World Bank Gives Hope to Uganda on Lifting Loan Suspension

World Bank gives hope to Uganda on lifting Loan Suspension

By Serestino Tusingwire

World Bank has given a six-month ultimatum to the government of Uganda to convince it to lift the loan suspension.

The Bank gave Uganda five recommendations to work on before it can lift suspension on funding two civil work projects in the Albertine region and in the North East of the country.

Delay in compensation to affected communities along road projects was one of several reasons the World Bank suspended funding.

The World Bank took a decision to withhold more than $1.5 billion (Shs5 trillion) in lending for many projects effective August 22, 2016 while reviewing the country’s portfolio in consultation with the government.

It is however not clear when the entire World Bank suspension on all future funding will be lifted over issues of low project fund absorption.


About Post Author