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Press Release No. 15/460: IMF Staff Completes Review Mission to Uganda (5.10.2015)

Bank notes Uganda

A team from the International Monetary Fund (IMF) led by Ana Lucía Coronel, IMF Mission Chief and Senior Resident Representative in Uganda, visited Kampala from September 24 to October 5, 2015, to conduct the fifth review of Uganda’s economic program supported by the Policy Support Instrument (PSI).1

At the end of the mission, Ms. Coronel, issued the following statement:

“Despite the global and regional economic challenges and election-related uncertainties, Uganda’s recent economic performance has been mostly favorable. Real economic growth —led by increased public investment—reached 5 percent in FY2014/15, slightly below staff projections, but well above the FY2013/14 level (4.5 percent). Core inflation accelerated to 6.7 percent year on year in September but remains within the Bank of Uganda’s target band. International reserves remain at comfortable levels”. 

“Uganda is not immune to the difficult external environment affecting other countries. Together with domestic nervousness relating to the upcoming elections, external shocks and uncertainty have resulted in a sharp decline in the shilling (27 percent over the past year), creating challenges for policy makers. The exchange rate depreciation raised domestic prices given the high import content of the consumption basket, created uncertainty for consumers and investors, and generated market uneasiness. The mission welcomed the authorities’ proactive and effective response to the challenging situation, notable the timely monetary tightening, which has helped curb further inflationary pressures”,

“Performance under the PSI was satisfactory. The end-June 2015 fiscal, external, and inflation targets were mostly met. There was significant progress on increasing tax revenue, with the strong package introduced in the FY2014/15 budget yielding about 1¼ percent of GDP compared to an original target of ½ percent. However, the high stock of domestic arrears—notably the proliferation of court awards—remains a concern, despite the authorities’ efforts to reduce them”.

“Discussions focused on policies to be conducted over the rest of the fiscal year. The mission welcomed the authorities’ determination to adapt the policy mix to the ongoing challenges, including those related to the political cycle, by closely coordinating fiscal and monetary actions. Supported by an adequate stock of international reserves, monetary policy will remain vigilant of price developments and help moderate inflation expectations now that the shilling has largely stabilized. On the fiscal front, the authorities are encouraged to continue to build on the strong revenue performance of last year by improving tax collections even during the election period. On the expenditure side, the government has appropriately identified a series of spending cuts that should reduce the need for domestic borrowing, creating space for private sector credit and growth recovery”.

“On the structural front, important steps have been taken. The mission welcomes the approval of the Public Financial Management Act and the actions taken to clean the payroll and improve the payments system. Regulating the new law and finalizing the Charter of Fiscal Responsibility are important steps to further help improve the budget process and efficiency of expenditure. In addition to these improvements, the mission has encouraged the authorities to intensify ongoing efforts to fight corruption, which continues to affect the business climate. Improving transparency and accountability remains critical”.

Over the medium term, core inflation is set to decline toward the 5 percent target and growth is expected to gradually return to its potential of about 6–6½ percent. While the authorities will continue their plans to scale up public investment, they intend to re-profile projects to ensure that public debt remains at low risk of distress. The completion of these projects should reduce infrastructure bottlenecks and support growth”.

“The mission met with Mr. Keith Muhakanizi, Permanent Secretary/Secretary of Treasury of the Ministry of Finance, Planning and Economic Development; Dr. Louis Kasekende, Deputy Governor of the Bank of Uganda; and other senior government officials, and representatives from the business, civil society and international communities. The mission thanks all counterparts for their collaboration”.

“IMF Executive Board consideration of the fifth review of the PSI-supported program is expected by end-November 2015.”

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Uganda’s Medium Term Debt Management Strategy for FY 2015/2015 – FY 2019/2020: What is it all about?

UGX Pic

Here you will see what strategies and plans the Government of Uganda has made for their loans and debts. This is about how the Government will deal with it and how it can be done. The numbers tell what they can expect if they pick the certain ways of dealing with it. It shows what can happen and the shock scenarios are important.

This should be seen as important to follow especially with the growing debt and the rates that come with that. Therefore it will be something that should be monitored. From the sustainability of the ratio according the GDP should be something that also brings fear. Especially since this will have general effect on how the general economy will be hit with the down payments and strain the basic budgets of the government. There its a viable thing that should be well known by people, because this will have big importance until FY 2019/2020

“The Uganda Vision 2040 aspires to transform Uganda into a modern and prosperous society within 30 years through provision of adequate infrastructure, development of agriculture, human resources and services sectors, enlargement of markets, strengthening of the private sector and through industrialization” (…) “Implementation of the Uganda 2040 Vision will require substantial resources that will partly be garnered through the domestic and international borrowing. To ensure that our debt remain sustainable, such borrowing has to be carried out through a properly formulated Medium Term Debt Management Strategy (MTDS)” (MTDS, P: 4, 2015).

“The key aim for the MTDS2015 is to ascertain the cost and risk trade-off of financing the medium term fiscal deficit through borrowing while remaining mindful of our debt sustainability” (…) “To meet Government’s financing requirements at the minimum cost, subject to a prudent degree of risk; (ii) to ensure that the level of public debt remains sustainable, both in the medium and long term horizon while being mindful of future generations; and (iii) to promote the development of the domestic financial market (MTDS, P: 6, 2015).

Strategies:

  1. Traditional post debt relief approach of prioritizing concessional financing.
  2. A debut Euro-Bond: The Sovereign Bond Issuance which risks the cost and the trade-off of the International-Market and financing alternative.
  3. Non-Concessional borrowing and meeting with bilateral with commercial creditors negotiations.
  4. Reliance on Domestic-Financing establishing the cost and risk trade-offs, which risk less since it’s from the Domestic-Financial-Market.

(MTDS, P: 6-7, 2015).

Cost & Risk Debt Uganda

External Debt Stock:

From FY2006/2007 it was Domestic Debt and Outstanding(DoD) was US$1.47 billion. And in FY 2013/2014 had risen to US$4.3 billion (MTDS, P: 13, 2015).

External Debt Stock Uganda

Domestic Debt Stock:

Domestic Debt Stock

Refinancing:

External debt maturity for the ATM (Average Time for Maturity) was 18.9 Years. The plan is setting that the in 2.3 years will the ATM be 11.8 years.

Public Debt Maturity Profile under REFINANCING

Currencies:

Currency Distribution P17

Aggregrate Medium Term Debt Strategy:

The outlook for the 5.3% in FY 2014/2015 and is looking to reach 5.8% in FY 2015/2016. The plan forward is to attain an average 6.3% for the fiscal framework (MTDS, P: 17, 2015).

Selected Medium Term P18

Government expenditure is on an average to be 20.9% of the GDP for the FY 2014/2015. In the 2015/2016 it is 21.7% of the GDP. The main expenditure for the budget is the infrastructure projects like the upgrading of Entebbe International Airport, Hydro Power projects and Albertine Regional Airport. The total cost for the projects is US$7.0 Billion. There is set to be 5% target for the inflation rate and the exchange rate is set for 12.1% in FY 2015/2016 and average for 2.4% the rest of the years for the medium term (MTDS P: 17-18).

Stylized Financing Instruments:

Two instruments:

i: International Development Association (IDA) has the interest 0.75% for the maturity of 38 years.

ii: African Development Fund (ADF) has the interest 0.75% with a maturity of 40 years.

iv: The concessional is with fixed rate loans with 23 years maturity and 6 year grace period. These terms comes from IDA-Blend, Kuwait Fund, Abu Dhabi Fund, UK-Export Credit Guarantee.

v: The fixed rate instrument on the Euro Bond which is priced on a ten-years US-Treasury interest rate.

vii: With Pure commercial loans is a instruments with a 7 years of maturity and with a 3 years grace period.

viii: One T-Bills is a domestic market debt instrument that has a maturity of 91 days, 181 days,  and 364 days.

ix: Four T-Bonds is a domestic market debt instrument that has a maturity of 2, 5, 10 and 15 years.

(MTDS, P: 18-21, 2015).

Stylized Financing Strategy P22

Four scenarios for the Market:

First Scenario: The first thing is possible currency depreciation – is that in the FY 2015/2016 can end up with 30% depreciation and will have to work to sustain that through to 2019/2020.

Second Scenario: A sharp off increase in domestic rates for 2015/2016 and at the Interest Rate will follow the baseline of the Foreign Currency.

Third Scenario: Domestic Interest Rate still set to be baseline assumption that we’re set. And that the denomination on the Foreign Currency following the instruments set for it.

Fourth Scenario: That the Decapitation of the UGX towards the US Dollar in the amount of 15%, that can lead to a shock in the domestic yield a curve for the 2015/2016.

(MTDS, P: 23, 2015).

Analysis of the strategies:

That the total debt-to-GDP from the current level of 28.6% by the end of June 2014, if the end of the time it might end up with 50% level by 2020. This is because of substantial projected increases the fiscal deficit. With the worst strategy the interest rate can go from 1.4% in June 2014 to become 4% in 2020 (MTDS, P: 24, 2015).

MTDS P25

 

MTDS P29

 

MTDS P30

Hope you have found it interesting and learn something of the Government of Uganda planning of dealing with their debt. And how they see the future for their economy. Then what kind of strategies and scenario’s that could appear and how they will appear together. The Financial Years that are ahead and how the Ministry of Finance, Planning and Economic Development thinks of their economy. Hope it give you something and also a little feeling about how the economy might progress.

Peace.

Reference:

Republic of Uganda/Directorate of Debt & Cash Management – Ministry of Financing, Planning & Economic Development: ‘Medium Term Debt  Management Strategy’ (MTDS): 2015/2016 -2019/2020 (April 2015).

Uganda – Bill Supplement No. 3. – Bill No. 4. – The Finance Bill 2015 (01.04.2015)

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Uganda – Bill No. 13 – The Appropiation Bill 2015 (29.05.2015) – Use of the Consolidated Fund- Quotes and Outtakes

This blog will be about the Bill No. 13 – ‘the Appropiation bill, 2015’ of the 29th May 2015. That was a part of the Uganda Gazette No. 28 CVIII dated 29th May 2015. This bill will the money used for service until 30th June of 2016. This bill is an extension to the Public Finance Management Act of 2015 and the Section of 17 in that Act. That states this:

PMAUGP1PMAUGP2

 

Here is how it’s been scheduled to spend the fund in the different areas from the fund and use the Consolidate fund and using the fund accordingly to the Section 17 in the Public Finance Management Act of 2015.

I will not take every single expenditure that will be to many, but will take those that are striking. This is because the total Sixteen trillion, one hundred eighty one billion, six hundred twelve million, and six hundred thousand shillings for this Financial Year (FY), I will take those who strikes my mind and hopefully you find it interesting to. Here we go:

Appropiation Bill2015P1Appropiation Bill2015P2Appropiation Bill2015P3

Parliament of Uganda – Report of the Committee on the National Economy on the Proposal by Government to Borrow EUR 42,9M from the AFD to finance the rural electrification grid extensions projects..(May 2015)

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Press Release: UNATU suspends industrial action awaiting implementation of government commitments (26.05.2015)

Unatu

The Leadership of the Teachers’ Union Countrywide unanimously resolved to enter into an industrial action effective 14th May 2015, due to Government’s failure to pay the 10% salary increment for teachers in FY 2015/16 as had been committed in 2011. The industrial action has been on for the past 13 days.

As concerned stakeholders in education, we have been taking lead in negotiations so that the issue at hand is sorted out within the shortest time possible to allow the learners resume normal studies.

In the negotiation meetings chaired by the Rt. Hon. Prime Minister and the 1st Deputy Prime Minister and attended by several ministers held on 18th and 21st May respectively, no tangible proposals were put forth.

Until yesterday, 25th of May, Government had been adamant in making any formal commitment as regards the 10% salary increment for teachers despite the Union’s efforts in providing practical and viable options/ sources for the increment.

In yesterday’s meeting with the top leadership of the Union, Government made the following commitments;
• 15% salary increment in FY 2016/17
• Teachers SACCO funds to be immediately released to the Apex body of the Teachers’ SACCOs
• No intimidation/ victimization/ harassment of teachers for having participated in the industrial action
• A joint committee comprising Ministry of Education, Science, Technology and Sports, Ministry of Public Service and Ministry of Finance, Planning and Economic Development and UNATU be constituted to identify and advise Government on measures to improve the quality of education.

UNATU being a democratic and member-driven union had to subject the above proposals with the entire teacher leadership countrywide for discussion and resolution at a meeting held on 26th May 2015. Government’s position was presented by Hon. Jim Muhwezi, the Minister of Information and National Guidance. Hon. David Bahati, the Minister of State for Finance, Planning and Economic Development was also in attendance.

After a thorough discussion of Government’s proposals, the teacher leaders have resolved to SUSPEND the industrial action on condition that;
i. Government does not breach the implementation of the above commitments within the stipulated time.
ii. No salary increments are effected in FY 2015/16 including the proposed 40% allowance increment for Members’ of Parliament because Government maintains that it has no funds for wage increments.
iii. Government fulfills its commitment of immediately releasing the Teacher SACCO funds to the Apex body of the Teachers’ SACCOs
iv. District officials desist from any form of intimidation, victimization and harassment of teachers in regard to the industrial action
It was further resolved that should government fail to honor their commitment or fail to meet the above conditions, this time round, the Industrial action will resume indefinitely.

Message to the Teachers
UNATU congratulates teachers for the spirited struggle and thanks different support teams upon the successes registered in this industrial action.
The Union hereby clarifies that the Industrial action is not off, but only SUSPENDED to allow Government time to fulfill her commitments. UNATU will continue to monitor the progress of these commitments and by the 30th of September, we expect Government to have included the 15% salary increment in the budget call circular and fully released the said SACCO funds

We therefore call upon all teachers to return to school and resume teaching with effect from Wednesday, 27th May 2015 at 8:00am.

Please note that the industrial action is fully protected by the existing laws and hence no teacher should be intimidated or be subjected to any form of harassment as a result of having participated in the industrial action. Individual teachers and other leaders should report such cases immediately for redress.

“Because we are, the Nation is”

General Secretary – James Tweheyo

Uganda – The Annual Report Audit General for FY ended 2014 – Value for Money Audit Volum 5: Quotes and Outtakes from this.

This blog here will be focused on the ‘Office of the Auditor General’ who released ‘Annual report of the Auditor General for the Financial Year ended 30th June 2014 – Volume 5 Value for Money Audit’. What you will read is actual quotes from the paper or report. Here you get a vivid picture of how the financial year (FY 2013-2014) was in reality.

I haven’t taken everything from the piece. It would be too long and you might end up bored. Here is what should get your mind boggling and wonder. How could this be this way? Why is it like this? How did it end up like this? What does this tell me about the economic practices in Uganda? And so on. If you start to think like that, then it was worth using my time. Enjoy the quotes from the report. Hope you catch some wisdom.

When it comes to managing Public Debt:

Public debt is incurred primarily for financing budget deficits, development of domestic financial markets, supporting the country’s Balance of Payment (BOP) position/foreign reserves and monetary policy objectives. In Uganda, public debt is managed by the Ministry of Finance, Planning and Economic Development (MoFPED) in liaison with Bank of Uganda (BoU). Government borrows internally from domestic markets through issuance of Treasury bills and Bonds by the BoU and externally through Bilateral and multilateral borrowings. Currently, over 60% of the public debt is external debt and 40% is domestic debt. GoU borrowing has been rising over the years from USD 5.7 billion in Financial Year (FY) 2011/12 to USD 7 billion in FY 2013/14. The growing National debt, if not properly managed, could revert to unsustainable levels as was the case in the past”.

“Interest rates on domestic debt have overall stabilised in recent years relative to their peak in 2011/12. However, they remain a cause for concern due to their high contribution to overall debt service costs and the relatively high yields which they attract stand in stark contrast to those achieved by comparator nations with similar credit ratings”.

When it comes to roads:

“The Uganda Road Fund invested a total of UGX 914 billion in road maintenance activities during the three years under review (2011/2012, 2012/2013 and 2013/2014),4 with a total of 4,565km of roads maintained. Despite the increasing investment, there are reports and persistent public outcry about the poor state of roads and the deteriorating quality of works being executed. The physical and financial performance reports of designated agencies in FY 2011/12 revealed the following issues: budget indiscipline, poor absorption of road maintenance funds, inaccuracies in reporting, lethargy of Designated Agencies (DAs) in complying with reporting requirements, widely varying unit costs, risk of loss of funds through end of year procedures, and grave underperformance of periodic maintenance works” (…) ”The road maintenance needs in Uganda cannot be met due to limited resources, for example for FY 2011/2012, the total maintenance needs from the agencies was UGX 413.95bn, and the budget provided by the Ministry of Finance, Planning and Economic Development (MoFPED) was UGX 280.95bn, indicating a 32% deficit” (…) “The road maintenance equipment inventory maintained by the URF is incomplete; the inventory is only for 12 (55%) of the municipalities and it is outdated as it was submitted in January 2011”.

When it comes to Gas and Oil:

“Through a review of reports on procurement submitted by the oil companies to PEPD, it was noted that from 2010-2013, the oil companies spent a total of USD 1,171.8 million on purchase of goods and services. Of this, USD 329.9 million was paid to Ugandan service providers, representing 28% of the total spend for all the companies in the period under review” (…) “The Ugandan service providers comprised about 73% of the approved suppliers which implies that the total value of the procurements from them was less than their relative number” (…) “Ugandans employed in the oil and gas sector by the oil companies overall rose from 69% in 2012 to 80% in 2014, absolute numbers of employees decreased from 546 to 432 between 2013 and 2014; in particular, the nationals dropped from 370 to 347 over the same period” (…) “For all the 27 jobs advertised in the newspapers, attracting over 700 local applicants, none was appointed, citing lack of experience in the oil and gas sector. Instead, the recruitment report submitted by the CNOOC to PEPD recommended recruitment of expatriates” (…) “According to the Industrial baseline survey done by the Joint Venture partners (CNOOC, TEP and TUOP), 60% of the workforce required for the next phases will be technicians and craftsmen, which translates to a demand of 7,800 and 1,800 technicians and craftsmen at the peak and plateau phases, respectively, of development and production. With the current total of only 86 UPIK graduates, there is doubt that the projected demand will be met by the time production starts (2018)” (…) “There are still several areas with clear potential for enhancing national content, such as: establishment of a clear regulatory framework, performance targets and indicators for national content; determining the level of state participation; local supplier development; employment and training of Nationals by the oil companies and government; ensuring gender parity and involving host communities”.

When it comes to the Healthcare:

“The Uganda Health Systems Strengthening Project (UHSSP) is a project administered under the Ministry of Health (MoH)” (…) “UHSSP, is a five year project, which was established in 2010, commenced operations in February 2011 and is due to end on 31st July 2015. The UHSSP project is jointly funded by the Government of Uganda (GoU) and the World Bank to a tune of USD 14.31 million and USD 130 million, respectively” (…) “UHSSP was set up to bridge the existing gap of supply and maintenance of medical equipment in 46 selected health facilities in order to improve the quality of health care delivered to patients. The project has spent USD 24 million (UGX 60.480 billion) on procurement and supply of these medical equipment, yet some of the equipment remains unused in the facilities where it was supplied” (…) “For instance, at the time of audit field visit in September 2014, the project had supplied anesthetics machines to 165 HCIVs at a cost of USD 2,063,085.75, however, all the HCIVs visited were not utilising this equipment because they lacked the technical expertise to effectively utilise the equipment. In a related instance, 2 auto strainers valued at USD 25,345.68, which were issued to Mubende and Moroto Regional Referral Hospitals, are not operational because of lack of qualified staff” (…) “observations conducted during field visits to the seventeen selected beneficiary health facilities, it was noted that some of the equipment supplied, worth Euros 3,954.67 and USD 1,209,879.09, was not being used at all while other equipment was not optimally utilized” (…) “Through field inspections, it was observed that health facilities namely Mwizi had no power supply while others such as: Moyo, Aduku, Aboke Pakwach had unreliable solar power supply, and therefore, were not providing emergency obstetric care services when needed” (…) “that various equipment supplied by the project, worth USD 319,676.35 and Euros 347.24, required additional logistical supplies to be effectively put to use. Such equipment included anesthesia units which required regulators, oxygen cylinders and other reagents while incubator cultures, incubator baby, defribrators, counting chamber, colorimeter required Medias, distilled water, thermometers, tubes and batteries”.

When it comes to handling Public Debt Part 2:

“Uganda benefited from the various Debt relief initiatives like the Heavily Indebted Poor Country (HIPC) Initiative in 1998, the Enhanced HIPC in 2000 and the Multilateral Debt Relief Initiative (MDRI) in 2006. Despite these initiatives, GoU borrowing has been rising over the years from USD 5.7 billion in Financial Year (FY) 2011/12 to USD 7 billion in FY 2013/14. The growing National debt, if not properly managed, could revert to unsustainable levels as was the case in the past” (…) “In the FY 2013/14 Public debt increased to USD 7 billion up from USD 6.4 billion in F/Y 2012/13, reflecting a 9.38% increment in one year alone, the increment was way above the GDP growth of 6.2% in the FY 2013/14. Domestic debt accounted for 9.55% (UGX 1,437 billion) of the National budget, 2014/15 an increase of 1.65% (UGX 397 billion) from 7.9% (UGX 1,040 billion) in financialyear 2013/14. External financing on the other hand increased from UGX 2,660 billion in F/Y 2013/14 to UGX 2,733 billion of the National budget, 2014/15 an increase of UGX 73 billion. As non-concessional borrowing increases, the need for proper debt management becomes even much greater” (…) “On average, 60% of public debt is external loans of which Multilateral loans constitute over 80%. The domestic debt is largely derived from the sale of bonds which constituted an average of about 60% over the period FY2011/12 – 2013/14 “ (…) “In evaluating whether the debt, acquisition process facilitates debt sustainability, the audit mainly focussed on the acquisition of external debt since it constitutes over 60% of the National debt portfolio” (…) “The 2012 corruption scandal involving the Prime Minister’s office resulted in a changed relationship between multilateral lenders to the Ugandan government and a consequent reduction in the amount of aid in the form of direct budget support. Budget support in 2011/12 amounted to 168m USD, but reduced to 24.1m USD in 2013/14. The shortfall has in part been filled through domestic financing” (…) “The lack of coordination between debt and cash management functions contributed to inaccurate forecasting of cash needs. This exacerbated the problem of unplanned cuts to government programmes and led to the needless issuance of short-term debt, with the associated debt service costs” (…) “it was noted that local government authorities still held significant cash balances accrued from non-tax revenues and unutilised balances which were not remitted to the Consolidated Fund regularly, and that some accounts containing cash lay dormant, risking embezzlement” (…) “the current economic conditions characterised by reduced exports and a depreciating Ugandan Shilling against the dollar (30% for the last 4 months) there is a risk of stress which can affect future sustainability. Interest rates on domestic debt remain a cause for concern due to their high contribution to overall debt service costs (78%)”

When it comes to Health Care Part 2:

“Over the past three financial years 2011/12, 2012/13 and 2013/14, there has been an 18% increment in the funding of RRHs from UGX 53.86 billion to UGX 63.56 billion” (…) “Jinja nd Lira RRHs revealed that Jinja RRH which ran a 13-bed Intensive Care unit only used 6 of the beds, leaving 7 beds idle in the unit while Lira RRH had not utilized its 16-bed ICU since FY 2012/13. The Hospital Directors of Jinja and Lira RRHs explained that more nurses wouldhave to be deployed as each bed required at least 2 full time nurses to the unit to ensure full utilisation of the unit without compromising the quality of care. The unit would also require full time doctors and an anaesthesiologist. In Lira RRH, management explained that the ICU had not been commissioned and that its underutilisation was also due to the absence of an oxygen plant” (…) “With the current ICU bed capacity in Uganda of 61 in all public and private hospitals, 23 unutilized ICU beds in Jinja and Lira represents a wasted resource. It is estimated that about 10 critically ill patients were deprived of ICU admission daily and as a result succumbed to their illnesses” (…) “Hospital managers in response attributed this to the lack of bio medical engineers and high costs of repairing the equipment, for instance, according to Jinja RRH, the maintenance of the En-Visor ultra sound machine and the repairs of the Duo-Diagnostic big x-ray machine requires not less than UGX 15 million, and without a medical equipment maintenance fund, it is a challenge to maintain and repair the radiology and imaging machines. Management of Fort Portal RRH attributed the low usage of the x-ray and ultrasound machines to stock-outs of the supplies, such as reagents and films required for the operation of this diagnostic equipment” (…) “The average doctor-patient ratio per year in RRHs was 12440:1 implying one doctor for 34 patients per day while clinician- patient ratio was 10652:1 annually implying one clinician for 29 patients” (…) “For example; Kabale, Fort Portal, Masaka and Mbale Regional Hospitals referred some special cases to Mbarara RRH for services like CT scan, renal dialysis, neurosurgeon, paediatric surgery. In addition, lack of adequate staff has led to referrals to the National Referral Hospital and this has further resulted in the congestion and handling of cases at National Referral Hospital which cases could be handled by the RRHs. The process of referrals is costly and in some cases patients lose their lives in the process of reaching the health facility to which they have been referred”.

 When it comes to Management of Sewage in Urban areas:

“Poor sanitation costs Uganda 389 billion shillings annually, equivalent to 1.1% of the national GDP” (…) “Fifty six percent (56%) of the pipes in Kampala were built in the 1940s and 86% of these have been operational for 35 years or more” (…) “National Water and Sewerage Corporation (NWSC)” (…) “NWSC had spent UGX 10.9billion towards sewage management activities in the areas under its jurisdiction over the last three years” (…) “the volume of sewage generated in the different towns and the volume of sewage collected and treated by NWSC, a study conducted by Mott Macdonald on behalf of NWSC in December 2012 estimated that by 2014, a total of 238.9 ML of wastewater would be generated of which, only 8.38ML would be collected and treated. This leaves approximately 230.52 ML of generated sewage uncollected and therefore not treated”.

Short ending:

I hope this was worth your time and also giving you an indication on the matters on the ground. This is just a fragment on the matters and what got told in the report. This just comes as gift to you. Especially to all of you who don’t use time reading the report on your free will or are lucky enough to get the report in your mailbox. Never the less, hope you got enlighten and also got a picture on how the monies is spent in last FY. Peace.

Uganda – Bill No.09 Amendment on the Value Added Tax (VAT):

 

VAT2014

VAT2014 2

VAT2014 3

Link:

Bill Supplement 06 – Value Added Tax (Amendment) bill 2014, (27.07.2014), Printed by UPPC, Entebbe by Order of Government.

CABINET APPROVES THE KASESE DISASTER RECOVERY PLAN 2014/2015

August 14th 2014

On 1st May 2013, three rivers of Mubuku, Nyamwamba and Nyamugasani in Kasese district burst their banks causing massive flooding and devastation of Kilembe Mines estates, Kasese town and the surrounding villages. The disaster had far reaching effects resulting into the death of eight persons, destruction of property and displacement of more than 3000 persons, many of whom were forced to live in emergency camps. Cabinet therefore, noted the magnitude of destruction that had occurred as a result of heavy rains which caused floods in Kasese district on May 1st 2013 and directed the Ministry of Finance Planning and Economic Development to avail funds amounting to Shs 39 billion to facilitate the relocation and resettlement of people in all areas that were highly prone to landslides and floods.

This was because Cabinet realized that emergency operations and responses to the medium term development initiative aimed at restoring basic services, the recovery needs of the affected populace are still immense and require a more comprehensive approach for full recovery.
Therefore, the Kasese District Disaster Recovery plan 2014/2015 is a comprehensive response to the recovery needs of the affected areas and surrounding communities by reducing their vulnerability and enhancing their resilience to possible disasters of a similar nature.
The floods affected several sectors including Agriculture where food security of the people remains threatened. It will take approximately two planting seasons for the affected people to recover their livelihoods. Indeed more than 100 livestock perished, about twenty nine fish ponds were destroyed and 731 acres of agricultural land with crops were washed away by the flooding rivers.

The transport sector was not exceptional. The disaster resulted into the destruction of 20 bridges in the area including, mubuku, bridge along Kasese-Fortportal Road. Both murrum and tarmac roads were damaged cutting off communities and rendering access to different points difficult. This immensely affected the local economy and delivery of social services especially health, water and sanitation and education.
The floods washed away most of the inhabited houses with people’s belongings rendering the communities helpless particularly in Kyarumba, Maliba, Bulembia and Nyamwamba Divisions. Kilembe Mines Hospital, a 200 bed health facility and a main referral hospital was affected with a number of medical equipment and property including 50 housing units for staff destroyed. A number of classroom blocks and sanitary facilities in various schools including Bulembia, Road barrier, Nyamwamba and Kasese Primary Schools were destroyed.

It’s on the basis of the foregoing concerns, urgency and sensitivity of the issues that cabinet approved the Kasese District Disaster Recovery Plan 2014/2015 that spells out measures aimed at recovery of the area focusing on the key affected sectors as well as addressing some of the root causes of river flooding.
The Recovery plan also aims at reducing vulnerabilities and enhancing the resilience of the district and its populace. The recovery plan takes cognizance of the prioritized needs of the affected communities arising out of the local consultations. It will also promote recovery of Kasese District after floods, rebuild and promote business in Kasese, restore people’s livelohoods and to build their resilience to disasters and enhance early warning systems on natural disasters in the district. Cabinet therefore noted the humanitarian challenges caused by flooding in Kasese District in May 2013 and the colossal damages occasioned to varous sectors in the district.

 

It also noted the need to redirect recovery and development of Kasese District through implementation actions in the Recovery Plan and approved the Kasese District Disaster Recovery Plan 2014/2015. Cabinet also directed the Minister of Finance, Planning and Economic Development to frontload the money contained in the budget for FY 2014/15 to various sectors to facilitate the implementation of the critical activities of Kasese District Disaster Recovery Plan 2014/15 to prevent recurrence of floods likely to result from the El-nino rains expected in September 2014.
FOR GODA AND MY COUNTRY

Namayanja Rose Nsereko (MP)
MINISTER OF INFORMATION AND NATIONAL GUIDANCE

Link:

http://www.mediacentre.go.ug/press-release/cabinet-approves-kasese-disaster-recovery-plan-20142015#sthash.Y97ar2IC.dpuf

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