Ugandan Finance Minister warns of more budget cuts

Ugandan Finance Minister Ezra Suruma has warned several ministries of funds dropping due to prioritizing the budget in the energy sector.

Suruma, quoted by New Vision on Saturday, as saying that focus was put on energy, rural development, development of the Industrial Park in Namanve and scientific research.

According to the National Budget Framework Paper for 2006/2007 financial year, 240 billion Ugandan shillings (130 million U.S. dollars) are allocated to the Ministry of Energy.

Uganda has been undergoing the worsening power crisis caused by the prolonged drought and receding water level of several lakes, including Lake Victoria, the largest fresh water lake in Africa.

The power shortage also pushed the power tariffs up by 37 percent from June, which was said to have considerably raised the business cost and hurt the growing economy.

The paper said the development of power projects to meet the medium term demands had taken off. Uganda now generates only 50 megawatt of thermal power while plans are underway to add an additional 50 megawatt by the end of the year and another 50 megawatt at the beginning of next year.

It also said the government would develop the lager hydropower facilities at Bujagali and Karuma through private-public investments.

Ugandan President Yoweri Museveni has said on different occasions should the donors hinder the construction of the two hydropower dams, Uganda would not suffer the on-going load shedding.

The President vowed repeatedly the two dams would be constructed, with or without the aid from the donors, in the next 44 months as a long term measure to address the national power crisis.

Source: Xinhua