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Germany gives Uganda $207 mln for energy, water

By on October 19, 2010

Germany has given Uganda a $207 million grant to help boost renewable energy resources, expand regulation of its financial services sector and increase accountability, Uganda’s Ministry of Finance said in a statement late on Monday.

The money will be released over the next four years and will also help the east African country expand access to clean water and sanitation, the statement said.

Germany is one of Uganda’s leading bilateral donors. In June, Uganda announced a 16 percent rise in spending to $3.31 billion for 2010/11, with 25 percent of that amount expected to come from donor loans and grants.

“Presently, 70 percent of the population aged 16 years and above has access to financial services although only 21 percent of these access banking financial services,” Finance Minister Syda Bbumba said in the statement.

“There is a need to further strengthen the regulatory function to guide the operations of the many SACCOS (savings and credit cooperatives) and commercial banks.”

Uganda has low levels of access to clean energy, with only 6 percent of the population having access to electricity.

The energy sector has long been stifled by low generation capacity and decrepit infrastructure, but a 250 megawatt (MW) hydropower plant due to come online around 2011 is expected to boost power supply.

Uganda generates about 380 MW of electricity from hydropower and thermal power plants. The country however, is seeking to rapidly develop her clean energy resources.

Part of the money will also be spent on accelerating economic and social recovery in northern Uganda which is emerging from the vagaries of a two-decade insurgency by the Lords Resistance Army, the statement added.

Reuters.

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