Contacts:
Steven Shalita +256-414-302 236
sshalita@worldbank.org
WASHINGTON, September 23, 2008 – The World Bank Board of Executive Directors today approved a $5 million International Development Association (IDA) credit* to provide additional financing to the Sustainable Management of Mineral Resources Project (SMMRP) in Uganda.
The additional credit will strengthen the Government of Uganda's capacity to develop a sound minerals sector based on private investments and improvements in selected artisanal and small scale mining areas.
“These extra IDA resources come at a critical time for Uganda, when the world is experiencing a minerals boom which has seen a rapid increase in prices for metals. Uganda will utilize these funds to position itself to take advantage of the increasing exploration investments,” said Christopher Sheldon, World Bank Task Team Leader for the project.
Since the SMMRP’s inception in 2003, the number of mineral licenses and amount of non-tax mineral revenue collected by Uganda has increased 200 percent. Revenues from mining peaked $1.66 million in 2007 from $550,000 in 2003, prior to the SMMRP. In the same period, Government issued 229 mineral exploration and development licenses generating US$22 million in revenue, up from 190 licenses generating $5 million in 2003. The number of licenses given to artisanal and small scale miners has also risen to 221 in 2007 from 100 in 2003. Uganda’s leading mineral export is gold, although active mining activities extend to many other minerals, including copper, tin and wolfram.
The SMMRP was initially funded by an IDA Credit of $25 million, with $5.35 million co-financing from the African Development Bank (AfDB) and $6 million from the Nordic Development Fund (NDF). Initially scheduled to close on June 30, 2009, the additional funds from IDA have resulted in extending the project to June 30, 2011.
“This project will enable the development of the mineral resources in an efficient, socially sustainable, and environmentally sound manner, as well as contribute substantially to the country’s earnings, employment, reduction of poverty, and improvement of quality of life in rural areas,” said Kundhavi Kadiresan, World Bank Uganda Country Manager.
For more information on the World Bank’s work in sub-Saharan Africa, please visit: www.worldbank.org/afr
For more information on the World Bank’s work in Africa, please visit: www.worldbank.org/uganda
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