Government is set to borrow 140 million dollars and also secure a grant amounting to 60 million us dollars from the international development association of the World Bank to finance the Uganda Digital acceleration project –Uganda government network.
The request has been tabled by the State Minister for Finance in Charge of general Duties, Henry Musasizi while appearing before parliaments committee on National Economy.
Musasizi informed the committee that the loan has a 38 years maturity period and they have a grace period of 6 years.
The Packwach district woman MP Jane Pachuto Avur informed the minister that in their meeting with bank of Uganda they warned them about the trend the country’s debt was taking and wondered if this is one of the loans that can stimulate the economy.
Tony Ayoo, the Kwania North MP supported Avur informing the minister bank of Uganda has been raising red flags on the country’s borrowing yet the ministry seems to be un bothered and wondered which position they should take.
This was after Musasizi informed legislators that the country’s debt is sustainable and the country cannot completely stop borrowing because they need services.
Musasizi also informed MPs that ICT is one of the major areas of investment and hence it addresses the concerns raised by bank of Uganda.
The MPs were also worried that the World Bank might refuse to government this money after its decision to merge NITA U back to its mother ministry saying that the loan had been negotiated depending on NITAU’s capacity and World Bank might not have the same confidence.
The Minister of ICT, Chris Baryomunsi informed the MPs that the government has already notified the World Bank on the matter and that the loan will not be suspended.
