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36
AFRICAN DEVELOPMENT FUND WATER SUPPLY AND SANITATION PROGRAMME PHASE II (WSSP II) COUNTRY : UGANDA APPRAISAL REPORT OWAS DEPARTMENT January 2016 Public Disclosure Authorized Public Disclosure Authorized

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Page 1: WATER SUPPLY AND SANITATION PROGRAMME PHASE II …

AFRICAN DEVELOPMENT FUND

WATER SUPPLY AND SANITATION PROGRAMME PHASE II (WSSP II)

COUNTRY : UGANDA

APPRAISAL REPORT

OWAS DEPARTMENT

January 2016

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Table of contents

I – STRATEGIC THRUST & RATIONALE ............................................................................ 1

1.1 Project linkages with country strategy and objectives ................................................ 1

1.2 Rationale for Bank’s involvement............................................................................... 2

1.2 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 ............................................................................ 6

2.6 Participatory process for project identification, design and implementation .............. 7

2.7 Bank Group experience, lessons reflected in project design ....................................... 8

2.8 Key performance indicators ........................................................................................ 9

III – PROJECT FEASIBILITY ............................................................................................... 10

3.1 Economic Performance ............................................................................................. 10

3.2 Environmental and Social impacts ............................................................................ 10

Involuntary resettlement .................................................................................................. 11

Gender .............................................................................................................................. 12

Social................................................................................................................................ 12

IV – IMPLEMENTATION ...................................................................................................... 13

4.1 Implementation arrangements ................................................................................... 13

4.2 Procurement .............................................................................................................. 14

4.3 Financial Reporting and Audit .................................................................................. 14

4.4 Monitoring ................................................................................................................. 15

4.5 Governance................................................................................................................ 16

4.6 Sustainability ............................................................................................................. 17

4.7 Risk management ...................................................................................................... 18

4.8 Knowledge building .................................................................................................. 19

V – LEGAL INSTRUMENTS AND AUTHORITY............................................................... 20

5.1 Legal instrument ........................................................................................................ 20

5.2 Conditions associated with Bank’s intervention ....................................................... 20

5.3 Compliance with Bank Policies ................................................................................ 20

Appendix I : Country’s comparative socio-economic indicators

Appendix II : Table of ADB’s portfolio in the country

Appendix III : Key related projects financed by the Bank and other development partners in

the country

Appendix IV: Map of the Project Area

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Currency Equivalents

As of October 2015 1UA = USD1.40374

1UA = EUR1.2530

1UA = UGX 5,187

1EUR = USD 1.1203 1EUR = UGX 4,139.6

1USD = UGX 3695.13

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 NCB National Competitive Bidding

ADF African Development Fund NDP National Development Plan

ARAP Abbreviated Resettlement Action Plan NEMA National Environmental Management Authority

CBMS Community Based Management system NGOs Non-Governmental Organizations

CIFA Country Integrated Fiduciary Assessment ODF Open Defecation Free

CLTS Community let total Sanitation O&M Operation & Maintenance

CPPR Country portfolio performance review PEAP Poverty Eradication Action Plan

CSI Core Sector Indicator PDU Procurement Disposal Unit

CSP Country Strategy Paper PEFA Public Expenditure Financial Assessment

CSS Climate Safeguards System PEMCOM Public Expenditure Management Committee

DPs Development Partners PFMA Public Finance Management Act

DWD Directorate of water Development PFMDG Public Financial Management Donor Group

EA Executing Agency PPDA Public Procurement and Disposal of Public Assets

Authority

EIRR Economic Internal rate of return PPP Public private Partnerships

ESMF Environmental and Social Management

Framework

RGCs Rural Growth Centers

ESMP Environmental and Social Management

Plan

RBLF Results based logical Frame work

ENRSWG Environment and natural resource sector

working group

RBM Results Based Monitoring

FINMAP Financial Management and Accountability

Programme

RWSS Rural Water Supply and Sanitation

FM Financial Management SBL Sanitation Budget Line

GFS Gravity flow schemes SDBs Sustainable Development Goals

GoU Government of Uganda SESA Strategic Environmental And Social Assessment

HW Hand washing SM

ICB International Competitive Bidding SIP Sector Investment Plan

IE SPS Sector Programme Support

IFMIS Integrated Financial Management

Information System

SPR Sector Performance Report

IPSAS Int. Public Sector Accounting Standards STWSS Small Towns Water Supply and Sanitation

IWRM Integrated Water Resources Management SWAp Sector Wide Approach to Planning

JFA Joint Financing Agreement TYS Ten Year Strategy

JPF Joint Partnership Fund UA Units of Accounts

JSR Joint Sector Review UNFCCC UN Framework Conversion on Climate Change

JWESSP Joint Water and Environment Sector

Support Programme

UOs Umbrella Organizations

LDPG Local Development Partners Group USD United States Dollars

LGFS Large Gravity Flow Schemes VFM Value for Money

NWP National Water Policy VIP Ventilated Improved latrine

NWSC National water and sewerage Corporation WA Water Authority

M&E Monitoring & Evaluation WATSUP The Water Atlas Up-Date Project

MDGs Millennium Development Goals WESWG Water and Environment Sector Working Group

MTS Medium Term Strategy WSSDPG Water and Sanitation Development Partner Group

MVSPS Multi-village Solar Power Water Schemes WSSP II Water Supply and Sanitation Programme phase II

MOFPED Ministry of Finance, Planning and

Economic Development

WSDF - C Water and Sanitation Development Facility –

Central Region

MOH Ministry of Health WSP Water Service Provider

MWE Ministry of Water and Environment WSPOs Water and Sanitation Private Operators

NCCP National Climate Change Policy WSSB Water and Sanitation Service Board

NWSC National Water and Sewerage Corporation WSSGS Water supply and sanitation Gender Strategy

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Loan Information Client’s information

BORROWER: Republic of Uganda

EXECUTING AGENCY: Ministry of Water and Environment

Financing plan

Source Amount (UA million) Instrument

ADF 65.80 Loan

Government of Uganda 07.31

TOTAL COST 73.11

ADB’s key financing information

Loan

UA

Interest type* N/A

Interest rate spread* N/A

Service Charge 0.75% per annum on amount disbursed and outstanding

Commitment Fee 0.50% per annum on the un-disbursed loan amount

Tenor 40 years

Grace period 10 years

EIRR , ENPV(base case) (19.63%) UGX 246.3 Bn

Timeframe - Main Milestones (expected)

Concept Note approval

June 2015

Project approval January 2016

Effectiveness March 2016

First Disbursement June 2016

Completion December 2020

Last repayment December 2056

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Project Summary

Programme overview: The Government of Uganda’s second National Development Plan

(NDP-II) (2015-2020) identifies the provision of adequate water supply and improved

sanitation as one of the key priority areas for promoting sustainable wealth creation and

inclusive growth. The objective of the Water Supply and Sanitation Programme II (WSSP II),

aligned to the NDP II, is to contribute to improved health and productivity of the population

through provision of safe water and sanitation services to a target population of 1.43m people

(51.4 % women). The programme to be implemented across the country over four years, will

focus on rural gravity flow schemes and solar mini schemes targeting rural beneficiaries in all

regions; and will also provide urban water systems in small towns under the WSDF-central

region.

Programme Beneficiaries and Impact: The envisaged direct impacts include; reduction in the

average walking distance to the nearest water point; and, reduction in time spent fetching water at

congested water points. The water infrastructure designed for the identified small towns is a

direct response to Uganda’s rate of urbanization currently at 5.74%. Sanitation interventions in

schools, institutions and urban setting and the accompanying faecal sludge plants with desludging

units will have tremendous impacts on the existing challenge of emptying toilets and septic tanks

in schools and informal settlements. The improved access to water and sanitation services will

have positive social and gender payoffs and will enable a more conducive business environment

in the towns and rural growth centres. The programme will also provide employment

opportunities during construction and economically empower women and youths through support

groups and skills development. Catchment and river embankment restoration through tree

planting will be integral aspects of the intervention.

Programme Rationale: The WSSP II, aligned to the NDP-II, will contribute to Uganda’s 2040

vision of having “a transformed Ugandan society from a peasant to a modern and prosperous

country within 30 years.” It addresses the Sector Wide Approach (SWAp) programme of the

water sector JWESSP (2013-2018) whose objective is to support the water and environment

sector to achieve its targets and improve its efficiency through a consistent, harmonised sector

programme that is aligned to government objectives, policies and delivery modalities. The

WSSP-II is anchored on the CSP 2011-2016, which focuses on the two main pillars (i)

Infrastructure development and (ii) Human capacity improvement and skills development for

poverty reduction. This is in line with the Bank’s TYS (2013-2022), which prioritizes water

security as a driver of change in Africa and the need for investments in integrated water

development and management as central to sustainable water, food and energy security for green

and inclusive growth. The intervention in in line with the Banks high 5s with particular emphasis

of improving the quality of life for the African people. It is also consistent with the Bank’s

Integrated Water Resources Management Policy (2000) and Gender Strategy (2014–2018).

Programme Need: Access to potable water and improved sanitation is central in Uganda’s

development agenda owing to its strong links to all MDGs, the NDP II and the SDGs. The

country has made substantial progress in increasing water coverage in 2014 to 64% and sanitation

access to 74.6%. The water coverage, however, appears to be stagnating. The WSSP II has been

identified as one of the programmes under NDP-II that will contribute to the attainment of

Uganda’s national objectives to reach water and sanitation coverage for all, increase access to

quality social services to enable a more conducive business environment in the towns and RGC

and also make a difference in improved enrolment of the girl child.

Bank Value Addition: The Bank’s experience in Uganda’s water sector dates back to 1968. The

Bank is among the largest DPs involved in the sector and the proposed WSSP II is a follow up of

the ongoing WSSP I with similar activities, giving the Bank comparative advantage and rationale

for continued involvement in the Sector. The new support will further strengthen and consolidate

gains achieved from similar previous and on-going support in the sector. The additional

investment by the Bank Group comes timely when the country needs to implement the sector

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strategies agreed upon in the 2014 joint sector review. The Bank is now deemed to be a partner

of choice in the water sector in Uganda.

Knowledge Management: Knowledge gathered and generated from implementation of the

WSSP-II will be documented for use in improving future interventions financed by the Bank and

partners. A comprehensive program monitoring, aligned to the sector M&E framework will be

the medium for dissemination and sharing of knowledge generated. The WSDF monitoring

will be guided by the Results Based Monitoring Manual with monthly monitoring reports

consolidated into JPF quarterly reports and ultimately into the Annual Sector Performance

Reports to be discussed at the Joint Sector Reviews (JSR) and disseminated to all

stakeholders. The government and development partners will use the generated lessons learnt

to update the next Water Atlas and the sector indicators. This will also be captured in the

Bank’s bi-annual Implementation Performance Results (IPR) report.

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Results Based Logical Framework (RBLF)

Country and Programme name: Uganda – Water Supply and Sanitation Programme Phase II (WSSP II)

Purpose of the Programme: To contribute to improved health and welfare of the population through provision of safe water and sanitation services.

RESULTS CHAIN

PERFORMANCE INDICATORS MEANS OF

VERIFICATION

RISKS/MITIGATI

ON MEASURES

Indicators1

Baseline

Target

IMP

AC

T

Contribute to improved health and welfare of

the population through use of safe water and

sanitation services

1.1 Per capita income of Ugandan

1.2 incidence of diarrhoea morbidity among children under five

1.3 % of incidence of infant mortality among children under five year

1.4 Primary school Net Enrolment Ratio

USD788 (2014)

4.5% in 2014

2.4% in 2014

93.7% in 2014

USD1,033 by 2020

2.5% in 2020

1.0% in 2020

98% in 2020

Health sector

performance Report

Education & Sports

sector performance

report

UBOS Report (Uganda

National Household

Survey Report)

Risk

1) GOU

discontinuing its

urban conditional

grants to some towns

which pays part of

new connection fees

2) Local political

leadership derailing

of Programme

support, cooperation

and embracing.

3)depreciation of the

Uganda shilling

4) election related-

violence,

Mitigation measures

1. Use of the National

Utility to manage and

operate new town

systems and strong

sensitization for

increased demand for

water supply services

2) effective

Programme

advocacy,

transparency,

inculcating trust and

involvement of local

OU

TC

OM

ES

1. Improved access to a sustainable safe water

supply and sanitation facilities.

2.Improved hygienic practices and awareness

3. Improved management and functionality of

water supply and sanitation services

1.1 % population with access to safe drinking water

1.2 % population with access to improved sanitation

64% (rural)

65.4% (small towns)

74.6 %(rural)

84% (small towns)

77% (rural)

72% (small towns) 77% (rural)

90% (small towns)

Annual Water &

Environment

Performance Report

Signed minutes of

Joint Sector Review

JPF quarterly progress

report

Quarterly and annual

component progress

reporting

2.1 % population with access to (and using) hand washing facilities

(households)

2.2 % of students with access to (and using) hand washing facilities

32.7%

38%

50%

50%

3.1 Functionality rate of water supplies systems

3.2 water boards with women in executive positions

3.3 Water points with actively functioning water and sanitation committees

85% (rural)

89% (small towns) 85 %(rural) 95% (small towns)

71% (rural)

76% (small town)

90% (rural)

95% (small towns) 100 % 100%

95%

95%

Component (1) Rural Water Supply and Sanitation (ADF contribution)

OU

TP

UT

S

1.1 Gravity flow schemes constructed 1.1.1 New/rehabilitated large gravity flow schemes constructed

1.1.2 New connections installed

0

0

10

11,788

1.2 Solar Powered Systems motorized deep

boreholes

1.2.1 New Solar Powered Systems constructed and functioning 0 70

1.3 Sanitation facilities constructed in public

places

1.3.1 New Sanitation facilities constructed ( gender-segregated & disabled-

friendly)

1.3.2 masonry /mechanic artisans trained (30% women)

0

0

50

230

1.4 Improved sanitation services and hygiene

promotion

1.4.1 hygiene promotion campaigns conducted (50 % women)

1.4.2 Community Led Total Sanitation (CLTS) campaign conducted

0

0

410

30

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vii

1.5 Water and Sanitation Committees formed

/ trained with at least one woman on the

executive body

1.5.1 Water User committees established & trained with at least one women

on the executive body (CSI)

0 75

leadership in various

Programme activities

and commitments to

Programme

deliverables,

including adoption of

appropriate feasible

technological options

3) Central Bank

inflation targeting

light monetary policy

regime is intended to

avert exchange rate

volatilities on a

monthly basis.

The contract to the

extent possible will

be in local currencies

and benefit from the

exchange gains on

the committed UA in

the procurement plan.

4) The project

commencements is

scheduled months

after the elections

Component (2): Small Towns Water Supply and Sanitation (WSDF Central region)

2.1 Water schemes completed / rehabilitated 2.1.1 New /rehabilitated town water schemes constructed

2.1.2 New connections installed

0

0

25

10,000

2.2 Back up support for O&M 2.2.1 New Water Service Boards established (with at least one woman at the

executive level)/ 0 15

2.3 Sanitation facilities constructed 2.3.1New Regional faecal sludge treatment facilities (36m3/day) constructed

2.3.2 Cesspool emptiers/vacutags procured for faecal sludge haulage

2.3.3 New Sanitation facilities constructed ( gender-segregated & disabled-

friendly) including schools / institutions

2.3.4 Masonry /mechanic artisans / trained (30% women)

0

0

0

0

2

06

100

100

2.4 Improved sanitation services and hygiene

promotion

2.4.1 Communities trained on hygiene promotion (50 % women)

2.4.2 Gender sensitive sanitation surveys conducted (baseline /post)

0

0

40

50

Component 3 Sector Program Support SPS

3.1 Climate Change Resilience 3.1.1 Water sources catchments protected

3.1.2 Tree nurseries established

0

0

90

34

3.2 Skills development for women and youth

for economic empowerment.

3.2.1 Women and youth trained in skills development

3.2.2 Gender mainstreaming guidelines for MWE developed and

disseminated.

0

0

200

1

3.3 Mainstreaming HIV/AIDS and Awareness

creation on lifestyle Diseases.(LSDs)

3.3.1 Communities covered by awareness creation campaigns

3.3.2 Voluntary Counselling and Testing/ Circumcision sessions conducted

0

0

20

12

3.4 Sector Coordination and Programme

Monitoring

3.4.1 JSRs/ JTRs conducted

3.4.2 Annual Sector Performance Reports compiled

3.4.3 ESMP implementation monitoring reports prepared

0

0

0

8

4

16

3.5 Capacity development program for private

sector, Local Government and Ministry staff

in drilling and solar energy.

3.5.1 Capacity development trainings conducted. 0 4

AC

TIV

ITIE

S

COMPONENTS

Component 1: Rural Water Supply and Sanitation: (i) implementation of rural water supply infrastructure, including Large Gravity Flow Schemes (LGFS) and

solar powered water schemes (ii) promotion and implementation of sanitation and hygiene development.

Component 2: Small Towns Water Supply and Sanitation: implementation of water supply and sanitation infrastructure for small towns and rural growth

centers, water resources management and catchment protection;

Component 3: Sector Program Support: capacity building, support annual technical and financial audits, cross-cutting issue and environmental and social

Management and sector studies

INPUTS

Component 1

ADF

UA 37.11million

UA 33.40 million

Component 2

ADF

UA 33.78 million

UA 30.40 million

Component 3

ADF

UA 2.22 million

UA 2.00 million

Total ADF

Total incl.

GOU

UA 65.80 million UA 73.11 million

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viii

Project Timeframe

Project 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

Grant Negotiations

Loan Approval

Sign Loan Protocol Agreements

Launching Mission

Community planning, mobilsation & baselines

Hygiene promotiion & Construction of

Sanitation infrastructure

Design/design review of WATSAN

infrastructure

Construction of GFS, Solar Schemes, Town

water supply facilities

Procurement of desludging, WQ and IT

equipment,

Climate change resilience measures, HIV

mainstreaming and awareness creation on

lifestyle diseases

Skills Development fo women and youth for

ecomonic empowerment

Development of manuals( supervision of solar

scheme & drilling, mgt of WSS

Tailored training( mgt of facilities &driiling

Supervion)

First Disbursement

Second Disbursement

Third Disbursement

Fourth Disbursement

Program mgt , M&E

Supervision Mission

Mid Term Review

JSR and JTR(Joint Sector Reviews)

Program Completion Report

Q2 2019Q1 2019 Q4 2020Q3 2020

UGANDA - WATER SUPPLY AND SANITATION PROGRAM PHASE II 2016/17 TO 2019/20

PROGRAM IMPLEMENTATION SCHEDULEQ4 2019Q3 2019 Q2 2020Q1 2020Q4 2017Q3 2017 Q2 2018Q1 2018 Q4 2018Q3 2018Q2 2016Q1 2016 Q4 2016Q3 2016 Q2 2017Q1 2017

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REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE ADB GROUP

TO THE BOARD OF DIRECTORS ON A PROPOSED LOAN TO UGANDA FOR THE

WATER SUPPLY AND SANITATION PROGRAMME PHASE II (WSSP II)

Management submits the following Report and Recommendation for a proposed ADF loan of

UA 65.8 million to the Government of Uganda to finance the second phase of the Water

Supply and Sanitation Programme (WSSP-II). The proposed Bank group financing to the

WSSP II is the Bank’s response to a formal request by the GoU to support its efforts aimed at

achieving sustainable provision of safe water and hygienic sanitation facilities within easy

reach to all Ugandans. This programme is also a continuation of Bank’s support to the sector

after the successfully implemented phase one of the WSSP.

I – STRATEGIC THRUST & RATIONALE

1.1 Project linkages with country strategy and objectives

1.1.1 Uganda’s 2040 vision is to have “a transformed Ugandan society from a peasant to a

modern and prosperous Country within 30 years”. The country, in April 2015, concluded the

preparation of its second National Development Plan (NDP-II) for the five years (2015-2020).

The NDP-II builds on the key lessons learnt from NDP-I, and aims to propel Uganda towards a

middle income status of attaining a per capita income of USD 1,033 by 2020 from USD 788 in

2014. The NDP’s strategic focus is ‘Strengthening Uganda’s Competitiveness for Sustainable

Wealth Creation, Inclusive Growth and Employment’. This is through four objectives;

Increasing sustainable production, productivity and value addition in key growth opportunities;

Increasing the stock and quality of strategic infrastructure to accelerate the country’s

competitiveness; enhancing human capital development; and strengthening mechanisms for

quality, effective and efficient service delivery. The NDP II identifies the provision of adequate

water supply and improved sanitation as one of the key priority areas for promoting sustainable

wealth creation and inclusive growth. Besides alignment to the water policy and climate

change policy, the program is anchored in Strategic Sector Investment Plan (2009-2035) whose

objective is to have water and sanitation access coverage for all by 2035 and with 95%

functionality. Furthermore, to address the unequal power relations and the different roles,

capabilities and needs of women, men, girls, boys and other vulnerable groups the program is

aligned to the sector Gender Strategy 2010-2015. The long term impacts of the proposed

operations will not only result in a healthy workforce but also improve opportunities of

meaningful education enrolment for the mothers of the nation.

1.1.2 The Bank’s revised Country Strategy Paper (CSP) for Uganda for 2011-2016, focuses

on two pillars: (i) infrastructure development and (ii) skills and technology development. The

areas of emphasis in the CSP are aligned to the country’s Vision 2040 and the NDP I & II.

Pillar one of the CSP proposes to contribute to the development and rehabilitation of critical

economic and social infrastructure. Water supply and sanitation is among the interventions

identified under the Bank’s Assistance Program for the Extended CSP Period 2014-16.

1.1.3 The proposed programme is in line with the Bank’s Ten Year Strategy (TYS) 2013-22

and the Banks high 5 with particular emphasis on improving the quality of life for the African

people. Component 3 activities have been designed to address inclusiveness and skills

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enhancement for women and youth. The use of solar power and activities for catchment

restoration too, will promote the transition to green growth. The programme also conforms to

the Bank's Integrated Water Resources Management (IWRM) Policy emphasising water

development and management based on participatory approaches, and women playing crucial

roles in the provision, management and safeguarding of water.

1.2 Rationale for Bank’s involvement

1.2.1 Access to potable water and improved sanitation has always been central to Uganda’s

development agenda. It has featured strongly in the Poverty Eradication Action Plans (PEAP)

and its successor, the NDP I & II. The country has made substantial progress in increasing

coverage to safe drinking water from 42% in 1991 to 64% in 2014, while access to sanitation

has raised from 51% in 2001 to 74.6% in 2014. There are however still funding limitations for

the water sub-sector to accelerate coverage in the water stressed areas due to high investment

requirements. The sector, during its 2014 annual review, committed to rollout large gravity

flow schemes (GFS) to cover wider water stressed areas, bringing piped water closer to the

rural populations and progressively reduce the common sight of women carrying water on their

heads for long distances from wells. The annual review further committed to work towards

reducing congestion at rural water point sources to minimise the waiting time and improve

service levels. The strategic option to address the challenges, while taking on board climate

change considerations, was to progressively invest in solar powered mini-piped water schemes

on high yielding existing and new boreholes to improve on the service levels and reduce

congestion on overcrowded water supplies. Likewise, the current urban coverage of water

supply and sanitation in Uganda’s Central Region (WSDF-C) remains low and is constrained

by the rapid population growth and increased urbanization (estimated at 5.74%) linked to

proximity to the capital city. The WSDF-C has over 208 towns in 25 districts with water

coverage of about 69%. Limited funding has been highlighted as the major obstacle to

improving service delivery. The situation in some of these small towns has been worsened by

effects of climate change like prolonged droughts, leading to decrease in ground water levels

and lower yields in the production wells. The proposed intervention will address SDG 5, 6, 13

and 15 with activities geared towards gender equality and empowerment; availability of

sustainable water and sanitation; combating climate change and restoration of the ecosystems.

1.2.2 Uganda’s Ministry of Health (MOH) shows that 75% of the country’s disease burden is

preventable through improved hygiene and sanitation, vaccination, and good nutrition.

Strategic interventions through water and sanitation programs are therefore necessary to ensure

a heathy labour force which is key for poverty alleviation in the country.

1.2.3 The Bank has accumulated a wealth of experience in the water sector in the East

African region and Africa as a whole. Its experience in Uganda’s water sector date back to

1968. The Bank is among the largest DPs involved in the sector and the proposed WSSP II is a

follow up of the ongoing WSSP I with similar activities, giving the Bank comparative

advantage and rationale for continued involvement in the Sector. The new support will further

strengthen and consolidate gains achieved from similar previous and on-going support in the

sector. The additional investment by the Bank Group comes timely when the country needs to

implement the sector strategies agreed upon in the 2014 joint sector review (2014 SPR -5.11&

6,2).

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1.3 Donors coordination Table 1: WSS Donor Coordination

Players - Public Annual Expenditure (average)**

Government Donors

UA 56 m UA 48 m

54% 46%

Level of Donor Coordination

Existence of Thematic Working Groups Y

Existence of SWAPs or Integrated Sector Approaches Y

ADB's Involvement in donors coordination

Chair (2008/09 and

in 2011/12)

1.3.1. Uganda’s donor coordination mechanism is composed at the highest level by the Local

Development Partner Group (LDPG), which brings together all heads of development agencies

and over 25 diverse macro and thematic sector working groups that meet regularly on a broad

spectrum of national issues. The Bank is an active member of the WSSDPG at sector level

which meets monthly and collaborates with over 10 other agencies including Denmark, WB,

EU, UNICEF, USAID, Austria, France, Water Aid, Germany (KfW, GIZ), IRC and JICA on

sector issues and water and sanitation related projects, within the framework of the JWESSP.

1.3.2. In an effort to harmonize DPs’ intervention, and to strengthen sector ownership, the

Bank has partnered with DPs under the JWESSP of the water and environment sector to

undertake development interventions in a programmatic approach. In this respect the WSSP II

is part of a wider sector programme with other DPs supporting other components, or other

regions of similar components.

1.3.3. The WSSDPG is currently chaired by World Bank and co-chaired by Austria and

Danida. The Bank chaired the WSSDPG during 2008/9 and 2011/12. The DP Group is well

informed about the proposed WSSP II through consultations with Bank Teams at

preparation/appraisal missions.

1.3.4. The DPs are also members of the Water and Environment Sector Working Group

(WESWG) which is the formal decision-making body on all water supply & 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. As demonstrated in table 1 above,

the Bank is among the most active donors in the sector. Appendix III presents details of DP

contributions.

France 24.06%

AfDB 22.58%

World Bank 19.63%

Germany 18.37%

Denmark 10.08%

Eurpean Union 5.54%

Austria 2.59%

UNICEF 0.55%

Others 3.83%

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II – PROJECT DESCRIPTION

2.1 Project components

Table 2.1: Project components

no. Component

name

Est. cost

(UA)

Component description

1 Rural Water

Supply and

Sanitation

(RWSS)

37.11m

(33.40m) implementation of rural water supply infrastructure, focussing on 10 Large Gravity

Flow Schemes (LGFS) and 70 solar powered water mini schemes

Support sanitation implementation through, construction of 50 public sanitation

facilities in schools, institutions, RGCs in form of waterborne toilet facilities.

Support sanitation and hygiene awareness including Community Led Total

Sanitation (CLTS), handwashing campaigns promotional training workshops,

production of IEC materials, sanitation baseline surveys, setting up and training of

WASH structures for the public facilities constructed, gender awareness and

triggering and follow up of triggered communities to ensure attainment of Open

Defecation Free (ODF) status.

2 Small Towns

Water

Supply and

Sanitation

(STWSS)

33.77m

(30.40m) Implementation of 25 new and rehabilitation/expansion of Town water supply

systems. Support construction of 2 faecal sludge plants including supply of 2

cesspool empties and 4 Vacutugs. Construction of 100 public water-borne toilets ,

implement sanitation and hygiene development through, community-based

planning, baseline surveys, sanitation and hygiene education, CLTS, physical

constructions and installations. The engagements with beneficiaries will address

crosscutting elements of gender, HIV-AIDs, environmental restoration, M&E ,

training and capacity building

Support Sanitation and hygiene promotion, training of masons, women and youth

groups in construction and management of appropriate sanitation measures.

3 Sector

Program

Support

(SPS)

2.22m

(2.00m) The Sector Programme Support (SPS) component will address both urban and rural

facilities supporting Climate Change Resilience for protection of 90 water source

catchments, training of 200 women and youth in different skills to support

ecosystem restoration and improve their livelihood, Mainstreaming HIV/AIDS and

awareness creation on lifestyle diseases, support sector coordination and programme

monitoring; and support capacity development program for private sector, Local

Government and Ministry staff in drilling and design of solar powered piped water

systems.

( ) Amount in brackets depicts the Bank’s contribution

2.2 Technical solution retained and other alternatives explored

2.2.1 The retained technical solutions are based on the experiences in previous and ongoing

interventions and in line with the sector strategies agreed upon during the joint annual sector

review for 2014. The constructions of GFS’ has been practiced by the sector for over two

decades but on a smaller scale owing to financial constraints. The larger inter district GFS’

have been one of the technologies successfully implemented in WSSP I with Bank support and

has demonstrated a clear reduction in walking distance. Solar powered schemes too have been

implemented under WSSPI. The designs conform to international standards and will promote

use of renewable solar energy in line with the Banks ten year strategy. The extensive LGFS

whose water supply is gravitated to the beneficiaries, provides low maintenance solutions with

no requirement for pumping and a reduction in the carbon footprint of the water supply

industry. Interventions for the urban water supply will continue to promote viable and cost

effective options with preference for ground water sources in most of the small town water

supply systems or extension from existing water supply systems with excess capacity. Only

two water systems with no viable ground water option are to use surface water options. The

sanitation infrastructure will also be constructed in accordance with the mandate of the water

sector. Provision of regional faecal sludge facilities with desludging mechanisms are becoming

increasingly important for recycled use of facilities in institutions, public and private place in

view of the increased school enrolment and the urban migration and shall be promoted. VIP

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latrines have been noted to fill up soon after completion of the programme. Sewerage systems

owing to very high unit costs will not be retained. Based on sanitation survey findings and

house-to-house visits, the programme will continue to support, public water borne toilets in the

Towns for public amenities like markets, and educational institutions while household Eco-san

will feature more under the rural component. CLTS, Sanitation Marketing (SM), Hand

Washing (HW) and Impact Evaluation (IE) and such other promotional mechanisms will be

retained. CLTS has been more successful in the rural component focusing on the community-

based approach like (stopping of open defecation; use of peer pressure; collective action to

assist the poor people and support public facilities). The SM focuses on the household-centered

change. The components will conduct a gender baseline survey to estimate the causal impact of

the CLTS/SM and closely monitor the outcome.

Table 2.2: project alternatives considered and reasons for rejection

Alternative Brief description

Reasons for rejection

Sewerage

systems

Construction of sewerage

systems in the towns.

Very high unit costs

Low willingness to connect to sewers

networks. (Community preference is

for emptiable onsite sanitation which

does not require month tariff

payments)

Ecological

sanitation

Ecological sanitation demo

facilities in towns to entice

town occupants to upscale

using own resources

Has not generated the anticipated

replication within towns. Preference is

for more public facilities and the

ordinary on site facilities.

Sector Budget

Support

construction of rural point

water sources

Congestion at water points and

walking distance.

Opt for New sector thinking to

support piped and gravitated water to

rural communities and use of solar

power mini schemes with multiple

outlets to reduce congestion at point

sources

2.3 Project type

2.3.1 The proposed programme (WSSPII) is not a stand-alone operation; it is a public sector

programme aligned to Uganda’s water sector strategic approach outlined in the JWESSP 2013-

2018 under the SWAp framework and is to support 3 out of the 8 JWESSP components. It will

use the existing GoU and DPs’ agreed funding modalities channelling funds through the Joint

Partnership Fund (JPF). The assessments 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, hence justifying

a programme approach instead of a standalone project. The WSSP II is a continuation of the

programmatic support the Bank has provided to the WSSPI.

2.4 Project cost and financing arrangements

2.4.1 The Bank loan of UA 65.8m for the WSSP II is part of the allocation under ADF 13

requested for by Government to support the water supply and sanitation intervention. The total

cost of the project including government 10 % is estimated at UA 73.11million, net of taxes,

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comprising UA 42.49 million (58%) in local costs and UA 30.63 million or (42%) of the total

cost in foreign cost. The Government shall provide budget allocation for all applicable taxes in

each financial year in addition to the 10% Government contribution. A summary of project cost

estimates by components, expenditure categories, and schedule are presented in Tables 2.3, 2.4

and 2.5 below, while details are provided in the Technical Annexes B2 of the appraisal report.

Table 2.3: Project cost estimates by component [amounts in UA equivalents]

Components Foreign

currency costs

Local currency

costs

Total Costs % foreign

Rural water supply and sanitation 16,595,000 20,516,111 37,111,111 44.72%

Small towns water supply and sanitation 13,780,000 19,997,778 33,777,778 40.80%

Sector program Support 250,000 1,972,222 2,222,222 11.25%

Total project cost ( incl. of Contingencies) 30,625,000 42,486,111 73,111,111 41.89%

2.4.2 Financing Arrangement: The ADF loan will finance 100% of the sanitation

infrastructure and 91%-100% of the water infrastructure in component 1; 100% of the town

water supply infrastructure and related services and 70% of the sanitation infrastructure and

services in component 2; 83.3% of the subcomponent for climate change resilience and 85.3%

of the subcomponent for Training of women and youth in different skills and 100% of

subcomponent 3.3, 3.4, and 3.5. The GoU is providing 10% of the planned costs to address

some of the recurrent costs, software and some top up for the infrastructure and will address all

applicable taxes as well. The details are outlined in the financial tables of the technical annex

B2.

Table 2.4: Sources of financing [amounts in million UA equivalents]

Sources of financing Foreign currency costs Local currency costs Total Costs % total

ADF 30.63 35.18 65.80 90.0%

GOU 0.00 7.31 7.31 10.0%

Total project cost 30.63 42.49 73.11 100.0%

Table 2.5: Project cost by category of expenditure [amounts in UA equivalents]

Categories of expenditure Foreign currency costs Local currency costs Total Costs % foreign

Works 26,653,950 32,577,050 59,231,000 45.0%

Services 1,547,340 5,955,730 7,503,070 20.6%

Goods 2,423,710 50,000 2,473,710 98.0%

Operational Cost 0 3,903,331 3,903,331 0.0%

Total project cost 30,625,000 42,486,111 73,111,111 41.9%

Annual disbursements

Table 2.6: Expenditure schedule by component [amounts in UA equivalents] Components 2016/2017 2017/2018 2018/2019 2019/2020

Rural water supply and sanitation 6,430,328 12,375,978 11,481,278 6,823,528

Small towns water supply and sanitation 8,818,750 9,193,750 8,953,750 6,811,528

Sector program Support 535,556 565,556 560,556 560,556

Total base cost 15,784,633 22,135,283 20,995,583 14,195,611

2.5 Project’s target area and population

2.5.1 The programme is spread across the country with rural gravity flow schemes and solar

mini schemes targeting beneficiaries in the east, northeast, north, central and western regions.

The allocation is predominantly targeting sub-counties that are considered water stressed. The

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supported urban WSDF- central has mandate over 473 towns and RGC of which 64 are town

councils in 25 districts covering central, mid-southern, mid-western and western regions. These

extend from river Nile in the east up to the districts of Masindi, Hoima and Kibale on the

western boarder along Lake Albert.73 towns/RGC in the WSDF-C so far have piped water.

The intervention is to target another 25 town water facilities, some of which will be extended

to cover clusters of towns. The programme is contributing to a water and sanitation sector

target of 77% by 2020. The programme is to provide additional access to 1.43 million in the

projected design period and 0.753 million by 2020. The proposed rural interventions are

moving away from the traditional point water source, to delivering the water into villages and

decongested solar powered schemes which will have positive outcomes on reduced walking

distance and utilisation of time earlier spent on collecting water for other income generating

activities as well as improved school enrolment and retention for the girls . The programme

will train artisans (30% women) and empower women and youth groups for possible business

along the water and sanitation value chain and catchment management. Skilled and unskilled

employment will be generated during the construction and the operations of the systems

2.6 Participatory process for project identification, design and

implementation

2.6.1 The formulation and preparation of the programme was very participatory involving

sector staff and detailed sensitisation and consultations of local government leaders, members

of parliament and the targeted beneficiaries. During the preparation and appraisal phases, the

Bank team visited 8 of the 10 proposed GFS sources in the East, North East, Northern and

Western regions of the Country, and a sample of the towns for urban water infrastructure and

held consultative meetings with the senior districts and regional authorities, subcounty

officials, parliamentarians, town councils, water management committees and targeted

beneficiaries on issues of inclusiveness, access and land acquisition. It was noted that the

selection of sites and infrastructure was in agreement with the desires of the beneficiaries who

also pledged full commitment and participation during implementation. Beneficiaries

expressed their preference of piped gravity water to the point water sources and the use of solar

systems to decongest point water sources was welcomed with enthusiasm as this had potential

of transmitting water closer to the communities through multiple taps. At central level the

teams met the senior staff of Ministry Water and Environment; Health; Finance and further

held technical discussions with the directorate of water Resources, the departments for rural

water and sanitation; urban water and sanitation; water and environment liaison. Ideas were

solicited on the relevance and implementation arrangements of the various programme

components, target groups and geographical locations. Efforts were made to ensure gender and

social inclusiveness, women and youth empowerment and sustainability mechanisms in these

consultations. The proposed intervention would continue to use indigenous Public Private

Partnerships (PPP) in the management of the water supply and sanitation services in small

towns however viable new town water systems would be handed over to the national utility

(NWSC) for management. The mission later met and presented the sector preferred

interventions under the Programme to the Development Partners group supporting the water

and environment sector in the country.

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2.6.2 The Programme’s rural components were anchored in strategies agreed upon by

stakeholders at the 2014 Joint sector review drawn from central and local governments, town

councils, civil society and private sector. The urban interventions preferred where aligned to

the JWESSP 2013-2018 developed with the full participation of all sector stakeholders

including development partners.

2.7 Bank Group experience, lessons reflected in project design

2.7.1 The Bank has accumulated a wealth of experience in the water sector in the East

African region and Africa as a whole. The Bank has been supporting the water sector in

Uganda since 1968 with interventions both in urban and rural water supply and sanitation and

is regarded in the sector as the partner of choice. CPPR reviews have highlighted a number of

lessons, including: (i) absence of feasibility studies and designs at project start-up which were

noted to cause implementation and disbursement delay; (ii) inadequate consultation with

stakeholders resulting in land wrangles, stoppage of works and lack of ownership and (iii)

inadequate M&E system affecting the quality of databases. The EA has ensured that feasibility

studies and most of the designs for the intervention have been carried out prior to programme

approval. Land issues were discussed during the feasibility studies and resources have been

committed by GOU for land acquisition. The sector has also developed a comprehensive

Results Based Monitoring (RBM) Manual to guide WSDF monitoring and M&E experts have

been earmarked under the components. At sector level recent and ongoing interventions

supported by the bank which include the Rural Water and Sanitation Programme and Small

Towns Water Supply and Sanitation Project, which were successfully completed in 2009. The

Water Supply and Sanitation Programme, the Lake Victoria Water and Sanitation program and

the Kampala Sanitation Program too, which have generated best practices and lessons learned.

These include: a) the use of existing institutional arrangements as key in avoiding duplication

and creation of a stronger sense of ownership, institutional memory and sustainability after

project implementation; b) promotion and mainstreaming of gender, environmental and social

safeguards has a positive impact on the outcomes of the operation; c) use of local private

operators to manage and operate the water supply and sanitation facilities was noted to be an

effective way of improving service delivery and job creation; d) delegated procurement and

financial management functions for deconcentrated sector organs provided full-time

engagement on Program activities as is the case with the regional WSDF-C and produced

timely procurement and achievements of targets; e) establishment and sensitisation of

community management structures such as the water and sanitation committees and boards

eases penetration of project staff into the targeted communities; f) applying CLTS in urban

settings has been a challenge. The approach requires a homogenous community setting unlike

the transient populations typical in urban settings. The CLTS approach is best suited for rural

settings; g) emptying of the Ecosan toilets too is a challenge upcountry. h) Sanitation facilities

constructed in phase I were noted to be filling up before the end of the program. Designing of

phase II will therefore include faecal sludge plants and desludging mechanisms and these will

be in all future urban water and sanitation programmes including water borne toilets; i) demand

responsive interventions promote a sense of ownership and commitment from beneficiaries;

and j) for any partnering or co-financing, the Bank should not only take up downstream

infrastructure activities as these were noted to holds back disbursement.

2.7.2 The lessons have been incorporated in the design of the proposed operation which is

also aligned to the broader JWESSP, adopting use of common country systems co-ordinated

with a common objective of improved sustainable water and sanitation provision. The

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Programme has had extensive consultations and buy in of the beneficiaries and will also

continue to promote locally constituted water users committees with gender balanced

representation in rural areas as well as use of indigenous Public Private Partnerships (PPP) in

the management of the water supply and sanitation services in small towns. The national utility

(NWSC) with a proven record of superior O&M is also to take up management of viable new

town water systems. The Programme will also contribute to the on-going efforts by the sector

to mainstream environmental, social and gender issues through continuous capacity building

and affirmative action.

2.7.3 The introduction of the programme is fully in line with the current policy of the GOU

whose aim is to achieve: (i) harmonized strategy and common approaches for a given sector at

the national level, (ii) a participatory approach to planning and follow-up of activities, (iii)

improvement of cost-effectiveness and sustainability of services provided, and (iv) the

improvement of monitoring, transparency and reporting. This approach will further strengthen

and consolidate gains achieved from previous and active interventions in the sector, whilst

reinforcing the sector from within.

2.8 Key performance indicators

2.8.1 The Results Based Logical Framework (RBLF) has captured indicators for impact,

outcomes and outputs of the program. The WSSP II will be implemented as part of the broader

sector programme using the sector Golden output indicators which are consistent with the

Bank’s Core Sector Indicators (CSI) and these include: access; functionality; per capita

investment cost; sanitation; water quality; water for production; equity; hand-washing;

management structures; gender (no. of women in water and sanitation committees / service

boards), and water resources management compliance. During the implementation of the

programme, the experienced M&E experts assigned by the components will verify and analyse

programme data for the RBLF but also submit it for central amalgamation together with data

from the district, 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 both at national and district level. The outputs and outcomes will feed into the annual

sector performance report to be discussed in the Annual Joint Sector Review for strategic

decisions and sector direction in the forthcoming 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

too will be conducted at sector and ministry of Finance level. The sector has mainstreamed

gender and a lot of emphasis is placed on disaggregation of data to capture benefits from the

programmes 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 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 and outcome indicators include: (i) people with access to safe drinking

water and sanitation services (ii) incidence of diarrhoea morbidity among children under five

(iii) percentage access to safe drinking water (iv) access to improved sanitation at household

(v) access to (and using) hand washing facilities (vi) students with access to (and using) hand

washing facilities (vii) Functionality rate of water supplies systems (viii) water boards with

women in executive positions (ix) Water points with actively functioning water and sanitation

committees.

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2.8.3 The sector 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 previous atlas was completed in 2010 and another is

expected in 2015. The programme will contribute to the 2020 atlas. The M& E expert attached

to WSDF-C will make use of the fully developed MIS system at the facility for data collection

and analysis. The revised ESMF developed and approved by NEMA in August 2015 and the

accruing ESMPs will be used to monitor compliance in mainstreaming environment and

climate change resilience (Tech. Annex B8).

III – PROJECT FEASIBILITY

3.1 Economic Performance

EIRR (base case) 19.63% ENPV (base case) UGX 246.3 billion

3.1.1 The economic analysis assesses the beneficial effects of the proposed interventions and

highlights the broader impacts associated with the program interventions in terms of

employment generation, public health, time savings and the incidence of waterborne and

water-related diseases. The following broad parameters constitute the variables that were used

for the economic viability assessment: (i) averted costs of healthcare; (ii) averted productivity

losses while sick or accessing health care (including welfare gained by women due to less child

illness); (iii) improved earnings due to training and skills upgrading; (iv) travel and waiting

time averted for collecting water for female beneficiaries; and (v) travel and waiting time

averted for access to sanitation for all beneficiaries. Detailed assumptions are contained in

Annex B7.

3.1.2 The Economic Internal Rate of Return (EIRR) at 19.63% is higher that the discount rate

of 10% making the project economically viable.

3.1.3 Sensitivity analysis (reflected in Annex B7) indicates that, both the 20% increase in

capital costs and 20% decline in benefits will not result in the EIRR of the program declining

to below the 10% which is reflective of the significant economic benefits accruing from an

improvement in water supply and sanitation services in the country.

3.2 Environmental and Social impacts

3.2.1 Environment WSSP II was on 14th May 2015 validated by ORQR as Category 2. The ISS compliant ESMF

was approved by the NEMA on 7th August 2015 and the summary thereof approved by ORQR

on 9th November 2015 for disclosure on the AFDB website. The programme will have

significant strategic benefits in reducing the burden on health care services for the people who

can then switch their restricted resources to other developmental aspects of life other than

spending heavily on medical services. The introduction of a complementary health and hygiene

awareness programme targeted at women and children and including components on malaria,

HIV-AIDS, and other Diarrhoeal diseases will considerably enhance the benefits of the

programme. Use of appropriate labour intensive methods for some of the construction

programme (e.g. excavation for pipelines) will present employment opportunities to local

people (including women) and generate direct income benefits to local households. The

programme will contribute to alleviation of poverty and improving the socio-economic and

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health status of highest concentrations of poor people in Uganda. Negative impacts will among

others include land acquisition, visual intrusion, increased accidents and occupational hazards,

disturbance in socio-economic activities, increased soil erosion & siltation of the aquatic

habitats, ponding, disturbance of floral and faunal communities, increased dust and noise

levels, gaseous emissions, impacts on downstream users and change the lives of water vendors. 3.2.2 Mitigation measures among others shall include careful siting for tanks on hill tops to

minimise visual impact, using public road reserves for pipeline servitudes, locating treatment

works sites in relation to the prevailing wind direction and the location of residential areas,

standardising hand pumps with consideration of the ergonomics for use by women and girls,

and wellhead design that minimises the risk of pollution, explore opportunities for local people,

especially water vendors, raise awareness of the sexual transmitted disease and water related

diseases, Minimise odour from water treatment plants by proper management and use of water

treatment chemicals, develop and implement integrated catchment management programmes

and address the issues of pollution control around water points, livestock watering and

pollution issues of vehicle washing and clothes laundering. By and large implementation of

ESMPs as defined I the ESMFs should provide adequate mitigation measures.

Climate Change

3.2.3 Uganda is a signatory to the UNFCCC which commits her to integrate climate change

in her development planning. Climate change models for Uganda suggest a projected increase

in temperature of 0.7o C to 1.5o C by 2020 and the economy is highly dependent on climate-

sensitive natural resources which are already impacted by adverse effects of climate change

including droughts, floods and landslides. Floods and landslides have been linked to drained

wetlands, deforestation, and compacted soil that no longer have any water-retention capacity.

The National Climate Change Policy (NCCP) and its costed implementation strategy was

approved by the Cabinet on 1st of April, 2015. The Sector has already commenced the

implementation of the policy. The policy framework guiding principles promote community-

based approaches to adaptation. The Bank categorized the programme as Category 3 in terms

of Climate Risk, which means a voluntary consideration of low cost risk management and

adaptation measures is recommended. Component 3 will carry out a number climate change

resilience measures in the catchments of the water sources to be developed. These include:

catchment situation assessments to delineate the catchments and establish baseline conditions;

site-specific water source and catchment protection plans developed and implemented. Planting

appropriate tree species and training women and youth groups in establishment of tree

nurseries. It is hoped the women groups will continue as a business providing tress planting

and catchment restoration and river bank protection. The programme will also address women

and youth skills enhancement for constructing energy saving stoves and production of

briquettes for cooking to reduce on the carbon footprint.

3.2.4 The programme activities will generate climate change benefits through use of solar

driven pumping schemes and gravitated rural piped water schemes hence reducing the carbon

footprint. The ESMF will monitor the progress and also help to ensure that infrastructure is

constructed outside of flood lines and that production boreholes extract water from aquifers

that are resilient to severe drought conditions.

Involuntary resettlement

3.2.5 No involuntary resettlement is expected to take place as a result of the programme.

Sources for the GFS and the related treatment sites are situated high up in uninhabited

mountainous areas and the distribution networks tends to follow established roads and paths for

ease of maintenance

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Gender

3.2.6 Intensive work has been done in Uganda’s water and sanitation sector to implement

gender mainstreaming approach and strategies, such as the Water Sector Gender Strategy, the

Extension Handbook, and gender sensitive Strategic Investment Plans (SIP15). The sector

launched its 2nd Water and Sanitation Gender Strategy (2010 – 2015) and formulated a Gender

Plan of Action which took into account technical and financial implications. The goal of the

Water Supply and Sanitation Gender Strategy II (WSSGS II) is to empower women, men, and

vulnerable groups through ensuring equity in access and control of resources in the water and

sanitation sector, leading to poverty reduction.

3.2.7 “In Uganda, women and girls are the major water collectors, users and managers in

homes. They are also the major promoters of household and community sanitation activities.

Therefore they bear the impact of inadequate, deficient or inappropriate water and sanitation

services. Men however still dominate the arena of planning and decision making regarding

water and sanitation development and women’s views are often under-represented, implying

that women’s practical and strategic needs are not addressed.”2 Against this background, the

programme will focus on three main areas: (i) ensure the participation of women in planning,

designing, implementation and the operation of the water and sanitation systems, (ii) increase

women’s knowledge on health through hygiene promotion which will have an impact on

families and society in large, (iii) direct contribution to the creation of employment

opportunities. The first two interventions have been working effectively in the sector. The last

intervention would be the value added by this proposed programme.

3.2.8 It was agreed with the Government of Uganda that there is need to look at and examine

the possibility of increased employment among women and youth in the water and sanitation

value chains. Under component 3 ‘Sector Program Support’, skills development for women

and youth is proposed with the aim to create economic opportunities as one of the

programme’s objectives. The focus is on two major activities: (i) skills development of women

in areas, which will contribute to improved health and hygiene, and activities for profit

generation. Groups of women from each project site will be trained in various skills, (ii)

catchment area protection through accelerated tree planting. Cooperative groups will be

established for women and youth to develop nurseries. This will help to initiate business

around tree planting for catchment protection as well as generating income for selected

vulnerable households. The activity will benefit 200 women and youth (targeting those heading

households). Selection criteria and implementation arrangements have been designed and

agreed upon. A total budget of 600,000 UA for this particular intervention is envisaged.

Moreover, additional budget has been allocated to cover other cross-cutting interventions.

(Details in annex B8)

Social

3.2.9 Poverty and disease are interlinked problems in Uganda especially in informal

settlements, which are compounded by poor sanitation, unserved water and inadequate

housing. Water and sanitation related diseases are among the top ten killer diseases in Uganda.3

Rate of urban growth is estimated to be 5.75% per year – creating large rural growth centres

with limited water supplies and sanitation facilities.4 95% of Ugandans use firewood or

2 Water And Sanitation Sub-Sector Gender Strategy (2010-15) 3 “Intestinal worms, diarrhoea and asthma topped the list of the most prevalent diseases in Kampala city between 2006 and 2009. Kampala City Council's health division says these diseases jointly contribute to more than 80 per cent of the disease burden in the city” (By Lirri of the

Monitor Publications, 6 April 2010”, Contemporary Issues And Challenges Related To Water, Health And Environment In Uganda 4 Ibid

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charcoal for fuel which translates into a loss of 2.2% of the forest cover every year. This has a

negative impact on water source protection. The poverty level affects people’s sanitation

choices. Accessibility to affordable solutions determines the options for the type of technology,

location, and associate interventions required.

3.2.10 Within this framework, the programme interventions are centred on: accessibility,

which looks at distance to the water sources, increased water outlets to avoid long queues and

providing water along the distribution lines. For sanitation, the focus will be on sanitation in

markets for urban settings and CLTS for rural areas because of its appropriateness. The

programme will provide information on the different sanitation facilities and the costing for

each so that communities can make an informed decision. Regarding public locations,

communities are involved in determining suitable sites for water provision as well as

sanitation. Associate interventions are concentrating on hygiene promotion and knowledge

generation to help communities to reduce health expenditure as well as costs to obtain water by

reducing the need to buy from water vendors. The skills development and creation of business

opportunities focuses on the water and sanitation value chain and the catchment management.

It will help raise income for families headed by female and youth. The activities selected for

business development will reduce the use of firewood for cooking and help protect water

sources in the catchment area.

3.2.11 The ongoing WSSP I is supporting mainstreaming of HIV/AIDS in line with the

MWE’s HIV/AIDS Strategy. The focus has been mainly of awareness raising and information

dissemination. The WSSP II will continue the mainstreaming but will also look into the need to

raise awareness on ‘life style diseases’ which are on the increase. Urbanization, changing of

food habits and less demanding day-to-day activities are part of a shifting life style resulting in

diseases, which can be prevented with the appropriate information and awareness creation.

(Details in annex B8).

IV – IMPLEMENTATION

4.1 Implementation arrangements

4.1.1 The Government of Uganda will be the borrower of the funds. The Executing Agency

(EA) will be the Ministry of Water and Environment, who will be responsible for the overall

coordination, planning, implementation and monitoring of the programme. The implementing

agencies will be the departments for: Rural Water Supply and Sanitation; Urban water and

sewerage; Water and Environment Liaison. The implementation of the programme will be

managed through existing national decision making structures, utilizing national planning,

procurement, budgeting, accounting and reporting systems which will be strengthened. ICB

procurement will follow Bank rules and procedures. The WSSWG will play the overall policy

over sight role including review and approving of annual workplans and quarterly progress

reports and providing strategic guidance to the programme.

4.1.2 Overall reporting and implementation of the ESMP will be the responsibility of the

Sector Program Support Component who will liaise with the other two components to ensure

that the ESMP is done in accordance with NEMA’s Policies and Guidelines. The

Commissioner for the Sector Program Support Component will also be the overall Programme

Coordinator. (Details are provided in annex B3)

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4.2 Procurement

4.2.1 Procurement of ICB contracts and Consulting services for the proposed project, financed

by the Bank, would be carried out in accordance with the Bank’s Rules and Procedures: “Rules

and Procedures for Procurement of Goods and Works”, dated May 2008 revised July 2012; and

“Rules and Procedures for the Use of Consultants”, dated May 2008 revised July 2012 as

amended from time to time, using the relevant Bank Standard Bidding Documents, and the

provisions stipulated in the Financing Agreement. For the proposed project, in reference to

Section B.5.1, procurement of NCB contracts would be carried out in accordance with the

National Procurement Procedures using the national Standard Bidding Documents, and the

provisions stipulated in the Financing Agreement (Annex III). The summary of the

procurement arrangements and detailed procurement arrangements are explained in Technical

Annex B 5.

4.2.2 The Ministry of Water and Environment has in its establishment a Procurement and

Disposal Unit headed by a Principal Procurement Officer. The PDU is responsible for

procurement of goods, works and services for the ministry with technical support from the

directorates. The assessment carried out established that the PDU has four procurement officers

and four contract staff who have experience in managing procurement under Bank financed

projects. A Contracts Committee, that approves all stages of the procurement process, is in

place and functional.

4.3 Financial Reporting and Audit

4.3.1 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 and the Assistant

Commissioner, Finance of the Ministry of Water and Environment (MWE) will be responsible

for the Financial Management (FM) of the programme. In line with the Government of Uganda

(GoU) the Permanent Secretary MWE will be the Accounting Officer.

4.3.2 MWE’s FM is led by an Assistant Commissioner 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. The programme will use the Integrated Financial

Management Information System (IFMIS) to capture and report on all its financial transactions

based on the International public Sector Accounting Standards (IPSAS). The Finance

Department has over twenty accountants with some of these staff members assisting the Project

accountants in projects authorization and approval process.

4.3.3 Budgeting for the programme will follow the GoU rules and procedures on budgeting.

The total programme budget will be included in the MWE annual budget and included in the

GoU’s National budget. The Ministry will also be required to submit quarterly financial reports

together with the programme’s progress report to the Bank no later than 45 days after the end

of each quarter. The format of the quarterly reporting will be agreed by negotiations.

To provide oversight and assist in strengthening the Programme’s internal control mechanism,

MWE’s internal audit section will include the programme in its annual audit planning and the

programme’s audit reports will be shared with the Bank as needed.

4.3.4 The results of the assessment indicate that the Financial Management overall risk rating

is Moderate after mitigating measures. In conclusion, the proposed financial management

arrangements put in place meet the Bank’s minimum requirements for project financial

management and therefore adequate to provide, with reasonable assurance, accurate and timely

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information on the status of the project required by the Bank. (Details are provided in annex

B4).

Audit Reports

4.3.5 The programme will follow the GoU financial year of 1st July to 30th June and its

financial statements which will be prepared within three months of the end of the financial

year, which will be audited by the Office of the Auditor General or his appointee. The audit

terms of reference will be agreed between GoU and the Bank by negotiations. 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. (Details are provided in annex B6)

Disbursement Arrangement

4.3.6 The Bank shall disburse to a Euro Special Account, four annual tranches against

satisfactory fulfilment of and compliance with the pre-agreed conditions in section 5.2. The

existing Joint Partnership Fund UGX account established by the sector shall be adopted as

well. Funds from the Bank will be channelled through the Euro foreign currency collection

account opened at the Bank of Uganda and managed by the MOFPED then transferred upon

MWE’s request to the local currency JPF operations account also opened at BOU. The

Borrower shall designate officials authorized to sign withdrawal applications and provide

originals of their specimen signatures to the Bank. The letter designating signatories shall

clearly state the number and combination of signatories required for withdrawals. Unless

otherwise stated, designation will take effect from the date the Bank receives the letter

designating authorized signatories. If authorized signatories change during the life of the

programme, the borrower shall promptly notify the Bank and provide names and specimen

signatures of the newly designated officials.

The annual tranches by the Bank are outlined in 4.1 below

Table 4.1 : AfDB Annual Disbursement

Components [2016] [2017] [2018] [2019] Total

i) Rural Water Supply and Sanitation 5.787 11.142 10.332 6.138 33.399

ii) Small Towns/RGCs Water Supply

and Sanitation 7.938 8.271 8.055 6.129 30.403

iii) Sector Programme Support 0.486 0.513 0.504 0.504 1.998

Total base cost 14.211 19.926 18.891 12.771 65.80

(Annex B4 for further details)

4.4 Monitoring

4.4.1 The programme’s monitoring will fit into the wider sector monitoring and evaluation

framework. Overall monitoring setup will includes Joint Sector Reviews (JSRs), 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 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 Rural and

Urban Data base annually capture the access and hydro geological data and related information

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on all new and rehabilitated facilities under the programme to facilitate assessment of progress

and input in the Banks Implementation Performance Result Report and the next Water Atlas.

4.4.2 The Bank will follow up the implementation of the programme, through active

participation in the periodic technical and sector reviews, regular supervision mission during

programme 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 programme activities for all funding agencies. A midterm

review will be conducted jointly by the MWE and the Bank in Oct 2018. Upon completion of

the programme, MWE will prepare and submit to the Bank a programme completion report

(PCR). The milestones for monitoring are summarized as follows:

Timeframe Milestone Monitoring process / feedback loop

Jan/ 2016 Loan Approval ADF Board

Mar/2016 Loan Signature UGFO/OWAS to followup

April/2016 Loan Effectiveness Launching Mission – TM follow up

June/2016 First Disbursement ADF – UGFO to monitor closely

Oct/2018 Mid Term Review OWAS/ MWE – Follow-up

Dec/2020 Completion ADF/UGFO to monitor closely

4.5 Governance

4.5.1 Uganda has conducted numerous public financial management (PFM) diagnoses in

close collaboration with its DPs. These include: the 2004 Country Integrated Fiduciary

Assessment (CIFA), the 2008 PEFA self-assessment (PEFA Lite) conducted by the Office of

the Auditor General of Uganda, the 2008 PEFA and PEFA 2012. Overall, the different

diagnoses depict a progressive enhancement of Uganda’s financial management and

accountability systems over the years. The PEFA 2012 review highlights significant progress

in the PFM reform process and re-affirms that fiscal transparency largely remains good. The

fiduciary risks associated with poor budget formulation and budget preparation processes have

been reduced. Similarly, during February 2015, Government enacted a new law, the Public

Finance Management Act (PFMA 2015) expected to improve absorptive capacity of public

expenditure. Commendable strides have been made towards improving the legal and regulatory

environment and implementing the Integrated Financial Management information System

(IFMIS) across the whole of Central Government and few Local Governments. The PFMA

2015 is expected to enhance the PFM framework for managing public finance, accountability

and for improved public service delivery. It aims to strengthen the role oversight institutions in

budget scrutiny. The areas of external scrutiny and auditing have also seen improvements and

more useful and up to date information is now provided in the Report and Opinion of the

Auditor General to Parliament on the Public Accounts of the Republic of Uganda. Since 2008,

the Supreme Audit Institution has also become more independent; including separation from

the main Civil Service and now prepares budgets independently, which are then approved by

parliament.

4.5.2 In spite of the progress in the reforms, fiduciary risks continue to constrain policy

effectiveness in Uganda particularly in terms of the limited FM capacity in some districts, due

in part to the GoU’s rapid decentralization policy. The local governments, in particular new

districts, are challenged with increasing staff vacancy rate. While the Ministry of Local

Government has stepped up recruitment and capacity building, staff retention is low because

once trained, staff tend to move to central government or private sector. Moreover, follow up

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on audit recommendations (both internal and external) remains weak and the government still

has some way to go before it can implement a realistic multi-year programmatic budgeting.

4.5.3 Uganda has implemented a series of Public Financial Management reforms (PFM)

measures to address issues of financial irregularities extending to all levels of Government in

order to enhance credibility and transparency, major Financial Management and Accountability

Programme (FINMAP) which originally started in 2007 had continued being implemented

under phases II, and phase III which will be implemented effective July 2014 to June 2018 The

FINMAP covers the entire financial management process from planning and budgeting to

oversight by Parliament. Actions to address institutional capacity challenge are also being

implemented, which is leading to a continuous improvement of the fiduciary framework. The

Public Expenditure Management Committee (PEMCOM) has been set up as the forum for

dialogue on PFM issues between Government and Development Partners on all PFM issues.

On the side of the donors, a Public Financial Management Donor Group (PFMDG) has been

set up. To guide PFM activities in Uganda, a new PFM Strategy (2014-2018) was launched in

February 2014. Government has introduced the Treasury Single Account (TSA) since 2014 in

all Central Government Accounts to improve cash management, control, reporting and

transparency. Furthermore, the Public Financial management Act 2015 (PFMA) provides for

the regulation of supplementary expenditure by earmarking 3.5% of budget as contingencies

fund to meet emerging disasters and supplementary expenditure. During 2014 the GoU

launched the www.budget.go.ug budget website for disclosing budget related information to

the public. The 2013 Amended Public Procurement and Disposal of Public Assets Authority

(PPDA) Act and Regulations is also designed to significantly improve public procurement

efficiency, transparency and accountability by increasing the regulatory power of the PPDA,

making accounting officers personally liable for their actions in the procurement process,

guaranteeing the confidence of the public in the procurement process by establishing the PPDA

Tribunal and providing for whistle blowers.

4.5.4 The Good Governance Working Group (GGWG) was established in the water sector

and tasked to identify and recommend measures to promote and monitor transparency,

accountability and good governance in the water sector. It conducts value for money audits and

GG workshops. The current internal controls at sector level require all payment requests

initiated by contractors to be reviewed and cleared by the implementing departments, the office

of the director, Internal Audit and accounts department before Submission by the Permanent

Secretary to the office of the Accountant General in the ministry of Finance for final review

and clearance for submission to the Bank for payment.

4.5.5 The WSSP II will continue to support the GoU in its effort to reduce fiduciary risks

through adherence to the measures in place.

4.6 Sustainability

4.6.1 The GoU has made substantial reforms in the water and environment sector. 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

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system for operation and maintenance, including methods of recovering recurrent cost to

ensure sustainability.” The country will be committed to the programme in line with the

national policy.

4.6.2 The programme 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 Water Authorities (WAs), and the operation of the facilities by Private

Operators (POs) through management contracts. This arrangement, which has been used in

small towns across Uganda, enhances efficiency in the management of the programme’s

facilities and in revenue collection to ensure the sustainability of the facilities.

4.6.3 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.

4.6.4 The programme will also provide support to capacity building activities for UOs, WAs

and POs on Operation and Maintenance (O&M) issues to enable them to meet their obligations

under the performance and management contracts and thus enhance the institutional

sustainability of the programme. For the rural water supply, the programme will strengthen and

revitalise the community based maintenance system (CBMS) through improved mobilization,

sensitization and training of community members and pump mechanics, in adherence to the

existing National Framework for Operations and Maintenance of Rural Water Supply.

4.6.5 Critical to the sustainability of the programme’s benefits is the involvement of women

in the planning and management of the facilities.. The programme will adhere to the sector

gender strategy promoting affirmative action for women involvement and will monitor the

gender indicators as outlined in the RBLF.

4.7 Risk management

4.7.1 The project faces the following potential risks as identified in the Result Based Logical

frame with the proposed mitigation measures as summarized below.

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Table 4.1: Risk mitigation measures

Risk Rating Mitigating Measures

1 GOU discontinuing its urban

conditional grants to some towns

which pays part of new connection

fees

Low Use of the National Utility to manage and operate

some of the new town systems and strong

sensitization for increased demand for water supply

services. Umbrella Organizations for water and

sanitation will also be strengthened to support water

supply systems not operated by the Utility.

2 Local political leadership derailing

of Programme support,

cooperation and embracing.

Low effective Programme advocacy, transparency,

inculcating trust and involvement of local leadership

in various Programme activities and commitments

to Programme deliverables, including adoption of

appropriate feasible technological options

3 depreciation of the Uganda shilling medium Central Bank inflation targeting light monetary

policy regime is intended to avert exchange rate

volatilities on a monthly basis.

The contracts to the extent possible will be in local

currencies to benefit from the exchange gains on the

committed UA in the procurement plan.

4 election related-violence, low The project commencements is scheduled months

after the elections

4.8 Knowledge building

4.8.1 WSSP II will generate new knowledge owing to its strong intervention in areas that are

addressing a shift in sector thinking like the use of clean solar energy on mini schemes and

extending piped water closer to the rural homes of beneficiaries through GFS and progressively

reducing the undesired sight of rural women carrying water on their heads for long distances.

The programme has also lined up activities on climate change resilience and women and youth

employment and empowerment. Component 3 of the programme 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.

4.8.2 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 Programme activities, it contributes to improvement measures and share the lessons

learnt in implementation.

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V – LEGAL INSTRUMENTS AND AUTHORITY

5.1 Legal instrument

5.1.1 ADF loan will be used to finance the programme

5.2 Conditions associated with Bank’s intervention

A. Conditions Precedent to Entry into Force - 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.

B. Conditions Precedent to First Disbursement of the Loan - The first disbursement of

the loan resources shall be subject to fulfilment of the following condition to the

satisfaction of the Fund:

Evidence of having opened special accounts as follows: (i) foreign currency account for

the deposit of the proceeds of the Loan and (ii) operating local currency account.

C. Conditions Precedent to Subsequent Disbursements of the Loan: The obligations of

the Fund to make the second and subsequent disbursements of the Loan shall be

conditional upon the Borrower submitting evidence satisfactory to the Fund of the

following:

(i) The annual sector performance report and the agreed minutes of the Joint Sector

Review for the financial year preceding the period during which the disbursement of

the specific tranche is to be made; and

(ii) Approval by the Water and Sanitation Sub-sector Working Group of the annual

progress reports preceding the period during which the disbursement of the specific

tranche is to be made and the annual work plan for the disbursement period

Undertakings of the Borrower

(a) adhere to the national environmental and waste management guidelines and procedures

applicable in Uganda from time to time; and comply with all applicable national

environmental management and coordination laws and biomedical procedures; and

(b) Implement all measures necessary to: (i) mitigate the environmental and social impacts

of the Project as detailed in the Environmental and Social Management Plan (ESMP), (ii)

comprehensively report on the implementation of the ESMP every six-months.

5.3 Compliance with Bank Policies

5.3.1 This programme complies with all applicable Bank policies.

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VI – RECOMMENDATION

Management recommends that the Board of Directors approve the proposed loan of UA

65.80 million to the Government of Uganda for the purposes and subject to the conditions

stipulated in this report.

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Appendix I: Country’s comparative socio-economic indicators

Year Uganda Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2014 242 30,067 80,386 53,939Total Population (millions) 2014 38.8 1,136.9 6.0 1.3Urban Population (% of Total) 2014 16.8 39.9 47.6 78.7Population Density (per Km²) 2014 160.8 37.8 73.3 24.3GNI per Capita (US $) 2013 550 2 310 4 168 39 812Labor Force Participation - Total (%) 2014 77.4 66.1 67.7 72.3Labor Force Participation - Female (%) 2014 48.9 42.8 52.9 65.1Gender -Related Dev elopment Index Value 2007-2013 0.896 0.801 0.506 0.792Human Dev elop. Index (Rank among 187 countries) 2013 164 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2013 37.8 39.6 17.0 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2014 3.3 2.5 1.3 0.4Population Grow th Rate - Urban (%) 2014 5.9 3.4 2.5 0.7Population < 15 y ears (%) 2014 48.2 40.8 28.2 17.0Population >= 65 y ears (%) 2014 2.4 3.5 6.3 16.3Dependency Ratio (%) 2014 101.6 62.4 54.3 50.4Sex Ratio (per 100 female) 2014 100.5 100.4 107.7 105.4Female Population 15-49 y ears (% of total population) 2014 22.1 24.0 26.0 23.0Life Ex pectancy at Birth - Total (y ears) 2014 59.7 59.6 69.2 79.3Life Ex pectancy at Birth - Female (y ears) 2014 63.5 60.7 71.2 82.3Crude Birth Rate (per 1,000) 2014 42.6 34.4 20.9 11.4Crude Death Rate (per 1,000) 2014 9.0 10.2 7.7 9.2Infant Mortality Rate (per 1,000) 2013 43.8 56.7 36.8 5.1Child Mortality Rate (per 1,000) 2013 66.1 84.0 50.2 6.1Total Fertility Rate (per w oman) 2014 5.8 4.6 2.6 1.7Maternal Mortality Rate (per 100,000) 2013 360.0 411.5 230.0 17.0Women Using Contraception (%) 2014 34.3 34.9 62.0 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2012 11.7 46.9 118.1 308.0Nurses (per 100,000 people)* 2004-2012 130.6 133.4 202.9 857.4Births attended by Trained Health Personnel (%) 2009-2012 57.4 50.6 67.7 ...Access to Safe Water (% of Population) 2012 74.8 67.2 87.2 99.2Healthy life ex pectancy at birth (y ears) 2012 49.0 51.3 57 69Access to Sanitation (% of Population) 2012 33.9 38.8 56.9 96.2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 7.4 3.7 1.2 ...Incidence of Tuberculosis (per 100,000) 2013 166.0 246.0 149.0 22.0Child Immunization Against Tuberculosis (%) 2013 93.0 84.3 90.0 ...Child Immunization Against Measles (%) 2013 82.0 76.0 82.7 93.9Underw eight Children (% of children under 5 y ears) 2005-2013 14.1 20.9 17.0 0.9Daily Calorie Supply per Capita 2011 2 279 2 618 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 4.3 2.7 3.1 7.3

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2011-2014 107.3 106.3 109.4 101.3 Primary School - Female 2011-2014 108.2 102.6 107.6 101.1 Secondary School - Total 2011-2014 26.9 54.3 69.0 100.2 Secondary School - Female 2011-2014 25.0 51.4 67.7 99.9Primary School Female Teaching Staff (% of Total) 2012-2014 41.7 45.1 58.1 81.6Adult literacy Rate - Total (%) 2006-2012 73.2 61.9 80.4 99.2Adult literacy Rate - Male (%) 2006-2012 82.6 70.2 85.9 99.3Adult literacy Rate - Female (%) 2006-2012 64.6 53.5 75.2 99.0Percentage of GDP Spent on Education 2009-2012 3.3 5.3 4.3 5.5

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2012 34.5 8.8 11.8 9.2Agricultural Land (as % of land area) 2012 0.7 43.4 43.4 28.9Forest (As % of Land Area) 2012 14.1 22.1 28.3 34.9Per Capita CO2 Emissions (metric tons) 2012 0.1 1.1 3.0 11.6

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.

UgandaCOMPARATIVE SOCIO-ECONOMIC INDICATORS

November 2015

0

10

20

30

40

50

60

70

80

90

100

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

Infant Mortality Rate( Per 1000 )

Ugan da Africa

0

500

1000

1500

2000

2500

20

00

20

05

20

07

20

08

20

09

20

10

20

11

20

12

20

13

GNI Per Capita US $

Ugan da Africa

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Population Growth Rate (%)

Uganda Africa

01020304050607080

20

00

20

05

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Life Expectancy at Birth (years)

Ugan da Africa

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Appendix II: Table of ADB’s portfolio in the country

Extended date of

Last Disbursement

1st Date of

DisbursementADB

ADF

Loan

ADF

Grant ADB ADFADF

Grantdisbursement

1Community Agricultural Infrustructure Improvement Programme- Project

II17/09/08 11.05.2009 02/09/09 23/10/09 nil 45.00 nil nil nil nil nil 45.00 38.13 84.7% 31/12/2015 31/12/2014 ongoing

2 Markets and Agricultural Trade Improvement (MATIIP) 25/03/2009 13.05.2009 05/02/10 17/03/10 nil 38.00 nil nil nil nil nil 38.00 36.71 96.6% 30/09/15 ongoing

3 Community Agricultural Infrustructure Improvement Programme III 03/05/2011 10/06/2011 22/02/12 21/03/2012 nil 40.00 nil nil nil nil nil 40.00 19.49 48.7% 31/12/2016 on going

4 Markets and Agricultural Trade Improvement 1 (MATIIP) 10.12.2014 28.07.2015 02.10.2015 nil nil 84.20 nil nil nil nil nil 84.20 0.00 0.0% 30.06.2020 on going

5 Lakes Edward and Albert Fishery Project 20.05.2015 nil nil nil nil 5.00 nil nil nil nil nil 5.00 0.00 0.0% 30.06.2021 not effective

212.20 94.33 44.5%

5 Road Sector Support Project 2 (Fort portal Bundibugyo Rd) (103KM) 17/12/07 15/05/08 18/11/2009 20/01/2010 nil 56.65 nil 1.35 nil nil nil 58.00 53.10 91.6% 31/08/15 31./12/13 ongoing

6 Road Sector Support Project 3( Nyakahaita Ibanda Rd)(143KM) 25/09/09 12/04/2010 13/07/2011 29/07/2011 nil 80.00 nil nil nil nil nil 80.00 70.83 88.5% 31./12/15 31/12/14 ongoing

7 Road Sector Project 4 ( Kigumbba Masindi Rd) 135 KM 13/03/2013 11/12/2013 08/08/2014 nil nil 72.94 nil nil nil nil nil 72.94 0.21 0.3% 30/06/2018 ongoing

8 Road Sector Project V 28/05/2014 03/02/2015 26/08/2015 nil nil 70.00 nil nil nil nil nil 70.00 - 0.0% 31/12/2020 ongoing

280.94 124.14 44.2%

9 Kampala Sanitation Project 16/12/2008 11/05/2009 18/02/10 16/07/10 nil 35.00 nil nil nil nil nil 35.00 17.87 51.1% 31/08/2016 31/12/2014 ongoing

10 Kawempe Urbarn Poor and Sanitation Improvement Project 4/1/2013 02/04/2013 02/04/2013 26/04/2013 nil nil 0.99 nil nil nil 0.99 0.75 75.8% 04/04/2016 ongoing

11 Water Supply and sanitation program 5/10/2011 11/01/2012 26/09/2012 nil 40.00 nil 3.59 nil nil nil 43.59 31.64 72.6% 31/12/2017 ongoing

79.58 50.26 63.2%

D. SOCIAL

12 Rehabilitation of Mulago and KCC Clinics 06/07/2011 11/01/2012 02/07/2012 28/08/2012 nil 46.00 10.00 nil nil nil nil 56.00 20.24 36.1% 31/12/2016 on going

13 Support to Post Primary Education and Training Project (Education IV) 25/11/08 11/05/2009 31/08/09 22/12/09 nil 52.00 nil nil nil nil nil 52.00 49.36 94.9% 30/09/2015 31/12/2014 on going

14 Education V Project (HEST) 21/11/2012 05/07/2013 18/11/2013 nil 67.00 nil nil nil nil nil 67.00 1.30 1.9% 31/12/2017 On going

15 Rural Income and Employment Enhancement Project 17/11/09 12/04/10 14/02/08 05/06/08 nil 10.20 nil 0.00 nil nil nil 10.20 9.71 95.2% 31/07/2015 ongoing

185.20 80.61 43.5%

16 Bujagali Transmission Interconnection Project 28/06/07 26/10/07 23/04/08 14/02/08 nil 19.21 nil nil nil nil nil 19.21 18.07 94.1% 31/09/2015 31/12/2013 ongoing

17 Mbarara-Nkenda/Tororo-LiraTransmission Lines Project 16/12/08 26/03/2010 18.02..2011 20/04/11 nil 52.50 nil nil nil nil nil 52.50 37.50 71.4% 31/08/2016 31/12/2014 ongoing

71.71 55.57 77.5%

829.63 404.91 48.8%

18 NELSAP 1 27/11/08 13/05/09 04/07/2011 25/10/2011 nil 7.59 nil 0.00 nil nil nil 7.59 2.95 38.9% 31/12/15 31/12/14 on going

19 Lake Victoria Water Supply and Sanitation program phase II 17/12/2010 04/04/211 04/04/11 31/01/2012 nil nill nil 11.13 nil nil nil 11.13 8.81 79.2% 31/12/2016 31/12/2015 ongoing

18.72 11.76 62.8%

848.35 416.67 49.12

Approved Amount UA millionAmount Cancelled (UA

million)

Serial No. Project DescriptionStatus (not effective &

on-going/effective, etc)

Net

Commitments

(UA million)

Amount

Disbursed

(UA million)

Disbursed (%)

Deadline for

Last

Disbursement

Country: UGANDA

Summary of Bank Group Portfolio of On-going and Newly-approved Projects/Programs/Studies

A. AGRICULTURE

Approval Date Signature Date

Disbursement

Effectiveness

Date

Date of Update: 31st October 2015

Agriculture - Sub Total

B. TRANSPORT

Transport - Sub Total

Water and Sanitation - Sub totalWater and Sanitation - Sub total

C. WATER

Social - Sub Total

GRAND TOTAL INCLUDING MULTI NATIONAL

F. MULTI NATIONAL PROJECT

GRAND TOTAL FOR PUBLIC SECTOR OPERATIONS

Multi National Projects- Subtotal

Energy - Sub total

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Appendix III: Key related projects financed by the Bank and other

development partners in the country

DPs Programme / Project

location

Programme

implementation

period

Amount

in UA

million

AfDB Additional funds to WSSP for climate change

resilience

Eastern

districts 2015-2018 5.4

AfDB Water Supply and Sanitation Program Country

wide 2012-2017 43.59

AfDB Regional LVWATSAN Program Ph II

5towns

around L

Vic

2011-2016 11.13

AfDB Kampala Sanitation Program Kampala 2009-2016 35.00

AfDB sub-total 95.12

EU Southwest & East/Northeast Urban WASH WSDF-S 2012-2018 20.33

EU Water Faclity10th EDF, Rural WASH 2012-2018 4.33

EU sub-total 24.67

GIZ Urban Wash/ Sector reforms (RUWASS) National 2014-2017 9.40

GIZ Intergrated Catchment mgt National 2013-2018 1.13

KfW Support to Central WASH Kampala 2012-2018 23.00

KfW Support to WSDF-N and WSDF-E WSDF-

N&E 2011-2016 15.33

KfW Support to WSDF-N and WSDF-E WSDF-

N&E 2009-2014 7.67

KfW Urban Wash Gulu Town Gulu 2013-2018 17.60

KfW Kampala Urban Wash Kampala 2014-2018 7.67

Germany sub-total 81.80

Danida Rural WATSAN - SBS nation wide National 2013-2018 29.87

Danida National level through the JPF National 2013-2018 14.13

Danida MWE Tech assistance MWE 2013-2018 0.80

Danida Nation-wide studies National 2014-2015 0.07

Danida sub-total 44.87

Austria Rural SBS nation wide National 2013-2016 4.60

Austria WSS sub-sector support National 2013-2016 3.53

Austria JWESSP TA National 2013-2016 0.80

Austria Studies and advisory National 2013-2016 0.40

Austria integrated catchment management Rwizi,

Mpaga 2013-2017 1.07

Austria CBMS Kumi 2013-2015 0.10

Austria O& M Lira,dokolo 2014-2017 0.93

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Austria sub-total 11.53

W/Bank integrated catchment management Kyoga 2012-2018 15.40

W/Bank WRM National 2012-2018 3.87

W/Bank programme management support National 2012-2018 2.00

W/Bank Urban WASH (Arua, Gulu, Ishaka-Bushenyi) 2012-2018 36.67

W/Bank Urban WASH (Butaleja-Busolwe, Budaka-

Kadama-Tirinyi, Kumi-Nyero-Ngora,

Rukungiri, Busia, Pallisa, Katwe-Kabatoro and

Koboko.)

2012-2018

28.67

WSP/WB Rural WASH National 2015-2018 0.57

WSP/WB Urban WASH National 2015-2018 0.57

World Bank sub-total 87.39

USAID Urban WASH 2014-2016 1.33

USAID sub-total 1.33

UNICEF Rural WASH solar power Karamoja/

Acholi,

central,

western

2016-2020 7.7

UNICEF Institutional WASH in schools Karamoja/

Acholi,

central,

western

2016-2020 3.78

UNICEF O&M for improved functionality “ 2016-2020 1.50

UNICEF Hygiene promotion hand washing support “ 2016-2020 0.80

UNICEF Emergency WASH West Nile

central,

western

2016-2020 1.50

UNICEF sub-total 15.28

AFD Urban WASH Kampala water supply Kampala 2012-2018 57.40

AFD Water for production bulk water supply Western 2014-2015 38.27

AFD Urban WASH Masaka and Mbarara Masaka/

Mbarara

2015-2016 0.40

AFD sub-total 96.07

TOTAL DONOR CONTRIBUTION TO UGANDA WSS 458.05

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Appendix IV. Map of the Project Area