Page  1
CONFORMED COPY
CREDIT NUMBER 3545-UG
Development Credit Agreement
(Fourth Power Project)
between
THE REPUBLIC OF UGANDA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated August 29, 2001
CREDIT NUMBER 3545-UG
DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated August 29, 2001, between THE REPUBLIC OF UGANDA (the Borrower) 
and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association).
WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and 
priority of the project described in Schedule 2 to this Agreement (the Project), has 
requested the Association to assist in the financing of the Project;
(B)
the Association has received a letter, dated March 19, 2001, from the 
Borrower describing a program of actions, objectives and policies for transforming the 
power sub-sector into an efficient and financially viable electricity industry through 
the reform and restructuring of the power sub-sector, including: (i) the unbundling of 
Uganda Electricity Board (UEB) into separate companies for power generation, 
transmission and distribution; (ii) the subsequent privatization of the generation and 
distribution businesses; (iii) the operation of  the transmission company on a 
commercial basis; and (iv) attracting new private sector investments, (the Program) 
and declaring the Borrower’s commitment to the execution of the Program; 
(C)
the Borrower has established: (i) Uganda Electricity Generation Company 
Limited (the Generation Company) to carry out UEB’s power generation activities; (ii) 
Uganda Electricity Transmission Company Limited (the Transmission Company) to carry 
out UEB’s power transmission activities; and (iii) Uganda Electricity Distribution 
Company Limited (the Distribution Company) to carry out UEB’s electricity distribution 
activities; 
(D)
Parts A.1, A.3 (a), A.4, A.5, and Part B of the Project will be carried 
out by the Generation Company with the Borrower's assistance and, as part of such 
assistance, the Borrower will make available to the Generation Company part of the 
Page  2
proceeds of the credit provided for in Article II of this Agreement (the Credit), as 
set forth in this Agreement; 
(E)
the Borrower intends to contract from the Nordic Development Fund (NDF) a 
loan in an amount equivalent to eleven million three hundred thousand Dollars (the NDF 
Loan) to assist in financing Parts A.2 and A.3 (a) of the Project on the terms and 
conditions set forth in an agreement to be entered into between the Borrower and NDF 
(the NDF Loan Agreement); and
(F)
the Borrower intends to contract from the Norwegian Agency for 
Development Cooperation (NORAD) a loan in an amount equivalent to six million seven 
hundred thousand Dollars (the NORAD Loan) to assist in financing Part A.3 (b) of the 
Project on the terms and conditions set forth in an agreement to be entered into 
between the Borrower and NORAD (the NORAD Loan Agreement);
WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, 
to extend the Credit to the Borrower upon the terms and conditions set forth in this 
Agreement and in the agreement of even date herewith between the Association and the 
Generation Agreement (the Project Agreement);
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Development Credit 
Agreements" of the Association, dated January 1, 1985 (as amended through October 6, 
1999), with the modifications set forth below (the General Conditions), constitute an 
integral part of this Agreement: 
(a)
A new paragraph (12) is added to Section 2.01 to read as set forth below, 
and the existing paragraphs (12) through (14) of said Section are accordingly 
renumbered as paragraphs (13) through (15):
"12. ‘Participating Country’ means any country that the Association determines 
meets the requirements set forth in Section 11 of Resolution No. 194 of the 
Board of Governors of the Association, adopted on April 8, 1999; and 
‘Participating Countries means, collectively, all such countries." ; and
(b)
The second sentence of Section 5.01 is modified to read:
"Except as the Borrower and the Association shall otherwise agree, no 
withdrawals shall be made: (a) on account of expenditures in the territories 
of any country which is not a Participating Country or for goods produced in, 
or services supplied from, such territories; or (b) for the purpose of any 
payment to persons or entities, or for any import of goods, if such payment or 
import, to the knowledge of the Association, is prohibited by a decision of 
the United Nations Security Council taken under Chapter VII of the Charter of 
the 
United Nations."
Section 1.02. Unless the context otherwise requires, the several terms defined 
in the General Conditions have the respective meanings therein set forth and the 
following additional terms have the following meanings:
(a)
"EIA" means the environmental impact analysis for Part A of the Project 
commissioned by UEB (as hereinafter defined) dated August 31, 2000;
(b)
"Eligible Categories" means: (i) categories (1), (2), and (4) (a) set 
forth in the table in Part A.1 of Schedule 1 to this Agreement, in respect of the 
Special Account for Parts A.1, A.3 (a), A.4, A.5, and Part B of the Project (Special 
Account "A"); and (ii) categories (3), (4) (b), (4) (c), and (5) set forth in the 
table in Part A.1 of Schedule 1 to this Agreement in respect of the Special Account 
for Parts C and D of the Project (Special Account "B");
(c)
"Eligible Expenditures" means the expenditures for goods, works, and 
services referred to in Section 2.02 (a) of this Agreement;
(d)
"Distribution Company" means Uganda Electricity Distribution  Company 
Limited incorporated on March 26, 2001 under the Companies Act, Cap. 85 of the laws of 
Page  3
the Borrower and established by the Borrower to, inter alia, take over and operate the 
power distribution activities of UEB (as hereinafter defined);
(e)
"ERA" means the Borrower’s Electricity Regulatory Authority established 
pursuant to the Electricity Act of 1999;
(f)
"Generation Company" means Uganda Electricity Generation Company Limited 
incorporated on March 26, 2001 under the Companies Act, Cap. 85 of the laws of the 
Borrower and established by the Borrower to, inter alia, take over and operate the 
power generation activities of UEB (as hereinafter defined);
(g)
"Generation Company Project Implementation Manual" means the manual 
referred to in paragraph 1 of Schedule 1 to the Project Agreement; 
(h)
"IAPSO" means the Inter-Agency Procurement Services of the United 
Nations;
(i)
"Letter of Policy" means the Borrower's letter referred to in Paragraph 
(B) of the preamble to this Agreement;
(j)
"Management Services Agreement" means the agreement, in form and 
substance satisfactory to the Association, referred to in Section 6.01 (f) of this 
Agreement, to be entered by UEB (as hereinafter defined) and the Generation Company 
under which UEB will provide to the Generation Company procurement and financial 
management services for the implementation of Parts A.1, A.3 (a), A.4, A.5, and Part B 
of the Project;
(k)
"MEMD" means the Borrower’s Ministry of Energy and Mineral Development; 
(l)
"MEMD Project Implementation Manual" means the manual referred to in 
Paragraph 1 (a) (i) of Schedule 4 to this Agreement;
(m)
"Petroleum Monitoring Unit" means the unit to be established within MEMD 
to monitor the operations of the petroleum sub-sector; 
(n)
"Transmission Company" means Uganda Electricity Transmission Company 
Limited incorporated on March 26, 2001 under the Companies Act Cap. 85 of the laws of 
the Borrower and established by the Borrower to, inter alia, take over and operate the 
power transmission activities of UEB (as hereinafter defined);
(o)
"Program" means the program described in the Letter of Policy;
(p)
"Project Agreement" means the agreement between the Association and the 
Generation Company, of even date herewith, as the same may be amended from time to 
time, and such term includes all schedules and agreements supplemental to the Project 
Agreement; 
(q)
"Project Management Report" means each report prepared in accordance with 
Section 4.02 of this Agreement and of the Project Agreement;
(r)
"Project Preparation Advance" means the project preparation advance 
granted by the Association to the Borrower pursuant to an exchange of letters dated 
April 14, 1999 and May 21, 1999 between the Borrower and the Association;
(s)
"SCADA" means a system for control and data acquisition, including 
telecommunication required for carrying out Part A.2 of the Project;
(t)
"Special Account" means Special Account "A" and Special Account "B" 
referred to in Part B of Schedule 1 to this Agreement;
(u)
"Subsidiary Loan Agreement" means the agreement to be entered into 
between the Borrower and the Generation Company pursuant to Section 3.01 (b) of this 
Agreement, as the same may be amended from time to time, and such term includes any 
schedules to the Subsidiary Loan Agreement; and
(v)
"UEB" means Uganda Electricity Board established by the Borrower under 
Cap. 135 of the laws of the Borrower. 
Page  4
ARTICLE II
The Credit
Section 2.01. The Association agrees to lend to the Borrower, on the terms and 
conditions set forth or referred to in the Development Credit Agreement, an amount in 
various currencies equivalent to forty eight million Special Drawing Rights (SDR 
48,000,000).
Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit 
Account in accordance with the provisions of Schedule 1 to this Agreement for 
expenditures made (or, if the Association shall so agree, to be made) in respect of 
the reasonable cost of goods and services required for the Project and to be financed 
out of the proceeds of the Credit.
(b)
Promptly after the Effective Date, the Association shall, on behalf of 
the Borrower, withdraw from the Credit Account and pay to itself the amount required 
to repay the principal amount of the Project Preparation Advance withdrawn and 
outstanding as of such date and to pay all unpaid charges thereon. The unwithdrawn 
balance of the authorized amount of the Project Preparation Advance shall thereupon be 
canceled.
Section 2.03. The Closing Date shall be December 31, 2004 or such later date as 
the Association shall establish. The Association shall promptly notify the Borrower of 
such later date.
Section 2.04. (a) The Borrower shall pay to the Association a commitment charge 
on the principal amount of the Credit not withdrawn from time to time at a rate to be 
set by the Association as of June 30 of each year, but not to exceed the rate of 
one-half of one percent (1/2 of 1%) per annum.
(b)
The commitment charge shall accrue: (i) from the date sixty days after 
the date of this Agreement (the accrual date) to the respective dates on which amounts 
shall be withdrawn by the Borrower from the Credit Account or canceled; and (ii) at 
the rate set as of the June 30 immediately preceding the accrual date and at such 
other rates as may be set from time to time thereafter pursuant to paragraph (a) 
above. The rate set as of June 30 in each year shall be applied from the next date in 
that year specified in Section 2.06 of this Agreement.
(c)
The commitment charge shall be paid: (i) at such places as the 
Association shall reasonably request; (ii) without restrictions of any kind imposed 
by, or in the territory of, the Borrower; and (iii) in the currency specified in this 
Agreement for the purposes of Section 4.02 of the General Conditions or in such other 
eligible currency or currencies as may from time to time be designated or selected 
pursuant to the provisions of that Section.
Section 2.05. The Borrower shall pay to the Association a service charge at the 
rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of 
the Credit withdrawn and outstanding from time to time.
Section 2.06. Commitment charges and service charges shall be payable 
semiannually on April 15 and October 15 in each year.
Section 2.07. (a) Subject to paragraphs (b), (c) and (d) below, the Borrower 
shall repay the principal amount of the Credit in semiannual installments payable on 
each April 15 and October 15 commencing October 15, 2011 and ending April 15, 2041. 
Each installment to and including the installment payable on October 15, 2021, shall 
be one percent (1%) of such principal amount, and each installment thereafter shall be 
two percent (2%) of such principal amount.
(b)
Whenever: (i) the Borrower’s per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years  the 
level established annually by the Association for determining eligibility to access 
the Association's resources; and (ii) the Bank shall consider the Borrower 
creditworthy for Bank lending, the Association may, subsequent to the review and 
approval thereof by the Executive Directors of the Association and after due 
consideration by them of the development of the Borrower's economy, modify the 
repayment of installments under paragraph (a) above by: (A) requiring the Borrower to 
repay twice the amount of each such installment not yet due until the principal amount 
of the Credit shall have been repaid; and (B) requiring the Borrower to commence 
repayment of the principal amount of the Credit as of the first semiannual payment 
Page  5
date referred to in paragraph (a) above falling six months or more after the date on 
which the Association notifies the Borrower that the events set out in this paragraph 
(b) have occurred, provided, however, that there shall be a grace period of a minimum 
of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the 
modification referred to in paragraph (b) above to include, in lieu of some or all of 
the increase in the amounts of such installments, the payment of interest at an annual 
rate agreed with the Association on the principal amount of the Credit withdrawn and 
outstanding from time to time, provided that, in the judgment of the Association, such 
revision shall not change the grant element obtained under the above-mentioned 
repayment modification.
(d)
If, at any time after a modification of terms pursuant to paragraph (b) 
above, the Association determines that the Borrower’s economic condition has 
deteriorated significantly, the Association may, if so requested by the Borrower, 
further modify the terms of repayment to conform to the schedule of installments as 
provided in paragraph (a) above.
Section 2.08. The currency of the United States of America is hereby specified 
for the purposes of Section 4.02 of the General Conditions.
ARTICLE III
Execution of the Project
Section 3.01. (a) The Borrower declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to this Agreement, and, to this end: 
(i)
shall carry out Parts C and D of the Project through MEMD and ERA 
and cause Parts A.2 and A.3 (b) of the Project to be carried out 
by the Transmission Company with due diligence and efficiency and 
in conformity with appropriate administrative, financial and 
energy sector practices, and shall provide, promptly as needed, 
the funds, facilities, services and other resources required for 
such parts of  the Project; and
(ii)
without any limitation or restriction upon any of its other 
obligations under the Development Credit Agreement, shall cause 
the Generation Company to perform in accordance with the 
provisions of the Project Agreement all the obligations of the 
Generation Company therein set forth, shall take and cause to be 
taken all action, including the provision of funds, facilities, 
services and other resources, necessary or appropriate to enable 
the Generation Company to perform such obligations, and shall not 
take or permit to be taken any action which would prevent or 
interfere with such performance.
(b)
The Borrower shall relend the proceeds of the Credit allocated to 
Categories (1), (2) and (4) (a) in the table in paragraph 1 of Schedule 1 to this 
Agreement to the Generation Company under a subsidiary loan agreement to be entered 
into between the Borrower and the Generation Company, under terms and conditions which 
shall have been approved by the Association which shall include: (i) repayment of 
principal in 15 years, including a grace period of 3 years, payment of interest at the 
rate of 7.1 percent per annum; and (ii) the exchange risk to be borne by the 
Generation Company.
(c)
The Borrower shall exercise its rights under the Subsidiary Loan 
Agreement in such manner as to protect the interests of the Borrower and the 
Association and to accomplish the purposes of the Credit, and, except as the 
Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or 
waive the Subsidiary Loan Agreement or any provision thereof.
(d)
Notwithstanding the provisions of paragraph (c) of this Section, when, in 
the implementation of the Program, the Borrower proceeds to privatize: the power 
generation and distribution functions of the Generation Company and the Distribution 
Company respectively, in accordance with the Letter of Policy, the Borrower shall keep 
the Association fully informed of such developments, and thereafter take all such 
measures as may be necessary or required, to ensure that all arrangements for such 
Page  6
privatization are satisfactory to the Association.
(e) 
The Borrower shall take all such measures as may be necessary or 
required, to ensure that the Transmission Company shall have adequate capacity, 
satisfactory to the Association, to: (i) carry on its operations and conduct its 
affairs in accordance with sound administrative, financial, electric utility and 
engineering practices under the supervision of qualified and experienced management 
assisted by competent staff in adequate numbers; and (ii) carry out the implementation 
of Parts A.2 and A.3 (b) of the Project.
(f)
Without limitation upon the provisions of paragraph (a) of this Section 
and except as the Borrower and the Association shall otherwise agree, the Borrower 
shall carry out Parts C and D of the Project in accordance with the Implementation 
Program set forth in Schedule 4 to this Agreement.
Section 3.02. Except as the Association shall otherwise agree, procurement of 
the goods, works and consultants’ services required for the Project and to be financed 
out of the proceeds of the Credit shall be governed by the provisions of Schedule 3 to 
this Agreement.
Section 3.03. For the purposes of Section 9.06 of the General Conditions and 
without limitation thereto, the Borrower shall:
(a)
with respect to Parts C and D of the Project, prepare, on the basis of 
guidelines acceptable to the Association, and furnish to the Association not later 
than six (6) months after the Closing Date or such later date as may be agreed for 
this purpose between the Borrower and the Association, a plan designed to ensure the 
continued achievement of the objectives of the Project; and
(b)
afford the Association a reasonable opportunity to exchange views with 
the Borrower on said plan.
Section 3.04. The Borrower and the Association hereby agree that the obligations 
set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, and 9.08 of the General Conditions 
(relating to insurance, use of goods and services, plans and schedules, records and 
reports, maintenance and land acquisition, respectively) in respect of Parts A and B 
of the Project shall be carried out by the Generation Company pursuant to Section 2.03 
of the Project Agreement.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain a financial management system, 
including records and accounts, and prepare financial statements, all in accordance 
with accounting standards acceptable to the Association, consistently applied, 
adequate to reflect its operations and financial condition and to register separately 
the operations, resources and expenditures related to Parts C and D of the Project.
(b)
The Borrower shall:
(i)
have its records, accounts and financial statements (balance 
sheets, statements of income and expenses and related statements) 
and the records and accounts for the Special Accounts for each 
fiscal year audited, in accordance with auditing standards 
acceptable to the Association, consistently applied, by 
independent auditors acceptable to the Association;
(ii)
furnish to the Association such other information concerning such 
records, accounts and financial statements, and the audit thereof, 
and concerning said auditors, as the Association may from time to 
time reasonably request 
(c)
For all expenditures with respect to which withdrawals from the Credit 
Account were made on the basis of Project Management Reports or statements of 
expenditure the Borrower shall:
(i)
maintain or cause to be maintained, in accordance with paragraph 
(a) of this Section, records and accounts reflecting such 
expenditures;
Page  7
(ii)
retain, until at least one year after the Association has received 
the audit report for the fiscal year in which the last withdrawal 
from the Credit Account was made, all records (contracts, orders, 
invoices, bills, receipts and other documents) evidencing such 
expenditures;
(iii)
enable the Association’s representatives to examine such records; 
and
(iv)
ensure that such records and accounts are included in the annual 
audit referred to in paragraph (b) of this Section and that the 
report of such audit contains a separate opinion by said auditors 
as to whether the Project Management Reports or statements of 
expenditure submitted during such fiscal year, together with the 
procedures and internal controls involved in their preparation, 
can be relied upon to support the related withdrawals.
Section 4.02. (a) Without limitation upon the provisions of Section 4.01 of this 
Agreement, the Borrower shall carry out a time-bound action plan acceptable to the 
Association for the strengthening of its financial management system for Parts C and D 
of the Project in order to enable the Borrower, not later than December 31, 2001, or 
such later date as the Association shall agree, to prepare quarterly Project 
Management Reports, acceptable to the Association, each of which:
(i)
(A) sets forth actual sources and applications of funds for the 
Project, both cumulatively and for the period covered by said 
report, and projected sources and applications of funds for the 
Project for the six-month period following the period covered by 
said report, and (B) shows separately expenditures financed out of 
the proceeds of the Credit during the period covered by said 
report and expenditures proposed to be financed out of the 
proceeds of the Credit during the six-month period following the 
period covered by said report;
(ii)
(A) describes physical progress in Project implementation, both 
cumulatively and for the period covered by said report, and (B) 
explains variances between the actual and previously forecast 
implementation targets; and
(iii)
sets forth the status of procurement under the Project and 
expenditures under contracts financed out of the proceeds of the 
Credit, as at the end of the period covered by said report.
(b)
Upon the completion of the action plan referred to in paragraph (a) of 
this Section, the Borrower shall prepare, in accordance with guidelines acceptable to 
the Association, and furnish to the Association not later than 45 days after the end 
of each calendar quarter a Project Management Report for such period.
ARTICLE V
Remedies of the Association
Section 5.01. Pursuant to Section 6.02 (l) of the General Conditions, the 
following additional event are specified:
(a)
A situation has arisen which shall make it improbable that the Program, 
or a significant part thereof, will be carried out.
(b)
The Generation Company shall have failed to perform any of its 
obligations under the Project Agreement.
(c)
As a result of events which have occurred after the date of the 
Development Credit Agreement, an extraordinary situation shall have arisen which shall 
make it improbable that the Generation Company will be able to perform its obligations 
under the Project Agreement.
(d)
(i)
Subject to subparagraph (ii) of this paragraph: 
(A) the right of the Borrower to withdraw the proceeds of any loan 
made to the Borrower for the financing of the Project shall have 
Page  8
been suspended, canceled or terminated in whole or in part, 
pursuant to the terms of the agreement providing therefore, (B) 
any such loan shall have become due and payable prior to the 
agreed maturity thereof.
(ii)
Subparagraph (i) of this paragraph shall not apply if the Borrower 
establishes to the satisfaction of the Association that: (A) such 
suspension, cancellation, termination or prematuring is not caused 
by the failure of the Borrower to perform any of its obligations 
under such agreement; and (B) adequate funds for the Project are 
available to the Borrower from other sources on terms and 
conditions consistent with the obligations of the Borrower under 
this Agreement.
Section 5.02. Pursuant to Section 7.01 (h) of the General Conditions, the 
following additional event are specified:
(a)
the event specified in paragraph (a) of Section 6.01 of this Agreement 
shall occur and shall continue for a period of sixty days after notice thereof shall 
have been given by the Association to the Borrower; and
(c)
the event specified in paragraph (b) (i) (B) of Section 6.01 of this 
Agreement shall occur, subject to the proviso of paragraph (b) (ii) of that Section.
ARTICLE VI
Effective Date; Termination
Section 6.01. The following events are specified as  additional conditions to 
the effectiveness of the Development Credit Agreement within the meaning of Section 
12.01 (b) of the General Conditions:
(a)
the Subsidiary Loan Agreement has been executed on behalf of the Borrower 
and the Generation Company;
(b)
the NDF Loan Agreement and the NORAD Loan Agreement have been executed 
and delivered and all conditions precedent to the effectiveness or to the right of the 
Borrower to make withdrawals under the NDF Loan Agreement and the NORAD Loan 
Agreement, respectively, (except for the effectiveness of the Development Credit 
Agreement), have been fulfilled; 
(c)
(i)
MEMD has employed an accountant with qualifications and experience 
satisfactory to the Association, to assist in the implementation 
of Parts C and D of the Project; and 
(ii)
the Generation Company has employed an environment officer with 
qualifications and experience satisfactory to the Association;
(d)
the Generation Company Project Implementation Manual and the MEMD Project 
Implementation Manual, in form and substance satisfactory to the Association, have 
been adopted and furnished to the Association;
(e)
the Borrower has: (i) settled all overdue arrears payable to the 
Distribution Company as of June 30, 2001; and (ii) furnished to the Association an 
action plan to ensure that the Borrower’s agencies shall remain current on their 
electricity bills;
(f)
UEB and the Generation Company have executed the Management Services 
Agreement; and 
(g)
UEB and the Generation Company have adopted financial management 
arrangements, satisfactory to the Association, for the implementation of Parts A.1, 
A.3 (a), A.4, A.5, and Part B of the Project.
Section 6.02. The following are specified as additional matters, within the 
meaning of Section 12.02 (b) of the General Conditions, to be included in the opinion 
or opinions to be furnished to the Association:
(a)
that the Project Agreement has been duly authorized or ratified by the 
Page  9
Generation Company and is legally binding upon the Generation Company in accordance 
with its terms; and
(b)
that the Subsidiary Loan Agreement has been duly authorized or ratified 
by the Borrower and the Generation Company and is legally binding upon the Borrower 
and the Generation Company in accordance with its terms.
Section 6.03. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions.
ARTICLE VII
Representative of the Borrower; Addresses
Section 7.01. The Minister of Finance, Planning and Economic Development of the 
Borrower is designated as representative of the Borrower for the purposes of Section 
11.03 of the General Conditions.
Section 7.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Borrower:
Ministry of Finance, Planning
  and Economic Development
P.O Box 8147
Kampala
Uganda
Cable address: 
Facsimile:
    FINSEC
230163
    Kampala
For the Association:
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address:
Telex:
Facsimile
    INDEVAS
248423 (MCI) or
(202) 477-6391
    Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in 
the District of Columbia, United States of America as of the day and year first above 
written.
THE REPUBLIC OF UGANDA
By /s/ Edith Ssempala
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Oey Astra Meesook
Page  10
Acting Regional Vice President
Africa
SCHEDULE 1
Withdrawal of the Proceeds of the Credit
Part A:
General
1.
The table below sets forth the Categories of items to be financed out of the 
proceeds of the Credit, the allocation of the amounts of the Credit to each Category 
and the percentage of expenditures for items so to be financed in each Category:
Amount of the
Credit Allocated
   % of
 (Expressed in
Expenditures
Category
SDR Equivalent)
to be Financed
(1)
Civil Works    
2,020,000
100% of foreign
expenditure and 85%
of local expenditure 
(2)
Supply and Installation of:
100% of foreign
expenditure and 90%
(a) Unit 14 under Part A.1 18,390,000
of local expenditure
of the Project
(b) Unit 15 under Part A.1 
14,910,000
of the Project
(3)
Goods:
100% of foreign
expenditure and 90%
(a) under Part C of the Project   50,000
of local expenditure
(b) under Part D of the Project  270,000
(4)
Consultants’ services:
100% of foreign
expenditures
(a) under Part A of 
 2,540,000
the Project
(b) under Part C of 
 1,520,000
the Project
(c) under Part D of 
   230,000
the Project
(5)
Training
   310,000
100%
(6)
Refinancing of Project
 1,500,000
Preparation Advance
(7)
Unallocated
 6,260,000
TOTAL
48,000,000
2.
For the purposes of this Schedule:
(a)
the term "foreign expenditures" means expenditures in the currency of any 
country other than that of the Borrower for goods or services supplied from the 
territory of any country other than that of the Borrower; and
(b)
the term "local expenditures" means expenditures in the currency of the 
Borrower or for goods or services supplied from the territory of the Borrower. 
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures:
Page  11
(a)
prior to the date of this Agreement, except that withdrawals, in an 
aggregate amount not exceeding the equivalent of SDR 2,020,000 may be made in respect 
of Category (1) on Account of payments made for expenditures before that date but 
after August 1, 2000; 
(b)
under Category (2) unless the Borrower has issued a list of firms 
selected in accordance with a selection process, satisfactory to the Association, 
which have been pre-qualified to bid for a concession contract for the grid-connected 
distribution business in the Borrower's territory;
(c)
under Category (2) (b) unless the Association is satisfied that the study 
carried out under Part A.5 (b) confirms that the installation of Unit 15 is 
economically viable; and
(d)
under Category (3) (b) and (4) (c) unless the Borrower has submitted to 
its Parliament draft legislation on the supply of petroleum products in the Borrower's 
territory. 
4.
The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditure for expenditures for: (a) works costing less 
than $200,000 equivalent each, (b) goods, and consultants' services provided by firms 
under contracts costing less than $100,000 equivalent each; and (c) consultants’ 
services provided by individual consultants under contracts costing less than $50,000, 
under such terms and conditions as the Association shall specify by notice to the 
Borrower.
Part B:
Special Account
1.
The Borrower shall open and maintain in Dollars two separate special deposit 
accounts one for Parts A.1, A.3 (a), A.4, A.5, and Part B of the Project in the name 
of the Generation Company (Special Account "A") and another for Parts C and D of the 
Project in the name of MEMD (Special Account "B"), in a commercial bank, on terms and 
conditions satisfactory to the Association including appropriate protection against 
set-off, seizure and attachment. Except as the Association may otherwise specify by 
notice to the Borrower, all withdrawals from the Credit Account shall be deposited by 
the Association into the respective Special Account in accordance with the provisions 
of this Schedule. Payments out of each Special Account shall be made exclusively for 
Eligible Expenditures. For each payment made by the Borrower out of a Special Account, 
the Borrower shall, at such time as the Association shall reasonably request, furnish 
to the Association such documents and other evidence showing that such payment was 
made exclusively for Eligible Expenditures.
2.
Except as the Association shall otherwise agree, after the Association has 
received evidence satisfactory to it that a Special Account has been duly opened, 
withdrawals from the Credit Account of amounts to be deposited into the said Special 
Account shall be made as follows:
(a)
until the Association shall have received: (i) the first Project 
Management Report referred to in Section 4.02 (b) of this Agreement; and (ii) a 
request from the Borrower for withdrawal on the basis of Project Management Reports, 
withdrawals shall be made in accordance with the provisions of Annex A to this 
Schedule 1; and 
(b)
upon receipt by the Association of a Project Management Report pursuant 
to Section 4.02 (b) of this Agreement, accompanied by a request from the Borrower for 
withdrawal on the basis of Project Management Reports, all further withdrawals shall 
be made in accordance with the provisions of Annex B to this Schedule 1.
3.
Payments out of the Special Account shall be made exclusively for Eligible 
Expenditures. For each payment made by the Borrower out of the Special Account, the 
Borrower shall, at such time as the Association shall reasonably request, furnish to 
the Association such documents and other evidence showing that such payment was made 
exclusively for Eligible Expenditures.
4.
Notwithstanding the provisions of Part B.2 of this Schedule, the Association 
shall not be required to make further deposits into any Special Account:
(a)
if the Association determines at any time that any Project Management 
Report does not adequately provide the information required pursuant to Section 4.02 
of this Agreement;
(b)
if the Association determines at any time that all further withdrawals 
Page  12
should be made by the Borrower directly from the Credit Account; or
(c)
if the Borrower shall have failed to furnish to the Association, within 
the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the 
audit reports required to be furnished to the Association pursuant to said Section in 
respect of the audit of (A) the records and accounts for the Special Account or (B) 
the records and accounts reflecting expenditures with respect to which withdrawals 
were made on the basis of Project Management Reports.
4.
The Association shall not be required to make further deposits into the Special 
Accounts in accordance with the provisions of Part B.2 of this Schedule if, at any 
time, the Association shall have notified the Borrower of its intention to suspend in 
whole or in part the right of the Borrower to make withdrawals from the Credit Account 
pursuant to Section 6.02 of the General Conditions.  Upon such notification, the 
Association shall determine, in its sole discretion, whether further deposits into the 
Special Accounts may be made and what procedures should be followed for making such 
deposits, and shall notify the Borrower of its determination.
5.
(a)
If the Association determines at any time that any payment out of a 
Special Account was made for an expenditure which is not an Eligible Expenditure, or 
was not justified by the evidence furnished to the Association, the Borrower shall, 
promptly upon notice from the Association, provide such additional evidence as the 
Association may request, or deposit into the said Special Account (or, if the 
Association shall so request, refund to the Association) an amount equal to the amount 
of such payment.
(b)
If the Association determines at any time that any amount outstanding in 
a Special Account will not be required to cover payments for Eligible Expenditures 
during the six-month period following such determination, the Borrower shall, promptly 
upon notice from the Association, refund to the Association such outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the 
Association all or any portion of the funds on deposit in a Special Account.
(d)
Refunds to the Association made pursuant to sub-paragraph (a), (b) or (c) 
of this paragraph 5 shall be credited to the Credit Account for subsequent withdrawal 
or for cancellation in accordance with the provisions of the Development Credit 
Agreement.
Annex A to SCHEDULE 1
Operation of Special Account
When Withdrawals Are Not Made
On the Basis of Project Management Reports
1.
For the purposes of this Annex, the term "Authorized Allocation" means an amount 
equivalent to $1,000,000 with respect to Special Account"A" and $200,000 with respect 
to Special Account "B" to be withdrawn from the Credit Account and deposited into the 
Special Account pursuant to paragraph 2 of this Annex. 
2.
Withdrawals of the Special Account's Authorized Allocations and subsequent 
withdrawals to replenish the Special Account should be made as follows:
(a)
For withdrawals of said Special Account Authorized Allocations, the 
Borrower shall furnish to the Association a request or requests for deposit into said 
Special Account of an amount or amounts which in the aggregate do not exceed said 
Authorized Allocations. On the basis of each such request, the Association shall, on 
behalf of the Borrower, withdraw from the Credit Account and deposit into said Special 
Account such amount, as the Borrower shall have requested. 
(b)
For replenishment of the Special Account, the Borrower shall furnish to 
the Association requests for deposit into said Special Account at such intervals as 
the Association shall specify. Prior to or at the time of each such request, the 
Borrower shall furnish to the Association the documents and other evidence required 
pursuant to Part B.3 of Schedule 1 to this Agreement for the payment or payments in 
respect of which replenishment is requested. On the basis of each such request, the 
Association shall, on behalf of the Borrower, withdraw from the Credit Account and 
deposit into said Special Account such amount as the Borrower shall have requested and 
as shall have been shown by said documents and other evidence to have been paid out of 
the Special Account for Eligible Expenditures. Each such deposit into said Special 
Account shall be withdrawn by the Association from the Credit Account under one or 
Page  13
more of the  Special Account's Eligible Categories.
3.
The Association shall not be required to make further deposits into the Special 
Account, once the total unwithdrawn amount of the Credit minus the total amount of all 
outstanding special commitments entered into by the Association pursuant to Section 
5.02 of the General Conditions, shall equal the equivalent of twice the amount of said 
Special Account’s Authorized Allocations. Thereafter, withdrawal from the Credit 
Account of the remaining unwithdrawn amount of the Credit shall follow such 
procedures, as the Association shall specify by notice to the Borrower.  Such further 
withdrawals shall be made only after and to the extent that the Association shall have 
been satisfied that all such amounts remaining on deposit in said Special Account as 
of the date of such notice will be utilized in making payments for Eligible 
Expenditures.
Annex B to SCHEDULE 1
Operation of Special Account
When Withdrawals Are Made
On the Basis of Project Management Reports
1.
Except as the Association may otherwise specify by notice to the Borrower, all 
withdrawals from the Credit Account shall be deposited by the Association into the 
respective Special Account in accordance with the provisions of Schedule 1 to this 
Agreement. Each such deposit into the Special Account shall be withdrawn by the 
Association from the Credit Account under one or more of the said Special Account’s 
Eligible Categories.
2.
Each application for withdrawal from the Credit Account for deposit into a 
Special Account shall be supported by a Project Management Report.
3.
Upon receipt of each application for withdrawal of an amount of the Credit, the 
Association shall, on behalf of the Borrower, withdraw from the Credit Account and 
deposit into the respective Special Account an amount equal to the lesser of: (a) the 
amount so requested; and (b) the amount which the Association has determined, based on 
the Project Management Report accompanying said application, is required to be 
deposited in order to finance Eligible Expenditures during the six-month period 
following the date of such report; provided, however, that the amount so deposited, 
when added to the amount indicated by said Project Management Report to be remaining 
in the said Special Account, shall not exceed the equivalent of $10,000,000 in respect 
of the Special Account "A" for Parts A.1, A.3 (a), A.4, A.5, and Part B of the Project 
and $500,000 in respect of Special Account "B" for Parts C and D of the Project.
SCHEDULE 2
Description of the Project
The objectives of the Project are: (a) to improve power supply to meet demand in 
the Borrower’s territory by supporting critical investments in the power sub-sector; 
and (b) to strengthen the Borrower’s capacity to manage reforms to, and development 
of, the power and petroleum sub-sectors.
The Project consists of the following parts, subject to such modifications 
thereof as the Borrower and the Association may agree upon from time to time to 
achieve such objectives:
Part A:
Power System Expansion and Rehabilitation
1.
Expansion of the Kiira power plant through: (a) the acquisition and installation 
of two 40 MW power generation units (Units 14 and 15), including water turbines, 
generators and related equipment and civil works; and (b) completion of the 
installation of one 40 MW unit (Unit 13), including the acquisition of related 
equipment and civil works.
2.
Upgrading of the Transmission Company’s supervisory control and data acquisition 
and telecommunications systems through: (a) the acquisition and installation of 
hardware and software; (b) installation of remote and terminal units and data 
collecting equipment in 132 kV and 33 kV substations; and (c) extension of 
telecommunications systems.
3.
Rehabilitation of the power system to improve safety and reliability of 
substations at: (a) Nalubaale; and (b) Nkenda, Nkonge, and Opuyo through the 
Page  14
acquisition and installation of circuit breakers and transformers associated civil 
works.
4.
Design and supervision of activities under Parts A.1, A.2 and A.3 of the Project 
through the provision of technical advisory services to the Generation Company.
5.
(a)
Strengthening the financial and overall management of the Project through 
the provision of technical advisory services; and 
(b)
the carrying out of a technical and economic evaluation to determine the 
viability of Unit 15 under Part A.1 of the Project. 
Part B:
Environmental Monitoring
Implementation by the Generation Company of an environmental monitoring plan 
through the acquisition of equipment and provision of technical advisory services to  
the Generation Company including:
1.
monitoring: (a) the quantity of surface water at points downstream of the Kiira 
dam and downstream at the outlet of Lake Kyoga; (b) the biology and ecology of the 
fish population upstream of the Nalubale Dam and downstream of the Kiira Dam as well 
as in the [new] canal; (c) the stability of the shoreline immediately downstream of 
the Kiira dam at the tail race area on the Eastern Bank; and (d) water quality in the 
area upstream of the Nalubale dam and downstream of the Kiira Dam and the new canal;
2.
silt removal from storm water drains by installing silt interceptors in drains 
and through regular cleaning;
3.
limnological sampling of: (a) micro-flora; (b) aquatic weeds and benthic 
organisms; and (c) vegetation changes in the upper watershed; and 
4.
removal of temporary construction infrastructure at the completion of the 
Project.
Part C:
Power Sector Development and Reform
Strengthening the Borrower's capacity for the reform and development of the 
energy sector through the acquisition of equipment, training of staff and the 
provision of technical advisory services to MEMD and ERA including:
(a)
a study on water management of Lake Victoria; 
(b)
development of an energy end-use efficiency and consumer awareness 
program;
(c)
the carrying out of annual consumer satisfaction surveys;
(d)
the carrying out of sector studies and the preparation of future projects 
in the sub-sctor; and 
(e)
training of staff in project management, power sector regulation, 
licensing, tariff setting, energy policy, energy efficiency and procurement and other 
power sub-sector issues.
Part D: 
Petroleum Sub-Sector Development and Reform 
Strengthening MEMD’s capacity to develop and implement reforms in the petroleum 
sub-sector including capacity to develop and implement an adequate legal framework 
through: (a) the acquisition of equipment and vehicles; (b) the provision of technical 
advisory services; (c) training of staff; and (d) the carrying out of studies.
* * *
The Project is expected to be completed by June 30, 2004.
SCHEDULE 3
Procurement and Consultants’ Services
Section I.
Procurement of Goods and Works
Page  15
Part A:
General
1.
Goods and works shall be procured in accordance with (a) the provisions of 
Section I of the "Guidelines for Procurement under IBRD Loans and IDA Credits" 
published by the Bank in January 1995 and revised in January and August 1996, 
September 1997 and January 1999 (the Guidelines); and (b) the provisions of the 
following Parts of this Section I.
2.
In paragraphs 1.6 and 1.8 of the Guidelines, the references to "Bank member 
countries" and "member country" shall be deemed to be references, respectively, to 
"Participating Countries" and "Participating Country".
Part B:
International Competitive Bidding
1.
Except as otherwise provided in Part C of this Section, goods and works shall be 
procured under contracts awarded in accordance with the provisions of Section II of 
the Guidelines and paragraph 5 of Appendix 1 thereto.
2.
The following provisions shall apply to goods and works to be procured under 
contracts awarded in accordance with the provisions of paragraph 1 of this Part B.
(a)
Prequalification
Bidders for Parts A.1 and A.2 of the Project  shall be prequalified in 
accordance with the provisions of paragraphs 2.9 and 2.10 of the Guidelines.
(b)
Grouping of contracts
To the extent practicable, contracts for goods shall be grouped in bid packages 
estimated to cost $100,000 equivalent or more each. 
(c)
Preference for domestically manufactured goods and domestic contractors
The provisions of paragraphs 2.54 and 2.55 of the Guidelines and Appendix 2 
thereto shall apply to goods manufactured in the territory of the Borrower and works 
to be carried out by domestic contractors.
(d)
Notification and Advertising
The invitation to prequalify or bid for each contract estimated to cost $100,000 
equivalent or more shall be advertised in accordance with the procedures applicable to 
large contracts under paragraphs 2.7 and 2.8 of the Guidelines.
Part C:
Other Procurement 
1.
National Competitive Bidding
Goods estimated to cost less than $100,000 equivalent per contract, up to an 
aggregate amount not to exceed $40,000 equivalent may be procured under contracts 
awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.
2.
International or National Shopping
Goods estimated to cost less than $30,000 equivalent per contract, up to an 
aggregate amount not to exceed $160,000 equivalent, may be procured under contracts 
awarded on the basis of international or national shopping procedures in accordance 
with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 
3.
Procurement from UN Agencies
Computers and office equipment estimated to cost up to an aggregate amount not 
exceeding $30,000 equivalent, may be procured from IAPSO in accordance with the 
provisions of paragraph 3.9 of the guidelines.
Part D:
Review by the Association of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to prequalify for bidding or to bid for 
contracts, the proposed procurement plan for the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall 
Page  16
be undertaken in accordance with such procurement plan as shall have been approved by 
the Association, and with the provisions of said paragraph 1.
2.
Prior Review
With respect to each contract estimated to cost the equivalent of: (i) $100,000 
or more for goods; and (ii) the equivalent of $200,000 for works, the procedures set 
forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.
Section II.
Employment of Consultants
Part A:
General
1.
Consultants’ services shall be procured in accordance with: (a) the provisions 
of the Introduction and Section IV of the "Guidelines:  Selection and Employment of 
Consultants by World Bank Borrowers" published by the Association in January 1997 and 
revised in September 1997 and January 1999, subject to the modifications thereto set 
forth in paragraph 2 of this Part A (the Consultant Guidelines); and (b) the 
provisions of the following Parts of this Section II.
2.
In paragraph 1.10 of the Consultant Guidelines, the references to "Bank member 
countries" and "member country" shall be deemed to be references, respectively, to 
"Participating Countries" and "Participating Country".
Part B:
Quality- and Cost-Based Selection
1.
Except as otherwise provided in Part C of this Section, consultants’ services 
shall be procured under contracts awarded in accordance with the provisions of Section 
II of the Consultant Guidelines, paragraph 3 of Appendix 1 thereto, Appendix 2 
thereto, and the provisions of paragraphs 3.13 through 3.18 thereof applicable to 
quality- and cost-based selection of consultants.
2.
The following provisions shall apply to consultants’ services to be procured 
under contracts awarded in accordance with the provisions of the preceding paragraph.  
The shortlist of consultants for services estimated to cost less than $100,000 
equivalent per contract, may comprise entirely national consultants in accordance with 
the provisions of paragraph 2.7 of the Consultant Guidelines.
Part C:
Other Procedures for the selection of Consultants
1.
Selection Based on Consultants’ Qualifications
Services for strengthening of the petroleum sector management and technical 
assistance and training for the regulatory agency
estimated to cost less than $100,000 
equivalent per contract, may be procured under contracts awarded in accordance with 
the provisions of paragraphs 3.1 and 3.7 of the Consultant Guidelines.
2.
Individual Consultants
Services for tasks that meet the requirements set forth in paragraph 5.1 of the 
Consultant Guidelines shall be procured under contracts awarded to individual 
consultants in accordance with the provisions of paragraphs 5.1 through 5.3 of the 
Consultant Guidelines.
3.
Single Source Selection
Services under Part B of the Project which are estimated to cost less than 
$50,000 equivalent per contract, may, with the Association’s prior agreement, be 
procured in accordance with the provisions of paragraphs 3.8 through 3.11 of the 
Consultant Guidelines.
Part D:
Review by the Association of the Selection of Consultants
1.
Selection Planning
Prior to the issuance to consultants of any requests for proposals, the proposed 
plan for the selection of consultants under the Project shall be furnished to the 
Page  17
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Consultant Guidelines.  Selection of all consultants’ 
services shall be undertaken in accordance with such selection plan as shall have been 
approved by the Association, and with the provisions of said paragraph 1.
2.
Prior Review
(a)
With respect to each estimated to cost the equivalent of $100,000 or 
more, the procedures set forth in paragraphs 1, 2 (other than the third subparagraph 
of paragraph 2 (a)) and 5 of Appendix 1 to the Consultant Guidelines shall apply.
(b)
With respect to each contract for the employment of individual 
consultants estimated to cost the equivalent of $50,000 or more, the qualifications, 
experience, terms of reference and terms of employment of the consultants shall be 
furnished to the Association for its prior review and approval.  The contract shall be 
awarded only after the said approval shall have been given.
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Consultant Guidelines shall 
apply.
SCHEDULE 4
Implementation Program
1.
Project Implementation Manual
(a)
(i)
The Borrower shall prepare and furnish to the Association a 
Project Implementation Manual in form and substance satisfactory 
to the Association setting out details of all procedures, 
guidelines, processes, timetables and criteria for carrying out 
Parts C and D of the Project.
(ii)
Except as the Association shall otherwise agree, the Borrower 
shall not amend or waive any provision of the Project 
Implementation Manual if, in the opinion of the Association, such 
amendment or waiver may materially and adversely affect the 
carrying out of Parts C and D of the Project or the achievement of 
the objectives thereof.  
(b)
The Borrower shall maintain policies and procedures adequate to enable it 
to monitor and evaluate on an ongoing basis, in accordance with the indicators set 
forth in Schedule 5 to this Agreement, the carrying out of Parts C and D of the 
Project and the achievement of the objectives thereof.
(c)
The Borrower shall prepare, under terms of reference satisfactory to the 
Association, and furnish to the Association, on or about July 30, 2002, a report 
integrating the results of the monitoring and evaluation activities performed pursuant 
to paragraph (a) of this Section, on the progress achieved in the carrying out of the 
Project during the period preceding the date of said report and setting out the 
measures recommended to ensure the efficient carrying out of the Project and the 
achievement of the objectives thereof during the period following such date.
(d)
The Borrower shall review with the Association, by December 31, 2002, or 
such later date as the Association shall request, the report referred to in paragraph 
(b) of this Section, and, thereafter, take all measures required to ensure the 
efficient completion of the Project and the achievement of the objectives thereof, 
based on the conclusions and recommendations of the said report and the Association’s 
views on the matter.
(e)
Once the Borrower and the Generation Company agree to award a concession 
agreement of the Generation Company’s responsibilities  to a private operator, the 
Borrower shall agree on necessary revisions to the Subsidiary Loan Agreement in a 
manner satisfactory to the Association and containing adequate provisions to protect 
the interest of the Association and the Borrower.
(f)
The Borrower shall take all such measures as may be necessary or 
required, satisfactory to the Association, for the purpose of ensuring that the 
entities operating in the power sub-sector achieve technical standards and financial 
targets of efficiently run power sector entities.
Page  18
(g)
The Borrower and the Association shall, from time to time, at the request 
of either party, exchange views with regard to the Borrower’s electricity and 
petroleum pricing policies and its plans in respect of the overall development of the 
power and petroleum sub-sectors.
SCHEDULE 5
Performance Indicators.
Part C of the Project
Output indicators:
1.
3 and 10 computers procured for MEMD and ERA respectively by end-2002.
2.
Training provided for 10 MEMD and 5 ERA staff by end-2003.
3.
Consultants employed by end-2003 to carry out technical advisory services for 
the reform and development of the power and petroleum sub-sectors.
4.
Consultants have prepared a Water Management Plan by end-2003. 
Outcome indicators:
1.
ERA office is operational by end-2002.
2.
Key energy staff in MEMD and ERA have access to modern technology.
3.
By end-2003, Government has taken action consistent with 3 consultancy reports 
prepared under the Project.
4.
A Water Management Plan is used to pursue improvement in the operation of 
hydropower plants on the Victoria Nile.
Part D of the Project
Output indicators:
1.
Experts hired to assist in setting-up a monitoring system and developing 
guidelines by mid-2002.
3.
Training provided for staff in the Petroleum Monitoring Unit.
2.
Petroleum quality monitoring and office equipment procured.
Outcome indicators:
1.
Guidelines established for petroleum industry monitoring with regard to quality, 
safety, and pricing by end-2002.
2.
Petroleum Monitoring Unit is competently staffed by end-2002.
3.
Staff effectively using quality monitoring equipment by end-2003.