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World Bank warns Suruma on Uganda’s budget
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The World Bank has issued a diplomatically toned, but sternly worded warning over the Ugandan government's failure to budget adequately for the energy sector in the 2006/2007 budget provided by Finance Minister Ezra Suruma. It has also emerged that sections of the country’s development partners have not confirmed their commitment to supporting the budget.
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The Bank has also warned that future participation in the country's development activities
would be pegged to "the quality of our dialogue on key policy and budget issues."
The World Bank Country Representative, Ms Grace M. Yabrudy, who chairs the local
development partners' group, expressed concern over the levels of extraordinary funding
needed to address the current energy crisis that is strangling the country.
The Bank is frustrated by too much talk by the government but no concrete funding proposal has been put forward for investment in the energy sector.
Development partners comprise all multilateral and bilateral donors. It is understood that a high priority needs to be given to finalizing a fully costed energy implementation
plan.
A document, drawn up by the development partners, and written to Dr Suruma dated
June 6, makes a methodical critique of the 2006/2007 budget and expects the minister
to present an updated budget to them at the earliest opportunity. They said: "We look forward to reviewing an updated 2006/07 budget and MTEF consistent with the energy implementation plan."
The Ugandan government has now allocated an extra Shs70 billion to thermal generation and has set aside Shs99 billion for construction of new dams in its endeavours to avert the electricity crisis. Our attempts to get a comment from Dr Suruma on why Uganda has not adhered to the World Bank’s advice was unsuccessful.
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