Announcement of Eleven Million Six Hundred Thousand Dollar Credit to Uganda for Roads on September 24, 1969

.INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C, 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 69/31 Subject: $11.6 million credit to September 24, 1969 Uganda for roads A credit equivalent to $11.6 million from the I~ternational Development Asso- cl~tion (IDA) for a road project in Uganda will support the Government's plans to eY.pand and upgrade the highway syst-P-~ ~n moo~ ~ho ~~etle ~£ grcwiug tLaffic aud to promote agricultural development. The $11.6 million IDA credit will finance the foreign exchange costs of a $16.6 million project which includes the construction or reconstruction of about 412 ~iles of primary, secondary and agricultural roads and the detailed engineer- ing of a further 248 miles of roads; a road investment and maintenance study; and • technical assistance to strengthen the Ministry of Works, Communications and Housing (HG~) which will execute the project with the assistance of consultants. The project will improve Uganda I s primary road links with neighboring countries aud secondary roads in populated and economically developed areas, particularly near Kampala, the capital. It will also open new areas for agricultural development and give impetus to tea production which is expected to become a major source of foreign exchange by the mid-1970s. The road investment and maintenance study is designed to i1entify road investment priorities and the maintenance needs of the highway system ~nd to detennine the reorganization requirements of the MOW. The technical assist- anc~ 4:o be given to the Works Division of the MOW will enable it to handle increased planni'!lg, construction and maintenance work and to train Uganda nationals who will eve~cually take over executive positions • • /more I~A P.R. No. 69/31 - Uganda-Roads - 2 - The detailed engineering of the roads now to be constructed or reconstructed was prepared by consultants as part of a road project for which IDA extended a • credit of $5 million to Uganda in mid-1967. The IDA credit will be for a term of 50 years, including a 10-year grace period. It will be free of interest but will carry a service charge of 3/4 of ].% per annum to cover IDA I s administrative expenses. - 0 - • •