UGANDA STRATEGIC TOWNS WATER SUPPLY AND SANITATION …€¦ · iv PROJECT SUMMARY Project Overview:...
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AFRICAN DEVELOPMENT FUND UGANDA STRATEGIC TOWNS WATER SUPPLY AND SANITATION PROJECT (STWSSP) RDGE/AHWS DEPARTMENTS May 2018 Public Disclosure Authorized Public Disclosure Authorized
Transcript of UGANDA STRATEGIC TOWNS WATER SUPPLY AND SANITATION …€¦ · iv PROJECT SUMMARY Project Overview:...
AFRICAN DEVELOPMENT FUND
UGANDA
STRATEGIC TOWNS WATER SUPPLY AND SANITATION PROJECT
(STWSSP)
RDGE/AHWS DEPARTMENTS
May 2018
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TABLE OF CONTENTS PROJECT SUMMARY ............................................................................................................ iv Result-Based Logical Framework............................................................................................. vi
I: STRATEGIC THRUST AND RATIONALE ........................................................................ 1 1.1 Project Linkages with Country Strategy and Objectives ............................................ 1 1.2 Rationale for Bank’s Involvement .............................................................................. 2 1.3 Donors Coordination ................................................................................................... 3
II: PROJECT DESCRIPTION ................................................................................................... 4
2.1 Project Components .................................................................................................... 4 2.2 Technical Solution Retained and other Alternatives Explored ................................... 4 2.3 Project Type ................................................................................................................ 5 2.4 Project Cost and Financing Arrangements .................................................................. 5 2.5 Project’s Target Area and Population ......................................................................... 7
2.6 Participatory Process for Project Identification, Design and Implementation ............ 7 2.7 Bank Group Experiences, Lessons Learnt and Reflected in Project Design .............. 7
2.8 Key Performance indicators ........................................................................................ 8 3.1 Economic and Financial Performance......................................................................... 9 3.2 Environmental and Social Impacts ............................................................................ 10 3.2.1 Environment .............................................................................................................. 10
3.2.2 Climate Change 10
3.2.3 Involuntary Resettlement .......................................................................................... 10
3.2.4 Gender ........................................................................................................................ 11 3.2.5 Social ......................................................................................................................... 11
IV: IMPLEMENTATION ....................................................................................................... 12
4.1 Implementation Arrangements .................................................................................. 12 4.1.2 Procurement Arrangements ....................................................................................... 12
4.1.3 Financial Reporting and Audit .................................................................................. 13 4.2 Monitoring ................................................................................................................. 14
4.3 Governance................................................................................................................ 14 4.4 Sustainability ............................................................................................................. 15 4.5 Risk Management ...................................................................................................... 17
4.6 Knowledge Building ................................................................................................. 17
V: LEGAL INSTRUMENTS AND AUTHORITY ................................................................ 18 5.1 Legal Instrument ....................................................................................................... 18 5.2 Conditions Associated with Bank’s Intervention ...................................................... 18 5.3 Compliance with Bank Policies ................................................................................ 18
VI: RECOMMENDATION ..................................................................................................... 18
Appendix I: Comparative Socio-economic Indicators Appendix II: Bank Group Portfolio in Uganda Appendix III: Selected Projects Financed by the Bank and other Development Partners in the
Country
Appendix IV: Government Endorsement Letter for Climate Fund Cofinancing Appendix V: Map of Project Areas
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CURRENCY EQUIVALENTS
(As of January 2018)
Currency Unit = Uganda Shillings (UGX)
UA 1 = USD 1.42
UA 1 = EUR 1.19
UA 1 = UGX 5,12452
EUR 1 = USD 1.20 EUR 1 = UGX 4,315.49
USD 1 = UGX 3,598.35
FISCAL YEAR
1st July - 30th June
WEIGHTS AND MEASURES
1 metric tonne = 2204 pounds (lbs).
1 kilogram (kg) = 2.200 lbs.
1 meter (m) = 3.28 feet (ft)
1 millimeter (mm) = 0.3937 inch (“)
1 kilometre (km) = 0.62 mile
1 square kilometre (km2) = 0.386 square mile
1 hectare (ha) = 0.01 km2 = 2.471 acres
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ACRONYMS AND ABBREVIATIONS
AfDB African Development Bank
ADF African Development Fund
CSP Country Strategy Paper
CSI Core Sector Indicator
DPs Development Partners
EA Executing Agency
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
FM Financial Management
GoU Government of Uganda
JPF Joint Partnership Fund
JSR Joint Sector Review
JWESSP Joint Water and Environment Sector Support Programme
M&E Monitoring & Evaluation
MWE Ministry of Water and Environment
NWP National Water Policy
O&M Operation & Maintenance
PIT Project Implementation Team
PCR Project Completion Report RBLF Result Based Logical Framework
SDG Sustainable Development Goals
SPS Sector Programme Support
STWSS Strategic Towns Water Supply and Sanitation
SWAp Sector Wide Approach to Planning
UA Unit of Account USD United States Dollars
WSSDPG Water and Sanitation Development Partner Group
WSDF Water and Sanitation Development Facility
WSSWG Water and Sanitation Sub-sector Working Group
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Loan Information
Client’s Information
BORROWER: Republic of Uganda
EXECUTING AGENCY: Ministry of Water and Environment
Financing Plan
Source Amount Instrument
ADF UA 44 million Loan
Government of Uganda UA 4.9million
TOTAL PROJECT
COST
UA 48.9million
ADB’s Key Financing Information
Loan
UA
Interest type* N/A
Interest rate spread* N/A
Service Charge 0.75% per annum
Commitment Fee 0.50% per annum
Tenor 40 years
Grace period 10 years
FIRR , FNPV(base case) (15.52%) UGX 42.29 bn
EIRR , ENPV(base case) (43.49%) UGX 359.83 bn
Timeframe - Main Milestones (expected)
Project Identification July 2017
Preparation Mission Sept 2017
Concept Note Approval Oct 2017
Appraisal Mission Nov 2017
PAR CT Meeting Jan 2018
Project Approval June 2018
Effectiveness Sept 2018
First Disbursement Dec 2018
Closing Date June 2024
Last Repayment Dec 2058
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PROJECT SUMMARY
Project Overview: The objective of the Strategic Towns Water Supply and Sanitation Project
(STWSSP) is to support the Government of Uganda’s efforts to achieve sustainable provision
of safe water and hygienic sanitation for the urban population by the year 2030. This in turn
will contribute to improved health and productivity of the population in the targeted towns
across the country. The project is estimated to cost UA 48.89 million, of which UA 44 million
will be funded by an African Development Fund (ADF) loan and UA 4.9 million counterpart
contribution from the Government of Uganda. The project will be implemented over a 5 year
period from September 2018 to June 2024. The project has set aside UA 1.27 million under
which bankable climate change resilient investment projects will be prepared to leverage
approximately USD 83 million financing from the Green Climate Fund identified under the
Uganda Strategic Program for Climate Change Resilience. The Government has also endorsed
USD 2.2 million from the Climate Fund as cofinancing for strengthening climate change
adaptation of the towns.
Project Beneficiaries and Impact: The project is expected to improve the quality of service
and the supply of water and sanitation facilities to towns, including women and children who
bear most of the cost of water scarcity. It will also improve management and functioning of
water supply and sanitation systems. This will be achieved by investing in water supply and
sanitation infrastructure in ten district headquarter towns across the country. At completion,
the project is expected to benefit directly 390,000 people with improved piped water access. A
total of 150 people (of which 20% will be women) will receive training in appropriate urban
sanitation (masonry/mechanic artisans/waste management) while 30 communities will benefit
from sanitation and hygiene promotion, targeting at least 50% women participation. The
project will also support 200 youths and women in skills development for economic
empowerment. About 4,000 temporary jobs and 1,000 permanent jobs will be created from
project activities through stimulation of commercial activities in the services sectors such as
hotels, health and education, and in agro-based industries. The project beneficiaries were
consulted during the design of the project and will be involved during implementation to
enhance social accountability and partnership.
Needs Assessment: Economic growth and urbanization are placing increasing pressure on
Uganda’s water resources and sanitation facilities. Urban services are not keeping pace with
urban population growth, with demand for services far outstripping supply in most urban areas
because of inadequate financing for capital investments and insufficient capacity for planning,
operating, and maintaining urban infrastructure and services. The lack of sanitation facilities
have led to discharge of untreated effluents creating a health hazard for the residents especially
in the main urban centres. Adequate water supply and sanitation infrastructure, remains a
challenge as the country aspires for long term sustainable socio-economic development. The
proposed project will contribute to the goals of the Government’s Vision 2040 and the Second
National Development Plan (NDP II). The Government aims to increase access to clean water
and sanitation services in the major urban centres and their suburbs, expanding access to the
poor in underserved areas and strengthening sector institutions. Access to improved water
supply is currently recorded at 71% for urban areas, while access to sanitation is at 84%, which
falls short of the national goals as outlined in Uganda Vision 2040 (which aims to reach 100%
by 2030). The Government’s new focus for urban sanitation is through improved faecal sludge
management at regional level to ensure safe disposal, and calls for construction of regional
faecal sludge plants. Support from development partners will be required to construct large
core infrastructure for intakes, transmission lines and the treatment plants with capacity to
supply water to additional cluster towns beyond the project towns. Investments in water
infrastructure will act as a catalyst for local development and economic activity by providing
water for agriculture, animal husbandry, food processing, and other businesses. It will bring
higher quantities and more reliable water to households thereby enhancing the quality of their
life by reducing the time and effort to collect water, reducing the incidents of waterborne
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diseases, and reducing absence from work and school and the associated costs, including lost
income and opportunities.
Bank Value Addition: The Bank brings a wealth of knowledge and technical experience
directly relevant to the Ugandan urban water supply and situation. The Bank has implemented
a number of urban water projects like the Small Towns Water and Sanitation Project, Kampala
Sanitation Project, Kampala Urban Poor Project, Lake Victoria Water Supply and Sanitation
Program, and Water Supply and Sanitation Program phase I and II. The Project is aligned to
Pillar 1 of the Bank’s Country Strategy Paper (CSP) for Uganda, covering the period 2017-
2021. It will contribute to accelerating implementation of the Bank’s Ten Year Strategy and
contribute to achieving the Banks High 5 priority to ‘improve the quality of life for the people
of Africa’ through eliminating extreme poverty and promoting shared prosperity.
Knowledge Management: Lessons from implementing the project will continuously be
captured and documented throughout the project implementation period as part of knowledge
generation and sector monitoring framework. The lessons will be reflected in the quarterly
progress reports and annual sector performance reports. The lessons will ensure improvement
in project implementation and water management and will also inform design and
implementation of future projects. The Ministry of Water & Environment (MWE) will also
ensure that the urban data base captures access and related information on all new and
rehabilitated facilities under the project to facilitate assessment of progress and input in the
Banks Implementation Performance Result (IPR) report and the next Water Atlas.
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Result-Based Logical Framework
Country and Project Name: Uganda - Strategic Towns Water Supply and Sanitation Project (STWSSP)
Purpose of the Project: To support the Government of Uganda’s efforts to achieve sustainable provision of safe water and hygienic sanitation for the urban population with improved
resilience to climate change effects by the year 2030. RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/ MITIGATION MEASURES
Indicators
Baseline
(2017)
Target
(2023)
IMP
AC
T
1. Contribute to improved health
and productivity of the population
through use of safe water and
sanitation services.
1.1 Percentage of incidence of diarrhea
morbidity among children under five.
1.2 Percentage of pupils completing
primary level of education (with a
gender parity index of 1.0).
3.5%
61.6%
2.5%
72%
Health sector
performance
Report;
Education and
Sports sector
performance
report;
UBOS Report
(UNHHS)
Risk: Delays in setting up effective and efficient
regulatory policies and strategies may affect
service delivery.
Mitigation: The Utility Regulation Department
will be strengthened to achieve its mandate
including tariff setting and compliance
monitoring of utilities that will manage the
completed water supply schemes.
Risk: Exchange rate volatility and cost overruns
may affect funds availability, and timely
completion especially where there are delays in
implementation of projects and in
disbursements.
Mitigation: The Bank and GoU will promptly
track all payments requests to ensure timely
disbursement of funds. Adequate price
contingence shall be provided for to guard
against the exchange rate volatility and MWE
shall be supported with contract management.
Risk: Access to any additional land and required
environmental approvals may delay timely
completion of the sub-projects.
Mitigation: The EA will commence additional
land identification and acquisition before project
effectiveness and ensure timely approval of the
Environmental and Social Monitoring Plan.
Risk: Delay in project effectiveness due to
delays in Parliamentary approval.
Mitigation: The EA is already engaging with
the parliamentary committee and the Ministry
Ou
tco
mes
2. Improved access and quality of
service to a sustainable safe water
supply and sanitation facilities.
2.1 Percentage of urban population
with access to safe drinking water
(CSI).
2.2 Number of urban people served
with improved access to safe water
within 200m.
2.3 Percentage of urban people with
access to improved sanitation (CSI).
71%
0
84%
90%
390,000
95%
Annual Sector
Performance
Report
Signed minutes of
Joint Sector
Review
Quarterly progress
reports
JPF quarterly
progress report
Quarterly and
annual component
progress
reporting;
Water atlas
3. Improved management and
functionality of water supply.
3.1 Functionality rate of urban water
supplies systems (%).
94%
96%
Ou
tpu
ts
Component 1: Urban Water Supply
1.1 Urban water supply schemes
constructed.
1.1.1 No. of town water supply
schemes constructed/rehabilitated.
1.1.2 Detailed engineering designs
done.
1.1.3 Total water production capacity
(m3/day).
1.1.4 Total kms of pipelines
constructed (transmission &
distribution).
0
0
0
0
10
10
37,500
1,300
1.2 Support for O&M 1.2.1 No. of regional umbrella of water
and sanitation authorities supported for
effective utility management.
0 6
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Component 2: Improved Urban Sanitation and Environmental
Management
of Finance, Planning and Economic
Development to expedite the approval process
2.1 Sanitation Facilities
constructed.
2.1.1 No. of regional faecal sludge
treatment facilities constructed.
2.1.2 No. of cesspool emptiers
procured.
2.1.3 No. of gender-segregated and
disabled-friendly public sanitation
facilities constructed including in
schools/ institutions.
0
0
0
3
6
40
2.2 Improved sanitation services
and hygiene promotion.
2.2.1 No. of people trained in
appropriate urban sanitation
(masonry/mechanic artisans/waste
management), targeting at least 20%
women.
2.2.2 No. of community trainings on
sanitation and hygiene promotion
conducted (targeting at least 50 %
women participation).
0
0
150
30
2.3 Environmental management
and climate change resilience.
2.3.1 No. of water sources with
protected catchments (including
ESMP).
2.3.2 No. of project feasibility designs
for Uganda strategic program for
climate change resilience.
0
0
8
10
Component 3: Sector Program Support
3.1 Support establishment of water
services regulatory framework.
3.1.1 Water and sanitation services
tariff regime reviewed and tariff policy
updated.
3.1.2 Water and sanitation services
regulation tools developed (technical
and commercial).
0
0
1
1
3.2 Skills development for women
and youth for economic
empowerment.
3.2.1 No. of women and youth trained
in water and sanitation services as a
business.
0
200
3.3 Strengthening sector co-
ordination.
3.3.1 Strategy and framework for
implementation of bulk water supply
developed.
3.3.2 Uganda water and sanitation
atlas updated.
3.3.3 Water and environment sector
0
0
0
1
1
1
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co-ordination and monitoring systems
strengthened.
Activities: Component 1: Urban Water Supply Construction of urban water supply systems covering 10 strategic towns; Engineering Services (Design and construction
supervision); detailed engineering designs, production capacity; transmission & distribution lines and reservoirs; Equipment for the wider O&M and extension through Umbrella utilities.
Component 2: Improved Urban Sanitation and Environmental Management Construction of 3 regional feacal sludge treatment facilities; procurement of 6 cesspool trucks, 40 gender-segregated &
disabled-friendly public sanitation facilities constructed including in schools/ institutions, implementation of environmental management and climate change resilience measures within urban water and sanitation sub-sector.
Component 3: Sector Programme Support Support the regulatory framework through developing of regulation tools and tariff regime reviews; skill development for
women and youth, framework for bulk water; water and sanitation Atlas and sector coordination and M&E.
Input Component 1: UA 41.62m Component 2: UA 4.89m Component 3: UA 2.38m Total ADF: UA 44m Total incl. GoU: UA 48.89m
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Project Time Frame
Project 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6
Loan Negotiations
Loan Approval
Sign Loan Protocol Agreements
Launching Mission
Community planning, mobilsation, hygine
promotion & baseline studies
Design/design review of WATSAN infrastructure
Construction of town water supply systems
Construction of regional faecal sludge management
facilities
Procurement of desludging, O&M and IT
equipment
Climate change resilience measures and feasibility
studies for climate change resilience under SPR
Development of water services regulatory tools
Review of water servives and sanitation tariff
policy
Skills development fo women and youth for
ecomonic empowerment
Development of bulkwater transfer strategy
Updated of the Uganda water and sanitation atlas
First Disbursement
Second Disbursement
Third Disbursement
Fourth Disbursement
Fifth Disbursement
Program mgt, M&E
Supervision Mission
Mid Term Review
JSR and JTR (Joint Sector/Technical Reviews)
Project Completion Report
Q1 2024 Q2 2024
UGANDA - STRATEGIC TOWNS WATER SUPPLY AND SANITATION PROJECT 2018/19 TO 2023/24
PROGRAM IMPLEMENTATION SCHEDULEQ4 2022Q3 2022Q4 2021Q3 2021 Q2 2022Q1 2022Q4 2019Q3 2019 Q2 2020Q1 2020 Q4 2020Q2 2018 Q4 2018Q3 2018 Q2 2019Q1 2019 Q1 2023 Q2 2023 Q3 2023 Q4 2023Q3 2020 Q2 2021Q1 2021
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REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD OF
DIRECTORS ON A PROPOSED LOAN TO UGANDA FOR THE STRATEGIC TOWNS
WATER SUPPLY AND SANITATION PROJECT
Management submits the following Report and Recommendation for a proposed ADF loan of UA
44.00 million to the Government of Uganda to finance the Strategic Towns Water Supply and
Sanitation Project (STWSSP). The proposed Bank group financing of the STWSSP is the Bank’s
response to a formal request by the Government of Uganda to support Government efforts to
achieve sustainable provision of safe water and hygienic sanitation for the urban population with
improved resilience to climate change effects by the year 2030.
I STRATEGIC THRUST AND RATIONALE
1.1 Project Linkages with Country Strategy and Objectives
1.1.1 The proposed project will contribute to achieving Government priorities as outlined in the
second National Development Plan (NDP-II) covering the period 2015-2020 which aims to propel
Uganda to middle income status by 2020. The NDP-II’s strategic focus is to ‘Strengthen Uganda’s
Competitiveness for Sustainable Wealth Creation, Inclusive Growth and Employment’ through
four objectives: (i) increasing sustainable production, productivity and value addition in key
growth opportunities; (ii) increasing the stock and quality of strategic infrastructure to accelerate
the country’s competitiveness; (iii) enhancing human capital development; and, (iv) strengthening
mechanisms for quality, effective and efficient service delivery.
1.1.2 The project is aligned to Pillar 1 of the Bank’s Country Strategy Paper (CSP) 2017–2021,
“Infrastructure Development for Industrialization”. The key objective of the interventions in
‘Water Supply and Sanitation’ is to improve access to clean and safe water and sanitation facilities
of agri-business centres/zones, industrial parks, business centres and underserved households. The
Bank will support the Government’s goal to ensure availability and sustainable management of
water and sanitation for all (Sustainable Development Goal 6). By providing sustainable and
affordable water and sanitation services, the project will lay foundations for industrialization and
food security, enhance the sources of economic and social resilience, and contribute to improved
quality of life for the people. The project supports achievement of two of the Bank’s High-5; it
will improve the quality of life for Ugandans, and contribute to country’s industrialization.
1.1.3 The proposed project is also in line with the Bank’s Integrated Water Resource
Management Policy (2000) and is consistent with the Bank’s Climate Change Action Plan (2016-
2020) and Uganda Climate Change policy by supporting improved resilience of communities
against climate variability and change resilience through restoration and source protection of the
water intake areas for the urban water treatment plants. The project also supports the Urban
Development Strategy (2011) through providing strategic infrastructure for economic growth. Its
support to provision of improved water and sanitation services and capacity building with focus
on women and youth are aligned to Pillars II and III of the Bank’s Gender Strategy (2014-2018)
and Bank Group Strategy for Jobs for Youth in Africa (2016-2025).
1.1.4 The policy framework for the management and development of water resources in Uganda
is based on the National Water Policy (NWP) of 1999.1 The NWP promotes an integrated
approach to the management of water resources to ensure sustainability and optimal benefit to the
country. The NWP promotes the participation of all stakeholders in all stages of water supply and
sanitation and confirms the right of all Ugandans to safe water. Between 1998 and 2005 the
1 Other policy documents which complement the NWP include: the National Environment Management Policy
(1994); the Wetlands Policy (1995), the upcoming Land Use Policy; National Health Policy and Health Sector
Strategic Plan (1999); National Environmental Health Policy (2005); the School Health Policy (2006); and, the
National Gender Policy (1997).
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Government of Uganda (GoU) in collaboration with the Development Partners (DP), implemented
reforms in the water sector, in particular, urban water supply, rural water and sanitation, water for
production and water resources management. The consultations and studies recommended more
decentralized delivery of services, increased private-sector participation, and the need for a
programmatic sector-wide approach. It also became apparent that the strategies and investment
plans needed to be reviewed in order to harmonise them to minimise duplication and
contradictions, and bring on board emerging issues such as population growth, internal
movements of people, creation of new districts and town boards; and increased incidences of
climatic variability.
1.1.5 Achieving universal access to safe water and sanitation requires significant capital
expenditure. The sector investment plan (SIP) estimated that UGX 2,517 billion (USD 700
million) was required to achieve a safe water supply and sanitation services target of 77% by 2020.
Sector funding has been short of this expectation; the sector needs to explore more funding sources
to achieve this target. Achieving the Sustainable Development Goal (SDG) of universal access to
water and sanitation will therefore require strong institutions, huge investments (tapping different
sources of financing, including commercial financing), much improved operational efficiencies,
and innovative technologies.
1.2 Rationale for Bank’s Involvement
1.2.1 Economic growth and urbanization are placing increasing pressure on Uganda’s water
resources. It is forecast that by 2040, the population of Uganda will have reached about 61 million
people, of which 30% will reside in cities. However, urban services are not keeping pace with
urban population growth, with demand for services far outstripping supply in most urban areas.
Authorities are unable to keep pace with the growing demand for services because of inadequate
financing for capital investments and insufficient capacity for planning, operating, and
maintaining urban infrastructure and services. Existing wastewater treatment facilities are few and
far from the towns leading to discharge of untreated effluents. The wastewater in the informal
settlements is often discharged through inadequate systems, resulting in septic water and sludge
spilling into the environment.
1.2.2 In line with the SDG-6 target for Uganda, the Government has set to increase access to
water supply and sanitation services from an average of 65% in 2010 to 100% by 2030. The 2017
‘Water and Environment Sector Report’ reported that as at June 2017 access to improved water
supply was 71% for urban areas and 70% for rural areas, while access to improved sanitation was
at 86% for urban areas and 80% for rural areas. The achievements are still short of the national
goals as outlined in Uganda’s Vision 2040. Adequate water supply and sanitation infrastructure
remains a challenge as the country aspires for the long term sustainable socio-economic
development. The Government’s new focus for urban sanitation is through improved feacal sludge
management at regional level and adoption of the Improved Sanitation and Hygiene (ISH)
strategy. The GoU’s proposal to the Bank is to address the necessary urban infrastructure for these
approaches which is in line with the Bank’s strategic focus.
1.2.3 The 10 strategic towns to be covered by the project are located at district headquarters
which have strategic socio-economic importance to the districts. These are areas of high
population growth and significant potential for industrial development. The provision of piped
water and improved sanitation will enhance the competitiveness of Uganda’s important cities by
eliminating water shortages and addressing the problems with the discharge of untreated septic
sludge and sewage, both of which discourage investment and tourism.
1.2.4 The expected reduction in water collection distances and times will be particularly
beneficial to women and children, especially girls, who bear the burden of fetching water and have
to walk long distances or queue for long periods. The interventions through the project will result
in more opportunities for girls to attend school and more time for women to engage in other
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economically beneficial activities. The increased population exerts additional stress on the natural
resources of the country in general and on the towns in particular and increases vulnerability to
climate change effects. The project will therefore address environmental issues and catchment
protects particularly at the water source intakes.
1.2.5 The Bank has successfully implemented large urban water and sanitation projects over the
year in regions of Africa similar to Uganda. The Bank has also implemented a number of urban
water projects in Uganda with similar technology options and with the same executing agency,
like the Small Towns Water and Sanitation Project, Kampala Sanitation Project, Kampala Urban
Poor Project, Lake Victoria Water Supply and Sanitation Program, and Water Supply and
Sanitation Program phase I and II. Lessons from these intervention will help improve the quality
of the Bank’s involvements in urban water and sanitation sub-sector.
1.3 Donors Coordination
1.3.1 The Bank is supporting the development of water and sanitation services in Uganda in
partnership with other Development Partners (DPs). At sector level, DPs active in water and
sanitation (including the Bank) are members of the Water Supply and Sanitation Development
Partners Group (WSSDPG).2 The WSSDPG is currently co-chaired by Austria and the World
Bank. The Bank chaired the WSSDPG in 2008/9 and 2011/12. The WSSDPG meets monthly to
discuss sector issues related to water and sanitation interventions within the framework of the
Joint Water and Environment Sector Support Programme (JWESSP). The proposed project has
been discussed in the WSSDPG and the Group had endorsed it.
1.3.2 The DPs are also members of the Water and Environment Sector Working Group
(WESWG) Other membership besides MWE are line ministries, Water and Environment
Authorities and parastatals, and representatives of the WASH NGO, which provides policy and
technical guidance for the sector on all water supply and sanitation and environment related issues.
The working group meets at least four times a year and is supported by two sub-sector working
groups: (i) the Water and Sanitation Sub-Sector Working Group (WSSWG); and, (ii) the
Environment and Natural Resources Sub-Sector Working Group (ENRSWG). The sub-sector
working groups meet quarterly. Table 1 below provides a summary of recent sector funding by
the different sources and level of coordination.
Table 1: WSS Donor Coordination
*Appropriation In Aid which are internally generated funds by parastatals and agencies
Sector or subsector GDP % Budget
Water and Environment N/A
Sector Budget 2016/17 UA %
GoU UGX 331.55 Bn
Donor UGX 357.13 Bn
AIA* UGX 355.05 Bn
Off Budget UGX 54.93 Bn
UA 64.86m
UA 69.86m
UA 69.45m
UA 10.75m
30
33
32
5
Level of Donor Coordination
Existence of Thematic Working Groups Y
Existence of SWAPs or Integrated Sector Approaches Y
AfDB's involvement in donors coordination Chair (2008/09 and in 2011/12)
1.3.3 Since July 2013 the ministry of Water and Environment and its Development Partners
(DPs) have been implementing a Joint Water and Environment Sector Support Programme
(JWESSP). The Programme is expected to end in June 2019. The programme is a successor to the
Joint Water and Sanitation Sector Programme Support (JWSSPS) which ended in June 2013.
Arrangements are under way to prepare the JWESSP II 2018-2023. The JWESSP is an integral
part of the national sector framework, as the core instrument for joint support in the context of a
2 Members of the WSSDPG include AfDB, Danida, World Bank, AfDB, Germany, France, EU, UNICEF, USAID,
Austria, Water Aid, KfW, GIZ, UWASNET, IRC and JICA
4
Sector-Wide Approach (SWAp) for the Water and Environment Sector. It allows for harmonised
mechanisms for coordination, financial management, performance review, joint decision making,
technical support and, to the extent possible, alignment to government systems.
1.3.4 The Bank has partnered with DPs under the JWESSP to undertake development
interventions in a programmatic approach for some of its previous and ongoing support.
Implementation of the Rural Water Supply and Sanitation Program (RWSSP) and the WSSP I &
II through sector budget support, and co-financing rural water supply in districts together with
Danida and Austria. The Kampala Sanitation Program (KSP) is being co-financed with KfW and
the EU. The STWSSP activities are part of the wider JWESSP co-financed by other DP’s.
II PROJECT DESCRIPTION
2.1 Project Components
2.1.1 The proposed STWSSP will comprise three components as presented in Table 2 below.
Annex B3 presents detailed description.
Table 2: Project Components
No. Component Est. cost
(UA)
Component Description
1 Urban Water
Supply 41.62m (37.46m)
1. Construction of urban water supply systems covering 10
strategic towns.
2. Engineering Services (Design and construction supervision).
3. Detailed engineering designs.
4. Production capacity; transmission & distribution lines and
reservoirs.
5. Equipment for the wider O&M and extension through
Umbrella utilities.
2 Improved
Urban
Sanitation and
Environmental
Management
4.89m
(4.40m)
1. Construction of 3 regional feacal sludge treatment facilities.
2. Procurement of 6 cesspool trucks.
3. 40 gender-segregated & disabled-friendly public sanitation
facilities constructed including in schools/ institutions.
4. Implementation of environmental management and climate
change resilience measures within urban water and sanitation
sub-sector.
3 Sector
Program
Support
(SPS)
2.38m
(2.14m)
1. Support the regulatory framework through developing of
regulation tools and tariff regime reviews.
2. Skills development for women and youth. (Water and
sanitation as a business).
3. Framework for bulk water.
4. Water and sanitation Atlas.
5. Sector coordination and M&E.
*Amounts in brackets depict the Bank’s contribution
2.2 Technical Solution Retained and other Alternatives Explored
2.2.1 The Project has retained expansion and construction of new surface water source intakes
and treatment plants as the best way to address the present water shortfall for an increasing
population in the targeted towns. Use of surface water (as opposed to production wells) is in line
with the sector medium to long term objective of supplying other cluster towns from the same
intake and treatment plant. The project shall prepare detailed engineering designs for multipurpose
water uses including water for production. These will guide future investment projects.
2.2.2 The sector has for the last two years focused on improving faecal sludge management
services across the country. The sector has put in place a strategy of clustering small towns into
50 clusters to guide sector investment in cost-effective shared faecal sludge treatment/disposal
facilities and better engagement of the private sector and local authorities in service delivery. Out
of 50 identified clusters, 13 have Feacal Sludge Plants (FSP) and an additional seven FSP are
5
nearing completion. The project will support the regional FSP strategy. The alternatives
considered and reasons for rejection are captured in Table 3 below.
Table 3: Project Alternatives Considered and Reasons for Rejection
Alternative Brief Description Reasons for Rejection
Production
wells water
source
Town water supply could be
drawn from production
boreholes
Use of surface water is preferable to address the
medium to longer term objective of supplying
other cluster towns from the same intake and
treatment plant
Sewerage
systems
Construction of sewerage
systems in the towns
Very high investment costs and most towns
predominately have on-site sanitation.
Low willingness to connect to sewers networks.
GoU strategy is to focus on feacal sludge plants
with desludging trucks in the short to medium term
while sewerage systems may be considered for big
towns, in future projects.
Ecological
sanitation
Ecological sanitation demo
facilities in towns to entice
town occupants to upscale
using own resources
Other Bank supported projects have not realised
the anticipated replication within towns.
Preference is for more public facilities and the
ordinary on site facilities.
2.3 Project Type
2.3.1 The proposed project (STWSSP) is an investment project aligned to Uganda’s Joint Water
and Environment Sector Support Program (JWESSP 2018-2023) under the SWAp framework and
implemented by sector departments. The project will use the existing GoU and DPs’ agreed
funding modalities channelling funds through the Joint Partnership Fund (JPF). Monitoring and
evaluation will be aligned to the sector joint monitoring framework while reporting will be through
the joint JPF quarterly reporting agreed upon with other joint partners. The assessment of the
overall governance of the water and sanitation sector and the country’s fiduciary and financial
management environment concluded that country conditions are conducive for the use of national
rules and regulations.
2.4 Project Cost and Financing Arrangements
2.4.1 The total cost of the project including GoU contribution is UA 48.89 million net of taxes
and duties. The project costs are based on feasibility studies conducted on the targeted towns. A
summary of project cost estimates by components, expenditure categories, and schedule are
presented in Tables 4 below. Details are provided in the Technical Annexes B2.
Table 4: Project Cost Estimates by Component (in UA million)
Components Foreign
currency costs
Local currency
costs
Total
Costs
%
Foreign
1. Urban water supply
2. Improved urban sanitation
and environmental management
3. Sector Programme Support
14.67
2.16
0.43
23.17
2.28
1.73
37.84
4.44
2.16
38.8%
48.7%
19.9%
Total base cost 17.26 27.18 44.44 38.8%
Physical contingency 5%
Price Contingency 5%
0.86
0.87
1.36
1.36
2.22
2.23
Total project cost 18.99 29.90 48.89
2.4.2 Financing Arrangement: The Bank is using Uganda’s ADF 14 allocation to finance part
of the project cost not exceeding UA 44 million (90% of the overall project cost). The Government
will add UA 4.89 million (10% of the project cost before taxes) as counterpart financing. A
summary of the project cost by sources of finance is provided in Table 5 below. Detailed
information is provided in the financial tables of the Technical Annex B2.
6
Table 5: Sources of financing (in UA million)
Sources of
Financing
Foreign Currency
Costs
Local Currency
Costs Total Costs % Total
ADF Group
GoU
18.52
0.49
25.48
4.40
44.00
4.89
90.0%
10.0%
Total Project Cost 19.01 29.88 48.89
Table 6: Project cost by category of expenditure (in UA million)
Categories of
Expenditure
Foreign Currency
Costs
Local Currency
Costs
Total Costs % Foreign
Goods
Works
Services
Operating Costs
1.53
11.70
4.03
0.00
0.45
17.55
6.82
2.36
1.99
29.24
10.85
2.36
77.2%
40.0%
37.1%
0.0%
Total base cost 17.26 27.18 44.44 38.8%
Physical contingency5%
Price contingency 5%
0.86
0.86
1.36
1.36
2.22
2.22
Total project cost 18.99 29.90 48.89
Table 7: Expenditure schedule by component (in UA million)
Components 2018/19 2019/20 2020/21 2021/22 2022/23 Total
1. Urban water supply
2. Improved urban sanitation and
environmental management
3. Sector Programme Support
5.08
0.09
0.42
12.85
0.60
0.54
11.08
0.87
0.66
6.13
2.60
0.40
2.69
0.29
0.15
37.84
4.44
2.16
Total base cost 5.58 13.99 12.61 9.13 3.13 44.44
Physical contingency
Price contingency
0.28
0.28
0.70
0.70
0.63
0.63
0.46
0.46
0.16
0.16
2.22
2.22
Total project cost 6.14 15.39 13.87 10.05 3.44 48.89
2.4.3 Co-financing: Co-financing was discussed with the key DPs in the water sector (KfW,
Austria, World Bank and Danida). Though not able to co-finance in the project, they have
complementary activities in the same regions. Urban water supply in Uganda is implemented
mainly through 4 regional Water and Sanitation Development Facilities (WSDF) coving the
North, East Central and South West region.
KfW will be developing town water supply for refugees in the Northern WSDF through a new
3 year Euro 8 million programme. KFW is currently supporting the WSDF North and East
with a Euro 23 million which ends this year.
World Bank is supporting town’s water development in the East with USD 47 million funding
for the next 3 years and concluding support for towns in the North and West for USD 55
million.
Austria will provide a 2 year bridging financing to towns in the South West, mainly to work
with the sector on Governance.
2.4.4 Other Sources of Financing: The Bank secured a Government endorsement letter for
additional USD 2.2 million to STWSSP from the climate fund (Appendix IV).The additional
funding for making STWSSP more climate change resilient will be appraised after clearance by
the Adaptation Fund Board Secretariat A budget of UA 1.27 million under STWSSP will be
dedicated to preparation of climate resilient projects to leverage approximately USD 83 million
from the Green Climate Fund.
7
2.5 Project’s Target Area and Population
2.5.1 The primary beneficiaries of the project will be residents of ten towns spread across the
country. The identified towns are Kyenjojo-Katooke (Kyenjojo District), Nakasongola
(Nakasongola District), Kayunga-Busana (Kayunga District), Kamuli (Kamuli District),
Kapchworwa (Kapchorwa District), Dokolo (Dokolo District), Bundibugyo (Bundibugyo
District) and Buikwe (Buikwe District). The project will provide additional access to water and
sanitation to 390,000 people by 2023. The residents of the towns will benefit from a much more
regular supply of water and from improved wastewater and septic sludge collection and treatment
services. The project will train 150 people in appropriate urban sanitation (masonry/mechanic
artisans/waste management), targeting at least 20% women. The project will also conduct
sanitation and hygiene promotion in 30 communities (targeting at least 50 % women participation)
and support skills development for economic empowerment of 200 youth and women.
2.6 Participatory Process for Project Identification, Design and Implementation
2.6.1 Stakeholder engagements by the executing agency were held at different levels
(community, local government, and national). Consultations were held at town and district levels
with the technical staff who were involved in planning and provided the necessary data on the
existing town water and sanitation systems. They also shared investment/development plans for
each district and relevant towns which generated data that guided the feasibility studies and
designs.
2.6.2 The water sector has a fully developed consultative process with documented manuals
outlining several guidelines followed in all phases of a projects. The phases are, advocacy and
preplanning; pre-construction mobilization and training; during construction and post construction
phase. The guidelines are used together with the sector gender strategies in preparation and
implementation of programs/projects.
2.6.3 During preparation and appraisal missions, further consultations were held with the
Permanent Secretary for the MWE, together with the Commissioners of the relevant departments
(urban water supply and sewerage services; water and environment sector liaison, and water
supply regulation) and the technical staff who will implement the project. Further discussions
were held with senior officers of the Ministry of Finance Planning and Economic Development.
The proposed components and outputs were presented and discussed with the Development
Partners Group supporting the water and sanitation subsector in the country. Field visits to the
proposed project sites were conducted to engage with local governments and beneficiaries’ to
establish their level of involvement in the planning process and to appreciate the environmental
issues at the proposed intakes and water sources.
2.7 Bank Group Experiences, Lessons Learnt and Reflected in Project Design
2.7.1 The Bank’s ongoing portfolio in Uganda has a total commitment of UA 840.98 million
financing 18 operations. The portfolio includes 5 water and sanitation projects/programs with total
commitment of approximately UA 163.89 million (60% disbursed). Implementation experiences
of implementing operations in Uganda, especially the five operations in water and sanitation
provided valuable lessons to the design of the proposed project. Below is a summary of the lessons
(detailed information of lessons are provided in Annex B1).
Small Towns Water Supply and Sanitation Project: (i) the need to pay greater attention to
project design to ensure effective project implementation; (ii) timely execution and ownership
for sustainability depends on effective involvement and contribution of local governments and
beneficiaries; (iii) requirement for large Government contributions delays projects. In
designing the STWSSP, the local stake holders have been brought on board right from
the planning stage. Feasibility studies for the targeted sites and 50% of the designs are
ready which will minimise the project lead time.
8
Water Supply and Sanitation Project Phase I (WSSP I): (i) the use of existing institutional
arrangements and country systems speeds up implementation; and, (ii) a stronger sense of
ownership and institutional memory. Investments in massive core infrastructure during
the projects life time allow for additional clusters of towns to be served using the meagre
government resources and other donor agencies long after the main project has closed.
STWSSP is designed to set in place the massive core infrastructure in the targeted towns.
Lake Victoria Water Supply and Sanitation Program: (i) Funding detailed and
comprehensive feasibility studies for the project towns before commencement of the
investment program improves disbursement rates; (ii) establishment of a fully-fledged and
dedicated Program Management Unit (PMU) to handle all project components including
capacity building and monitoring and evaluation ensures timely implementation; (iii)
utilization of fiduciary staff of the Executing Agency (IA), such as Accountants and
Procurement Officers, who also carry out other duties of the EA affect program
implementation and timely accountability; and, (iv) advance procurement of the design and
supervision consultant should start soon after project appraisal to ensure early engagement of
the Consultant for the project. STWSSP has established a full project team with a dedicated
senior accountant and senior procurement officer. The project is to apply for advance
procurement.
Rural Water Supply and Sanitation Programme: (i) use of common sector monitoring
frameworks allows for synergies and cross benefit from other agencies; and, (ii) decentralized
approach promotes private sector participation and growth as well as increased ownership by
local governments and communities and promotes bottom up planning. STWSSP will use the
common sector monitoring framework and will be implemented through the
decentralised water and sanitation development facilities.
2.8 Key Performance indicators
2.8.1 The Results Based Logical Framework (RBLF) has captured the project indicators for
impact, outcomes and outputs. During implementation of the project, the experienced M&E
experts assigned to the project will verify and analyse project data and submit it for central
amalgamation together with data from the regional and central structures monitoring and
evaluating outputs. The pooled quarterly data will be collected into the central data base for
analysis and computation of outcomes at national level. The outputs and outcomes will feed into
the annual sector performance report to be discussed during the Annual Joint Sector Review for
strategic decisions and sector direction in the following year. Additional monitoring of physical
infrastructure will be conducted annually during the Joint Technical Reviews with full field
participation of supporting DPs, civil; society and local governments. Value for Money studies
will be conducted at sector and Ministry of Finance, Planning and Economic Development level.
The sector has mainstreamed gender and a lot of emphasis is placed on disaggregation of data to
capture benefits from the projects to gender and youth. Baseline data was collected as part of the
feasibility study and used in the RBLF. The baseline data will be further strengthened and gaps
filled including collection of specific gender disaggregated data. Various supervision missions
and periodic progress reports will reflect the level of achievement under the indicators and will be
captured in the IPR which will guide managers in decision making.
2.8.2 The impact indicators include: (i) percentage incidence of diarrhea morbidity among
children under five reduced; and, (iii) percentage of pupils completing primary level of education.
The outcome indicators include: (i) percentage urban population with access to safe drinking
water; (ii) number of urban people served with improved access to safe water; and, (iii) percentage
of urban people with access to improved sanitation.
9
2.8.3 The water sector in Uganda publishes the Uganda Water Atlas every 5 years providing
updated baseline data on water supply, functionality, and distribution as captured in the water atlas
up-date project (WATSUP) database. The latest Water Atlas was published in 2017. The project
will contribute to the next Water Atlas. The M& E expert attached to WSDF will make use of the
fully developed MIS system at the facility for data collection and analysis. The revised ESMF and
the accruing ESMPs will be used to monitor compliance in mainstreaming environment and
climate change resilience (see Technical Annex B8).
III PROJECT FEASIBILITY
3.1 Economic and Financial Performance
3.1.1 The financial and economic analysis (Table 8) has taken into account the assumptions
contained in the subsequent paragraphs. The program will be implemented over a 5 year period
and will have a life span of 20 years following completion of implementation in 2023.
Table 8: Key Economic and Financial Figures
FIRR 15.52% and FNPV UGX 42,268 million (at 10% base case)
EIRR 43.49% and ENPV UGX 359,834 million (at 10% base case)
Note: FIRR: Financial Internal Rate of Return, FNPV: Financial Net Present Value
3.1.2 The estimated target population for access to water supply under the project on completion
is estimated at 450,000 people (from 390,000 in 2017 and growing at 2.4% per annum). Service
assumptions are that proportion of beneficiary population will increase from 30% in 2019,
reaching 60% in 2021 and 100% in 2023.
3.1.3 Tariff setting remains an area of focus requiring support on an ongoing basis. With the
planned faecal sludge treatment plants, the cost of exhausting household and institutional liquid
waste will contribute to the revenue of the relevant operating entities. The financial and economic
assessment assumes a minimal contribution from the operations of the liquid waste infrastructure,
considering that the intervention envisages standalone regional wastewater treatment
infrastructure which relies a lot on use of cesspool emptiers.
3.1.4 Operating and maintenance costs, including administration overheads, are estimated to be
65% of the revenue generated. With the performance contracts to be signed with the utilities or
umbrella bodies, this high level of costs will become a performance target thus enhancing the
viability of the utility and sustainability of the infrastructure.
3.1.5 The EIRR considers the incremental benefits arising from reduction in health costs due to
reduction in waterborne infections. It also considers the time saving benefit, as women and
children spend less time fetching water. This will lead to an increase in their focus on other income
generating activities, thus improving the livelihoods of the communities. It will also contribute to
the ease of doing business, as enterprises will be attracted to set up shop in the target towns, thus
creating employment.
3.1.6 Sensitivity analysis was undertaken to assess the impact on the FIRR and EIRR of
increases in the capital costs and tariff reductions, and concluded that the reductions in tariffs,
have a more accelerated impact on the viability of the project than the measured increases in
capital costs. This will buttress the need to support the regulatory department to build capacity to
provide regular cost recovery tariff reviews in order to enhance the financial health of the utilities
which leads to sustainability. The conclusion of the sensitivity analysis is that both increases in
capital costs and reductions in tariffs of up to 20% will not result in the interventions becoming
unviable.
3.1.7 The Small Town’s Water Supply and Sanitation Project and the Rural Water Supply and
Sanitation Program were satisfactorily completed and PCRs prepared. The PCR process for the
10
Water Supply and Sanitation Program Phase I is ongoing and the IPR is rated satisfactory. The
WSSP II is one year into implementation and ahead of schedule with a satisfactory rating.
3.2 Environmental and Social Impacts
3.2.1 Environment
The project is aligned to the Bank’s Integrated Safeguards System and is in line with the Bank’s
Environmental and Social Management Procedures. The project was categorized as Category 2
on 12th September 2017. The justification for categorization and application of the Environmental
and Social Management Framework (ESMF) is that most systems are existing and will only be
expanded to meet the needs of existing and growing towns. The project activities will include
undertaking of design reviews on the 10 water supply systems and 3 faecal sludge management
facilities. It is mandatory that the EIA process for any applicable water resources related
development project conforms to the provisions of the National Environment Act, Cap 153 and
the accompanying Regulations.
STWSSP will manage its environmental and social risks through the Project Implementation Unit
(PIU) that is mandated to safeguard the environment and social plight of affected communities.
Using the ESMF the project will apply the EIA process for water resources related projects that is
structured into six steps: (i) screening phase (planning/project conception); (ii) scoping stage (pre-
feasibility study); (iii) EIA study phase (feasibility study); (iv) contract procurement
(compensation and resettlement); (v) defects liability period (environment monitoring); and, (vi)
operation and maintenance phase (compliance audit). The framework provides guidance on the
roles and responsibilities of STWSSP Implementation Staff, communities, and others stakeholders
participating in the STWSSP regarding the sustainable environmental and social management of
sub-programs. This is online with the Bank’s ISS policies and procedures that underscore the need
for effective stakeholder engagement in management of environmental and social risks.
3.2.2 Climate Change
GoU is committed to the achievement of SDGs. According to the Climate Safeguards Screening,
STWSSP is categorized as 2 on climate risk. Under the project, water source and catchment
protection activities and climate safeguards shall be undertaken for all sub-projects. Additionally,
during the preparation of ESMP for each sub-project, an assessment of the climate change impacts
shall be evaluated using the Bank’s Adaptation Review and Evaluation Procedures (AREP) under
the Bank’s Climate Safeguards System (CSS). This will help identify an appropriate adaptation
action including relevant activities for each sub-project as well as capacity building needs for the
Executing Agency. Through the catchment planning activities and water source protection, the
project will contribute to the national climate change adaptation strategies
3.2.3 Involuntary Resettlement
No project intervention will require significant land acquisition, which would result in involuntary
resettlement of the project affected persons (PAPs). However, during the design review, additional
reservoirs may be required to be installed whose area coverage is estimate at 50 sq. metres each.
Such land will be procured in accordance with the Bank’s ISS policy and GoU’s land acquisition
policy and framework, with funds from GoU under counterpart funding which is part of the annual
budget of the sector. The resources will be available starting 2018-2019 financial year. Through
effective stakeholder and community engagement, land for installation of transmission and
distribution pipes for water will be voluntarily provided by beneficiary districts, local
governments and beneficiary communities. The PIU shall undertake all necessary efforts to ensure
that leaders of districts, local governments, town councils, beneficiary communities, the general
public and any other stakeholders are mobilized and sensitized about the project and related land
requirements or arrangements. In the past local governments and beneficiary communities have
always provided land for water and sanitation projects and this has created a sense of ownership
11
for commissioned water supply and sanitation systems besides enhancement of social cohesion,
community structures, and the social inter-linkages that common property provides.
3.2.4 Gender
The traditional role of women and girls primarily are water collectors, water users and the main
promoters of sanitation and hygiene. The average distance travelled by urban households to collect
water is about 200 metres, compared to 800 metres in rural areas. Women and girls spend about
55% of their time travelling to collect water daily. Consequently, females bear the brunt of
walking long distances to fetch water for domestic use hence trading off productive time used for
other economic activities. Furthermore, the time walked to fetch water deprives girls of school
going age from attending school full time. The gender gap in the water sub-sector is caused by
inadequate access to safe drinking water and sanitation facilities and inequitable control of water
resources. Other challenges relating to inequitable access and control of water resources, supply
and sanitation are reflected in Annex B8. STWSSP has been designed to promote institutional
involvement of women in water management ensuring a minimum of 30% of women are
represented in the leadership role in water user associations.
The project emphasizes community trainings on sanitation and hygiene promotion targeting at
least 50% women participation. Group trainings in water and sanitation related economic activities
like soap making, water vending, and others will be allocated to women and youth.3 A needs
analysis will be undertaken to identify specific gender economic activities for the different regions
and their implementation modalities. The project has been designed to enhance the capacity of
women and youth groups through trainings in economic skills focused on employment generation
to ensure both the women and youth participate in and benefit from inclusive affirmative
opportunities. Annex B8 provides detailed information.
3.2.5 Social
The project will put in place pro-active business startup measures and build capacity of 200
women and youth in the targeted 10 towns. The provision of piped water supply and sanitation
will trigger economic growth through stimulation of commercial activities such as hotels, and it
will provide end user social services to education and health institutions. About 4,000 temporary
jobs and 1,000 permanent jobs will be realized from project activities and stimulation of
commercial activities benefitting a minimum of 30% of women. The project will lead to reduction
of incidences of water borne diseases especially in children and foster development by increased
productivity of the population especially women. Reduced expenditure on health makes more
finances and time available for women to engage in economic activities.
Youth unemployment: Ugandan youths continue to face challenges of limited job opportunities,
inadequate employable skills, lack of access to productive assets, and early marriages hence
forcing the youth into informal sector. While the overall unemployment rate marginally declined
by 0.4 percentage points to 9% (UNHS 2016/17) from 2012/13, the youth unemployment remains
high estimated at 11%. The majority of the youth live in rural areas engaging in agriculture and
urban areas. STWSSP will train the youth and women groups on to how to set up their own
business activities especially in income generating projects. Of the targeted 150 people, at least
20% youth and 20% women will be engaged in the appropriate urban sanitation skilling
(masonry/mechanic artisans/waste management).
HIV/AIDS: An estimated 1.2 million Ugandans are living with HIV/AIDS. HIV prevalence is
four times higher in females aged 15-19 than males and three times higher in females aged 20-24
years of age than males. HIV/AIDS awareness will be undertaken in the context of water
3 Annex 8 of the Technical Annex provides detailed information of how the project support gender economic
empowerment activities related to water and sanitation.
12
management committee groups as well as the related economic empowerment activities to
enhance prevention, treatment and to improve the welfare of persons living with AIDS. The
training coordinator from the projects training activities will collaborate with the existing national
HIV/AIDS control programmes and CSOs to effect sensitization in the women and youth groups.
It is mandatory for water supply and sanitation contractors to have an active HIV and AIDS
workplace policy for their staff intended to raise awareness and prevention, stigma and
discrimination, treatment and positive living. Partnerships between the Project, Health Ministry,
and contractors will be leveraged to increase HIV/AIDS awareness among beneficiary community
and will be incorporated as part of the training modules. The project will use existing structures
like referrals to hospitals (for prevention and treatment purposes); and existing healthcare
structures such as village treatment teams to effect HIV/AIDS related tasks. Detailed information
is provided in Annex B8).
IV IMPLEMENTATION
4.1 Implementation Arrangements
4.1.1 The STWSSP will be implemented using existing GoU structures. The GoU will be the
borrower, and the Ministry of Water and Environment will be the executing agency responsible
for overall coordination of planning, implementation and monitoring of the project.
The overall Project Coordinator will be the Commissioner for Urban Water and Sewerage Services
Department assisted by a Project Manager for routine co-ordination of project activities. A
technical advisory team composed of commissioner for water and environment sector liaison;
assistant commissioners for urban water and sewerage services; commissioner for utility
regulation and commissioner for climate change, shall provide technical guidance to the project
implementation team. The Project Implementation Team (PIT) will have an Environment and
Sanitation Officer, Sociologist, Senior Accountant, Senior Procurement Officer, M& E Officer, 3
Engineers, Climate Change Officer, Regulation Officer and a Water Sector Liaison Officer. The
Water and sanitation sub-sector working group shall be the Steering Committee. The organogram
is provided in Annex B3
4.1.2 Procurement Arrangements
Procurement of goods, works and the acquisition of consulting services, financed by the Bank will
be carried out in accordance with the October 2015 “Procurement Policy and Methodology for
Bank Group Funded Operations” (BPM), and following the provisions stated in the Financing
Agreement. Specifically, procurement will be carried out following:
• Borrower Procurement System (BPS): Specific Procurement Methods and Procedures
(PMPs) under BPS comprising Public Procurement and Disposal of Public Assets Act No.1
of 2003; and, Public Procurement and Disposal of Public Assets Regulations 2014, using the
national Standard Solicitation Documents (NSSDs) or other Solicitation Documents agreed
during project negotiations for various group of transactions to be entailed under the project.
• Bank Procurement Policy and Methodology (BPM): Bank standard PMPs, using the
relevant Bank Standard Solicitation Documents SDDs, for contracts that are either (i) above
the thresholds indicated in Technical Annex B5, Paragraph B.5.6.1 or (ii) in case BPS is not
relied upon for a specific transaction or group of transactions; and, (iii) in case BPM have been
found to be the best fit for purpose for a specific transaction or group of transactions.
Procurement Risks and Capacity Assessment (PRCA): The assessment of procurement risks at the
country, sector, and project levels and of procurement capacity at the Executing Agency (EA)
were undertaken for the project and the output have informed the decisions on the procurement
regimes to be used for specific transactions or groups of similar transactions under the project.
13
The appropriate risks mitigation measures have been included in the Section 5.2.5 of the Technical
Annex.
4.1.3 Financial Reporting and Audit
Consistent with the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action, the
project will make use of the country’s PFM systems. The Assistant Commissioner for Finance in
MWE will be responsible for the Financial Management (FM) of the program while the Permanent
Secretary MWE will be the Accounting Officer.
MWE’s FM is led by an Assistant Commissioner Accounts who has appointed accountants to
manage the day to day financial operations of all donor funded projects guided by the GoU
financial regulations and procedures. Recently because of the new project, a new accountant has
been appointed to assist with the new project financial transactions. The project will use the
Microsoft Dynamics Navision 2013 R2 accounting software to capture and report on all of its
financial transactions based on the International public Sector Accounting Standards (IPSAS).
The Finance Department is adequately staffed. It has over twenty accountants with some of them
assisting project accountants in projects authorization and approval process.
Budgeting for the project will follow the GoU rules and procedures on budgeting. The total project
budget will be included in the MWE annual budget and included in the GoU’s National budget.
The project will follow the GoU financial year of 1st July to 30th June. The project’s financial
statements which will be prepared within three months of the end of the financial year, will be
audited by the Office of the Auditor General (OAG). The audit terms of reference will be agreed
between GoU and the Bank. The audit report, complete with a management letter and responses,
will be submitted to the Bank within six months of the end of the financial year. The Ministry will
also be required to submit to the Bank quarterly Financial Reports together with the project’s
progress report no later than 45 days after the end of each quarter.
The following internal control procedures among others are in place and will be used by the new
project. The procedures include: Approval of Bank accounts opening, proper authorization and
approval of Bank reconciliations, segregation of duties in payments and cash management,
monthly Bank reconciliations and timely banking of receipts.
To provide oversight and assist in strengthening the Project’s internal control mechanism, MWE’s
internal audit section will include the project in its annual audit planning and the audit reports will
be shared with the Bank as needed.
For the Bank financed projects being implemented by the MWE, the internal audit department
clears and approves project transactions before being submitted to the Bank for justifications.
The results of the assessment indicate that the financial management of the MWE risk rating for
the project was substantial because of the following:
(i) Direct method payments not captured in the project’s accounting system;
(ii) Financial transactions mispostings in the accounting system as a result of improper coding of
expenditures from project component managers;
(iii)Long outstanding staff advances; and,
(iv) Delayed monthly bank reconciliations with a backlog of three years being cleared in 2017.
The MWE has put corrective measures in place including appointing an additional accountant and
also creating separate company codes in the accounting system to separate the financial
transactions of the projects under implementation. It is expected that with all these measures the
project will be able to (1) use the funds for the intended purposes in an efficient and economical
way, (2) ensure funds are properly managed and flow smoothly, adequately, regularly and
predictably, (3) prepare accurate, reliable and timely periodic financial reports, (4) monitor the
efficient implementation of the Program, and (5) safeguard the entities’ assets. Detailed information
14
is provided in Annex B4.
Audit Arrangements: OAG will audit the project financial statements annually and at the end of
the project in line with the terms of reference agreed with the Bank. An audit report, complete
with a management letter and management responses, will be presented annually to the Bank,
within six (6) months following the end of each financial year. The annual audit will be done in
accordance with the International Standards on Auditing. Details are provided in annex B6.
Disbursement Arrangements: Disbursements under the ADF loan will be made in accordance
with the Bank’s rules and procedures as laid out in the Disbursement Handbook. In addition, the
Bank shall issue a Disbursement Letter of which the contents will be discussed and agreed during
negotiations. The disbursement methods that will be used for the Project include the: Direct
Payment and the Special Account methods. The MWE shall show evidence of having opened one
Special Account in foreign currency and one local currency Project account. The two accounts
shall be opened at the Bank of Uganda. The MWE shall process all transactions relating to these
bank accounts and separate cash books shall be maintained for each account within the existing
accounting system. Disbursements to the special account will be made following approved work
plans and satisfactory justifications and not in tranches. The opening of a special account shall be
a condition for first disbursement and should be done after the project is approved.
4.2 Monitoring
4.2.1 The project’s monitoring will fit into the wider sector monitoring and evaluation
framework. Overall monitoring setup will includes Joint Sector Reviews (JSRs) are held twice a
year (Technical Reviews in April and Joint Sector Reviews in October). The sector further
conducts VFM technical audits and tracking studies which are deliberated upon in the sub sector
working group meeting. The Ministry of Finance, Planning and Economic Development also
conducts independent monitoring of the sectors and documents findings for engagement with the
sectors. At the implementation level, the comprehensive Results Based Monitoring (RBM)
Manual to monitor implementation and impact of WSDF interventions will be applied. MWE will
also ensure that the Urban Data base annually captures the access and related information on all
new and rehabilitated facilities under the project to facilitate assessment of progress and input in
the Banks Implementation Performance Result Report and the next Water Atlas.
4.2.2 The Bank will follow up the implementation of the project through active participation in
the periodic technical and sector reviews, regular supervision mission during project
implementation, and ex-post evaluations. In line with use of country systems, MWE will compile
and submit to the Bank the JPF quarterly progress reports and annual progress reports that reflects
all project activities for all funding agencies. A midterm review will be conducted jointly by the
MWE and the Bank in Oct 2021. Upon completion of the project, MWE will prepare and submit
to the Bank a project completion report (PCR). The milestones for monitoring are summarized in
Table 9 below.
Table 9: Milestones
Timeframe Milestone Monitoring process / feedback loop
June 2018
Sept 2018
Sept 2018
Dec 2018
October 2021
June 2024
Loan Approval
Loan Signature
Loan Effectiveness
First Disbursement
Mid Term Review
Closing date
ADF Board
COUG to follow up
Launching Mission – TM follow up
ADF – COUG to monitor closely
COUG/ MWE – Follow-up
ADB/COUG to monitor closely
4.3 Governance
4.3.1 The Water and Sanitation Subsector Working Group, shall be the Project Steering
Committee. It has representatives from the Directorate of Water Development (DWD) and the
15
Directorate of Water Resources Management (DWRM); National Water and Sewerage
Corporation (NWSC); Selected Line Ministries – Finance, Health, Gender, Local Government
and Agriculture; Development partners, including NGOs represented by UWASNET. It shall
review and approve the joint JPF annual workplans and quarter JPF reports.
4.3.2 The Water sector established a Good Governance Working Group (GGWG) tasked to
identify and recommend measures to promote and monitor transparency, accountability and good
governance. It conducts value for money audits and GG workshops. The GGWG monitoring shall
include project activities.
4.3.3 The current internal controls at sector level require all payment requests initiated by
contractors and consultants to be reviewed and cleared by the implementing departments, the
office of the Director, Internal Audit and Accounts department in the sector before clearance by
the Permanent Secretary who will then submission the verified requests to the office of the
Accountant General in the ministry of Finance, Planning and Economic Development for final
review and clearance before submission to the Bank for payment.
4.3.4 The STWSSP has proposed measures for strengthening financial Governance including:
(i) provision of project financial management manuals; (ii) ensuring internal audit identifies pre-
audit transaction challenges; and, (iii) timely submission of progress reports, and follow up
actions.
4.4 Sustainability
4.4.1 The 1999 National Water Policy (NWP) addressed key recommendations of the reforms,
promoting an integrated approach to the sustainable management of the water resources with
participation of all stakeholders, including women and the poor. The policy objective mandates
and commits the water sector to manage and develop the water resources of Uganda in an
integrated and sustainable manner, so as to secure and provide water of adequate quantity and
quality for all social and economic needs of the present and future generations with the full
participation of all stakeholders. It also defines sustainability strategies to ensure that no new
installations or schemes should be established without, establishing ownership of the facility
strengthen the system for operation and maintenance, including methods of recovering recurrent
cost to ensure sustainability.” The country will be committed to the project in line with the national
policy.
4.4.2 The project will adopt a demand responsive approach, which is well defined in the guiding
implementation manuals used at entry while engaging with beneficiaries to ensure a sense of
ownership and commitment as well as sustainability of the water supply and sanitation facilities.
The proposed institutional arrangement involves a transfer of the water supply schemes from
MWE to either the established water utilities or the Water Authorities (WAs), and the operation
of the facilities by Private Operators (POs) through management contracts. These arrangements
which have been used in small towns across Uganda, enhance efficiency in the management of
the project’s facilities and in revenue collection to ensure the sustainability of the facilities.
4.4.3 For the case of POs, revenues from water in each town will be deposited in an escrow
account, which will be operated by both the POs and WAs to cover recurrent expenditures related
to water services. The funds will be ring- fenced to minimize the possibility of diversion of water
revenues to fund other activities. Creation of WAs and the signing of the Performance contract
between the MWE and the newly created WAs and subsequent establishment of management
contracts between WAs and the POs coupled with operationalization of the Umbrella
Organizations (UOs) for operation and maintenance will ensure sustainability of the created
facilities. The sector will also hand over viable town water systems to the national utility (NWSC)
for further expansion and management. The utility uses a standardized tariff for all the water
supply service areas through a cross-subsidy process. Box 1 provides the highlights of the tariff
16
regimes and the prevailing tariff levels in the country for areas that are under the jurisdiction of
National Water and Sewerage Corporation (NWSC), Private Operators, small towns and rural
areas.
Box 1: Tariff Regimes
Tariff Regimes in Small Towns, RGCs and NWSC
The information provided below highlights the tariff regimes and the prevailing tariff levels in the country for areas
that are under the jurisdiction of National Water and Sewerage Corporation (NWSC), Private Operators, small towns
and rural areas.
NWSC tariff regime: The National Water and Sewerage Corporation (NWSC) tariff structure has a uniform tariff
across all its towns and service areas (large urban centres, small towns, rural growth centres and urban areas with
gravity schemes), but differentiated by customer groups. The sewerage tariff is based on the volume of water
consumed. The NWSC adopted an indexation policy in 2002 aimed at protecting the tariff from further erosion and
thus enabling the NWSC cover its operational costs, thereby ensuring sustainability of service provision. NWSC
Water and Sewerage rates are subject to annual indexation effective to protect it against the inflation, exchange rate
movements and electricity tariff. The latest tariff approval was done in 2006. The specific tariff rates are in Annex
B3
NWSC Tariff in Rural Areas: The uniform tariff across all towns and service areas still applies in rural areas served
by NWSC. The tariff structure is skewed with the domestic customers paying less than the institutional and
commercial customers. The tariff therefore has an implicit cross subsidy across towns and within customer categories.
NWSC Tariff public institutions: The uniform tariff for ‘Institutions/Government’ which covers also public
institutions is significantly higher than the domestic tariff.
Tariff water vending: The uniform tariff provides for a ‘Public Standpipe’ tariff at lower costs as compared to a
domestic connection, which ‘is applicable to individuals who strictly sell water to the community or rather the public’
(NWSC definition). This public standpipe tariff and their management by the above mentioned individuals refers to
the definition of ‘water vendors’ used for this issues paper. This is a tariff with pro-poor provisions as it should make
the water more affordable to the end user as it is supposed to lower the retail price from the operators / individuals
how sell the water.
Tariff Regimes in Towns Outside Small Towns and Rural Growth Centres
According to the Water Act, Cap. 152 (1997), the tariff policy provides that every water authority can fix tariffs with
the approval of the Minister. This is based on the developed business plans as stipulated in the Tariff Policy (2009)
which reflects the uniqueness of the water infrastructure and hence the associated Operation and Maintenance (O&M)
costs. The policy further requires the tariffs to be simple and uniform which should enable recovery of actual O&M
costs. The uniform tariff in each service area does not provide a separate tariff for Institutions/Government, Public
Standpipes. However, the average tariffs and the tariffs charged at Public Standpipes and Kiosks do differ. Some
smaller and community-managed schemes work with monthly fees which can be defined as pro-poor as these fees
are derived from the willingness and ability to pay rather than cost coverage.
The national average for domestic tariffs throughout the year based on the business plans stands at 2,463 shillings per
unit. Based previous statistics 60% of the small towns were meeting O&M cost recovery while the 40% were
subsidized by the Ministry Urban water supply.
Future Plans
Tariff indexation to avoid tariff erosion based on the prevailing level of inflation.
Introduction of the increasing block tariff to be piloted under regional water utilities (Umbrella Organization)
setting a minimum beyond which the consumer incurs more with increasing volume of water consumed.
Clustering to provide for cross subsidization to optimize the economies of scale.
Development, application and implementation of a comprehensive National tariff Policy covering NWSC, small
towns, Private Operators and Regional water Utilities (Umbrella Organizations) and rural areas.
Improve on the tariff monitoring and approval process by strengthening the existing data management platforms
like UPMIS.
4.4.4 The constructed water systems will adopt the tariffs above pending approval and adoption
of the revised tariff regime that the project will support. The project will also provide support to
build capacity of the regulation department, UOs, WAs and POs to enable them to meet their
obligations and to enhance the institutional sustainability arrangements. Critical to the
sustainability of the project’s benefits is the involvement of women in the planning and
17
management of the facilities. The project will adhere to the sector gender strategy promoting
affirmative action for women involvement and will monitor the gender indicators as outlined in
the RBLF.
4.5 Risk Management
4.5.1 The project faces the following potential risks as identified in the Result Based Logical
frame with the proposed mitigation measures as in Table 10 below.
Table 10: Risk Mitigation Measures
Risk Probability/
Impact
Mitigation Measures
Policy and regulatory framework
– The regulatory department is still
young. Delays in setting up
effective and efficient regulatory
policies and strategies may affect
service delivery.
Low to medium
probability/
high impact
The Ministry of Water and Environment
continues to regulate the urban water and
sewerage services sub-sector through the
Utility Regulation Department. The Utility
Regulation Department will be strengthened to
achieve its mandate including tariff setting and
compliance monitoring of Utilities that will
manage the completed water supply schemes
Financial and economic:
Exchange rate volatility has
affected funds availability,
especially where there is delay in
implementation of projects and
delay in disbursements.
Low to medium
probability/
medium impact
The AfDB and GoU will ensure timely
disbursement of funds. Adequate price
contingence shall be provided for to guard
against the exchange rate volatility.
Project design and effectiveness:
Access to land and required
environmental approvals may delay
timely completion of the sub-
projects.
Low to medium
probability/
high impact
The EA will start commence land
identification and acquisition before
effectiveness and ensure timely approval of the
Environmental and Social Monitoring Plan
Effectiveness: Possible delay in
project effectiveness due to delays
in parliamentary and government
approvals.
Low to medium
probability/high
impact
The EA will commence engage with the
parliamentary committee and ministry of
Finance, Planning and Economic Development
during the appraisal process
Project implementation: Sub-
project scope, time and cost
overruns may impact on timely
delivery of the project.
Medium to high
probability/
medium impact
The EA shall be supported to strengthen
contract monitoring in order to timely respond
to scenarios that may lead to scope, cost and
time over runs.
4.6 Knowledge Building
4.6.1 STWSSP will generate knowledge owing to its new focus on massive core infrastructure
for urban water supply with potential of supplying town clusters and activities on the new thinking
for urban sanitation through regional plants. The project has also lined up activities on climate
change resilience, women and youth employment and empowerment. The interventions will
generate lessons for the sector. Component 3 of the project will address knowledge gathering
through monitoring reports and analytical studies to capture key lessons from the implementation
and also track the performance against the sector golden indicators.
4.6.2 The WSDF Results Based Monitoring framework sets ground for improved data
collection, processing and dissemination to a wide range of stakeholders on urban water supply
and sanitation. This ensures that all stakeholders at various levels are informed on the progress of
the Project activities, it contributes to improvement measures and share the lessons learnt in
implementation.
18
V LEGAL INSTRUMENTS AND AUTHORITY
5.1 Legal Instruments
5.1.1 The financing instrument to be used for this project is an ADF loan of UA 44 million. The
loan will be governed by a Loan Agreement to be signed between the African Development Fund
(the “Fund”) and the Republic of Uganda
5.2 Conditions associated with Bank’s intervention
5.2.1. Conditions Precedent to the Entry into Force of the Loan Agreement: The entry into
force of the Loan Agreement shall be subject to the fulfilment by the Borrower of the provisions
of Section 12.01 of the General Conditions Applicable to Loan and Guarantee Agreements of the
Fund (Sovereign Entities).
5.2.2. Conditions Precedent to First Disbursement of the Loan: The obligation of the Fund to
make the first disbursement of the Loan shall be conditional upon the entry into force of the Loan
Agreement.
5.2.3. Other Loan Condition: The Borrower shall open a foreign currency denominated Special
Account to receive the proceeds of the Loan and a local currency denominated account
5.2.4. Undertakings: The Borrower undertakes to:
(i) comply with the national environmental and waste management guidelines and procedures
applicable in Uganda from time to time, and all applicable national environmental
management and coordination laws and biomedical procedures;
(ii) Fully implement the Environmental and Social Management Plan (ESMP); and
comprehensively report on the implementation of the ESMP on a semi-annual basis.
.
5.3 Compliance with Bank Policies
5.3.1 This project complies with all applicable Bank policies.
VI RECOMMENDATION
6.1 Management recommends that the ADF Board of Directors approves the proposed ADF
loan of UA 44.00 million to the Republic of Uganda for the purposes and subject to the conditions
stipulated in this report.
I
Appendix I: Comparative Socio-economic Indicators
Year Uganda Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2016 242 30,067 97,418 36,907Total Population (millions) 2016 40.3 1,214.4 6,159.6 1,187.1Urban Population (% of Total) 2016 16.9 40.1 48.7 81.1Population Density (per Km²) 2016 201.8 41.3 65.1 33.8GNI per Capita (US $) 2015 670 2 153 4 509 41 932Labor Force Participation *- Total (%) 2016 85.0 65.7 63.5 60.0Labor Force Participation **- Female (%) 2016 82.3 55.7 48.9 52.1Sex Ratio (per 100 female) 2016 99.9 100.1 106.0 105.0Human Dev elop. Index (Rank among 187 countries) 2015 163 ... ... ...Popul. Liv ing Below $ 1.90 a Day (% of Population) 2012 34.6 ... 14.6 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2016 3.3 2.5 1.3 0.6Population Grow th Rate - Urban (%) 2016 5.5 3.6 2.4 0.8Population < 15 y ears (%) 2016 47.8 40.9 27.9 16.8Population 15-24 y ears (%) 2016 20.3 19.3 16.9 12.1Population >= 65 y ears (%) 2016 2.5 3.5 6.6 17.2Dependency Ratio (%) 2016 101.3 79.9 54.3 52.0Female Population 15-49 y ears (% of total population) 2016 22.4 24.0 25.7 22.8Life Ex pectancy at Birth - Total (y ears) 2016 59.9 61.5 69.9 80.8Life Ex pectancy at Birth - Female (y ears) 2016 61.9 63.0 72.0 83.5Crude Birth Rate (per 1,000) 2016 42.1 34.4 20.7 10.9Crude Death Rate (per 1,000) 2016 9.0 9.1 7.6 8.6Infant Mortality Rate (per 1,000) 2015 37.7 52.2 34.6 4.6Child Mortality Rate (per 1,000) 2015 54.6 75.5 46.4 5.5Total Fertility Rate (per w oman) 2016 5.6 4.5 2.6 1.7Maternal Mortality Rate (per 100,000) 2015 343.0 476.0 237.0 10.0Women Using Contraception (%) 2016 34.6 31.0 62.2 ...
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2005-2015 12.0 41.6 125.7 292.2Nurses and midw iv es (per 100,000 people) 2005-2015 134.2 120.9 220.0 859.4Births attended by Trained Health Personnel (%) 2010-2015 58.0 53.2 69.1 ...Access to Safe Water (% of Population) 2015 79.0 71.6 89.4 99.5Access to Sanitation (% of Population) 2015 19.1 39.4 61.5 99.4Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2015 7.1 3.4 ... ...Incidence of Tuberculosis (per 100,000) 2015 202.0 240.6 166.0 12.0Child Immunization Against Tuberculosis (%) 2015 93.0 81.8 ... ...Child Immunization Against Measles (%) 2015 82.0 75.7 83.9 93.9Underw eight Children (% of children under 5 y ears) 2010-2015 14.1 18.1 15.3 0.9Prev alence of stunding 2010-2014 33.7 33.3 25.0 2.5Prev alence of undernourishment (% of pop.) 2015-2016 25.5 16.2 12.7 ...Public Ex penditure on Health (as % of GDP) 2014 1.8 2.6 3.0 7.7
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2016 101.1 101.2 104.9 102.4 Primary School - Female 2010-2016 102.1 98.4 104.4 102.2 Secondary School - Total 2010-2016 26.1 52.6 71.1 106.3 Secondary School - Female 2010-2016 24.6 50.2 70.5 106.1Primary School Female Teaching Staff (% of Total) 2010-2016 42.3 47.1 59.8 81.0Adult literacy Rate - Total (%) 2010-2015 73.8 66.8 82.3 ...Adult literacy Rate - Male (%) 2010-2015 81.0 74.3 87.1 ...Adult literacy Rate - Female (%) 2010-2015 66.8 59.4 77.6 ...Percentage of GDP Spent on Education 2010-2015 1.7 5.0 4.0 5.0
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2014 34.4 8.7 11.2 10.3Agricultural Land (as % of land area) 2014 71.9 41.7 37.9 36.4Forest (As % of Land Area) 2014 11.0 23.2 31.4 28.8Per Capita CO2 Emissions (metric tons) 2014 0.1 1.1 3.5 11.0
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+)
** Labor force participation rate, female (% of female population ages 15+)
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Uganda
June 2017
0
10
20
30
40
50
60
70
80
90
100
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Infant Mortality Rate( Per 1000 )
U ganda Af r ica
0
500
1000
1500
2000
2500
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
GNI Per Capita US $
U ganda Af r ica
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Population Growth Rate (%)
Ug anda Af r ica
01020304050607080
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Life Expectancy at Birth (years)
U ganda Af r ica
II
Appendix II: Bank Group Portfolio in Uganda
Date of Update: 31st DECEMBER 2017
Serial No.
Project Description Approval
Date Signature
Date
Disbursement Effectiveness
Date
Approved Amount UA million Net Commitments
(UA million)
Amount Disbursed (UA million)
Disbursed (%)
Deadline for Last
Disbursement
Project Task Manager Status (not
effective & on-going/effective
, etc)
1st Date of Disbursemen
t ADB
ADF Loan
ADF Gran
t
A. AGRICULTURE
1 Community Agricultural Infrastructure Improvement Programme III
03/05/2011 10/06/2011 22/02/12 21/03/2012 nil 40.00 nil nil 40.00 38.37 95.9% 31/12/2017 Niwagira Asaph Closed
2 Markets and Agricultural Trade Improvement II (MATIIPII)
10.12.2014 28.07.2015 02.10.2015 16.11.2015 58.78 nill nil nil 60.14 0.60 1.0% 30.06.2020 Niwagira Asaph on going
3 Preparation for Strategic Plan for Climate Resilience
17.03.2016 14.07.2016 14.07.2016 17.10.2016 1.11 nill nil nil 1.11 0.20 18.0% 30.04.2018 Shiam Muhamed on going
4 Farm Income Enhancement and Forestry Conservation Project II
20.01.2016 17.02.2016 12.04.2016 31.05.2016 53.40 nill nil nil 54.79 6.09 11.1% 30.06.2021 Makonnen on going
Agriculture - Sub Total 156.04 45.26 29.0%
B. TRANSPORT
5 Road Sector Project 4 ( Kigumbba Masindi Rd) 135 KM
13/03/2013 11/12/2013 08/08/2014 21.10.2015 nil 72.94 nil nil 72.94
13.89 19.0% 30/06/2018 Katala Jumbe ongoing
6 Road Sector Project V 28/05/2014 03/02/2015 26/08/2015 19.05.2016 nil 70.00 nil nil 70.00
4.28 6.1% 31/12/2020 Katala Jumbe ongoing
Transport - Sub Total 142.94 18.17 12.7%
C. WATER
7 Kampala Sanitation Project 16/12/2008 11/05/2009 18/02/10 16/07/10 nil 35.00 nil nil 35.00 32.93 94.1% 31/12/2018 Mbiro Andrew ongoing
8 Water Supply and sanitation program Phase 1
5/10/2011 11/01/2012 26/09/2012 19/10/2015 nil 40.00 nil 3.59 43.59 42.64 97.8% 31/12/2017 Mbiro Andrew Closed
9 Water Supply and sanitation program Phase 2
3/2/2016 03-Mar-16 11/05/2016 19/07/2016 nil 65.80 nil nil 65.80 25.86 39.3% 30/06/2021 Mbiro Andrew ongoing
III
10 Additional Funds to Water Supply and Sanitation Program
4/3/2015 30/04/2015 30/04/2015 18/10/2015 nil nill nil 8.37 8.37 4.77 57.0% 30/06/2019 Mbiro Andrew ongoing
Water and Sanitation - Sub total 152.76 106.20 69.5%
D. SOCIAL
11 Rehabilitation of Mulago and KCC Clinics
06/07/2011 11/01/2012 02/07/2012 28/08/2012 nil 46.00 10.00 nil 56.00 42.52 75.9% 30.09.2018 Ogwang Peter on going
12 Education V Project (HEST) 21/11/2012 05/07/2013 18/11/2013 19.02.2014 nil 67.00 nil nil 67.00 28.87 43.1% 30.06.2018 Ogwang Peter On going
Social - Sub Total 123.00 71.39 58.0%
E. ENERGY
13 Rural Electricity Access 16.09.2015 04.11.2015 12.02.2016 25.05.2016 70.92 nil nil 0.00 70.92 0.53 0.7% 31.12.2020 Alemayehu Wubushet
on going
14 Mbarara-Nkenda/Tororo-LiraTransmission Lines Project
16/12/08 26/03/2010 18.02..2011 20/04/11 nil 52.50 nil nil 52.50 42.53 81.0% 28/02/2018 Alemayehu Wubushet
ongoing
Energy - Sub total 123.42 42.53 34.5%
GRAND TOTAL FOR PUBLIC SECTOR OPERATIONS 698.16 283.55 40.6%
IV
Appendix III: Selected Projects Financed by the Bank and other Development
Partners in the Country
DPs Programme / Project
Location
Project
Implementation
Period
Amount in
million
AfDB
Additional funds to
WSSP for climate
change resilience
Eastern Districts
2015-2018 UA 5.4
AfDB Water Supply and
Sanitation Program II
Country wide 2016-2020 UA 65.8
AfDB
Regional
LVWATSAN Program
Ph II
5 towns around
Lake Victoria 2011-2018 UA 11.13
AfDB Kampala Sanitation
Program
Kampala 2009-2018 UA 35.00
AfDB
Supplementary Loan
to Kampala Sanitation
Program
Kampala
2018-2019 UA 19.00
AFD KW-LVWATSAN Kampala 2012-2018 EURO 75
Denmark Sector Budget Support
Rural WASH
countrywide 2013-2018 DKK 290.5
Denmark Support JWESSP countrywide 2013-2018 DKK 137.5
EU Piped Water Supply Southwest &
East/Northeast
2012-2018 EUR 30.5
Germany/KfW KW-LVWATSAN Kampala 2012-2018 EUR 20
Germany/KfW Urban wash Gulu 2013-2018 EUR23
UNICEF Rural WASH Central, Western,
Acholi and
Karamoja Region
2016-2020 EUE 10
World Bank Urban Wash Arua, Gulu,
Mbale,Ishaka-
Busheny
(2012-2018) USD 55
World Bank Urban Wash Butaleja-Busolwe,
Budaka-Kadama-
Tirinyi, Kumi-
Nyero-Ngora,
Rukungiri, Busia,
Pallisa, Katwe-
Kabatoro and
Koboko
(2012-2018) USD 43
V
Appendix IV; Government Endorsement Letter for Climate Fund Cofinancing
VI
Appendix V: Map of Project Areas
Source: Ministry of Water and Environment
