Conformed Copy - C2088 - The Alleviation of Poverty and Social Costs of Adjustment Project - Amendment

Page 1 18 August 1992 Mr. Francis Colaco Director Eastern Africa Projects Department 1818 H. St. N.W. Washington, D.C. 20433 Dear Mr. Colaco Re: Amendment to Cr. No. 2088 Papsca Thank you for your letter of July 31st, 1992 outlining the proposed IDA financing (under Papsca) and donor coordination role in support of the Uganda Government's Veterans Assistance-Program. while we are looking for financial support for the entire four year program of demobilization and integration into civilian life, we understand the Bank's position and would welcome your assistance through the amendment of Papsca to the immediate needs of settling-in a first phase of 20,000 veterans. We would like to formally request the amending of Papsca to help the support the settling-in kits, including clothing, building materials for a simple house, agricultural tools and seeds, medical Supplies, school fees for the children, and transport from discharge point to home community. In addition, we wish to request technical assistance and training to establish the implementation mechanism through the formation of a sub-project unit within the Papsca PIU and District level implementation offices/officers. We have outlined the inputs and estimated costs for the entire first phase program for setting-in the planned 20,000 veterans and their families in the attached table (see attachment 1). This accounts to about US$ 14.5 million including the costs of establishing the implementation mechanism. We are requesting that IDA allocate about $2.5 million from Papsca unallocated to support this program. We accept the Bank's offer to convene a donor's meeting in Kampala on September 18, 1992 to mobilize the remaining resource for the first phase settling-in, and to explore funding possibilities for further demobilisation of about 40 - 50,000 soldiers and the medium and longer terms program of productive integration into civilian life. Could you kindly make the customary amendments to the legal document of Papsca in accordance with the above proposal and your letter of July 31, 1992 in order to expedite the launching of this important program is immediately. Yours sincerely, Dr. J.S. Mayanja Nkangi Minister of Finance and Economic Planning