The Uganda government is looking at the proposal to borrow USD 14.3m from OPEC Fund for International Development to support Vocational Education.
The minster said that the loan is to finance phase II of the on-going reforms in vocational education and the completion of nine new technical institutes.
The objective of this project is to enable government provide equitable access to quality post primary education and training.
The project is located in Amuria, Hoima, Kamuli, masaka-Lwengo, Mukono, Nakasongola, Namutumba, Pader & Yumbe Districts.
The Project will cover the Design and supervision; Civil works Provision of equipment and furniture Support to project management and also cover capacity building, Institutional management and the inclusion of ICT programs to the institutions.
The total cost of the project is estimated at USD 16.3m. The loan will cover 85.6% of the total. This amounts to 14.3m that is to run for a period of 20 years with a Grace period of 5 years. The Government is to cover the reaming 14.4%.
The loan is to attract an Interest of 1.25% p.a on amounts withdrawn & outstanding with a further Service Charge of 1% per year on amounts withdrawn & outstanding.
The conditions attached to the loan include among others, a legal opinion on validity of the loan documents from the Attorney General, submission to OFID of quarterly progress containing the information on the technical & financial status & audit reports and the Government Of Uganda is to ensure proper budgeting through the duration of the project to be reflected on 2016/17 budget.