Announcement of IDA Provides Reconstruction Aid to Uganda on April 7, 1980

' . FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W. Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 1 I DA PRESS RELEASE NO. 80/28 Apr i 1 7 , 19 80 IDA PROVIDES RECONSTRUCTION AID TO UGANDA The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a lending operation of $72.5 million to the Government of Uganda to help meet the country's priority import requirements during the first phase of its economic reconstruction program. Under a participation arrangement with IDA, the Government of the Netherlands will provide $17.5 million of the $72.5 million as a grantt while the remainder will be extended by IDA on standard terms. Another $20 million credit, c standard IDA terms, is being provided by the European Economic Community (EEC) Special Action Account and a $2.6 million grant by • the Gove·rnment of Canada; IOA will administer these amounts on behalf of the EEC and Canada. A total sum of $95 million in the form of credits and grants will be used by Uganda to procure replacement equipment for manufacturing enter- prises, raw materials and spare parts, agricultural implements and inputs, and vehicles and veh1cle spare parts. These funds will help to reestablish the flow of essential imports and in turn permit a revival of the productive sectors leading to increases in the output of agricultural export crops and basic consumer goods for domestic consumption. The funds are expected to be disbursed quickly by about the middle of this year. The Government of Uganda has adopted a two-phase strategy to revive the economy. During the first phase, its priorities are to restore essential services and stimulate the production and sale, through official channels, of export cash crops--coffee, cotton, tea, and tobacco. During the second phase, the government will initiate a medium-term investment program to rehabilitate the key production sectors and social infrastructure. The IDA credit ($55 million) and the EEC Special Action Account credit of $20 million to the Government of Uganda are for 50 years, including 10 years of grace. They carry no interest, but bear a service charge of 3/4 of 1% per annum to cover administrative costs. • NOTE: Money figures are expressed in U.S. dollar equivalents •