The World Bank Board of Executive Directors Thursday approved an International Development Association (IDA) financing in a total amount of 107,6 million US dollar – 67,6 million in the form of a credit and 40 million in the form of a grant – in support of efforts by the Government of Uganda to strengthen its road sector.
The Roads Development Program 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 countrys long term ten-year rolling Road Sector Development Program by helping to remove constraints to efficient transport services on the countrys road network.
The current IDA support is for Phase 3 of the Program which is expected to:
upgrade and strengthen three high priority national roads:
rehabilitate one other priority national road;
design about 300 km of upgrading of district roads to the national road standard;
and study and design upgrading of a further 600 km of priority national roads.
Other activities are the construction of a Road Authority headquarters building, and the provision of institutional support to the establishment of the Road Authority.
– Road upgrading and strengthening works will lead to substantial savings in vehicle operating and infrastructure maintenance costs, as well as reductions in travel time for road users especially in rural areas, said Stephen Brushett, the World Banks Task Team Leader for the project.
– Since the subprojects to be implemented within this program are part of a comprehensive countrywide investment strategy for road development, it is expected that they will contribute to fostering economic growth and poverty reduction through improvements in market integration and accessibility, Brushett added.
Lowering transport costs and improving the reliability of and access to infrastructure is a key need in facilitating business development and in advancing poverty reduction initiatives.
Over its life span, the fourth phase of the Road Development Program is expected to mobilize 385 million US dollar from several donors of which 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 and 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 credits period of maturity is 40 years, including a 10-year period of grace.
For more information on the World Banks work in Africa visit: www.worldbank.org/afr/
For more information on the World Banks work in Uganda visit:
www.worldbank.org/afr/ug
Kilde: www.worldbank.org
