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Cablegate: Financing for Development Demarche: Uganda Asks For

VZCZCXRO2584
RR RUEHGI RUEHRN RUEHROV
DE RUEHKM #1451 3091212
ZNR UUUUU ZZH
R 041212Z NOV 08
FM AMEMBASSY KAMPALA
TO RUEHC/SECSTATE WASHDC 0836
INFO RUCNIAD/IGAD COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEHLMC/MCC WASHINGTON DC

UNCLAS KAMPALA 001451


STATE FOR EBB/IFD/ODF/KEMONAHAN; IO/EDA/JHARRIMAN
STATE PASS TO USTR FOR C. HAMILTON AND W. JACKSON
TREASURY FOR REBECCA KLEIN

SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON EFIN PREL UG UN
SUBJECT: FINANCING FOR DEVELOPMENT DEMARCHE: UGANDA ASKS FOR
INFRASTRUCTURE HELP

REF: State 102765

1. Econoff delivered points in reftel to Laurence Kizza, Director of
Economic Affairs at the Ministry of Finance and Economic Development
and Arapta Mangusho, acting head of the Department of Multilateral
Organizations at the Ministry of Foreign Affairs. Both Kizza and
Mangusho stated that the Ugandan Government has formulated its
position for the review of the 2002 Monterrey Consensus on Financing
for Development (FfD). Uganda believes that while good governance
and sound economic policies in developing countries are important,
developed countries should also provide resources to address
"supply-side constraints" in the developing world, Kizza stated. In
Uganda's view, these constraints are a larger local inhibitor of
international trade than issues of corruption and governance.

2. Asked which constraints Uganda meant, Kizza and Mangusho said
developed countries should provide greater assistance to build
transport infrastructure in the developing world. The officials
emphasized that, though the Ugandan budget had provided more
resources for infrastructure in its 2008/2009 fiscal year budget,
the country's ability to absorb large cash inflows for
infrastructure was currently limited. Mangusho complained that
locally planned infrastructure projects had failed to obtain funding
from international institutions, and, therefore, Uganda particularly
needed greater assistance in building local capacity to plan and
design infrastructure. The officials stated that these views had
been communicated to the Ugandan Permanent Mission at the UN for use
in current negotiations on the Outcome Document for the Doha FfD
Review Conference.
BROWNING

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