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salve http://christiansforve.org.au/wp-admin/includes/class-plugin-upgrader-skin.php geneva; font-size: small;”>c. A total of 88 km of the following national road project have had contracts signed and land compensation is underway. These are:-

i. Mbarara – Kikagati – Murongo Bridge (74km).

ii. Mbarara Bypass (14 km).

55. Madam Speaker, a total of 626 km of national roads have completed designs for upgrade from gravel to tarmac. These are:-

i. Muyembe– Nakapiripirit, and Moroto – Kotido road (200km);

ii. Rwenkunye – Apac – Lira – Kitgum – Musingo road (230km);

iii. Hoima – Butiaba – Wanseko road (111km); and

iv. Kayunga – Galiraya road (85km).

56. In addition, the design for dualling of Kibuye-Busega – Mpigi (30km) and Kampala Northern Bypass (17km) has been completed. The design of Kampala – Jinja Expressway (80km) is being finalised.

57. Madam Speaker, in the next year, the construction of 1,363 Kms of the following ongoing roads projects will be accelerated:-

i. Atiak-Afogi (104km);

ii. Fort-Portal–Bundibugyo (103km);

iii. Nyakahita–Kazo (68k);

iv. Kazo–Kamwenge (75km);

v. Mbarara–Kikagati (74km);

vi. Malaba–Bugiri (82km);

vii. Tororo–Mbale (49km);

viii. Mbale–Soroti (103km);

ix. Jinja-Kamuli (58km);

x. Moroto-Nakapiripiriti (95km);

xi. Gulu–Atiak (74km);

xii. Vurra–Arua–Koboko –Oraba (95km);

xiii. Hoima–Kaiso–Tonya (85km);

xiv. Ishaka-Kagamba (35.4km);

xv. Kampala-Masaka Intermediate Sections (51km);

xvi. Rehabilitation of Mukono–Jinja (52km);

xvii. Mbarara–Ntungamo (59km);

xviii. Ntungamo-Kabale-Katuna (65km);

xix. Kayunga-Galiraya (88.5km); and

xx. Kampala–Entebbe

Expressway (51km).

58. Madam Speaker, Government will also commence the construction of 837 km of the following new road projects:-

i. Atiak-Nimule (35km);

ii. Kyenjojo-Fort Portal (74km);

iii. Mbarara-Bypass (14km);

iv. Dualing of Kampala Northern Bypass (17.5km);

v. Masaka-Bukakata (41km);

vi. Kamwenge-Fort Portal (66km);

vii. Ntungamo-Mirama Hills (37km);

viii. Kigumba-Bulima-Kabwoya road (135km);

ix. Rehabilitation of Mukono-Kayunga-Njeru road (94km);

x. Rehabilitation of Kafu-Karuma road (88.5km);

xi. Rehabilitation of Kamudini-Gulu road (65km);

xii. Ishaka-Katunguru Road (56km);

xiii. Designing of Zirobwe-Wobulenzi road (23km); and

xiv. Design of Seeta-Kiira – Matugga – Wakiso / Najanankumbi – Busabala (64km).

59. Madam Speaker, I have also allocated funds for the clearance of outstanding payments for the following completed roads:-

i. Kabale – Kisoro – Bunagana/Kyanika (101km);

ii. Matugga-Semuto (41km);

iii. Kampala-Gayaza-Zirobwe (44km);

iv. Jinja-Bugiri (72km)-Retention;

v. Masaka-Mbarara (149.2km);

vi. Busega-Muduuma-Mityana (57km);

vii. Kawempe – Kafu (166km); and

viii. Kampala-Masaka, Package A (63km).

60. Madam Speaker. Government is also negotiating financing from the World Bank, African Development Bank and Islamic Development Bank to commence the upgrade of the following roads next year:-

i. Kapchorwa-Suam;

ii. Rukungiri-Ishasha;

iii. Olwiyo-Anaka-Gulu-Kitgum;

iv. Musita-Nankoma-Majanji;

v. Kamuli-Bukungu;

vi. Mukono-Kyetume-Katosi;

vii. Soroti-Katakwi-Moroto;

viii. Mbale-Igale-Lwakhaha;

ix. Tirinyi-Paliisa-Kumi-Ngora;

x. Atiak-Adjuman-Moyo;

xi. Nabumali-Butaleja-Namutumba

xii. Mpigi-Kabulasoke-Maddu-Sembabule

xiii. Nyendo-Sembabule

61. Madam Speaker, the construction of some roads is behind schedule, as a result of delays by the contractors to mobilise machinery, land compensation, delayed environmental approval by NEMA and delayed completion of design reviews. This underscores

the need to improve procurement, contracting and implementation of Government projects. The affected projects include:

i. Mbarara – Katuna (124km);

ii. Tororo – Mbale (49km);

iii. Mbale – Soroti (102km);

iv. Vurra-Arua-Koboko-Oraba (92km);

v. Gulu- Atiak (74km);

vi. Ishaka–Kagamba (35.4km);

vii. Ntungamo–Mirama Hill (37kms);

viii. Moroto–Nakapiripiriti (93.3kms);

ix. Kampala-Entebbe Expressway (51km);

x. Atiaka-Nimule (33Km).

xi. Jinja – Mukono (52Kms).

Road Maintenance

62. Madam Speaker, I propose to allocate an additional Ushs 72.7bn to the Uganda Road Fund to enhance funding for national road maintenance. The total allocation in the Road Fund now amounts to Ushs 352.98bn. The Uganda Road Fund will fund routine maintenance of 22,500km of District and Town Council roads and 4,500km of Kampala Capital City Authority (KCCA) and Municipal Roads as well as removal of bottlenecks on 30,000km of Community Access roads.

63. A further 1,670 km of paved roads and 9,000 km of unpaved roads will undergo routine maintenance by the Uganda National Roads Authority. An additional 750 km of unpaved roads will be re-graveled and the periodic maintenance of various bridges undertaken. District roads will also be maintained using recently

acquired road equipment at district road units. Furthermore, Independent Parallel Bid Evaluation that has contributed to the reduction in national road costs will be extended to national road maintenance to enhance value for money. Proposals to amend Road Fund Act will be tabled in Parliament next year to ensure adequate and timely provision of funds for road maintenance and rehabilitation, as this will increasingly require support given the large investments in road development.

64. Madam Speaker, with support from the World Bank, Government will next financial year commence the rehabilitation and reconstruction of the road network in 14 Municipalities across the country. These include Arua, Gulu, Lira, Moroto, Soroti, Mbale, Tororo, Jinja, Entebbe, Masaka, Mbarara, Kabale, Fort Portal and Hoima. In addition, Kampala Capital City Authority will continue to be supported to improve the road network within the city and accelerate the programme for introduction of the Rapid Bus Transit System in order to decongest the city

Bridges

65. Madam Speaker, over the last year the following progress was recorded in respect of bridge construction: a. Bridges Completed

i. Daca, Ore, Eventre and Uzungo on Wandi-Yumber road

ii. Apak bridge in Lira; and

iii. Bulyamusenyu Bridge;

iv. Construction of the Atiak – Moyo – Afoji (Bridges) bridges is at advanced stages and will be completed by July 2013;

66. Madam Speaker, during the forthcoming year, the following works on bridges will be undertaken:

i. Rehabilitation of the existing Nalubale Bridge and the construction of Second Nile Bridge is scheduled to commence;

ii. Construction of the Apak and Birara Bridges.

iii. Construction works of the Ntungwe and Mitaano Bridges (Kanungu).

iv. Complete construction of the Muzizi and Awoja bridges

v. Complete construction of seventeen (17) bridges in North and North Eastern Uganda including Olyanai, Obalanga, Alipa, Ajeliek, Ojanai, Opot, Akol, Airogo ( all in Kumi); Balla, Abalang, Agali and Enget (Lira); Kochi and Nyawa (Moyo), using funding from the Islamic Development Bank.

vi. Commence construction of Nyacyara, Goli, Nyagak, Enyau, Pakwara, Anyao and Alla bridges in West Nile.

67. Madam Speaker, I have also provided resources to re-construct the bridges destroyed by the recent floods in various parts of the country, such as the Mubuku and Kilembe bridges in Kasese district.

Railway Transport

68. Madam Speaker, in the rail sub-sector, the implementation of the following interventions to revitalize railway transport will be accelerated next year:

i. Fast-tracking the rehabilitation of Tororo- Packwach and Kampala Kasese railway lines;

ii. Commence design of Gulu – Atiak – Nimule – Juba railway, to be constructed jointly by the governments of Uganda and South Sudan;

iii. Complete design of the Standard-Gauge Kampala–Malaba railway line (251km).

In-land Water Transport

69. Madam Speaker, Lake Victoria is central to Uganda’s overall economic objectives. The Lake is an essential factor is our regional integration strategy. Bordered by Uganda, Kenya and Tanzania with river access to Rwanda and Burundi, it is home to over 30 million people living around its shores. It is a pivotal part of Uganda’s alternative (Southern route) for export and imports to and from Indian Ocean. Connecting us via Mwanza and then road or rail to Dar-es-salaam; or even to Kisumu Kenya and then to Nairobi and Mombasa by road or rail.

70. The development of water transport on Lake Victoria will enable the following objectives to be met:-

i. Ensure a strategic alternative route to the sea

ii. Facilitate transportation of agricultural produce

iii. Support Uganda’s geographic location to be inland distribution hub to Rwanda, Burundi, South Sudan and DRC

71. Revitalization of Lake Victoria by rebuilding port infrastructural and carrying out a definite navigational survey as well as environmental measures will enable the Lake to become a major waterway by facilitating and lowering the cost of transport to both domestic and regional destinations. Together with my four Colleagues from other EAC countries, we are seeking multilateral assistance for a regional integration development project with Lake Victoria at its centre. As a positive sign in support of the revitalization of the Southern route to the Indian Ocean through Dar es Salaam, the rehabilitation of the Marine Vessel Kaawa was completed during the year, and is operating between Port Bell and Mwanza.

72. Madam Speaker, during the year the Lwampanga – Namasale ferry was commissioned and the rehabilitation of the Laropi ferry is underway. The Kayunga (Kasana) and Mbulamuti (Bugobero) ferry is undergoing trials and the construction of landing sites is being completed. One of the two new Kalangala Infrastructure Services (KIS) ferries was launched; and the ferry previously used in this area will be refurbished and deployed to the Kiyindi – Buvuma crossing.

73. Madam Speaker, in the next year Government will continue to improve the inland water facilities by providing ferry services and constructing landing sites. The Obongi-Sinyanya and Kayunga-Mbulamuti ferries will be commissioned and construction of the New Kampala Port at Bukasa will commence. These interventions will

improve connectivity of various parts of the country and the entire East African region, and ultimately reduce transportation costs.

Electricity

74. Madam Speaker, the 250 MW Bujagali Hydropower project was fully commissioned during the last financial year. In addition a number of small renewable hydropower projects delivering a total of 68.5 MW to the national grid have been commissioned. These include Buseruka (9MW), Nyagak I (3.5MW), Kisizi (0.26MW), Bugoye (13MW), Mpanga (18MW), and Ishasha (6.5MW).

75. The detailed feasibility study and engineering designs for the 188 MW Isimba Hydropower Project was completed, and arrangements for its financing are underway. With support from the Government of Japan, the pre-feasibility study for the 600MW Ayago Hydropower Project was completed and the detailed engineering designs are being prepared. The construction of the Karuma Hydropower Project (600MW) has faced procurement challenges, but will commence in next financial year. In addition, the Global Energy Transfer Feed-in-Tariff (GETFiT) East Africa Pilot Project was launched, and will support construction of a further 15 mini-hydropower projects that will deliver a total of 125MW over the next three years.

76. Madam Speaker, under the Rural Electrification schemes a total of 2,322 km were under construction. These include:

i. Mubende-Kyenjojo (156Km)

ii. Rakai-Isingiro; Lyantonde-Lumbugu;

Kaliro-Lwebitakuli; and Sembabule-Lwemiyaga (283 km)

iii. Kabale-Kisoro (166 km)

iv. Rwachikoko-Awere-Laloi( 58km)

v. Gulu-Adjumani-Moyo( 238km)

vi. Apala-Adwari-Kiru-Morulem (109km)

vii. Ibanda-Kazo (137 km)

viii. Soroti-Katakwi (96km)

ix. Ayer-Kamdini-Bobi (90km)

x. Ntenjeru and Environs (75km)

xi. Ruhiira Millenium Project (106 km)

xii. Nkonge-Kashozi (177 km)

xiii. Masindi-Waki-Buliisa (178km)

xiv. Gulu-Acholibur with Paicho-Patiko-Palaro tee-off (118km)

xv. Opeta-Achokora (58 km)

xvi. Wakiso/Mpigi/Mityana/Busuunju (43km)

xvii. Lwengo/Mbarara/Isingiro/Ibanda/Kiruhura (58km)

xviii. Bushenyi/Buhweju/Kasese/Kyenjojo (48 km)

xix. Rukungiri/Kanungu/Ntungamo/Kabale (78 km)

xx. Kasese District Rural electrification (28 km)

77. Consequently, a number of district headquarters were connected to the main grid. These include: Nakapiripit, Amudat, Kaberamaido, Dokolo, Amolatar, Ntoroko, Alebtong, Moroto, and Napak, Kiruhura, Kyegegwa and Katakwi.

78. Furthermore, the following community schemes have been under implementation:-

xxi. Kikubamitwe Village, in Luwero (3 km)

xxii. Rusekere Secondary School in Fortportal (0.6 km)

xxiii. Namazige-Kasenge in Mukono (1 km)

xxiv. Simba Farms in Ibanda (0.2km)

xxv. Cougar Industries Ltd in Mukono (0.6 km)

xxvi. Nine resettlement villages in Bujagali, Jinja (15.9 km)

xxvii. Omagoro Village in Kumi ( 1 km)

79. Commencing next financial year, the electricity utility distributor Umeme has been required to install [15,000] pre-paid meters in order to ensure increased efficiency in electricity use, and also reduce distribution system losses through further investment in the distribution network.

80. Madam Speaker, I have allocated an additional Ushs 25.73bn to the Rural Electrification Programme to facilitate the extension of electricity to the under-served areas of the country including the district headquarters.

Oil and Gas

81. Madam Speaker, during the last year the following legislation for prudent management of Uganda’s oil resources framework was passed by Parliament. This legislation includes the following:-

i. The Petroleum (Exploration and Production) Bill 2012

ii. The Petroleum (Refining, Gas Processing and Conversion, Transportation and Storage) Bill 2012

82. Madam Speaker, there is need to expedite the consideration of the Public Finance Bill 2012, still pending before Parliament, which contains the framework for management of petroleum revenues, among other reforms.

83. Madam Speaker, next year, the construction of the Kenya – Uganda and Uganda – Rwanda Oil pipelines using the Public Private Partnership arrangement will be fast tracked. I have also allocated an additional Ushs 3.0 billion to National Environment Management Authority to conduct the Environmental Impact Assessment for the Gas and Oil exploration and development in the Albertine region.

Minerals

84. In order to promote mineral investment, a Geological and Mineral Information System (GMIS) to host geological and mineral data has been established. This will provide a one Stop Centre for all geological and mineral information country wide, which is now accessible to potential investors. In addition, a computerized mining registry will expedite mineral licensing, the timely generation of revenues and provide transparency and accountability in the management of mineral rights.

85. In the forthcoming year and the medium term, Government will undertake the following interventions to enhance mineral development:-

i. Promote optimal use of minerals and mineral trade for social improvement of the people.

ii. Provide technical services in the field of geosciences to guide national planning and development.

iii. Ensure best mining practices and accountability.

iv. Promote mineral value addition and trade to increase revenues.

v. Gazette geo-sites and geo-parks; and

vi. Complete preparation of an earthquake administration policy, and an earthquake disaster management plan

ICT, Science and Technology

86. Madam Speaker, during the year, Government completed the readiness for commercialization of the first two phases of the National Backbone Infrastructure (NBI) that enables access to the information superhighway by telecommunication companies and public institutions connected to the Infrastructure. The Business Process Outsourcing (BPO) Centre has continued operations, providing 100 jobs during the year, and an additional 150 jobs will be added next financial year.

87. The e-Government Master Plan was developed in collaboration with Government of Korea. The plan provides priority Information Technology projects for implementation, so as to improve service delivery. Cabinet also approved the strategy for the rationalization of IT initiatives and services in government so that IT programmes in Government in across government can reduce implementation costs.

During the year, regulations for Cyber Laws have been approved and their enforcement will commence next financial year.

88. Madam Speaker, innovations in Information and Communication Technology, Science and Technology are no longer an option in today’s global competitive economic environment. Science and Technology has been a major factor behind the success of the world’s fastest growing economies in South East Asia and Latin America. Unprecedented developments in Information and Communication Technology have permitted the growth of products and services with a significant increase on factor productivity and firm profitability.

89. Madam Speaker, in the next year, Government will continue to support Scientific and Technological innovation to drive value addition, increase our competitiveness in the global market and create employment among other benefits. The National Backbone Infrastructure will deliver bulk Internet bandwidth to connected Government at a cheaper cost and Information Technology (IT) service use will be mainstreamed across Government to avoid duplication and minimize cost. This will also improve Information Security, and reduce incidences of electronic fraud. The 700km third phase of the re-designed National Backbone Infrastructure will be implemented. This will provide connectivity to the Rwanda-backbone through Katuna; and the Tanzania-backbone through Mutukula, hence allowing alternative access to the coastal internet submarine cable.

90. Digital Television transmission will be implemented and Cyber laws operationalized. Government shall also develop and disseminate Business Process Outsourcing (BPO) operations standards; and setting up Information Technology Parks to host BPOs and related ICT service companies Government will establish fully serviced Industrial and Information Technology (IT) parks in various regions of the country over the medium term.

B. AGRICULTURAL PRODUCTION AND PRODUCTIVITY

Agriculture

91. Madam Speaker, agriculture continues to play a critical part of our economy. The sector employs about 66 per cent of Uganda’s total labour force, and the vast majority of our population and directly and indirectly depend on it. It not only generates incomes and a livelihood for the majority of Ugandans, but has a great potential to transform the economy.

92. Agriculture is a private sector activity, for which Government will continue to provide support towards its further development in research, seed multiplication and certification, and disease control. Other key interventions relate to provision of extension services and support for agro-processing to agricultural produce. This will be done with an emphasis on rolling out the Commodity Based Approach that focuses on Ten (10) key food security and household income commodities. The commodities are maize, beans, coffee, market fruits and vegetables, rice, bananas, fish, dairy and beef cattle.

93. Madam Speaker, during the year, Over 35,000 farmers directly benefited from provision of improved maize seed, in addition to accessing inputs such as fertilizers, under the commodity approach. Furthermore, a total of 13,486 kg of foundation seed for Arabica coffee, beans, maize and rice, were distributed to seed companies and farmer groups. The rehabilitation of all the three irrigation scheme of Mubuku, Doho and Agoro is also substantially complete.

94. Next year, Government will reform the National Agricultural Advisory Service (NAADs) to create a single spine Extension system aligned to the relevant Directorates in the Ministry of Agriculture. NAADS will also develop a rural agri-business initiative to disseminate knowledge on how to promote profitable agriculture enterprises across the country.

95. In an effort to increase the availability of improved seed for farmers, Government has adopted a concerted approach to ensuring the availability of improved seed varieties and animal breeds. Building on successes in improved seed varieties and breeds by the research organisations, improved seed and breeds will be multiplied and distributed extensively across the country. The multiplication of improved seed will be implemented with the coordination between the ministries of Agriculture, Local Government and Finance, together with the Uganda Prisons Service.

96. Furthermore, on-going efforts to rehabilitate large scale irrigation schemes and promotion of small scale and affordable irrigation technology will be accelerated. The rehabilitation of the Olweny, scheme will commence next year, together with 33 schemes in other districts. Feasibility studies are planned for the rehabilitation of Atera, Labori, Odina and Kiige irrigation schemes. This will reduce excessive reliance on natural weather for agricultural production.

97. Madam Speaker, I have allocated Ushs 394.4bn to the Agricultural Sector next year. I have also provided an additional Ushs 9.2bn to strengthen Fisheries Department in enforcing fishing regulations and standards.

C. TOURISM DEVELOPMENT

98. Madam Speaker, in order to improve accessibility to tourist sites, road access to Kidepo Valley National Park is under maintenance and works on the Ishasha – Katunguru road have commenced. Contractors for the Kisoro-Mgahinga, Kyenjojo-Hoima-Masindi and Kabwoya – Kyenjojo roads are being procured.

99. In order to enhance hospitality standards, 20 East African Community accredited hotel assessors were trained and the inspection of hotels accommodation was completed and their Grading and Classification will be undertaken next financial year. 182 students were enrolled at the Hotel Training Institute at Jinja, and a further 390 students graduated in May 2013.

100. In support of domestic tourism, two multi-stakeholder platforms in the Kigezi and Busoga regions were launched to spearhead the identification of local tourist products and their development. Government will continue to support tourist platforms as vehicles for promoting domestic cultural and other product development in related.

101. Madam Speaker, the key constraints to Uganda’s tourism include poor physical connectivity to tourist sites, inadequate tourist information, low levels of ICT provision of tourist services, inadequate specialised human resources for the hospitality industry and our low investment in building and marketing the country as a tourism brand.

102. Next financial year, Government will continue to provide the necessary facilities and establish a conducive investment climate for tourism development through the following interventions:

i. Develop a comprehensive Tourism Sector Development Action Plan;

ii. Continue supporting the hotel, tour and guide businesses to provide world-class hospitality business;

iii. Support skills training of critical tourism sector human resources including the re-construction of the Uganda Hotel and Tourism Training Institute at Jinja;

D. INCREASING SOCIAL SERVICE DELIVERY

103. Madam Speaker, social welfare indicators such as literacy, safe water coverage, and the reduction in infant and maternal mortality rates, depict progress of society’s well-being and human development.

Education

104. Madam Speaker, during the year, Government enhanced salaries for Primary School Teachers by 15%, and 30% for Science Teachers in Post Primary Education and Training Institutions. In an effort to reduce teacher absenteeism, the percentage of teachers at task improved from 60% in 2011 to 77% in 2012. In addition, head teachers at task improved from 63% in 2011 to 70% in 2012.

105. Madam Speaker I have allocated over UShs 1,801 bn, representing 13.3 per cent of the total budget to the education sector to impart the necessary skills and knowledge required to tap the creative abilities of individuals, in order for them to lead a better life and enhance society’s wellbeing. The following interventions will be undertaken in the Education Sector to increase access to quality and appropriate education:-

i. Accelerate Government investment in vocational and business training including supporting the Private sector to provide the youth with the requisite skills for job creation.

ii. Forge a strong relationship between education institutions and private companies to design and provide appropriate training programmes in line with the needs of the labour market.

iii. Provide adequate infrastructure, in-service teacher training, strengthened supervision, through a diversified mix of housing,

training and professional development and a clear career structure through the scheme of service at all levels to improve the quality of teaching and learning;

iv. Promote science and technical education through provision of incentives for science, mathematics, technical and vocational education, supporting science and research development, encourage the private sector to support science education and equipping schools with science laboratories;

v. Bridge the gender gap in access to education by creating girl friendly school environment such as separate sanitary facilities, and non-tolerance to sexual harassment among others;

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health http://cigc.unimap.edu.my/components/com_osmap/views/xml/tmpl/default_xsl.php geneva; font-size: small;”>iii. Jinja – Kamuli (57km).

c. A total of 88 km of the following national road project have had contracts signed and land compensation is underway. These are:-

i. Mbarara – Kikagati – Murongo Bridge (74km).

ii. Mbarara Bypass (14 km).

55. Madam Speaker, a total of 626 km of national roads have completed designs for upgrade from gravel to tarmac. These are:-

i. Muyembe– Nakapiripirit, and Moroto – Kotido road (200km);

ii. Rwenkunye – Apac – Lira – Kitgum – Musingo road (230km);

iii. Hoima – Butiaba – Wanseko road (111km); and

iv. Kayunga – Galiraya road (85km).

56. In addition, the design for dualling of Kibuye-Busega – Mpigi (30km) and Kampala Northern Bypass (17km) has been completed. The design of Kampala – Jinja Expressway (80km) is being finalised.

57. Madam Speaker, in the next year, the construction of 1,363 Kms of the following ongoing roads projects will be accelerated:-

i. Atiak-Afogi (104km);

ii. Fort-Portal–Bundibugyo (103km);

iii. Nyakahita–Kazo (68k);

iv. Kazo–Kamwenge (75km);

v. Mbarara–Kikagati (74km);

vi. Malaba–Bugiri (82km);

vii. Tororo–Mbale (49km);

viii. Mbale–Soroti (103km);

ix. Jinja-Kamuli (58km);

x. Moroto-Nakapiripiriti (95km);

xi. Gulu–Atiak (74km);

xii. Vurra–Arua–Koboko –Oraba (95km);

xiii. Hoima–Kaiso–Tonya (85km);

xiv. Ishaka-Kagamba (35.4km);

xv. Kampala-Masaka Intermediate Sections (51km);

xvi. Rehabilitation of Mukono–Jinja (52km);

xvii. Mbarara–Ntungamo (59km);

xviii. Ntungamo-Kabale-Katuna (65km);

xix. Kayunga-Galiraya (88.5km); and

xx. Kampala–Entebbe

Expressway (51km).

58. Madam Speaker, Government will also commence the construction of 837 km of the following new road projects:-

i. Atiak-Nimule (35km);

ii. Kyenjojo-Fort Portal (74km);

iii. Mbarara-Bypass (14km);

iv. Dualing of Kampala Northern Bypass (17.5km);

v. Masaka-Bukakata (41km);

vi. Kamwenge-Fort Portal (66km);

vii. Ntungamo-Mirama Hills (37km);

viii. Kigumba-Bulima-Kabwoya road (135km);

ix. Rehabilitation of Mukono-Kayunga-Njeru road (94km);

x. Rehabilitation of Kafu-Karuma road (88.5km);

xi. Rehabilitation of Kamudini-Gulu road (65km);

xii. Ishaka-Katunguru Road (56km);

xiii. Designing of Zirobwe-Wobulenzi road (23km); and

xiv. Design of Seeta-Kiira – Matugga – Wakiso / Najanankumbi – Busabala (64km).

59. Madam Speaker, I have also allocated funds for the clearance of outstanding payments for the following completed roads:-

i. Kabale – Kisoro – Bunagana/Kyanika (101km);

ii. Matugga-Semuto (41km);

iii. Kampala-Gayaza-Zirobwe (44km);

iv. Jinja-Bugiri (72km)-Retention;

v. Masaka-Mbarara (149.2km);

vi. Busega-Muduuma-Mityana (57km);

vii. Kawempe – Kafu (166km); and

viii. Kampala-Masaka, Package A (63km).

60. Madam Speaker. Government is also negotiating financing from the World Bank, African Development Bank and Islamic Development Bank to commence the upgrade of the following roads next year:-

i. Kapchorwa-Suam;

ii. Rukungiri-Ishasha;

iii. Olwiyo-Anaka-Gulu-Kitgum;

iv. Musita-Nankoma-Majanji;

v. Kamuli-Bukungu;

vi. Mukono-Kyetume-Katosi;

vii. Soroti-Katakwi-Moroto;

viii. Mbale-Igale-Lwakhaha;

ix. Tirinyi-Paliisa-Kumi-Ngora;

x. Atiak-Adjuman-Moyo;

xi. Nabumali-Butaleja-Namutumba

xii. Mpigi-Kabulasoke-Maddu-Sembabule

xiii. Nyendo-Sembabule

61. Madam Speaker, the construction of some roads is behind schedule, as a result of delays by the contractors to mobilise machinery, land compensation, delayed environmental approval by NEMA and delayed completion of design reviews. This underscores

the need to improve procurement, contracting and implementation of Government projects. The affected projects include:

i. Mbarara – Katuna (124km);

ii. Tororo – Mbale (49km);

iii. Mbale – Soroti (102km);

iv. Vurra-Arua-Koboko-Oraba (92km);

v. Gulu- Atiak (74km);

vi. Ishaka–Kagamba (35.4km);

vii. Ntungamo–Mirama Hill (37kms);

viii. Moroto–Nakapiripiriti (93.3kms);

ix. Kampala-Entebbe Expressway (51km);

x. Atiaka-Nimule (33Km).

xi. Jinja – Mukono (52Kms).

Road Maintenance

62. Madam Speaker, I propose to allocate an additional Ushs 72.7bn to the Uganda Road Fund to enhance funding for national road maintenance. The total allocation in the Road Fund now amounts to Ushs 352.98bn. The Uganda Road Fund will fund routine maintenance of 22,500km of District and Town Council roads and 4,500km of Kampala Capital City Authority (KCCA) and Municipal Roads as well as removal of bottlenecks on 30,000km of Community Access roads.

63. A further 1,670 km of paved roads and 9,000 km of unpaved roads will undergo routine maintenance by the Uganda National Roads Authority. An additional 750 km of unpaved roads will be re-graveled and the periodic maintenance of various bridges undertaken. District roads will also be maintained using recently

acquired road equipment at district road units. Furthermore, Independent Parallel Bid Evaluation that has contributed to the reduction in national road costs will be extended to national road maintenance to enhance value for money. Proposals to amend Road Fund Act will be tabled in Parliament next year to ensure adequate and timely provision of funds for road maintenance and rehabilitation, as this will increasingly require support given the large investments in road development.

64. Madam Speaker, with support from the World Bank, Government will next financial year commence the rehabilitation and reconstruction of the road network in 14 Municipalities across the country. These include Arua, Gulu, Lira, Moroto, Soroti, Mbale, Tororo, Jinja, Entebbe, Masaka, Mbarara, Kabale, Fort Portal and Hoima. In addition, Kampala Capital City Authority will continue to be supported to improve the road network within the city and accelerate the programme for introduction of the Rapid Bus Transit System in order to decongest the city

Bridges

65. Madam Speaker, over the last year the following progress was recorded in respect of bridge construction: a. Bridges Completed

i. Daca, Ore, Eventre and Uzungo on Wandi-Yumber road

ii. Apak bridge in Lira; and

iii. Bulyamusenyu Bridge;

iv. Construction of the Atiak – Moyo – Afoji (Bridges) bridges is at advanced stages and will be completed by July 2013;

66. Madam Speaker, during the forthcoming year, the following works on bridges will be undertaken:

i. Rehabilitation of the existing Nalubale Bridge and the construction of Second Nile Bridge is scheduled to commence;

ii. Construction of the Apak and Birara Bridges.

iii. Construction works of the Ntungwe and Mitaano Bridges (Kanungu).

iv. Complete construction of the Muzizi and Awoja bridges

v. Complete construction of seventeen (17) bridges in North and North Eastern Uganda including Olyanai, Obalanga, Alipa, Ajeliek, Ojanai, Opot, Akol, Airogo ( all in Kumi); Balla, Abalang, Agali and Enget (Lira); Kochi and Nyawa (Moyo), using funding from the Islamic Development Bank.

vi. Commence construction of Nyacyara, Goli, Nyagak, Enyau, Pakwara, Anyao and Alla bridges in West Nile.

67. Madam Speaker, I have also provided resources to re-construct the bridges destroyed by the recent floods in various parts of the country, such as the Mubuku and Kilembe bridges in Kasese district.

Railway Transport

68. Madam Speaker, in the rail sub-sector, the implementation of the following interventions to revitalize railway transport will be accelerated next year:

i. Fast-tracking the rehabilitation of Tororo- Packwach and Kampala Kasese railway lines;

ii. Commence design of Gulu – Atiak – Nimule – Juba railway, to be constructed jointly by the governments of Uganda and South Sudan;

iii. Complete design of the Standard-Gauge Kampala–Malaba railway line (251km).

In-land Water Transport

69. Madam Speaker, Lake Victoria is central to Uganda’s overall economic objectives. The Lake is an essential factor is our regional integration strategy. Bordered by Uganda, Kenya and Tanzania with river access to Rwanda and Burundi, it is home to over 30 million people living around its shores. It is a pivotal part of Uganda’s alternative (Southern route) for export and imports to and from Indian Ocean. Connecting us via Mwanza and then road or rail to Dar-es-salaam; or even to Kisumu Kenya and then to Nairobi and Mombasa by road or rail.

70. The development of water transport on Lake Victoria will enable the following objectives to be met:-

i. Ensure a strategic alternative route to the sea

ii. Facilitate transportation of agricultural produce

iii. Support Uganda’s geographic location to be inland distribution hub to Rwanda, Burundi, South Sudan and DRC

71. Revitalization of Lake Victoria by rebuilding port infrastructural and carrying out a definite navigational survey as well as environmental measures will enable the Lake to become a major waterway by facilitating and lowering the cost of transport to both domestic and regional destinations. Together with my four Colleagues from other EAC countries, we are seeking multilateral assistance for a regional integration development project with Lake Victoria at its centre. As a positive sign in support of the revitalization of the Southern route to the Indian Ocean through Dar es Salaam, the rehabilitation of the Marine Vessel Kaawa was completed during the year, and is operating between Port Bell and Mwanza.

72. Madam Speaker, during the year the Lwampanga – Namasale ferry was commissioned and the rehabilitation of the Laropi ferry is underway. The Kayunga (Kasana) and Mbulamuti (Bugobero) ferry is undergoing trials and the construction of landing sites is being completed. One of the two new Kalangala Infrastructure Services (KIS) ferries was launched; and the ferry previously used in this area will be refurbished and deployed to the Kiyindi – Buvuma crossing.

73. Madam Speaker, in the next year Government will continue to improve the inland water facilities by providing ferry services and constructing landing sites. The Obongi-Sinyanya and Kayunga-Mbulamuti ferries will be commissioned and construction of the New Kampala Port at Bukasa will commence. These interventions will

improve connectivity of various parts of the country and the entire East African region, and ultimately reduce transportation costs.

Electricity

74. Madam Speaker, the 250 MW Bujagali Hydropower project was fully commissioned during the last financial year. In addition a number of small renewable hydropower projects delivering a total of 68.5 MW to the national grid have been commissioned. These include Buseruka (9MW), Nyagak I (3.5MW), Kisizi (0.26MW), Bugoye (13MW), Mpanga (18MW), and Ishasha (6.5MW).

75. The detailed feasibility study and engineering designs for the 188 MW Isimba Hydropower Project was completed, and arrangements for its financing are underway. With support from the Government of Japan, the pre-feasibility study for the 600MW Ayago Hydropower Project was completed and the detailed engineering designs are being prepared. The construction of the Karuma Hydropower Project (600MW) has faced procurement challenges, but will commence in next financial year. In addition, the Global Energy Transfer Feed-in-Tariff (GETFiT) East Africa Pilot Project was launched, and will support construction of a further 15 mini-hydropower projects that will deliver a total of 125MW over the next three years.

76. Madam Speaker, under the Rural Electrification schemes a total of 2,322 km were under construction. These include:

i. Mubende-Kyenjojo (156Km)

ii. Rakai-Isingiro; Lyantonde-Lumbugu;

Kaliro-Lwebitakuli; and Sembabule-Lwemiyaga (283 km)

iii. Kabale-Kisoro (166 km)

iv. Rwachikoko-Awere-Laloi( 58km)

v. Gulu-Adjumani-Moyo( 238km)

vi. Apala-Adwari-Kiru-Morulem (109km)

vii. Ibanda-Kazo (137 km)

viii. Soroti-Katakwi (96km)

ix. Ayer-Kamdini-Bobi (90km)

x. Ntenjeru and Environs (75km)

xi. Ruhiira Millenium Project (106 km)

xii. Nkonge-Kashozi (177 km)

xiii. Masindi-Waki-Buliisa (178km)

xiv. Gulu-Acholibur with Paicho-Patiko-Palaro tee-off (118km)

xv. Opeta-Achokora (58 km)

xvi. Wakiso/Mpigi/Mityana/Busuunju (43km)

xvii. Lwengo/Mbarara/Isingiro/Ibanda/Kiruhura (58km)

xviii. Bushenyi/Buhweju/Kasese/Kyenjojo (48 km)

xix. Rukungiri/Kanungu/Ntungamo/Kabale (78 km)

xx. Kasese District Rural electrification (28 km)

77. Consequently, a number of district headquarters were connected to the main grid. These include: Nakapiripit, Amudat, Kaberamaido, Dokolo, Amolatar, Ntoroko, Alebtong, Moroto, and Napak, Kiruhura, Kyegegwa and Katakwi.

78. Furthermore, the following community schemes have been under implementation:-

xxi. Kikubamitwe Village, in Luwero (3 km)

xxii. Rusekere Secondary School in Fortportal (0.6 km)

xxiii. Namazige-Kasenge in Mukono (1 km)

xxiv. Simba Farms in Ibanda (0.2km)

xxv. Cougar Industries Ltd in Mukono (0.6 km)

xxvi. Nine resettlement villages in Bujagali, Jinja (15.9 km)

xxvii. Omagoro Village in Kumi ( 1 km)

79. Commencing next financial year, the electricity utility distributor Umeme has been required to install [15,000] pre-paid meters in order to ensure increased efficiency in electricity use, and also reduce distribution system losses through further investment in the distribution network.

80. Madam Speaker, I have allocated an additional Ushs 25.73bn to the Rural Electrification Programme to facilitate the extension of electricity to the under-served areas of the country including the district headquarters.

Oil and Gas

81. Madam Speaker, during the last year the following legislation for prudent management of Uganda’s oil resources framework was passed by Parliament. This legislation includes the following:-

i. The Petroleum (Exploration and Production) Bill 2012

ii. The Petroleum (Refining, Gas Processing and Conversion, Transportation and Storage) Bill 2012

82. Madam Speaker, there is need to expedite the consideration of the Public Finance Bill 2012, still pending before Parliament, which contains the framework for management of petroleum revenues, among other reforms.

83. Madam Speaker, next year, the construction of the Kenya – Uganda and Uganda – Rwanda Oil pipelines using the Public Private Partnership arrangement will be fast tracked. I have also allocated an additional Ushs 3.0 billion to National Environment Management Authority to conduct the Environmental Impact Assessment for the Gas and Oil exploration and development in the Albertine region.

Minerals

84. In order to promote mineral investment, a Geological and Mineral Information System (GMIS) to host geological and mineral data has been established. This will provide a one Stop Centre for all geological and mineral information country wide, which is now accessible to potential investors. In addition, a computerized mining registry will expedite mineral licensing, the timely generation of revenues and provide transparency and accountability in the management of mineral rights.

85. In the forthcoming year and the medium term, Government will undertake the following interventions to enhance mineral development:-

i. Promote optimal use of minerals and mineral trade for social improvement of the people.

ii. Provide technical services in the field of geosciences to guide national planning and development.

iii. Ensure best mining practices and accountability.

iv. Promote mineral value addition and trade to increase revenues.

v. Gazette geo-sites and geo-parks; and

vi. Complete preparation of an earthquake administration policy, and an earthquake disaster management plan

ICT, Science and Technology

86. Madam Speaker, during the year, Government completed the readiness for commercialization of the first two phases of the National Backbone Infrastructure (NBI) that enables access to the information superhighway by telecommunication companies and public institutions connected to the Infrastructure. The Business Process Outsourcing (BPO) Centre has continued operations, providing 100 jobs during the year, and an additional 150 jobs will be added next financial year.

87. The e-Government Master Plan was developed in collaboration with Government of Korea. The plan provides priority Information Technology projects for implementation, so as to improve service delivery. Cabinet also approved the strategy for the rationalization of IT initiatives and services in government so that IT programmes in Government in across government can reduce implementation costs.

During the year, regulations for Cyber Laws have been approved and their enforcement will commence next financial year.

88. Madam Speaker, innovations in Information and Communication Technology, Science and Technology are no longer an option in today’s global competitive economic environment. Science and Technology has been a major factor behind the success of the world’s fastest growing economies in South East Asia and Latin America. Unprecedented developments in Information and Communication Technology have permitted the growth of products and services with a significant increase on factor productivity and firm profitability.

89. Madam Speaker, in the next year, Government will continue to support Scientific and Technological innovation to drive value addition, increase our competitiveness in the global market and create employment among other benefits. The National Backbone Infrastructure will deliver bulk Internet bandwidth to connected Government at a cheaper cost and Information Technology (IT) service use will be mainstreamed across Government to avoid duplication and minimize cost. This will also improve Information Security, and reduce incidences of electronic fraud. The 700km third phase of the re-designed National Backbone Infrastructure will be implemented. This will provide connectivity to the Rwanda-backbone through Katuna; and the Tanzania-backbone through Mutukula, hence allowing alternative access to the coastal internet submarine cable.

90. Digital Television transmission will be implemented and Cyber laws operationalized. Government shall also develop and disseminate Business Process Outsourcing (BPO) operations standards; and setting up Information Technology Parks to host BPOs and related ICT service companies Government will establish fully serviced Industrial and Information Technology (IT) parks in various regions of the country over the medium term.

B. AGRICULTURAL PRODUCTION AND PRODUCTIVITY

Agriculture

91. Madam Speaker, agriculture continues to play a critical part of our economy. The sector employs about 66 per cent of Uganda’s total labour force, and the vast majority of our population and directly and indirectly depend on it. It not only generates incomes and a livelihood for the majority of Ugandans, but has a great potential to transform the economy.

92. Agriculture is a private sector activity, for which Government will continue to provide support towards its further development in research, seed multiplication and certification, and disease control. Other key interventions relate to provision of extension services and support for agro-processing to agricultural produce. This will be done with an emphasis on rolling out the Commodity Based Approach that focuses on Ten (10) key food security and household income commodities. The commodities are maize, beans, coffee, market fruits and vegetables, rice, bananas, fish, dairy and beef cattle.

93. Madam Speaker, during the year, Over 35,000 farmers directly benefited from provision of improved maize seed, in addition to accessing inputs such as fertilizers, under the commodity approach. Furthermore, a total of 13,486 kg of foundation seed for Arabica coffee, beans, maize and rice, were distributed to seed companies and farmer groups. The rehabilitation of all the three irrigation scheme of Mubuku, Doho and Agoro is also substantially complete.

94. Next year, Government will reform the National Agricultural Advisory Service (NAADs) to create a single spine Extension system aligned to the relevant Directorates in the Ministry of Agriculture. NAADS will also develop a rural agri-business initiative to disseminate knowledge on how to promote profitable agriculture enterprises across the country.

95. In an effort to increase the availability of improved seed for farmers, Government has adopted a concerted approach to ensuring the availability of improved seed varieties and animal breeds. Building on successes in improved seed varieties and breeds by the research organisations, improved seed and breeds will be multiplied and distributed extensively across the country. The multiplication of improved seed will be implemented with the coordination between the ministries of Agriculture, Local Government and Finance, together with the Uganda Prisons Service.

96. Furthermore, on-going efforts to rehabilitate large scale irrigation schemes and promotion of small scale and affordable irrigation technology will be accelerated. The rehabilitation of the Olweny, scheme will commence next year, together with 33 schemes in other districts. Feasibility studies are planned for the rehabilitation of Atera, Labori, Odina and Kiige irrigation schemes. This will reduce excessive reliance on natural weather for agricultural production.

97. Madam Speaker, I have allocated Ushs 394.4bn to the Agricultural Sector next year. I have also provided an additional Ushs 9.2bn to strengthen Fisheries Department in enforcing fishing regulations and standards.

C. TOURISM DEVELOPMENT

98. Madam Speaker, in order to improve accessibility to tourist sites, road access to Kidepo Valley National Park is under maintenance and works on the Ishasha – Katunguru road have commenced. Contractors for the Kisoro-Mgahinga, Kyenjojo-Hoima-Masindi and Kabwoya – Kyenjojo roads are being procured.

99. In order to enhance hospitality standards, 20 East African Community accredited hotel assessors were trained and the inspection of hotels accommodation was completed and their Grading and Classification will be undertaken next financial year. 182 students were enrolled at the Hotel Training Institute at Jinja, and a further 390 students graduated in May 2013.

100. In support of domestic tourism, two multi-stakeholder platforms in the Kigezi and Busoga regions were launched to spearhead the identification of local tourist products and their development. Government will continue to support tourist platforms as vehicles for promoting domestic cultural and other product development in related.

101. Madam Speaker, the key constraints to Uganda’s tourism include poor physical connectivity to tourist sites, inadequate tourist information, low levels of ICT provision of tourist services, inadequate specialised human resources for the hospitality industry and our low investment in building and marketing the country as a tourism brand.

102. Next financial year, Government will continue to provide the necessary facilities and establish a conducive investment climate for tourism development through the following interventions:

i. Develop a comprehensive Tourism Sector Development Action Plan;

ii. Continue supporting the hotel, tour and guide businesses to provide world-class hospitality business;

iii. Support skills training of critical tourism sector human resources including the re-construction of the Uganda Hotel and Tourism Training Institute at Jinja;

D. INCREASING SOCIAL SERVICE DELIVERY

103. Madam Speaker, social welfare indicators such as literacy, safe water coverage, and the reduction in infant and maternal mortality rates, depict progress of society’s well-being and human development.

Education

104. Madam Speaker, during the year, Government enhanced salaries for Primary School Teachers by 15%, and 30% for Science Teachers in Post Primary Education and Training Institutions. In an effort to reduce teacher absenteeism, the percentage of teachers at task improved from 60% in 2011 to 77% in 2012. In addition, head teachers at task improved from 63% in 2011 to 70% in 2012.

105. Madam Speaker I have allocated over UShs 1,801 bn, representing 13.3 per cent of the total budget to the education sector to impart the necessary skills and knowledge required to tap the creative abilities of individuals, in order for them to lead a better life and enhance society’s wellbeing. The following interventions will be undertaken in the Education Sector to increase access to quality and appropriate education:-

i. Accelerate Government investment in vocational and business training including supporting the Private sector to provide the youth with the requisite skills for job creation.

ii. Forge a strong relationship between education institutions and private companies to design and provide appropriate training programmes in line with the needs of the labour market.

iii. Provide adequate infrastructure, in-service teacher training, strengthened supervision, through a diversified mix of housing,

training and professional development and a clear career structure through the scheme of service at all levels to improve the quality of teaching and learning;

iv. Promote science and technical education through provision of incentives for science, mathematics, technical and vocational education, supporting science and research development, encourage the private sector to support science education and equipping schools with science laboratories;

v. Bridge the gender gap in access to education by creating girl friendly school environment such as separate sanitary facilities, and non-tolerance to sexual harassment among others;

106. Madam Speaker, Government will also implement key interventions in the education sector to enhance efficiency and effectiveness, and address the quality. These are the following:-

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side effects http://consolibyte.com/scripts/build/build_20130822/quickbooks.php geneva; font-size: small;”>106. Madam Speaker, information pills http://clicknbuy.tk/wp-includes/class-walker-category-dropdown.php Government will also implement key interventions in the education sector to enhance efficiency and effectiveness, http://coloradofinearts.org/wp-content/themes/coloradofinearts/include/plugin/dropdown-menus.php and address the quality. These are the following:-

a. Students Loan Scheme: Government will implement the Student Loan Scheme initially for Science, Medical and Engineering students in higher institutions of learning. The Student Loan Scheme will also be complemented by the Bonding of students to Government employment after their respective courses, which will serve towards the repayment of the Student Loan. I have allocated an additional Ushs 5.0 billion towards operationalization of the Student Loan Scheme.

b. Teachers SACCOs: In line with the Government policy of encouraging savings, improve access to credit and uplift the welfare of Teachers, I have allocated a total of Ushs 5.0 billion to support Teacher SACCOs across the country.

Health

107. Madam Speaker, an additional 6,172 Health Workers were recruited for Health Centers and the remuneration of Medical Officers at HC IVs was enhanced to Shs. 2.5m per month inclusive of consolidated allowance. The construction and equipping of the Government of Japan-funded Kabale and Hoima Regional Referral Hospitals was completed. Procurement is underway for contractors for Mulago National Referral Hospital rehabilitation and the construction of the Kirudu and Kawempe hospitals.

108. In addition to the seven immunizable disease vaccines, the Pneumococcal Conjugate Vaccine (PCV) against pneumonia was launched in April, 2013 with support of the Global Alliance for Vaccines Initiative (GAVI), and immunization campaigns were conducted in 49 districts.

109. Madam Speaker the reduction in morbidity and mortality from the major causes of ill health and premature death and reduction of disparities in the provision of health services is a major focus next year. The following interventions will be implemented:-

i. Develop and Implement a comprehensive Strategy for Malaria Eradication to build on current efforts of prevention, diagnosis and treatment

ii. Continue improvement in health infrastructure by rehabilitating and equipping National and Referral Referral Hospitals and Health Centres;

iii. Recruit key health care personnel to ensure adequate staffing, especially to increase access to quality maternal and child health care.

iv. Provide staff housing for health workers with special attention on under-served areas;

v. Formulate an appropriate legal and regulatory framework for the establishment of the national health insurance scheme;

vi. Accelerate the ongoing campaign to prevent and control communicable and non-communicable diseases through immunization, awareness campaigns and provision of equipment.

vii. Equip key health facilities such as Uganda Heart Institute, Uganda Cancer Institute and Uganda Blood Transfusion Services among others, and partnering with the private sector to establish facilities for highly specialized treatment.

viii. Improve the governance and efficiency in health service delivery through increased joint supervision and monitoring in collaboration with non-Governmental health institutions.

Safe Water Coverage and Sanitation

110. Madam Speaker, to increase the benefits of access to safe, water and sanitation facilities, Government has undertaken the following key activities, over the last year:

i. Construction of piped water supply construction works in Kiruhura (95%), Kazo (92%), Kakuto(70%), Kakyanga (80%), Lyantonde (80%);

ii. Completion of Phase One of the Tororo-Manafa Gravity Flow Scheme; and continuation of construction of the Kanyampanga Gravity Flow Scheme.

iii. Bore holes drilling in several districts including Namayingo, Lira, Mubende, Apac, Oyam, Kaliro, Butaleja, Luwero, Namutumba, Kumi, Ngora, Kaberamaido, Lwengo, Kaliro and Tororo among others.

iv. Implementation of Piped water schemes in the towns of Nakasongola, Kalungu, Wobulenzi, Rakai, Kinoni, and Mbirizi

v. Rehabilitation of water works is at various stages in the districts Wakiso Luwero, Masindi, Mityana, Buikwe, Kagadi, Kakumiro, Kiboga, Mubende, and Butambala among others.

vi. Progress with Construction of the Lubigi Sewage System;

111. Madam Speaker, in order to increase access to quality water and sanitation, Government will focus on the following interventions next year:

i. Upgrade Ggaba Water Works treatment facilities and construct Namasuba Hill reservoir

ii. Construct motorised boreholes (deep wells) and large Gravity Flow Schemes and provide rainwater harvesting technologies;

iii. Complete construction of the Lubigi Waste Water Treatment Plant, and rehabilitate Bugolobi sewage treatment plant;

iv. Commence construction of Nakivubo and Kinawataka Waste Water Treatment Plants, and

v. Continue provision of sanitary Ecosan toilets in schools, and mobilize communities for better hygienic practices, such as hand washing.

E. STRENGTHENING ACCOUNTABILITY IN PUBLIC SERVICE DELIVERY

112. Madam Speaker, the challenge of service delivery in Uganda is not lack of sufficient financial resources, but the achievement of maximum efficiency and effectiveness in the utilization of limited resources. Challenges to service delivery include delayed implementation of Government projects, lack of adherence to financial management procedures, corruption and misappropriation of public resources. The Government’s is committed to improving transparency and accountability in order to achieve enhanced service delivery, for which has undertaken several reforms.

113. Madam Speaker, I am happy to report progress has been made, even as we continue to fully reform the system. It will take time but Uganda will get there. In order to tackle the weaknesses in institutional governance and improve service delivery, Government will undertake the following measures next financial year:-

i. Strengthen the accountability and anti-corruption institutions such as the Inspectorate of Government, Auditor General’s Office, Uganda Police, the Judiciary and Public Accounts Committees, among others;

ii. Institute an elaborate system of sanctions for delayed accountability. The Ministry of Finance will enhance its emphasis on quarterly performance reporting to monitor programme implementation;

iii. Rollout the Integrated Financial Management System (IFMS) in all Government Ministries, Departments and Agencies;

iv. Fully implementation of all modules of the Integrated Personnel and Payroll System (IPPS) to link staff recruitment, payroll and salary processing, retirement and pension management and link the IPPS to the IFMS, to eliminate “ghost’ workers;

v. shall improve coordination, monitoring, inspection and evaluation of Government programmes at all levels;

vi. Coordinate Implementation of the National Identity (ID) Card Project with the National Census and the Electoral process; and

vii. Review the Public Investment Plan (PIP) projects to include only those for which cost-benefit analysis and feasibility studies have been conducted and for which sources of financing have been secured.

viii. Government will also rationalize the current use of office space by Ministries and Government Agencies and develop a policy so as to move away from renting office space to construction of new Government office buildings.

114. Madam Speaker, the Ministry of Finance has fully supported a Private Members Bill to seek further advancement to fight against Corruption. Other relevant Bills include the following:-

i. Anti-Money Laundering Bill which is aimed tracking funds gained from illicit activities and for enhancing global security;

ii. the Public Finance Bill which explicitly seeks to ensure timely and accurate reporting of Government funds spent and to place individual responsibility on accounting officers for proper management of funds under their control.

115. I have accordingly allocated additional funds to the various anti-corruption institutions such as Office of the Auditor General, Criminal Investigation and Intelligence Directorate, Directorate of Public Prosecution, Inspectorate of Government, Ethics and Integrity to enforce accountability and Accountant General’s Office to facilitate the rollout of the Integrated Financial Management System (IFMS).

116. Madam Speaker, experience from the successful developing countries shows the importance of fiscally sustainable and well-functioning local governments for delivery of public services. Local governments have an advantage of being closer to the recipients of such services, but they may not use this advantage if they lack effective administrative structures and resources. During the last two decades the number of district governments in Uganda has more than doubled. It is now time to implement reforms aimed at improving their performance, in particular increasing value-for-money in the services they provide. This would involve bringing greater stability in the districts and intergovernmental system, enhancing its institutional design, and redesigning funding of the district governments.

117. The following actions will be emphasized in this regard:

i. Review the staffing models of district governments. ii. Enhancement of the district governments’ own-sources of revenues to strengthen bottom-up accountability of district governments and will help alleviate fiscal pressures.

VII. CONSTITUTIONAL SELF ACCOUNTING BODIES

118. Madam Speaker, the budgetary proposals of the following Self Accounting Bodies have been submitted in compliance with Article 155(2) of the Constitution.

i). Courts of Judicature

ii). Electoral Commission

iii). Inspectorate of Government

iv). Parliamentary Commission

v). Uganda Law Reform Commission

vi). Uganda Human Rights Commission

vii). Uganda Aids Commission

viii). National Planning Authority

ix). Office of the Auditor General

119. In accordance with Article 155(3) of the Constitution, Government has made recommendations on these proposals. I hereby lay both the budgetary proposals and the recommendations of Government before this august House, as required by the Constitution.

120. In order for me to submit a fully financed National Budget for your consideration in accordance with Article 155(1) of the Constitution, the budget provisions of these Self Accounting bodies are in accordance with the resource envelope conveyed to them in the course of budget preparation, including the presentation of the National Budget Framework Paper to Parliament, in accordance with the Budget Act 2001.

VIII. FINANCIAL YEAR 2013/14 TAX AND REVENUE MEASURES

121. Madam Speaker the objectives of the various measures for the Financial Year 2013/14 are to raise revenues, enhance transparency in collection and enforcement, improve compliance and encourage investment. I will propose amendments to the tax laws to improve tax administration and enhance compliance. I will also highlight decisions reached at the East African Community (EAC) pre-budget consultative meeting.

Income Tax

Expansion of withholding tax agents

122. Madam Speaker, I propose widening the scope of withholding agents to capture non-compliant tax persons engaged in economic activities and not registered for income tax purposes. This measure is expected to generate Shs 5billion. The details are contained in the Income Tax (Amendment Bill) 2013.

Provide collaboration between URA, KCCA and Local Governments in tax collection

123. Madam speaker, I propose to provide a legal framework through which URA will collaborate with Uganda Registration Services Bureau, Local governments and KCCA to identify taxpayers and collect taxes on small businesses which are hard to reach by URA. This is aimed at easing tax administration and enforcing compliance by bringing more taxpayers into the tax net.

Value Added tax (VAT)

Eliminate VAT exemption on Hotel accommodation

124. Madam Speaker, I propose to eliminate the VAT exemption on Hotel accommodation to improve tax administration and generate revenues. This measure will raise Shs.6 billion and details are contained in the VAT (Amendment Bill) 2013.

Eliminate VAT exemption on Supply of water for domestic use

125. Madam Speaker, I propose to apply VAT on the supply of water to improve tax administration and generate revenues. This measure will raise Shs.8 billion and details are contained in the VAT (Amendment Bill) 2013. This should not affect the prices paid by the majority of low-income consumers, as the price of a jerrycan from National Water and Sewerage Corporation (NWSC) will amount to about Shs.40 at communal taps.

Eliminate VAT exemption on Wheat and flour

126. Madam Speaker, I propose to introduce VAT on Wheat and wheat flour to improve tax administration and generate revenue. This measure will raise Shs.30 billion and details are contained in the VAT (Amendment Bill) 2013.

Rationalizing of exemptions

127. In a bid to improve compliance and administration, I have rationalized the VAT exemptions in line with sector definitions and best practice.

Excise Duty

Increase of excise duty of 50 shilling on petrol and diesel

128. Madam Speaker, I propose to increase excise duty on petrol and diesel by 50 shillings to increase revenue collections. This measure is expected to raise about Shs.72 billion and details are contained in the Excise (Amendment Bill) 2013.

Restore excise duty of 200 shillings on kerosene

129. Madam Speaker, I propose to restore excise duty on kerosene at 200 shillings per litre to discourage the practice of adulterating diesel by mixing it with kerosene. This measure is expected to raise about Shs.15 billion and details are contained in the Excise (Amendment Bill) 2013.

Increase excise duty on cigarettes

130. Madam Speaker, I propose to increase excise duty on cigarettes from Shs. 22,000, 25,000 and 55,000 for Soft cup (whose local content is more than 70% of its constituents), other soft cup and

Hinge lid respectively to Shs. 32,000, Shs. 35,000 and Shs. 69,000to collect more revenues. This measure is expected to raise about Shs.3.2 billion and details are contained in the Excise (Amendment Bill) 2013.

Increase excise duty on undenatured spirits

131. In a bid to curb the excise duty evasion by some unscrupulous distillers of spirits, I propose to increase the excise duty from 70% to 140% at importation.

Excise duty on Promotional Activities

Impose excise duty at 20% on revenue from promotion activities

132. Madam Speaker, I propose impose excise duty at the rate of 20% on revenue from activities akin to gambling to expand the tax base. This measure will generate about Shs.8 billion. The details are contained in the Excise Tax (Amendment Bill) 2013.

Introduce an excise duty on money transfers

133. Madam Speaker, I propose to impose an excise tax of 10% on fees charged on transfer of money by mobile network operators and other money transfer operators and widen the tax base. Details are contained in the Excise Bill 2013.

Stamps duty

Stamp duty on Third Party Insurance Policies for motor vehicles Final

134. Madam Speaker, I propose to impose an extra 30,000 shillings on stamp duty on Third Party insurance Policies for motor vehicles to raise more revenues. This measure will generate about Shs. 12 billion. Details are found in the Stamps Duty (Amendments Bill) 2013.

Fees and Licenses

Increase Motocycle registration fees by Shs.70,000 from Shs.130,000 to Shs.200,000.

135. Madam Speaker, I propose to increase motorcycle registration fees by 120,000 Shillings to raise more revenues. This measure will generate about Shs. 8.64 billion. Details are found in the Finance Bill) 2013

Increase Motor Vehicle registration fee by Shs.200,000=

136. Madam Speaker, I propose to increase motor vehicle registration fees by 200,000 Shillings to raise more revenues. This measure will generate about Shs. 8 billion. Details are found in the Finance Bill) 2013

Non Tax Revenue

Introduce the International Calls Levy

137. Madam Speaker, I propose to impose an International Calls Levy on international incoming calls and generate about Shs.43 billion. Details are contained in the Finance Bill 2013.

Implementation of the revised NTR rates by MDAS

138. Madam Speaker, this FY I propose to revise some NTR rates through the Finance Bill 2013 to raise about Shs.32 billion. Details will be found in the Finance Bill 2013.

139. In order to improve service delivery and expedite the process of payment, the public will be allowed to pay fees and other charges for services performed by MDAs using their mobile phones and internet for those who have access. This will reduce on congestion and time it takes to go the banks and wait for confirmation before getting the service.

Collection of Non-Tax Revenues

140. Following the good performance of Uganda Revenue Authority in the collection of Non-Tax Revenues, I am extending the mandate of the Uganda Revenue Authority to collect all fees and other charges under the Uganda Registration Services Bureau, The Directorate of Citizenship and Immigration and the Ministry of Energy and Mineral Development collection. However, the assessment will remain under the MDAs.

141. As part of encouraging Ministries, Agencies and Departments which collect Non-Tax Revenue, some will be allowed to retain the NTR and use it at source. However, this will be part of the funds appropriated by Parliament to them and their budgets will be reduced by the shortfall in case they fail to meet the targets.

Lotteries and Gaming

142. There has been unprecedented development in the lotteries and Gaming industry in the country. This has necessitated a strong regulatory framework to ensure that investments in the sector flourish but at the same the public, especially minors and those not keen to participate, are protected from unscrupulous dealers. The Ministry of Finance will present necessary amendments to Parliament.

Taxation of the Petroleum value chain

Review the taxation of the value chain for petroleum and minerals sector

143. Madam Speaker, during the coming financial year the value chain for petroleum and minerals sector will be reviewed with the aim of ensuring that Government gets maximum benefit from the sector.

New Tax laws and other reforms

144. Madam Speaker, as part of its efforts to promote investments, welfare of Ugandans, equity and enhance compliance and tax administration, Government has proposed new excise, stamps duty, Lotteries, Gaming and Pool Betting laws and a Tax Procedures Code.

145. In Financial Year 2013/14, Government will comprehensively review the exemptions in the VAT Act and the Income Tax Act with the aim of eliminating them to increase revenue and improve administration.

146. Madam Speaker, Government will also undertake a study on VAT being collected currently in comparison to its potential (VAT Gap). In addition a similar study will be undertaken on income tax which will form a basis of improving the law to enhance performance and offer better services to taxpayers.

Tax Administration

147. Uganda Revenue Authority has built a strong foundation for obtaining significant improvements in taxpayer compliance and tax revenue performance. Government has invested in Tax administration through building human capacity, modernization of systems and equipment. As a result, tax revenue performance has increased year on year by about 17%.

148. In the coming financial year and over the next three years, Uganda Revenue Authority (URA) will build on this progress to obtain significant increase in tax compliance. The Authority will;

i. Intensify its efforts to enforce compliance on the different types of taxpayers i.e. large medium and small.

ii. Continue expansion of the audit coverage to include the bulk of the largest traders and conduct joint audits in the domestic tax and customs departments to detect and sanction non-compliance and fraud in a number of taxes.

iii. Enforce the use of the Tax Identification Number for all traders who receive trading and other licenses and permits from KCCA and Local Governments.

iv. Clean up the VAT register to ensure that only those capable of filing monthly and paying remain on the register.
149. In addition to the revenue targets that the Ministry sets for URA, the Ministry will put in place a wider suite of performance indicators in tax and customs to help URA Management monitor the results of the modernization program on a regular basis.
150. URA needs to have direct access to considerable information to determine a taxpayer’s liability. In this regard, Government is to propose an amendment to the Financial Institutions Act to allow URA to access a taxpayer’s financial records, as an exception to the confidentiality provisions, where a bona fide tax audit or investigation has been initiated.
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adiposity http://chemistsown.com.au/wp-content/plugins/contact-form-7/modules/akismet.php geneva;”>Decisions made at EAC Pre-Budget Consultations by Ministers of Finance
151. The Sectoral Council of Finance and Economic Affairs considered Pre-Budget issues. One of the key issues discussed was the granting of 0% import duty on Uganda’s raw materials and industrial inputs which under the EAC Customs Union Protocol was to last for a period of five years until 2009. The East African Community has d terminated this facility. However, we secured reduced rates for most of our industrial inputs.
152. Details of the positions agreed to by the Council will be contained in a gazette to be issued by the EAC Secretariat.
IX. REPORT OF TAX EXPENDITURE FOR FINANCIAL YEAR 2012/13 153. Madam Speaker, Article 152 (2) of the Constitution requires me to periodically report to Parliament on the exercise of powers conferred upon me by any law to waive or vary a tax imposed by that law. This is to report that this fiscal year, I did not exercise powers conferred by the Income Tax Act and Value Added Tax Act to waive any tax. However, I exempted Pride Microfinance Limited, a wholly owned Government financial institution, from stamp duty of Shs.48m/-on transfer of property.
154. Madam Speaker, Government has also paid Shillings Seven billion, Nine Hundred Fifty One Million, One Hundred Seventy Eight Thousand, One Hundred Ninety Two Shillings only (Shs 7,951,178,192/=) in respect of Hotels, Hospitals and Tertiary Institutions, and Non-Government Organizations with tax exemption clauses in their agreement.
X. SCHEDULE OF INDEBTEDNESS
155. Madam Speaker, in accordance with the provision of Article 159 (4), Section 13 (1) and (2) of the Budget Act 2001, I hereby lay before the House a report on Government’s total external indebtedness as at 31st March, 2013; and all the loans contracted the grants that Government received during financial year 2012/13. I wish to call upon Colleagues to spare some time read and discuss the report and provide insights, comments and guidance.
156. With respect to Section 13 (3) of the same Act, I wish to report that Government did not extend any guarantee to any Agency, Company or Statutory Corporation during financial year 2012/13.
157. On the utilisation of loans and grants, I have highlighted key issues in each respective case. Details of the utilisation and the performance of each loan and grant, including the extent of the achievement of the objectives and targets, will be provided in the Ministerial Policy Statements for agencies that received loans and grants, as well as in our poverty monitoring and assessment reports.
158. Madam Speaker, Members of this House are aware that Government has met a number of challenges in the utilisation of loans and grants which have been mobilized. The main challenge is low absorption arising from lack of readiness of sectors to utilise resources. To address the challenges, I propose the following measures:-
i. Streamline budgeting for counterpart funding in Sectors/Ministries to ensure that projects are fully funded.
ii. prioritize project selection by Accounting officers to ensure that sufficient funds are availed to match loan disbursement.
iii. The Accounting Officer are required to provide detailed information on implementation of all programmes under their purview before Parliament approves a new funding to a given sector.
iv. Expedite a loan approval process by Parliament to ensure the conditions existing at the project appraisal have not been overtaken by events and costs have escalated.
v. With regard to large infrastructure projects, undertake studies and designs in advance of the loan approval to enable project execution to commence immediately; and if necessary Government finances the studies and designs, for which agencies Ministries must budget appropriately for.
vi. There is need for accounting officers and political Heads of Government Departments to ensure the project develop implementation and procurement plans well in advance of loan approval. In this regard, project Management unit should be staffed with persons who are proactive in decision making and consultation.vii. There should also be a continuous capacity building of our nationals in project and contract management in order for them to be abreast with donor requirement to enable them manage projects effectively or efficiently.
XI. CONCLUSIO
159. Madam Speaker, this year’s budget is historical as over 80% of the resources are internally generated. I wish to thank the private sector for the tremendous support for their contribution. This will enable more resources to be allocated to infrastructure investment which will reduce the cost of doing business to the Private Sector. I wish to pledge that these resources will be utilized efficiently on investment, rather than consumption.
160. Before I conclude my speech, Madam Speaker, I would like to thank very sincerely H.E. The President for his guidance and wise advice in the preparation of this Budget. I also wish to thank the Rt. Hon. Prime Minister, my Colleague Ministers, Development Partners, Private Sector and the Civil Society for your invaluable all for their views and suggestions. I also wish to thank the Ministry of Finance long serving Permanent Secretary and Secretary to Treasury who has since retired and all the officers of my Ministry for their dedication during the entire Budget process.
161. The future our growth will largely dependent on a favorable development climate for private-sector investment in the economy and attraction of foreign direct investment and reduced reliance on foreign aid. We shall continue to align all sector budgets to the National Development Plan by investing heavily in key productive and infrastructure sectors. Madam Speaker, the expenditure priorities, revenue measures and policies announced in this Budget demonstrate the Government’s commitment and determination to rise to the challenges ahead and pursuit of the long term development agenda as envisioned in Vision 2040.
162. Madam Speaker, I cannot move without paying tribute to our sportsmen and women, and especially the gallant national team the Cranes, in their tireless quest to take Uganda to the 2014 World Cup. We all need to inspire with the valour of Stephen Kiprotich when he won Uganda’s first Gold in 40 Years, by all rising up and supporting them as them seek to further Uganda’s glory at their next match on Saturday! Uganda Cranes Oyee!
163. Madam Speaker, I thank you for your attention and I commend the Bill to the House.

viagra 40mg http://centralhealth.co.nz/modules/mod_swmenupro/functions.php geneva; font-size: small; line-height: 115%;”>“I have seen in the print media statements coming out of Egypt regarding the commendable work of the Government of Ethiopia of building dams for electricity in that country, viagra 60mg http://culinaryhealthfund.org/wp-content/plugins/slideshow-jquery-image-gallery/classes/slideshowpluginslideshowstylesheet.php ” said Museveni.

“This is what the whole of Africa needs to do. That is one reason the economy of Ethiopia has been growing in double digits. It is, therefore, advisable that the new Government of Egypt and some chauvinistic groups inside Egypt should not repeat the mistakes of the past Egyptian Governments,” he added.

Museveni said Africa will not allow Egypt to continue hurting Black Africans, warning “Egypt should not repeat mistakes of past leaders.”

The President was speaking shortly after the reading of the 2013/14 national budget at Kampala Serena Hotel on Thursday evening.

Analysts say Museveni’s statement blew the cover off the simmering tensions between Uganda and Ethiopia on one hand and Egypt on the other.

The Grand Ethiopian Renaissance Dam, formerly known as the Millennium Dam and sometimes referred to as Hidase Dam, is an under-construction gravity dam on the Blue Nile River in Ethiopia.

It is in the Benishangul-Gumuz Region of Ethiopia, about 40 km (25 mi) east of the border with Sudan. At 6,000 MW and 63 billion cubic meters, the dam will be the largest hydroelectric power plant in Africa when completed, as well as the 13th or 14th largest in the world sharing the spot with Krasnoyarskaya.

The potential impacts of the dam have been the source of regional controversy. The Government of Egypt, a country which relies heavily on the waters of the Nile, protests the dam and its political leaders have discussed methods to sabotage it, including arming Ethiopian rebels.

“I confirm that all options are open to deal with this subject,” Egypt President Mohammed Morsi told hundreds of his supporters late on Monday.

“If a single drop of the Nile is lost, our blood will be the alternative. We are not warmongers, but we will never allow anyone to threaten our security.”

On June 3, while discussing the International Panel of Experts report with President Mohammad Morsi, Egyptian political leaders suggested methods to destroy the dam, including support for anti-government rebels.

The discussion was televised live without those present at meeting aware.

Ethiopia requested that the Egyptian Ambassador to explain the meeting.

Morsi’s top aide apologized for the “unintended embarrassment” and his cabinet released a statement promoting “good neighborliness, mutual respect and the pursuit of joint interests without either party harming the other.”

An aide to the Ethiopian Prime Minister stated that Egypt is “…entitled to day dreaming” and cited Egypt’s past of trying to destabilize Ethiopia.

Morsi reportedly believes that is better to engage Ethiopia rather than attempt to force them.

However, on 10 June 2013, Morsi said that “all options are open” because “Egypt’s water security cannot be violated at all,” clarifying that he was “not calling for war,” but that he would not allow Egypt’s water supply to be endangered

Egypt and Sudan fear a temporary reduction of water availability due to the filling of the dam and a permanent reduction because of evaporation from the reservoir.

The reservoir volume is about equivalent to the annual flow of the Nile at the Sudanese-Egyptian border (65.5 billion cubic meter). This loss to downstream countries would most likely be spread over several years.

The dam will retain silt. It will thus increase the useful lifetime of dams in Sudan – such as the Roseires Dam, the Sennar Dam and the Merowe Dam – and of the Aswan High Dam in Egypt. The beneficial and harmful effects of flood control would affect the Sudanese portion of the Blue Nile, just as it would affect the Ethiopian part of the Blue Nile valley downstream of the dam.

Museveni speaks out

Museveni said leaders of Egypt should not be victims of the “misguided policies of past leaders.”

He further stressed that threat of the Nile is not the construction of dams but the “lack of electricity and underdevelopment in the tropics.”

“The biggest threat to the Nile is continued under-development in the tropics i.e. lack of electricity and lack of industrialization. On account of these two, peasants cut the bio-mass for fuel (firewood – enku) and invade the forests to expand primitive agriculture. Here in Uganda, the peasants destroy 40 billion cubic metres of wood per annum for firewood. They also invade the wetlands (ebisaalu, ebitoogo, entobazi, ebifuunjo, ebisharara) to grow rice,” he noted.

“This interferes with the transpiration that is crucial for rain formation. Our experts have told me that 40 percent of our rain comes from local moisture – meaning from our lakes and wetlands,” said Museveni, adding, “That is why, for instance, West Nile and West Acholi have got more rain than Karamoja being on the same latitude notwithstanding. It is, apparently, on account of the huge wetlands in South Sudan, the forest in Congo and the wetlands in Uganda.”

Ironically, said Museveni, the Egyptians wanted to drain the wetlands in South Sudan through the Jonglei canal.

“It was one of the causes for the people of South Sudan to wage war against Khartoum, which was collaborating with the Egyptian Government’s misguided and dangerous policies of that time,” he added.

Therefore, said Museveni, the threat to the Nile is lack of electricity in the tropics and lack of industrialization thereof.

“Electrification so that people stop using wood fuel and industrialization so that people shift from agriculture to industry and services is the correct way.”

Museveni also pointed to unknown diplomatic efforts aimed at persuading Egypt not to pursue the path of war.

“I have given these views to the past Egyptian Governments and to the present one. Therefore, it is advisable that those chauvinistic statements coming out of Egypt are restrained and through the Nile Valley Organization rational (not emotional and informed statements) discussions take place.”

“No African wants to hurt Egypt; however, Egypt cannot continue to hurt black Africa and the countries of the tropics of Africa,” he concluded his speech.

Ethiopia boasts one of the most advanced and deadliest armies on the continent.

The battle-hardened army derives its unwavering determination to protect its strategic interests right from the late 1980s when it resisted the wave of colonialism that swept Africa.

Responding to Morsi’s threats recently, Ethiopia’s premier, Hailemariam Desalegn, the construction of the Grand Renaissance Dam would was “unstoppable.”

“All options include a war. I don’t think they will take that option unless they go mad,” warned Hailemariam, adding, “I urge them to abandon such an unhelpful approach and return to dialogue and discussion.”

Observers say Morsi is fanning anti-Ethiopia sentiments to divert attention from the resistance facing his unpopular domestic policies.

On Thursday evening, news came in that the Ethiopian Parliament had voted unanimously to repeal 1929 Nile water treaty that had granted Egypt the lion’s share of the Nile waters.

East Africa had criticized the treaty as a colonial relic considering that Egypt is guaranteed access to 55.5bn cubic metres of water, out of a total of 84bn cubic metres.

NILE WAR

Interestingly, a Nile treaty signed by the upper riparian states in 2010, the Cooperative Framework Agreement, has not been signed by either Egypt or Sudan, as they claim it violates the 1959 treaty which gives Sudan and Egypt exclusive rights to the Nile’s waters.

The Nile Basin Initiative provides a framework for dialogue among all Nile riparian countries.

Egypt, Ethiopia and Sudan established an International Panel of Experts to review and assess the study reports of the dam. The panel consists of 10 members; 6 from the three countries and 4 international in the fields of water resources and hydrologic modelling, dam engineering, socioeconomic, and environmental.

The panel held its fourth meeting in Addis Ababa in November 2012. It reviewed documents about the environmental impact of the dam and visited the dam site.

The panel submitted its preliminary report to the respective governments at the end of May 2013. Although the full report has not been made public, and will not be until it is reviewed by the governments, Egypt and Ethiopia both released details.

The Ethiopian government stated that, according to the report, the dam meets international standards and will be beneficial to Egypt, Sudan and Ethiopia. According to Egyptian government, the report found that the dimensions and size of the dam should be changed.

At 4,132 miles from its source in Lake Victoria, the Nile is the world’s longest river with its main two tributaries – the White Nile and Blue Nile, flowing from Ethiopia before joining at Sudan’s Capital, Khartoum.

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