The World Bank Report No: ISR5699

Implementation Status & Results Local Government Management and Services Delivery Project (P090867)

Operation Name: Local Government Management and Services Delivery Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 05-Jul-2011 Project (P090867)

Public Disclosure Authorized Country: Uganda Approval FY: 2008 Product Line:IBRD/IDA Region: AFRICA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Ministry of Local Government, Ministry of Finance, Planning and Economic Development Key Dates Public Disclosure Copy Board Approval Date 18-Dec-2007 Original Closing Date 31-Dec-2011 Planned Mid Term Review Date 19-Nov-2010 Last Archived ISR Date 05-Jul-2011 Effectiveness Date 19-Nov-2008 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 15-Nov-2010

Project Development Objectives Project Development Objective (from Project Appraisal Document) Strengthen the ability of the MDAs and LGs to plan and manage resources in collaboration with communities for service delivery

Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized

Component(s)

Component Name Component Cost Strengthening Public Financial Management Systems 20.10 Support to the Local Government Sector Investment Plan 175.90 Institutional and Policy Support 2.70

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory

Public Disclosure Authorized Overall Risk Rating Substantial Moderate

Implementation Status Overview This ISR is being prepared following the December 2011 ISM. At this time disbursement stands at SDR 23.63 million out of a total credit of SDR 35 million representing 67% disbursement rate. Public Disclosure Copy The overall project implementation is upgraded to Satisfactory. The implementation of the various activities under the project components have progressed well with progress in the implementation of Component 1 - Support to Public Financial management Reform Program and implementation of the Component 1 sub-component dealing with the civil works for

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the rehabilitation of sub-counties in the North picking up. The project was restructured and the closing date extended by 12 months from December 31, 2011 to December 31, 2012 and the mission is believes that implementation of project activities will be completed in time.

Overall, the mission is satisfied that the project is on track in meeting most of its triggers, which will be used as the basis to move to the next phase of the APL, except one trigger associated with the funding of LG structures. Although during the April 2011 mission Government agreed to provide sufficient funding in the FY2011/12 budget which will finance at least 75% of the established LG structure, this has not been done. Government is facing new expenditure pressures from teachers and health workers who are demanding increase in their salaries. GoU informed the mission that the most realistic solution to the current challenges of financing LG structure is to restructure LGs and make them much leaner and affordable given the fact that the creation of many new districts have resulted in much smaller jurisdiction which should require lower staffing level per local government. GoU has therefore commissioned two studies (one on holistic financing of LGs and the other on structure of LGs in light of possible creation of Regional LGs). The results of these two studies will inform GoU on the most appropriate structure and staffing level of LGs.

Locations Public Disclosure Copy Country First Administrative Division Location Planned Actual Uganda Masaka District

Uganda Not Entered Mulago

Uganda Not Entered Luzira

Uganda Lira

Uganda District Kampala

Uganda Jinja

Uganda Entebbe

Uganda Arua District

Uganda Gulu District

Uganda Jinja District Jinja District

Uganda Kabale

Uganda Kabarole District

Uganda Kasese District

Uganda Lira District Lira District

Uganda Mbale District

Uganda Mbarara District

Public Disclosure Copy Uganda Moroto District

Uganda Mukono District

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Country First Administrative Division Location Planned Actual Uganda Soroti District

Uganda Tororo District

Uganda Wakiso District Wakiso District

Uganda Butambala District Ntinda

Results

Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target % of LGs in the Northern Uganda meeting the Text Value 23% 73% 80% minimum conditions to access the LDG Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Comments Due to delay in Effectiveness, 29 out of 40 Districts in the baseline information has been North met the minimum updated from 2005/06 to conditions and accessed the 2007/08. LDG. % of LGs which have computerized financial Text Value 57 %(8 out of 14 HLGs) 100% (14 out of 14 HLGs) 80% management system complete the final accounts within three months after the end of Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 the fiscal year Comments Due to delay in Effectiveness, Although KCCA with its 5 baseline information has been divisions became an Authority updated from 2005/06 to on March 1, 2012 and 2007/08. therefore ceased to be a LG, the number of "HLGs" for this indicator has been maintained to 14 since KCCA and its divisions are still benefiting from the IFMS support under the project. KCCA, its Divisions and all the remaining 8 LGs are completing final account within three months of the end of the FY. Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target % of Higher LGs registering at least 20% Text Value 35 % (35 out of 98 HLGs) NA 40% (39 out of 98 HLGs) increase in own source revenue from the baseline year of 2005/06 Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Comments Due to delay in Effectiveness, Target for the FY2010/11 is baseline information has been 40% (40 out of 98 HLGs) to updated from 2005/06 to register a 20% increase in 2007/08. OSR. Actual data to be updated after the compilation of the national assessment result which delayed. At leat 75% of the LDG is invested in Text Value 87% 80% 75% Public Disclosure Copy education, health, water and roads sectors, consistent with the PEAP Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Comments Due to delay in Effectiveness, MTR found that HLG have baseline information has been been investing consistently updated from 2005/06 to not less than 80% of the LDG 2007/08. in the priority sectors of education, health, water and roads. This trend has continued this FY.

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Comp 1 - % of LGs that have been Text Value 64% (9 out of 14 100% (14 out of 14) 100% computerized for at least one year completing computerized LGs) bank reconciliation in at least 1 months Date 12-Oct-2007 31-May-2011 31-Dec-2011 Comments Due to delay in Effectiveness, 14 out of 14 HLG Target met and over baseline information has been computerized HLGs (KCCA performed. updated from 2005/06 to and its five Divisions and 8 2007/08. HLGs) completing Bank reconciliation within two months. Comp 2 - % of LGs in Northern Uganda with at Text Value 45% (18 out of 40 LGs in the 47% (19 of of orginal 40 65% (of orginal 40 HLGs in least 65% of the approved staffing filled North) HLGs in the North) the North) Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Public Disclosure Copy

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Comments Due to delay in Effectiveness, This target drops to only 35% This target may not be baseline information has been if assessed for all the 55 achieved due to proliferation updated from 2005/06 to HLGs (including additional 11 of Districts. 2007/08. newly created districts) may not be met due to the creation of more Districts by Government which results into the depleting of the LG staff Comp 2 - % of LGs which are collecting Text Value 0% (0 out of 98 LGs) 43% (42 out of 98 HLGs as of 55% (54 out of 98 HLGs) property rates for at least 60% of the valuation FY2009/10) rolls Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Public Disclosure Copy Comments Due to delay in Effectiveness, The figure will be updated for baseline information has been FY2010/11 once the MoLG updated from 2005/06 to collects the data and updates 2007/08. the results framework. Comp 2 - % of LLGs using the Harmonized Text Value 64% (607 of 1006 LLGs) 90% (905 of 1006 LLGs by 85% (855 of 1006 LLGs) Participatory Planning Guide (HPPG) FY2009/10) Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Comments Due to delay in Effectiveness, This indicator will be updated baseline information has been by the MoLG. However the updated from 2005/06 to creation of more Districts and 2007/08. LLGs could reduce target achieved so far.

Data on Financial Performance (as of 08-Jan-2012)

Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P090867 IDA-43720 Effective 18-Dec-2007 20-Feb-2008 19-Nov-2008 31-Dec-2012

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090867 IDA-43720 Effective XDR 35.10 35.10 0.00 25.67 9.43 73.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation The Bank and the Government confirmed their understanding to classify the AM as restricted and for official use only.

Restructuring History Level two Approved on 01-Sep-2011

Related Projects There are no related projects. Public Disclosure Copy

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