Uganda gets $33.6 mln credit from World Bank

    WASHINGTON, Nov. 6 (Xinhua) -- The World Bank on Tuesday approved an International Development Association (IDA) credit worth 33.6 million U.S. dollars to support infrastructure development in Uganda.

    The funds will go to the Kampala Institutional Infrastructure Development Project (KIIDP), which aims to improve the institutional efficiency of Kampala City Council (KCC), said a statement released by the World Bank.

    Kampala, Uganda's capital city, is the hub of Uganda's economic, political, and administrative activities.

    "The economic future of Uganda is intrinsically related to the performance of Kampala as a locus of productive activity and investment. The city must provide reliable services and infrastructure for all its residents," said Solomon Alemu, task team leader for the project.

    "Strengthening the KCC is, therefore, critical to the success of Uganda's economy," he added.

    It is estimated that about 80 percent of Uganda's industrial and services sectors are located in Kampala while the city now generates over 50 percent of the country's Gross Domestic Product (GDP).

    The 10-year project will run in three phases from 20082017. The first phase, which will run from 2008 to 2010, will support the implementation of the second Strategic Framework for Reform, an in-house strategy developed by the KCC.

    "Though Kampala is the country's largest urban center, it has not kept pace with its economic and demographic growth. We hope this project will facilitate the necessary reforms to improve the city's infrastructure and service delivery," said Grace M. Yabrudy, the World Bank's country manager for Uganda.