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.

Address by His Majesty Ronald Muwenda Mutebi II Kabaka of Buganda at a Special Prayer Service held on 24th May 1996 in remembrance of the 1966 attack on the Lubiri

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Your Excellency, Yoweri Kaguta Museveni, President of The Republic of Uganda; Your Excellencies, Members of the Diplomatic Corps; My Lord Bishops; Obuganda:

We are greatly honoured to have in our midst, His Excellency Yoweri Kaguta Museveni, President of The Republic of Uganda; and all the guests from inside and outside Buganda and Uganda to remember the storming of the Lubiri by Uganda Army troops on the morning of 24th May, 1966.

Let me begin by once again congratulating President Museveni on his victory in the presidential elections which were concluded recently. Mr. President, may the Lord guide you as you steer the ship of state to greater peace, stability and development.

Your Excellencies, ladies and gentlemen, I decided to remember the 24th May because it is of great significance to my family, Buganda and Uganda. The events of that fateful day changed our lives as a family and the lives of the Baganda and Ugandans in a fundamental way and many of us are still trying to come to terms with the changes the events of 24th May 1966 brought about.

I thank the Lord for having enabled my father, the late Ssekabaka Mutesa II and some of his aides, for having successfully fought their way from the burning palace to safety. We should remember the clergy at Lubaga for the hospitality they offered my father at his greatest hour of need and for assisting him to escape to safety. I thank his loyal subjects who assisted him on his long march to freedom. I thank the British government who agreed to accept him as a refugee and all those who supported him and comforted him in the loneliness of his London exile.

Let us remember all those who stood by him and fought by his side and died at the hands of the Uganda Army of which he was Commander-in-Chief; Let us remember all those who were imprisoned and tortured; Let us remember all those who lost their loved ones and those that had to live in constant fear of the authorities and those who were traumatised by the violence unleashed by the authorities.

This is a very sad chapter in the history of our country but we cannot skip it, because there are lessons to be learned from it that can greatly contribute to the building of a peaceful and united Uganda.

On that fateful day the Lubiri, embodiment of Kiganda culture and traditions and the very soul of Buganda went up in flames and brought to a halt almost 1000 years of history. For once in her long history Buganda was without a King. She became an ant-hill without the queen ant. We never lost hope that one day our cultural integrity as Baganda would be restored and we thank God that, that integrity which we craved and cherish was restored in 1993.

The Baganda cannot continue to mourn indefinitely for what was lost. We should not continue to labour under the burden of self pity because this self pity will destroy our soul and, therefore, our resolve to rebuild Buganda. Let me in this connection draw the attention of our people to the book of Nehemiah in the Holy Bible for inspiration. In chapter 2 verses 17-18 and I quote “Then I said to them ‘You see the trouble we are in, how Jerusalem lies in ruins with its gates burned. Come, let us build the wall of Jerusalem, that we may no longer suffer disgrace’. ….and they said ‘Let us rise up and build’. So they strengthened their hands for the good work”.

Instead of lamenting the sorry state to which Jerusalem had been reduced and stopping there, the children of Israel rebuilt Jerusalem. I would like to tell the Baganda that 30 years of mourning are enough. Now is the time to begin rebuilding Buganda with our brains and hands. No greater tribute can be paid by us to the memory of those who suffered and died at the hands of tyrants than the rebuilding of Buganda in all respects.

The place to begin the building of Buganda is the discipline of our youth. Buganda was built on discipline and I, therefore, charge parents and opinion leaders in Buganda to inculcate discipline amongst our youth. They are the ones who are going to build the New Buganda of our dreams and they must, therefore, have the discipline to do so. I ask all the leaders in this crusade to lead by example. That is the only way our youth will learn to lead disciplined lives.

It is sweat and toil that makes countries prosperous. The Baganda must, therefore, sweat and toil to make the land of their ancestors a great place to live in once again. The Baganda should stop running away from Buganda in the hope that somehow miraculously somebody else will develop the land for them to come back to when it begins to flow with milk and honey. Nobody will develop the land for you but yourselves, and this is the greatest challenge that you face. Baganda derived great pride and satisfaction in the payment of taxes in the past. Baganda were very proud of their good manners. Let us rediscover that pride and use it to rebuild Buganda and Uganda. Buganda was built on accomodation and the palaces of the Kabakas were the melting pots of nationalities and talents. Buganda still stands on her record of accomodation but what we ask for is reciprocity. Indeed Uganda would become a very strong and united nation if there was reciprocity all around.

Lastly let me make this pledge – the Mutebi reign will be one of reconciliation, unity, peace and development.

I thank all the celebrants and all those who have graced this occasion with their presence.

Burundi: Rebel Brig.General Ndyayambaje speaks out on coup attempt (NTV-Uganda Youtube-Interview)

Press Relase: The African Union reaffirms the Imperative and Urgency of dialogue and consensus in Burundi (16.05.2015)

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CSO Proposals to WASH Forum Water and Sanitation (Proposals towards Uganda’s National Budget Framework FY 2015-2016)

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A short timeline before the Coup d’etat in Burundi

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Timeline until the Coup d’etat in Burundi! 

The Minister of Internal Affairs publicly stated thus: “My advice to politicians planning to vie for the presidency is to prepare to knowing that they will contest against the current President.” On 21st March 2014 both the CNDD-FDD and the Presidency spokesmen announced that is was only the party congress that was empowered to nominate a presidential candidate.He was simply hoodwinking Burundians while buying time the same way Museveni is hoodwinking Ugandans.

In January 2015 CNDD-FDD Senator Richard Nimbashe gave a press release opposing Nkurunziza’s third term bid and went further to state that the same view is held by many party members. He was immediately expelled from the party, senate and his position at the Land Commission (CNTB).

On 13th February 2014 the National Intelligence Service (SNR) issued a Memo warning the President against attempt to seek a third term. It advised him to cede power at the end of his second term for the good of himself, his family and the party. Instead, the Director of SNR Gen Godfroid Niyombare was dismissed from service.

On 1st March 2015 former CNDD-FDD national Chairman escaped from the main prison after serving for 8 of the 13 years. He later told a foreign radio station that he had been assisted by top government officials and some fighters who were in the bush. He claimed that he had supporters in all government institutions.

On 6th March 2015 the Catholic Bishop of Bujumbura Evariste Ngoyegoye preached against the 3rd term thus: “After analysis of the Arusha Peace Agreement and the constitution, by questioning our hearts as citizens who love their country and as shepherds of the church, we say that Burundians have agreed that the person elected to lead Burundi can not go beyond two terms of five years each”. The statement sent shock waves throughout the country given Burundi’s religious structure where 62% are Catholic, 6% Anglican and the remaining being shared by different smaller christian denominations and a significant number of Muslims. Right from the inception of the country’s violent history, the Catholic church was accused of being a “church of silence” for its liberal stand. The Bishop declared nine days of prayers for peace and transparency in the elections.

On 11th March 2015 CNDD-FDD Chairman Pascal Nyabenda told the BBC that opinions polls had indicated that CNDD-FDD supporters, the Bagumyaibanga (those who keep a secret) want President Nkurunziza to seek reelection. Immediately after, the party Spokesman stated that there had not been a survey for such opinion polls and that the party had other people who could stand for the presidency.

On 14th March 2015 the CNDD-FDD Council of Elders which is the highest body of the party met in the presence of President Nkurunziza and overwhelmingly rejected his third term bid.

On 23rd March 2015 a statement signed by 17 members of the CNDD-FDD top executive body urged Nkurunziza not to seek a third term. Among them were the Spokesmen for both the party and the presidency. Two days later ten of the seventeen dissenters were sacked from the party and their positions. The statement from the Presidency accused them of conspiracy to destabilise the party and the country. This is what happened with the likes of MP Ssekikubo and group and all others suspected of being pro-Mbabazi.

The Imbonerakure – a paramilitary and armed youth wing of CNDD-FDD has been at the forefront of the push for third term for President Nkurunziza throughout the country. Their equivalency in Uganda is the Crime Preventers and patriotic clubs members whom the Police is providing with paramilitary skills in exchange for supporting Museveni’s sole candidature.

On 26th April 2015 the CNDD-FDD congress nominated Nkurunziza as the party’s flag bearer. The following day 27th April, protesters opposed to his third term took to the streets of the city’s suburbs. The general elections are scheduled for May 26th 2015 while the Presidential elections are scheduled for June 26th 2015. Just as is the case with Museveni,separating the two elections is designed to give the incumbent an added advantage over other contenders.

The Constitutional Court quashed the objection to his reelection by upholding that he was eligible for reelection. The Vice President of the constitutional court Justice Slyvere Nimpagaritse who was one of the 7 man panel that determined the petition fled to Rwanda citing that the government had coerced the Justices
with death threats.

Immediately after the court’s pronouncement, President Nkurunziza registered as a Presidential candidate seeking another term in the upcoming June 2015 Presidential elections.

Burundi Cartoon

 

The International events that happen on the Burundian the third-term proposal:

On 27th February 2015 the USA Deputy Secretary of State had cautioned thus: “We hope that the presidential elections will follow the Arusha Peace Agreement concerning term limits”.

Just a few days into the protests, Foreign Affairs Ministers from the East Africa Community member states visited Burundi.

Rwanda’s President Kagame told a convention in Switzerland in reference to the protests in Burundi thus: “If your own citizens tell you that we do not want you to do that or to lead us, may be they are saying you have not done enough for them.”

Russia blocked a proposal by the UN Security council to issue a statement on the crisis in Burundi by arguing that: “its not the business of the security council and the UN charter to get involved in constitutional matters of sovereign states” said Russia’s Ambassador to UN.

South Africa’s President appointed the Minister in the Presidency Jeff Rodebe as his special envoy with a task of carrying a special message to Nkurunziza for him to step aside from running for a third term.

On 5th March the EU warned that running for a third term was risky.The AU Commission Chief said that it was clear that there shouldn’t be a third term for the incumbent adding that; “prohibition and repression of peaceful demonstrations expressing legitimate concerns would violate the conditions necessary for a credible and transparent vote”. The head of the EU election monitoring mission in Burundi expressed concern over violence.

The USA Secretary of State criticised Nkurunziza’s desire to cling to power.

The ICC Chief Prosecutor said that his office was closely following events in Burundi. The UN Special Envoy for the Great Lakes appealed for calm.

Belgium has suspended funding for the elections and support to the Police while the USA has threatened sanctions.

The UN denied earlier reports that Secretary General Moon had requested Uganda’s Museveni to intervene in Burundi: “We dont have any comment on what the Uganda authorities said and we did not put out a read out of the meeting. our efforts in Burundi involve getting the parties to engage in dialogue with each other and have nothing to do with military intervention”.

The Presidents of the Four Presidents of the East African Community member states met yesterday in Dar Es Salaam over the crisis in Burundi.

To see more EAC reactions look at the following blog-page: https://minbane.wordpress.com/2015/05/14/eac-secretariat-and-heads-of-state-consulted-on-the-situation-in-burundi-13-05-2015/  

Peace.

EAC Secretariat and heads of state consulted on the situation in Burundi (13.05.2015)

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Uganda – Outtakes and quotes from the Uganda National Budget Framework FY: 2015-2016

It’s this time a year and this has been delivered to me. So I feel the need to drop the most interesting stuff from the Uganda’s National Budget Framework FY 2015-2016. I can drop the whole piece since it’s too much. So I have taken the pieces that are worth setting some extra light and questioning. To give you a little feeling about what’s special this year. Enjoy!

FY2015-2016

FY2015-2016 P2

FY2015-2016 P3

FY2015-2016 P4

FY2015-2016 P5

FY2015-2016 P6

FY2015-2016 P7

FY2015-2016 P8

FY2015-2016 P9

FY2015-2016 P10

FY2015-2016 P11

FY2015-2016 P12

FY2015-2016 P14

When I have more time and can. I will dig deeper into the specific areas and allocation. And look for there some difference from last year. And if they have made something special. This is a document of 789 pages. There is a lot to grasp. This is just a tiny piece of it all. Hope you get to something out of what I put up today. There will be more later from me. Hope you have enjoyed this. Peace.

 

FDC – Easter Message to the People of Uganda (03.04.2015)

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Joint Communique: 9th Northern Corridor Integration Projects Summit

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