Cabinet has approved proposals to borrow up a sum of USD 103 million (Shs 375.6 billion) from external financiers to fund oil palm projects and Kampala’s sanitation program.
A Cabinet meeting sitting on Monday at State House Entebbe approved the two loans that are to be funded by the International Fund for Agricultural Development (IFAD) and the African Development Fund (ADF).
This was revealed by the Minister of ICT and National Guidance, Frank Tumwebaze during a news conference on Monday to communicate the decisions of Cabinet.
The USD 75.8 million (Shs 276.4 million) loan from IFAD will finance the National Oil Palm Project (NOPP) with an aim of contributing to sustainable poverty reduction in areas where the project has been implemented.
“The other objective is to increase domestic production of vegetable oil and its byproducts, and to raise rural incomes for small holder farmers,” Tumwebaze said.
The funds will also be invested in oil palm investment hubs (agro climatically sustainable areas) within a radius of 30 kilometers around crude oil plan mill in which at least 3,000 hectares of small holder oil production can be assured.
Areas that are set to benefit include; Kalangala, Buvuma islands, Mayuge, Masaka and Rakai.
Government hopes to achieve affordable vegetable oil products to Ugandan consumers and in the neighboring regional markets.
Similarly, government seeks to acquire USD 28 million (Shs 102 billion) from ADF to support the Kampala Sanitation Program Phase One.
The program will improve collection of faecal sludge from onsite sanitation facilities in unsewered areas.
A waste water treatment plant of capacity 45,000 cubic metres per day will also be constructed in Bugolobi, Wankoko as well as a Pre treatment plant and pumping station of capacity 9,000 cubic metres per day in Kinawataka wetland.
National Water and Sewerage Corporation intends to lay 31 kilometers of sewer networks constricted within Nakivubo and Kinawataka catchment area.
During Monday’s Cabinet sitting that was chaired by President Yoweri Museveni, the Finance Minister, Matia Kasaija was instructed to seek approval from Parliament in regards to the acquisition of the two loans.