi Road (68 km), Soroti – Lira Road (125 km) and Atiak – Moyo Road (91 km),
including construction supervision. This phase will also involve the detailed design for upgrading about 300 km of selected district feeder roads to the
national road standard; and feasibility studies for upgrading of a further 600 km of priority national roads. Other activities are the construction of new
Road Authority headquarters building, and the provision of institutional support for the establishment of the Road Authority.
The World Bank Country Director for Uganda and Tanzania, Ms. Judy O’Connor, said the third phase of the RDP indicated continued
commitment of the Government of Uganda and its development partners to the original vision and objectives for the road sector, which is to improve
access to rural and economically productive areas of the country, while supporting actions to strengthen road sector management.

“Provision of IDA funding to the road sector reflects that road transport plays a key role in improving accessibility and mobility for rural Ugandans,
where most of the country’s poor live – contributing to the government's poverty reduction efforts,” said O’Connor.

Over its life span, the Road Development Program is expected to mobilize US$385 million of which US$289 million comes from IDA . This will help
rehabilitate or upgrade a total of 830 km of national roads, and improve or rehabilitate 1,300 km of district roads. The Program will, in addition, help carry
out sectoral work in the fields of road management and financing, environmental and social impact assessment, and mitigation and road safety, which
will help create an appropriate policy and institutional framework for road management.


* The credit is on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent and a service charge of 0.75
percent. The credit’s period of maturity is 40 years, including a 10-year period of grace.


For more information on the World Bank’s work in Africa visit:
http://www.worldbank.org/afr/

For more information on the World Bank’s work in Uganda visit:
www.worldbank.org/afr/ug