The World Bank for OFFICIAL USE ONLY

Document of The World Bank

FOR OFFICIAL USE ONLY

Public Disclosure Authorized Report No: 59825

PROJECT PAPER

ON A

PROPOSED ADDITIONAL CREDIT

IN THE AMOUNT OF SDR 47.4 MILLION Public Disclosure Authorized (US$75 MILLION EQUIVALENT)

TO THE

REPUBLIC OF UGANDA

FOR A

TRANSPORT SECTOR DEVELOPMENT PROJECT

Public Disclosure Authorized May 14, 2011

Transport Sector Country Department AFCE1 Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without

Public Disclosure Authorized World Bank authorization. CURRENCY EQUIVALENTS

(Exchange Rate Effective March 31, 2011)

Currency Unit = Uganda Shilling (UGX) US$1 = UGX 2403 US$1 = SDR 0.6307

FISCAL YEAR July 1 – June 30

ABBREVIATIONS AND ACRONYMS

AF Additional Financing AfDB African Development Bank CAS Country Assistance Strategy CC Contracts Committee CoST Construction Sector Transparency CPI Corruption Perception Index DBST Double Bituminous Surface Dressing DFID Department for International Development, UK DRC Democratic Republic of Congo ED Executive Director EIA/SIA Environmental Impact Assessment/Social Impact Assessment EIRR Economic Internal Rate of Return EU European Union FM Financial Management GAAP Governance and Accountability Action Plan GAC Governance and Anti-Corruption GoU Government of Uganda HDM-4 Highway Development and Management Model Version Four ICB International Competitive Bidding IDA International Development Association IG Inspectorate of Government IPBE Independent and Parallel Bid Evaluation IPR Independent Procurement Review ISIES Institutional Support and Integrity Enhancement Service Km Kilometer KNP Kibale National Park M&E Monitoring and Evaluation MATA Metropolitan Area Transport Authority MIS Monitoring and Information System MoFPED Ministry of Finance, Planning and Economic Development MoWT Ministry of Works and Transport NCB National Competitive Bidding

NDF Nordic Development Fund MUBFS Makerere University Biological Field Station NDP National Development Plan NPV Net Present Value NTPS National Transport Policy and Strategy OAG Office of the Auditor General PAP Project Affected Persons PDO Project Development Objective PDU Procurement and Disposal Unit PE Procuring Entities PPDA Public Procurement and Disposal of Public Assets Authority PS Permanent Secretary QCBS Quality and Cost Based Selection RAI Rural Access Index RAP Resettlement Action Plan RPM Regional Procurement Management SDR Standard Drawing Rights SIL Specific Investment Loan TA Technical Assistance TSDP Transport Sector Development Project UNRA Uganda National Roads Authority VOC Vehicle Operating Cost WB World Bank

Vice President: Obiageli K. Ezekwesili Country Director: John Murray McIntire Country Manager: Kundhavi Kadiresan Sector Manager: Supee Teravaninthorn Task Team Leader: Labite Victorio Ocaya

REPUBLIC OF UGANDA

TRANSPORT SECTOR DEVELOPMENT PROJECT

CONTENTS

Project Paper Data Sheet ...... i

I. Introduction ...... 1

II. Background and Rationale for Additional Financing in the amount of US$75 million ...... 1

III. Proposed Changes ...... 5

IV. Appraisal Summary...... 8

Annex 1: Revised Results Framework and Monitoring Indicators ...... 12

Annex 2: Operational Risk Assessment Framework (ORAF) ...... 17

Annex 3: Strengthening Governance Arrangements in the UNRA ...... 20

Annex 4: Procurement Plan ...... 24

Annex 5: Economic and Financial Analysis ...... 27

UGANDA TRANSPORT SECTOR DEVELOPMENT PROJECT

ADDITIONAL FINANCING DATA SHEET

Basic Information - Additional Financing (AF) Country Director: John McIntire Sectors: Roads and highways (89%); Public Country Manager: Kundhavi Kadiresan administration- Transportation (11%) Sector Director: Jamal Saghir Themes: Rural services and infrastructure (45%); Sector Manager: Supee Teravaninthorn Other urban development (37%); Infrastructure Team Leader: Labite Victorio Ocaya services for private sector development (14%); Project ID: P121097 Export development and competitiveness (4%) Expected Effectiveness Date: September Joint IFC: NO 30, 2011 Joint Level: N/A Lending Instrument: Specific Investment Loan (SIL) Additional Financing Type: Scale Up Basic Information - Original Project Project ID: P092837 Environmental category: B – Partial Assessment Project Name: Transport Sector Expected Closing Date: January 31, 2016 Development Project (TSDP) Lending Instrument: Specific Investment Joint IFC: NO Loan (SIL) Joint Level: N/A AF Project Financing Data [ ] Loan [X] Credit [ ] Grant [ ] Guarantee [ ] Other: Proposed terms: Standard IDA Credit terms (40 year maturity, including 10 year grace period) AF Financing Plan (US$m) Source Total Amount (US$m) Total Project Cost: 75.0 Cofinancing: 0.0 Borrower: 0.0 Total Bank Financing: 75.0 IBRD 0.0

IDA 75.0 New Recommitted Client Information Recipient: Government of Uganda Responsible Agency: Uganda National Roads Authority (UNRA) Telephone No.: +256 312 233 100; +256 414 318 000 Fax No.: +256 414 232 807 Email: [email protected] AF Estimated Disbursements (Bank FY/US$m) Fiscal Year 2012 2013 2014 2015 2016 Annual 15.00 15.00 20.00 20.00 5.00 Cumulative 15.00 30.00 50.00 70.00 75.00

Project Development Objective and Description Original project development objective: The project's development objective is to improve the connectivity and efficiency of the transport sector through: (i) improved condition of national road network, (ii) improved capacity for road safety management; and (iii) improved transport sector and national road management.

Revised project development objective: The PDO for the proposed Additional Financing (AF) will remain the same as for Transport Sector Development Project (TSDP).

Project description:

Component A: Upgrading and Rehabilitation of the: (i) Gulu-Atiak (74 km), (ii) Vurra-Arua-Oraba (85 km) and (iii) the Kamwenge-Fort Portal (66 km) roads, to Bitumen Standard;

Component B: Enhanced Road Safety including the establishment of National Road Safety Authority (NRSA) and making the crash data base operational;

Component C: The preparation of Kampala Urban Transport Project, and the legislation and establishment of the Metropolitan Area Transport Authority (MATA);

Component D: Support to the Ministry of Works and Transport (MoWT) to focus on its core function of policy setting, strategic planning, sector oversight and monitoring and to spin off some of its responsibilities to newly created entities under its umbrella; and

Component E: Strengthening the capacity of the Uganda National Roads Authority (UNRA) to serve as a project implementing unit, through the refurbishing of offices, provision of technical assistance including technical assistance for strengthening the internal audit functions of UNRA, the carrying out of studies, and the provision of training and equipment.

The proposed AF is expected to fund the following activities:

1. Component A: Scale-up: Upgrading and Rehabilitation of the Kamwenge-Fort Portal road (66 km) to Bitumen Standard. This road forms part of the national road Nyakahita-Kazo-Ibanda-Kamwenge-Fort Portal (209 km) and connects western Uganda to the Northern Corridor and the Trans-Africa Highway

2. Component E: Technical assistance for strengthening the internal audit functions of UNRA for technical audits of road projects.

Safeguard and Exception to Policies Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) [X] Yes [ ] No Natural Habitats (OP/BP 4.04) [X] Yes [ ] No Forests (OP/BP 4.36) [X] Yes [ ] No Pest Management (OP 4.09) [ ] Yes [X] No Physical Cultural Resources (OP/BP 4.11) [X] Yes [ ] No Indigenous Peoples (OP/BP 4.10) [ ] Yes [X] No Involuntary Resettlement (OP/BP 4.12) [X] Yes [ ] No Safety of Dams (OP/BP 4.37) [ ] Yes [X] No Projects on International Waters (OP/BP 7.50) [ ] Yes [X] No Projects in Disputed Areas (OP/BP 7.60) [ ] Yes [X] No

Does the project require any waivers of Bank policies? [X] Yes [ ] No Have these been endorsed or approved by Bank management? [X] Yes [ ] No

Conditions and Legal Covenants: Financing Agreement Description of Condition/Covenant Date Due Reference Amendment Letter for One fully executed original of this Within 90 days from the Additional Financing amendment letter; signing of the Amendment – Chapter II – Letter. Paragraph 1 (a) Amendment Letter for A revised Subsidiary Grant Agreement Within 90 days from the Additional Financing between the Recipient and UNRA signing of the Amendment – Chapter II – reflecting the amount of the Additional Letter. Paragraph 1 (b) Financing; Amendment Letter for A legal opinion satisfactory to the Within 90 days from the Additional Financing Association, showing that (i) this signing of the Amendment – Chapter II – amendment letter has been duly authorized Letter. Paragraph 1 (c) (i) or ratified by, and executed and delivered on behalf of, the Recipient, and is legally binding on the Recipient; and Amendment Letter for The revised Subsidiary Grant Agreement Within 90 days from the Additional Financing has been duly authorized or ratified by the signing of the Amendment – Chapter II – Recipient and UNRA, and is legally Letter. Paragraph 1 (c) (ii) binding on the Recipient and UNRA in accordance with its terms.

iii

I. Introduction

1. This Project Paper seeks the approval of the Executive Directors to provide an additional credit in an amount of Special Drawing Rights (SDR) 47.4 million (US$75.0 million equivalent) to the Republic of Uganda for the Transport Sector Development Project (TSDP), Credit 4679- UG).

2. The proposed additional financing (AF) would finance project scale-up under Component A of the TSDP (upgrading and rehabilitation of national roads) through the paving of the Kamwenge-Fort Portal road (66 km). This road forms part of the national road Nyakahita-Kazo- Ibanda-Kamwenge-Fort Portal (209 km) and connects western Uganda to the Northern Corridor and the Trans-Africa Highway. It passes through an area of high agricultural potential, ideal for the production of food and cash crops and animal farming. The AF will also provide technical assistance to strengthen the internal audit functions of Uganda National Roads Authority (UNRA) for technical audits of road projects (Component E).

3. Partnership arrangements: The original project (Cr. 4679-UG) includes the provision of technical assistance financed by the development partners of European Union (EU) and the Department for International Development, UK (DFID). The Environmental Impact Assessment/Social Impact Assessment (EIA/SIA) and Resettlement Action Plan (RAP) for the road have been prepared with financing from the African Development Bank (AfDB). The International Development Association (IDA) is partnering with the AfDB to finance the entire 209 km with AfDB covering the first 143 km section and IDA the remaining section in order to fully achieve the road’s development impact.

II. Background and Rationale for Additional Financing in the amount of US$75 million

4. Country Context: Uganda is a developing country in the Eastern part of Africa with a population of about 34.6 million and covers an area of 241,040 sq. km. Over 80 percent of the population live in rural areas and engage in smallholder subsistence agriculture. Since the late 1980s, the Government of Uganda (GoU) has undertaken various policy reforms to address economic growth and poverty reduction. It liberalized its economy to enhance efficiency of service delivery and encourage private sector-led economic growth.

5. Sector Policy and Strategy: The National Development Plan (NDP) (2010/2011 - 2014/2015) details the country’s current development challenges and opportunities. It stipulates the country’s medium term strategic direction, development priorities and implementation strategy. Among the sectors that were given priority was the transport sector, especially roads, because of the strong bearing on rural agricultural production and hence poverty reduction. In addition, the government’s 2002 National Transport Policy and Strategy (NTPS) hinges on the promotion of less costly, efficient and reliable transport services as the means of providing effective support to increased agricultural and industrial production, trade, tourism, social and administrative services. The NTPS places emphasis on the provision of a technically sound, economically justified and financially sustainable transport infrastructure through the active participation of the private sector. The impact of these measures is shown by the improved Rural Access Index (RAI). While the national service delivery survey conducted in 2004 showed that

1 majority of households were located within 5 km of a road, the 2008 survey shows tremendous improvement in the RAI, with majority of households located within 0.4 to 2.1 km of community access roads or district feeder roads. UNRA is currently collecting baseline data as part of a monitoring and evaluation (M&E) framework to measure sector performance.

6. The proposed scale-up of the activities is in line with Strategic Objective Two of the Country Assistance Strategy (CAS), Report No. 54187-UG dated April 27, 2010 “Enhance Public Infrastructure”. In 2008, the World Bank (WB) conducted a client survey to provide information on perceptions of the Bank’s work in Uganda which revealed that most stakeholders surveyed would like the WB to focus on infrastructure and play a leading role in fighting corruption.

7. Original Credit and Additional Financing. The TSDP was approved by the Board on December 10, 2009 in the amount of SDR 120 million (US$190 million equivalent), and became effective on July 15, 2010. The project’s development objective is to: improve the connectivity and efficiency of the transport sector through: (i) improved condition of national road network, (ii) improved capacity for road safety management; and (iii) improved transport sector and national road management. The original Project Development Objective (PDO) remains relevant and there are no changes to it under the AF.

8. The TSDP and the proposed AF are intended to support a five and half year time slice (July 2010 to January 2016) of Uganda’s Road Sector Development Program. The AF will contribute to: (i) reduction of transport costs and travel times on project roads; (ii) decreasing the share of national roads in poor condition; and (iii) increasing the percentage of rural population with access to an all-season road in the target areas.

9. Project Description: The following is a description of the original TSDP components:

Component A: Upgrading and Rehabilitation of National Roads including the paving of Gulu- Atiak and Vurra-Arua to Oraba roads (about 159 km) linking northern Uganda with southern Sudan and north-eastern Democratic Republic of Congo (DRC);

Component B: Enhanced Road Safety, including the establishment of National Road Safety Authority (NRSA) and making the crash database operational;

Component C: The preparation of Kampala Urban Transport Project, and the legislation and establishment of the Metropolitan Area Transport Authority (MATA);

Component E: Support to UNRA with TA and capacity building activities to UNRA.

10. Implementation Performance: Implementation progress is rated Satisfactory and the project is on track towards achievement of its PDOs. The Borrower has followed the latest procurement guidelines under the original project and the same procedures are being applied to all new procurement contracts. Under Component A of the original project, the prequalification

2 process for the two civil works contracts has been completed and bids were submitted on April 4, 2011. Proposals for the construction supervision services are also currently being evaluated. The prequalification documents for the contract included in the AF have been cleared by the Regional Procurement Management (RPM) and the processing of expressions of interest are nearly completed to allow proposals to be invited from shortlisted firms for the construction supervision services. Selection of consultants for the other components of the original project is at an advanced stage.

11. Fiduciary compliance: There are no financial management compliance issues and all audits are current. Compliance with environmental and social safeguards is Satisfactory and there are no unresolved legal or safeguard issues. However, there are some procurement risks as discussed in paragraph 14 below. UNRA has started implementing the action plan to mitigate these risks. The procurement risk mitigation plan under TSDP includes measures to streamline and shorten the time taken to procure works contracts, reduce restrictions for contractors so as to increase competition, enhance technical and financial audits, develop project specific “Red Flags” as monitoring indicators and implement institutional strengthening and anti-corruption strategies (for details see Annex 3). With the above measures, there have been some improvements, hence the procurement risk has been rated as Moderately Satisfactory.

12. Rationale: This AF is intended to implement additional expanded activities to scale up the project’s impact and development effectiveness in accordance with OP 13.20 - Additional Financing for Investment Lending. GoU considered two options for financing this road: (i) including the project in the government budget; and (ii) the possibility of getting financial support from other development partners. As it was not possible to get support from other sources, GoU requested to use part of the balance of its IDA15 allocation for this purpose. The instrument of AF was preferred over the preparation of a new credit as the project objective is the same and the AF approach also reduces transaction costs.

13. The AF request came seven months after the concept review meeting for the original TSDP project and near the completion time for project preparation. Given the due diligence that the team needed to carry out on the designs and safeguards, it was not possible to include this road in the original TSDP.

14. Foreseen Risk Factors: The major risk at the appraisal of TSDP was the weak organizational structure of UNRA arising from the concentration of work in a few units. Other risks include lack of proper staffing of the Procurement and Disposal of Assets Unit (PDU); lack of a clear delineation of responsibilities and understaffing in technical departments. Under the TSDP the PDU has been restructured to report directly to the Executive Director of UNRA to increase management oversight and monitoring of procurement functions. The TSDP has also financed a procurement consultant to provide hands-on coaching and mentoring of PDU staff. Further, UNRA has engaged a consultant to establish an acceptable Monitoring and Information System (MIS) for procurement tracking. UNRA is in the process of recruiting additional staff to increase the capacity of the Technical departments for project implementation.

15. Institutional Capacity Issues: The increased annual budget for the transport sector (US$318 million in FY07/08; US$542 million in FY08/09 and US$546 million in FY09/10, 85 percent of which is managed by UNRA) requires a substantial increase in UNRA’s

3 implementation capacity. With the increased workload, the capacity of UNRA to review the quality of documents submitted by design consultants and to supervise major civil works contracts is highly constrained. The original project includes the provision of technical assistance by development partners (EU and DFID). Four advisors seconded to UNRA under the EU financed TA program including a short term advisor on environmental issues and one advisor seconded to the Permanent Secretary, Ministry of Works and Transport under the DFID financed TA program are already in place. Selection of the TA under the TSDP is at an advanced stage. The additional TA will comprise a Management Advisor, Transport Planning Specialist, Soils/Materials Expert, Bridge Expert, Highway Specialist, Sociologist and Procurement Specialists.

16. UNRA’s Board has also approved its recommendation to fill 46 vacant positions in the directorates of Planning (13 positions), Projects (6 positions), Maintenance Operations (4 positions), Internal Audit (8 positions), Finance and Administration (13 positions) and Legal Counsel’s Office (4 positions). However, UNRA can currently fill only 14 of the proposed positions as a result of a wage cap. An action plan to lift the cap on recurrent expenditure has been discussed with GoU. UNRA will also pursue the transfer of all operational expenses related to road maintenance into a special account to be financed by the Road Fund as stipulated in the Road Fund Act

17. Governance Risk: The original TSDP identified perceived corruption in the roads sub- sector as a critical risk in governance and consequently a Governance and Accountability Action Plan (GAAP) was agreed upon to mitigate the risk. The perception of corruption still persists despite Uganda having a comprehensive legal and institutional framework to address Governance and Anti-Corruption (GAC) issues. This has been buoyed by recent international surveys and nationally generated data which indicate that corruption is prevalent and affects every public institution with public procurement being amongst the activities in which it is most rife. Uganda’s ranking on the Transparency International 2010 Corruption Perception Index (CPI) dropped to 127 out of 178 countries with a score of 2.5 (out of a possible 10), indicating that the country was perceived as corrupt. The first annual report on tracking corruption trends in Uganda was published in 2010 by the Inspectorate of Government (IG), the primary government anti-corruption institution. It singles out lack of enforcement and implementation of anti- corruption laws as a great challenge in promoting anti-corruption and highlights the high impact of corruption risks on the immediate horizon that have the potential to cause a significant deterioration in the extent and scope of corruption in Uganda.

18. The Risk of High Unit Costs of Construction: A unit cost workshop, jointly organized by the Bank and government for various stakeholders, was held in Kampala, Uganda in February 2009 with the aim of: (i) assessing the causes of the current high unit costs of road construction and maintenance; (ii) finding out why the engineer’s estimates and bidding prices are markedly different in many cases; (iii) establishing the key variables in the bidding process that influence a contractor’s pricing policy and the unit costs; (iv) discussing best practices that can be adopted by procuring institutions, to avert this trend, especially the avoidable influences on unit costs; (v) coming up with alternative procurement arrangements that could be used to increase competition and ensure that market prices are the basis of contract awards.

4 19. The recommended actions from the workshop include, among others: (i) publishing quarterly and annual reports on Construction Sector Indices; (ii) boosting the National Construction Industry; (iii) creating an enabling environment for doing business in Uganda; (iv) use of low cost materials; (v) piloting procurement of construction projects using alternative procurement/financing strategies, e.g., design and build contracts; (vi) introduction and implementation of anti-corruption measures; (vii) strengthening contract management capability of the implementing agencies; (viii) undertaking independent Technical and Financial Audits of individual projects; (ix) developing project specific “Red Flags” system to guide monitoring of individual projects.

20. To date, many of the recommendations have either been implemented or are in process of being implemented. The Uganda Bureau of Statistics now publishes the indices for local materials used in the construction industry on a quarterly basis. A National Construction Industry Policy was developed and approved by Cabinet in January 2011. The World Bank, Nordic Development Fund (NDF) and GoU are carrying out a pilot project on low cost roads on Matuga-Semuto road, near Kampala. GoU is also carrying out two pilot projects procured as Design Build contracts on Malaba-Bugiri road on the northern corridor and Mbarara-Kikagati road on the Central Corridor. On anti-corruption measures, ten different audits were carried out in UNRA in 2010. UNRA has developed a specific “Red Flags” system to guide monitoring of individual projects.

III. Proposed Changes

21. No change is required to the original PDO or the overall design of the project components. The five components of the TSDP remain unchanged.

22. Proposed AF activities: Component A: Upgrading and Rehabilitation of National Roads (Scale-up). Under the AF, the Kamwenge to Fort Portal road (66 km) will be upgraded from gravel to a paved bituminous standard. The AF would bring the total roads to be paved under the project to approximately 225 km. The original project includes the paving of the Gulu- Atiak road (74 km) and Vurra-Oraba road (85 km) in northern Uganda that link southern Sudan and the north-eastern DRC. Feasibility studies, detailed engineering designs, EIA/SIA and RAP for the road were initially prepared with financing from the AfDB. Component E: Support to UNRA. The AF will also provide technical assistance for strengthening the internal audit functions of UNRA for technical audits of road projects. Under the original project this component includes: strengthening the capacity of the UNRA to serve as a project implementing unit, through the refurbishing of offices, provision of technical assistance, the carrying out of studies, and the provision of training and equipment.

23. The AF will contribute to: (i) reducing of average transport cost and travel time on project roads; (ii) decreasing the share of national roads in poor condition; and (iii) increasing the percentage of rural population with access to an all-season road in the target areas. The updated project cost is provided in Table 1 below. As in the original project, the database section of the policy and planning division of the Ministry of Works and Transport (MoWT) will have the overall responsibility for monitoring and reporting on the performance of the transport sector. The day-to-day monitoring and reporting function of the project will remain with UNRA.

5 Table 1: Costs by Component (US$ million equivalent)

Original Cost Additional Revised Cost Project Component Financing

Total IDA DFID IDA Total IDA DFID A. Upgrading and Rehabilitation of 162.1 162.1 0.0 73.0 235.1 235.1 0.0 National Roads

B. Enhanced Road Safety 4.5 3.5 1.0 0.0 4.5 3.5 1.0

C. Preparation of Kampala Urban 4.5 4.5 0.0 0.0 4.5 4.5 0.0 Transport Project

D. Support to MoWT 10.9 7.9 3.0 0.0 10.9 7.9 3.0 E. Support to UNRA 16.0 12.0 4.0 2.0 18.0 14 4.0

Total Projects Costs 198.0 190.0 8.0 75.0 273.0 265 8.0

Institutional Implementation Arrangements

24. The institutional arrangements for implementing the proposed AF are essentially the same as those being used to implement the TSDP, i.e., MoWT and UNRA. The Permanent Secretary (PS) of MoWT and the Executive Director (ED) of UNRA will be the “Accounting Officers” for the project. MoWT will continue to implement components B, C and D, while UNRA will continue to implement components A and E. The majority of the proposed activities of the AF fall under Component A.

25. Sector Fiduciary Aspects: In view of the corruption and mismanagement allegations leveled against UNRA and its leadership in August 2010, the government requested the Bank’s assistance to explore different options to resolve several endemic problems constraining the institution. The Bank has done the analytical work and has drawn lessons from the Philippines experience as well as other successful approaches applied in Ethiopia, Kenya and other African countries to strengthen governance and establish GAC in the roads sector. The measures would involve, inter alia, elevating the PDU of UNRA to the level of a directorate; separating the works and services functions from that of goods and supplies; building capacity for procurement, including establishing a visibly independent mechanism for bid evaluation (Independent Parallel Bid Evaluation (IPBE) to benchmark and validate results from UNRA’s procurement; streamlining Technical Audits of road projects through the internal audit functions of UNRA; and enhancing transparency and accountability through increased public disclosure and access to information, including participation in the Construction Sector Transparency (CoST) Initiative (see Annex 3).

6 26. Independent Parallel Bid Evaluation (IPBE): The analytical work on parallel bid evaluation has been discussed with MoWT, UNRA, the Public Procurement and Disposal of Public Assets Authority (PPDA) and Office of the Auditor General. IPBE would be part of an institution-wide integrity enhancement initiative that could assist in building the UNRA’s procurement capacity in the near future. The proposed coverage of IPBE would focus on large contracts above US$10 million equivalent. At least 30 percent of all contracts above US$1.0 million and less than US$10 million equivalent would also be sampled. Similarly, a random sample of contracts below US$1 million equivalent would be reviewed. This process would help in: (i) reducing the number of appeals and related delays in the procurement process and is expected to result in the improvement in the quality and confidence of evaluations carried out by UNRA; (ii) relieving pressure, if any, to award contracts to preferred bidders by external parties, as well as identify probable collusion between bidding companies, if any, and (iii) assuring quality on contracts financed by the government and donors who do not have parallel review mechanisms. Procurement under the project, which is already at an advanced stage, will not rely on the new mechanism which has yet to be fully established and implemented.

27. In order to implement the IPBE, UNRA is to submit a request for introducing the IPBE in an application to PPDA for accreditation of an alternative public procurement system. The accreditation process will follow the provisions of Article 342 of the Public Procurement and Disposal of Public Assets Regulations, 2003. For integrity purposes and to avoid any conflict of interest, the IPBE services will be provided by a consultant selected by bilateral Donors. DFID has accepted in principle to finance the consultancy services over a period of about three years. The time frame given by DFID is for the services to commence in January 2012.

28. Strengthening Internal Audit Functions of UNRA: UNRA will expand its Internal Audit Department to add a technical unit staffed with engineers and contract specialists. The unit would support the internal audits of accounting and controls and would provide real-time feedback in addition to improving access to information for external audits. Initial financing required for such a support to the internal audit, which is estimated at around US$2.0 million over a period of two years, is included in the AF of TSDP.

29. Transparency and Accountability: UNRA will also re-apply to the Secretariat of the Construction Sector Transparency (CoST) Initiative in the UK for Uganda to become a member. UNRA will also increase public disclosure and access to information by adopting the CoST.

Financial Management

30. There are no changes being proposed to the financial management (FM) arrangements of the original Credit under the TSDP AF. The entire additional financing will be managed by UNRA, using the existing FM arrangements, which have been found to be satisfactory. The conclusion on the assessment of FM risks is that the financial management arrangements for the project have an overall moderate risk rating after mitigation with adequate budgeting and reporting arrangements. Qualified and experienced accountants are in place and the two entities have good knowledge of Bank procedures as they have implemented, and are currently implementing other IDA projects. UNRA will operate the IDA account together with its Local Project Account while MoWT will operate a Local Project Account. Both accounts will be operated with the Bank of Uganda. Realistic cash projections will be prepared by MoWT to

7 receive funds from the UNRA designated dollar account and MoWT will prepare quarterly financial accountability reports to be consolidated by UNRA for eventual submission to the Bank. UNRA, together with MoWT, will liaise with the Auditor General to have the financial records audited in a single audit exercise as under the original TSDP project. Each entity will take full responsibility for the full accountability and internal control issues raised by the auditors on its funds. There are no audit reports outstanding from these entities.

Procurement Arrangements

31. The procurement arrangements for the proposed AF are the same as for the ongoing TSDP. For all activities under the TSDP, the latest procurement guidelines of January 2011 will apply. More specifically, procurement of works required for the project and to be financed out of the proceeds of the credit shall be governed by the "Guidelines for Procurement under IBRD Loans and IDA Credit" published by the Bank in January 2011. Procurement of consultants' services shall be governed by the "Guidelines for the Selection and Employment of Consultants by World Bank Borrowers" published by the Bank in January 2011. Anti-Corruption provisions will also be governed by the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011. UNRA will procure and manage the civil works and consultancy contracts financed under the AF.

32. Piloting and Alignment of Work Plans with Cash Flows and Procurement Plans: UNRA is implementing the output budgeting tool provided by the Ministry of Finance, Planning and Economic Development (MoFPED) for alignment of cash flows and procurement plans.

Closing Date

33. The activities to be funded out of the additional financing will require an extension to the credit closing date by 19 months to a revised date of January 31, 2016.

IV. Appraisal Summary

Economic Analysis

34. The economic analysis of the additional works for the proposed investment for upgrading of Kamwenge-Fort Portal Road was carried out using the fourth version of the Highway Development and Management Model (HDM-4) and was based on the estimated costs from the design stage and the projected traffic volume. Financial costs were determined for each section and converted to economic costs by applying a conversion factor of 83 percent based on UNRA’s procedural guide. The period of analysis was 20 years with cost and benefits discounted at a rate of 12 percent using benefit categories of savings in vehicle operating costs (VOC), passenger time savings, and induced agricultural production. Traffic volumes were 1,569 vehicles per day (vpd) (motorized) and 788 vpd (non motorized i.e. bicycles). Economic indicators estimated to determine the viability of the improvements included the Net Present Value (NPV) and Economic Internal Rate of Return (EIRR). The sensitivity analysis was also conducted by varying costs and traffic growth rate (i.e. traffic growth rate decrease by 20 and 20 percent increase in investment costs). In the worst case scenario (combining -20 percent traffic

8 and +20 percent cost), overall project NPV/EIRR for Kamwenge-Fort Portal Road are US$-5.7 million/13.2 percent.

35. On the other hand, an EIRR of 13.4 percent and NPV of US$20.5 million is obtained when a corridor wide (i.e. Nyakahita – Kazo – Kamwenge – Fort Portal) sensitivity analysis is done. The sensitivity analysis results indicate that even in the worst case scenario of lower traffic growth rate of 20 percent and higher investment cost by 20 percent, upgrading Kamwenge – Fort Portal Road to bitumen standard (Double Bituminous Surface Dressing (DBST) Option) offers robust results i.e. with an EIRR of 13.2 percent which is higher than the economic viability threshold of an EIRR of 12 percent. The economic analysis results indicate that the project is economically viable.

36. The economic analysis (base case) showed the preferred option to be DBST, on crushed stone aggregate base and natural gravel sub-base with an EIRR return of 16.8 percent and NPV of US$19.9 million as summarized in Table 2. Details regarding the project’s economic analysis are provided in Annex 5.

Table 2: Economic Analysis Results (Base Case)

Road Link and intervention NPV Benefit/Cost EIRR (US$ m) Ratio (%) Kamwenge-Fort Portal Road (DBST) 19.9 16.8% Project Road 117.4 19.6

Procurement Capacity and Risk Rating

37. The key risks identified in the original project include: (i) weak organizational structure for procurement activities; (ii) inadequate numbers of technical staff; (iii) inadequate procurement capacity, particularly, in selection of consultants under IDA guidelines; (iv) insufficient skills in ensuring the proper application of the price adjustment provisions under major works contracts amongst UNRA staff, which contributed to cost increases; (v) insufficient exposure to contracts management; (vi) increased work load without a commensurate increment in the number of staff. These factors have resulted in delayed implementation of the approved procurement plan and the agreed action plan for the main TSDP project; payment processing delays; design review findings at times not being incorporated in the bidding documents; in some cases compensation to project affected persons (PAPs) being paid after contract execution has commenced, thereby leading to delays in project implementation.

38. The Bank team has been working with UNRA to address the above weaknesses and some progress has been made in implementing an action plan for improving its organizational structure and various arrangements and processes for procurement and contract administration in UNRA. UNRA Board has approved the proposed changes in reorganizing the PDU functions. The PDU now has dedicated units for works and services, and goods and supply. A Senior Procurement consultant has been hired under the TSDP who is now acting as the Director of the reorganized PDU. UNRA has also hired a Procurement Consultant who is providing hands-on coaching and mentoring to its PDU staff and they are in the process of recruiting additional procurement specialists. All the positions will be filled on competitive basis. In addition, to bridge the skills

9 gap, UNRA has started a process of training graduate engineers by attaching them to experienced consultants. The first batch of eight engineers have completed two years training in various fields and have been deployed in the different departments of UNRA. There is a new Contracts Committee (CC) in place; and communication between the CC and the PDU has improved, with minutes of CC meetings being released within two days. Participation of the user/technical departments in the procurement cycle has also been enhanced.

39. Implementation of the procurement risk mitigation plan, prepared for the TSDP, is being closely monitored. The procurement risk mitigation plan under TSDP includes measures to streamline and shorten the time taken to procure works contracts, reduce restrictions for contractors so as to increase competition, enhance technical and financial audits, develop project specific “Red Flags” as monitoring indicators and implement institutional strengthening and anti- corruption strategies. With the above measures, lately there has been some improvement in meeting the project objectives with the two major civil works contracts at the bid preparation stage and selection of consultants for the supervision services at Technical Evaluation stage. Hence, the current procurement risk rating is Moderately Satisfactory.

Social and Environmental Safeguards Implementation Arrangements

40. As part of the TSDP, ESIAs and RAPs for both the Gulu-Atiak and Vurra-Oraba roads were prepared and disclosed both in-country and at the InfoShop. To ensure full consistency and continuity, the same approach has been followed for the proposed AF. The EIA/SIA and RAP for the Kamwenge - Fort Portal road to be financed under the AF have been prepared with financing from the AfDB. The Bank team reviewed these documents and found them in need of improvement to comply with the WB safeguard policies and standards. UNRA submitted the revised EIA/SIA and RAP and these have been reviewed by the safeguards policies team. The RAP and EIA were disclosed in-country on January 15, 2010. The updated RAP and EIA were disclosed at the InfoShop on February 9, 2011 and in-country on February 15, 2011. Implementation of the environmental management plans and resettlement action plans will be undertaken by the contractor and the UNRA with support of short term consultants respectively. Consultants to implement the RAP are already in place and will complete most of their work prior to the beginning of the civil works contract in February 2012. Monitoring of the safeguard instruments will be undertaken by UNRA, and progress will be made available in the quarterly reports to IDA.

41. A 13.3 km section of the Kamwenge-Fort Portal Road traverses Kibale National Park (KNP). This national park was gazetted in 1993 to protect a large area of forest previously managed as a logged Forest Reserve. The park adjoins Queen Elizabeth National Park and is an important eco-tourism destination popular for its population of chimpanzees and 12 other species of primates. It is also the location of the Makerere University Biological Field Station (MUBFS). While the upgraded road will have a 30 meter reserve (20 meters in urban areas), the 13.3 km section through KNP will not be widened. In this road section, the total width including carriageway, shoulder and drainage infrastructure will be limited to the current road dimensions along with suitable traffic control signs. Implementing this option will eliminate impacts associated with land take and destruction of trees and their canopies since current road alignment will be maintained. Non-destruction of tree canopies would also substantially reduce the opportunities for road kills resulting from primates crossing at road level. Implementing this

10 alternative will further preserve the mature tropical forest trees near the road within the core section of the forest. Further, to avoid undesired tree damage that would be occasioned by the need for turning space for heavy equipment, it is proposed that a gravel quarry be identified at either end of the 13.3 km road stretch through KNP so that haulage trucks do not turn within the national park. In this case, a haulage truck from one side of the road would not turn after delivery of its load on a work site but continue straight through to the gravel quarry ahead of it. Additionally, the road design will provide for properly signed speed humps at 200-500 m intervals with the aim of reducing noise levels and road kill in the park. Considering the sensitivity of the KNP area, IDA will intensify the field supervision of the project activities there, and will ensure that conservation nongovernmental organization or MUBFS are engaged in an advisory and monitoring capacity for this section of the road.

42. The government will finance the provision of support to PAPs, including resettlement activities and compensation, under both the original project and the additional activities under the AF. The cost of implementation of all other mitigation measures specified in the EIA/SIAs is usually financed under the IDA Credit as part of civil works contracts, (under which specific contractual provisions cover the environmental and social mitigation measures) and these expenditures will be payable from the Credit proceeds. Appropriate modifications have therefore been made to the Financing Agreement. Implementation of the mitigation measures described in this paragraph is covenanted in the legal agreements.

Bank Policy Exceptions

43. Since the project has been under implementation for less than 12 months and per OP/BP 13.20, it was necessary to process a policy waiver for an exemption. The internal memorandum (dated November 19, 2010) requesting for this waiver was approved by the Regional Vice President on November 29, 2010.

11 Annex 1: Revised Results Framework and Monitoring Indicators

UGANDA - Transport Sector Development Project - Additional Financing

Table A1-1: Results Framework Revisions to the Results Framework Comments/ Rationale for Change PDO Current (PAD) Proposed The project development objective No Change (PDO) is to improve the connectivity and efficiency of the transport sector through: (i) improved condition of national road network, (ii) improved capacity for road safety management; and (iii) improved transport sector and national road management. PDO indicators Current (PAD) Proposed change* Comments (i) Average vehicle operating costs Average vehicle operating costs on Streamline of Indicator on Gulu-Atiak, Vura-Arua-Oraba targeted roads (US$ per vehicle- Wording and Kamwenge-Fort Portal roads km) reduced from US$0.352 (2009) per veh-km to US$0.224 (2016) per veh-km (ii) Travel time on Gulu-Atiak, Travel time on targeted routes Streamline of Indicator Vurra-Arua-Oraba and Kamwenge- (hours) Wording Fort Portal roads from 2 hours (2009) to 1 hour (2016) (iii) National roads in poor Roads in good and fair condition as Streamlining with the Core condition reduced from 36% in a share of total classified roads Sector Indicators. FY09/10 to 15% in FY15/16 (percent) Supplemental value: Size of the total classified network. (iv) Access of the rural population Share of rural population with Streamlining with Rural to all-season roads in the target area access to an all-season road Accessibility Index (Core increased from 64 percent to 90 (percent) Supplemental value: indicator) percent Number of people with access to an all-season road. (v) Annual rate of growth of road Annual rate of road accident Streamline of Indicator accident fatalities declines after the fatalities (7 percent) Wording NRSA becomes operational (vi) Direct Project Beneficiaries Direct Project Beneficiaries Streamlining with the Core (number), Sector Indicators. of which Female (Percent) Roads rehabilitated (non-rural) Core Sector Indicator

Intermediate Results indicators Current (PAD) Proposed change* Comments 159 km of national (non- 225 km of national (non-rural) roads Increase of 66 km rural) roads rehabilitated/upgraded rehabilitated/upgraded National Road Safety No Change Authority (NRSA) created and operational Crash Data base established No Change and operational Detailed design and No Change bidding documents for phase 1 BRT prepared Framework for MATA No Change prepared Transport Policy updated No Change Legal Framework updated No Change Transport Sector Data No Change Management System (TSDMS) established MTRA established No Change DUCAR agency established No Change UNRA share of No Change administrative costs as part of overall budget is less than 5% Share of force account No Change maintenance on national roads reduced from 10% (08/09) to 5% (2013/14) UNRA MIS established No Change including red flag system Average time deviation No Change from procurement plan Annual customer No Change satisfaction survey Capacity of the Internal Audit unit of To improve procurement and UNRA increased to carry out works and services performance Technical Audits and increase overall fiduciary integrity.

13 Table A1-2: Arrangements for Results Monitoring

Project Development Objective (PDO): is to improve the connectivity and efficiency of the transport sector through: (i) improved condition of national road network, (ii) improved capacity for road safety management; and (iii) improved transport sector and national road management Responsibility Baseline Data Source/ Progress Cumulative Target Values4 Frequency for Data Comments Original Methodology PDO Level Results Indicators1 UOM2 To Date Collection Project (2011)3 2012 2013 2014 2015 2016

Core Start 1. Average vehicle operating costs on targeted roads 0.352(Road 0.352(Road Once at the Directorate of US$/veh. Streamline of ( Gulu-Atiak, Vurra-Arua-Oraba 0.352 0.352 Works in Works in 0.224 0.224 0.224 end of the HDM - Model Planning, km Indicator Wording and Kamwenge-Fort Portal Progress) Progress) project UNRA roads) Construction 2. Travel time on targeted routes Travel time Travel time Progress ( Gulu-Atiak, Vurra-Arua-Oraba affected by affected by Directorate of Streamline of hrs 2 2 1 1 1 Report and Survey and Kamwenge-Fort Portal road works road works Planning, UNRA Indicator Wording the end of roads ) in progress in progress the project 3. Roads in good and fair Survey by Streamlining with condition as a share of total UNRA Directorate of % 64 70 75 80 85 85 90 Annual the Core Sector classified roads (Size of the total regional Planning, UNRA Indicators classified network) offices 4. Share of rural population with Streamlining with Once at the Final project Directorate of access to an all-season road Rural Accessibility % 64 70 75 80 85 85 90 end of the report of Planning, (Number of people with access Index (Core project UNRA UNRA to an all-season road) Indicator) 5.Annual rate of road accident Annual report Streamline of % 7 6 5 5 4 4 4 Annually NRSA fatalities of NRSA Indicator Wording 6. Roads rehabilitated (non- Core Sector km rural) Indicator Beneficiaries5

7. Direct Project Beneficiaries, Number 4,950,000 4,950,000 4,950,000 Once at the end Final project 0.0 Core Indicator (of which female ) (%) (50) (50) (50) of the project report of UNRA

1 Please indicate whether the indicator is a Core Sector Indicator (for additional guidance – please see http://coreindicators). 2 UOM = Unit of Measurement. 3 For new indicators introduced as part of the additional financing, the progress to date column is used to reflect the baseline value. 4 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets refer to annual values, please indicate this in the indicator name and in the “Comments” column. 5 All projects are encouraged to identify and measure the number of project beneficiaries. The adoption and reporting on this indicator is required for investment projects which have an approval date of July 1, 2009 or later (for additional guidance – please see http://coreindicators).

Intermediate Results and Indicators Target Values Responsibility Data Source/ Baseline Frequency for Data Comments Methodology Unit of Original Progress Collection Intermediate Results Indicators Measure Project To Date 2012 2013 2014 2015 2016 ment Start (200X) (200x) Core Component A: Upgrading and Rehabilitating of National roads

1. Number of km upgraded Km 0 0 0 40 74 160 225 Component B: Enhance Road Safety 2. Road Safety Authority created Draft law Draft law Bi- TSDP bi-annual Report Operational Operational Operational Operational MoWT and operational prepared approved annually progress report 3.Crash data base established and Not Being MoWT, Database Operational Operational Operational Operational Operational N/A Crash data base operational operational Established Uganda Police Component C: Preparation of a Kampala Urban Transport Project Completed 4. Detailed design and bidding Being and Works Works Works Bi- TSDP bi-annual documents for phase 1 BRT Report Not done Being done MoWT done procurement ongoing ongoing ongoing annually progress report prepared commences 5.Framework for Metropolitan Approval MATA MATA MATA MATA MATA Bi- TSDP bi-annual Area Transport Authority (MATA) Report Not done process for MoWT operating operating operating operating operational annually progress report prepared MATA Component D: Support to MoWT Annual Policy in Policy in Policy in Policy in 6.Transport Policy updated Report Not done Done Approved Annually transport sector MoWT use use use use report Annual 7.Transport Sector Legal Being Being Report Not done Approved Approved Approved Approved Annually transport sector MoWT Framework updated prepared prepared report Annual MTRA 8.MTRA established Report Not existing Setting up Operating Operating Operating Operating Annually transport sector MoWT law passed report Annual 9.DUCAR Agency established Report Not existing Approval Operating Operating Operating Operating Operating Annually transport sector MoWT report

15 Intermediate Results and Indicators 10.Transport Sector Data Annual Being Management System (TSDMS) System Not existing Operating Operating Operating Operating Operating Annually transport sector MoWT established established report Component E: Support to UNRA

11.UNRA share of administrative TSDP progress % <5 <5 <5 <5 <5 <5 5 Bi-annually UNRA costs less than 5% in each year* report 12.Share of Force Account Bi- TSDP progress % 10 8 7 5 5 5 5 UNRA reduced** annually report 13.UNRA MIS and red flag system Not Bi- TSDP progress Report Operating Operating Operating Operating Operating Operating UNRA established*** established annually report 14.Average time deviation from TSDP progress % Not done <10 <10 <10 <10 <10 <10 Annually UNRA procurement plan report 15.Annual customer satisfaction TSDP progress Surveys Not done 1 1 1 1 1 1 Annually UNRA survey by UNRA report 16, Capacity of the Internal Audit TSDP progress unit of UNRA increased to carry No 6 6 10 10 14 14 14 Bi-annually UNRA report out Technical Audits

Annex 2: Operational Risk Assessment Framework (ORAF)

REPUBLIC OF UGANDA

Additional Financing of the Transport Sector Development Project

Project Development Objective(s) The Project Development Objective is to improve the connectivity and efficiency of the transport sector through: (i) improved condition of national road network, and (ii) improved capacity for road safety management; and (iii) improved transport sector and national road management.

PDO Level Results 1. Average vehicle operating costs on targeted roads (US$ per vehicle km) Indicators: 2. Travel time on targeted routes (hours) 3. Roads in good and fair condition as a share of total classified roads (percentage) – Core Indicator 4. Share of rural population with access to an all-season road (percentage) – Core Indicator 5. Annual rate of road accident fatalities (percentage) 6. Direct Project Beneficiaries (number), of which female (percentage) 7. Roads rehabilitated, Non-rural – Core Indicator

Risk Risk Category Risk Description Proposed Mitigation Measures Rating An action plan was developed with UNRA prior to appraisal, which included the following actions: (i) UNRA to appoint before appraisal consultants who will Past experiences have shown that compensation for 1. Project Stakeholder implement the RAP; (ii) UNRA to ensure the consultants M-I land and properties did not move ahead as planned, Risks enhance stakeholder awareness; (iii) UNRA to ensure thus delaying some road projects. there are adequate resources to meet the involuntary RAP costs and be able to timely compensate the local people for loss of land/property and/or income. 2. Implementing

Agency Risks The increased annual budget for the transport sector UNRA’s Board has given approval for UNRA to fill 46 (US$318 million in FY07/08, US$542 million in vacant positions in its various directorates. Currently,  Capacity M-L FY08/09 and US$546 million in FY09/10, 85 percent only 14 of the proposed positions can be filled as a result of which is managed by UNRA) requires a substantial of the wage cap. An action plan to lift the cap on recurrent increase in UNRA’s implementation capacity. Thus the expenditure has been discussed with GoU. UNRA will

17 need to address the following: (i) weak organizational also pursue the transfer of all operational expenses related structure; (ii) inadequate experience in procurement to road maintenance to a special account to be financed management; (iii) inadequate record keeping; (iv) by the Road Fund as stipulated in the Road Fund Act. inadequate staff numbers and (v) delays in Other actions are: implementation of the approved procurement plan for the main TSDP project. (i) PDU to report directly to Executive Director to increase management oversight and monitoring of procurement functions; (ii) unbundle the concentration of activities in the PDU and delegating and reassigning activities as appropriate to functionally designated units; (iii) recruitment of a Procurement Consultant to provide hands-on coaching and mentoring to PDU staff ; (iv) introduce an outsourced independent procurement evaluation to benchmark and validate UNRA’s procurement actions; (v) strengthen the internal audit functions of UNRA to provide real time technical audits of road projects/program implementation; (vi) strengthen PPDA’s oversight function through Bank INT’s capacity building initiatives; (vii) enhance mechanisms for stakeholder and external monitoring of road projects, and (viii) establish acceptable MIS for procurement tracking. Petty and high-level corruption are prevalent and affect The Bank is working with GoU to reinvigorate every institution in the country, and are most rife in institutions and accountability systems, rethinking procurement, privatization, administration of revenues decentralization policies, and re-launching stalled public and public expenditures, and public service delivery. service reform processes. GAC is a cross-cutting pillar in Despite the government’s purported zero tolerance the 2011 – 2015 CAS and plans are being built into new policy on corruption, few if any high-level officials operations and the value for money agenda is supported  Fraud and M-I involved in major corruption scandals have been tried, across the portfolio, including in AAA/ESW, particularly Corruption hindering attempts to raise the bar and address lower PERs. The recently developed Data Tracking Mechanism level corruption. provides the government with a self assessment tool for corruption and governance and identifies areas where key reforms to address governance have failed. This will help provide pointers for better governance arrangements in investment projects. 3. Project Risks A substantial technical assistance (TA) program to Capacity of UNRA to review the quality of documents  Design M-L strengthen the capacity of UNRA has been built in the submitted by design consultants is highly constrained. TSDP to address this.

Implementing agency will continue receiving capacity Relevant environmental regulations and policies strengthening assistance from EU. The EIA/SIA and are largely in place but not adequately RAP for the Kamwenge -Fort Portal road will guide implemented. Capacity of the implementing the road works undertaken in the AF. Implementation agency for environmental management, including of the environmental management plans and supervision of implementation of planned resettlement action plans will be undertaken by the environmental mitigation measures is lacking. contractor and the UNRA with support of short term Project road crosses Kibale National Park (KNP) consultants respectively. Environmental mitigation with critically endangered primate species measures as outlined in the EIA/SIA will be including chimpanzees.  Social and Environmental M-I implemented, including (i) a special low impact

regimen for road upgrade design and activities in the

KNP, (ii) intensive IDA supervision, and (iii) advisory

monitoring of project activities in KNP by a major

conservation NGO or academic entity.

Capacity building in UNRA with one additional The Roads Authority retains consultants for the sociologist and all to be trained in monitoring and implementation of RAPs and their reporting is weak reporting for resettlement action plans and irregular in spite of guidance provided by IDA. implementation. Meetings of the Transport Sector Working Group Framework for program and donor coordination is (SWG) to be held on a monthly basis and the sub- not strong; and proposed sub-committees of the  Program and Donor M-I committees to sit more frequently, as and when Transport Sector Working Group (SWG) do not needed. Progress of the previous year and program of meet regularly. the following year to be discussed annually. A substantial number of TAs under a technical Capacity of UNRA to supervise major civil works  Delivery Quality M-I assistance program to strengthen the capacity of contracts is highly constrained. UNRA has been built in the TSDP to address this

Overall Risk Rating at Overall Risk Rating During Comments Preparation Implementation M-I M-I

Annex 3: Strengthening Governance Arrangements in the UNRA

1. Context of Governance in the Uganda National Roads Authority (UNRA): The Transport Sector Development Project (TSDP) project appraisal document acknowledges that there are several challenges in the roads sub-sector institutional architecture that the government needs to address to enhance the standards of governance and accountability. Accordingly, a Governance and Accountability Action Plan (GAAP) was developed, as part of the appraisal of the TSDP. The main aim and rationale for the GAAP is to steer the government in setting up an environment conducive to good performance in the road sub-sector by strengthening organizational and technical capacities, as well as accountability and transparency in the actions of institutions that will manage the TSDP. The GAAP is consistent with the Construction Sector Transparency (CoST) Initiative’s core principles reflecting a shared stakeholder commitment to transparency and accountability. The plan also calls for, amongst others, strengthening of the Procurement Function in UNRA to mitigate the risks of collusion and fraud and to instill the basic principles governing procurement under international and national competitive bidding.

2. In August 2010, the Bank received corruption and mismanagement allegations leveled against UNRA and its leadership and the same was forwarded to the government for action on September 17, 2010. In response, on October 8, 2010 the Ministry of Finance, Planning and Economic Development (MoFPED) requested support from the Bank for several remedial actions similar to what was implemented in the Philippines. Therefore there was a need to sharpen the GAAP action plan proposed under the TSDP to effectively address the above issues.

3. Independent Procurement Review: In October 2010, the Bank engaged the services of a consultant to carry out an independent procurement review (IPR) of the Bank financed Road Development Program Phase 3 project and the draft report was submitted in January 2011. The final report was submitted on March 31, 2011. The report highlighted some of the key factors leading to delays in procurement processing at UNRA, including staff lacking skills in contract management and application of the price adjustment formula, inadequate staff numbers to handle workload, and not incorporating comments of design review in bidding document resulting in variations during implementation. The Office of the Auditor General (OAG) has also carried out an independent procurement audit for contracts that are financed by the government and its report would be finalized by the end of June 2011. The specific recommendations made will further reinforce the ongoing GAAP to improve road sector governance reforms in Uganda.

4. The Bank has worked with the government to explore different options to resolve the endemic constraints highlighted in the IPR report and drew lessons from successful approaches applied in the Philippines and other African countries to strengthen GAC in Uganda’s roads sub- sector. In light of the lessons learned, it was concluded that an Institutional Support and Integrity Enhancement Service (ISIES) be established to support implementation of institutional reforms in the sector within the broad objectives of the GAAP. This would encourage improved overall performance and enhance integrity and transparency in roads sector. This is consistent with the Bank’s Country Assistance Strategy (CAS), Report No. 54187-UG dated April 27, 2010; of promoting good governance particularly in infrastructure investments.

5. Institutional Support and Integrity Enhancement Services: As part of implementation support to the TSDP and during preparation for the additional financing (AF), the Bank and government agreed that UNRA will take immediate action to establish arrangements for ISIES to support the implementation of institutional reforms within the broad objectives of the TSDP. The proposed ISIES will consist of the following actions:

(i) Capacity Building and Reorganization in Procurement: Immediate actions to be taken by UNRA management would include reorienting its procurement processing activities by unbundling the concentration of activities under some of its units such as the procurement and disposal unit (PDU), raising the PDU to the level of a directorate, separating the works and services functions from that of goods and supplies and delegating and reassigning activities as appropriate to functionally designated units. Attachment 1 depicts the responsibility matrix that provides the basis for assigning responsibilities to various units for UNRA’s core functional activities. These proposals are expected to be further captured in future organizational recommendations under a parallel program which is being supported by the European Union (EU). The final measures to be instituted and implemented will be examined by the UNRA contracts committee and Board with the view to seeking accreditation from the Public Procurement and Disposal of Public Assets Authority (PPDA) in carrying out the proposed changes within the framework of the requirements of the PPDA. The government has indicated that the accreditation process is likely to be completed by November 30, 2011.

(ii) Bid Evaluation Reform and Strengthening: Measures aimed at improving bid evaluation will be taken with support provided to the Contracts Committee of UNRA through outsourced Independent and Parallel Bid Evaluation (IPBE) to benchmark UNRA’s evaluation process. UNRA will retain legal responsibility for conducting procurement in accordance with national laws (PPDA Act and Regulations) and applicable World Bank procurement guidelines. The Contracts Committee of UNRA will be expected to clarify and respond to differences or queries raised by the IPBE before recommendation for an award is made. The IPBE process will raise the incentives for good performance of the formal evaluation process, allow points of difference to be addressed before formal recommendation of award is made, and improve the transparency and credibility of the procurement process in UNRA. The process would cover the procurement cycle from the initial invitation for tender or expressions of interest to contract award. Copies of the independent evaluation report would be submitted along with UNRA’s in-house bid evaluation report to the Bank (for Bank financed contracts) as well as to the appropriate offices in government (PPDA, OAG, Road Fund etc). For integrity purposes, these services will be financed by bilateral Development Partners and will be contracted outside of UNRA. The Department for International Development, UK (DFID) has accepted in principle to finance the consultancy services over a period of about three years. The IPBE contract with the consultancy firm would be managed by DFID. The time frame given by DFID is for the services to commence in January 2012.

(iii) Strengthening the Internal Audit Functions of UNRA: Additional measures are aimed at improving and strengthening UNRA’s Board and oversight functions through

21 enhancing UNRA’s Internal Audit Department to add a technical unit staffed with engineers and contract management specialists. The unit would complement the internal audit functions of accounting and controls and would provide real-time technical audits to UNRA Management on road projects/program implementation for quality assurance in addition to improving access to information for external audits. Initial financing of this unit will come from the TSDP AF.

(iv) Transparency and Accountability: Incentives for improving transparency and accountability would be sustained through introducing increased disclosure of and access to project and sector information by UNRA. Under this measure UNRA and the government will engage with the CoST Initiative to improve records and information management, disseminate disclosed project information through a website, and respond to stakeholder reactions, all under CoST procedures. Technical assistance is being provided under European Union (EU) funding to upgrade and integrate information systems in UNRA. It is expected that this measure would enhance the credibility of UNRA and result in improved business and information processes, and ultimately improved project quality.

6. Implementation and Monitoring of ISIES and GAAP. The ISIES measures would be implemented by UNRA through the technical assistance support provided under bilateral funding by DFID through the TSDP and AF. Monitoring and evaluation results will be reported in conjunction with reporting on the TSDP GAAP. Further, the Bank through the INT will work with the government to reinvigorate the Inspectorate of Government (IG), OAG and PPDA by supporting capacity building initiatives to enhance their respective investigative and oversight functions in line with their legal mandates.

Attachment 1: UNRA’s Responsibility Matrix

Procurement activity Procured Core Activities of UNRA

Consultancy Services Major Road Works Economic FeasibilitySocial Impact Studies Environmental Design Supervision Services Studies Studies Present Proposed Present Proposed Present Proposed Present Proposed Present Proposed Present Proposed TOR Preparation PDTS PDNS PDTS PDSU PDTS PDSU PDTS PDTS PM PM PDTS PDTS & PM Specifications PDTS PDTS TOR Approval CAC PD CAC PD CAC PD CAC PD CAC DP na na WSPU WSPU WSPU WSPU RFP/ Bidding Document PDTS PDTS PDTS PDTS PM WSPU PDTS WSPU

RFP/ Bidding Document CAC PDU CAC PDU CAC PDU CAC PDU CAC PDU CAC PDU approval Advertisement PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU Short listing/ Pre- EC EC EC EC EC EC EC EC EC EC EC EC qualification assessment Short listing/ Pre- qualification assessment CAC CAC CAC CAC CAC CAC CAC CAC CAC CAC CAC CAC Recommendation Invitation of Bid /RFP PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU Documents WSPU & WSPU & WSPU & WSPU & WSPU & WSPU & Pre-Bid Meetings PDTS PDTS PDTS PDTS PM PDTS PDTS PDTS PDTS PDTS PDTS PDTS Receipt and opening Bids PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU PDU Evaluation EC EC EC EC EC EC EC EC EC EC EC EC Contract Award CAC CAC CAC CAC CAC CAC CAC CAC CAC CAC CAC CAC Recommendation Contract Negotiations WSPU WSPU WSPU WSPU WSPU WSPU Approval of award ED ED ED ED ED ED ED ED ED ED ED ED recommendation

Planning Directorate Technical Services: PDTS Project Manager: PM Planning Directorate Safeguard Unit: PDSU Executive Director: ED Planning Directorate Network Strategy Unit: PDNS Contract Award Committee: CAC Procurement and Disposal Unit: PDU Evaluation Committee: EC Works and Services Procurement Unit: WSPU Director Projects Project Manager: DPPM Planning Directorate: PD

Annex 4: Procurement Plan 1. Works

Table A4-1: List of Contract Packages to be procured following ICB and Direct Contracting 1 2 3 4 5 6 7 8 9 Ref. Contract Estimated Procurement P-Q Domestic Review Expected Implemen No. (Description) Cost, Method Preference by Bid- ting including (yes/no) Bank Opening Agency contingenc (Prior/ Date ies. (USD Post) million) 1 Civil works contract for

upgrading of Gulu 68.0 ICB Y Y Prior 04-Apr-11 UNRA -Atiak Road (74 km)

2 Civil works contract for

upgrading Vurra- 79.2 ICB Y Y Prior 04-Apr-11 Arua-Oraba Road (85 km)

3 Civil works contract for upgrading 67.5 ICB Y Y Prior 20-Jul-11 UNRA Kamwenge – Fort Portal Road (66 km)

4 Renovation/Refurb ishment of five (5) existing UNRA 3.2 NCB N N Prior 10-Mar-12 UNRA Station offices to Regional Offices

2. Consulting Services

Table A4-2: List of Consulting Assignments with short -list of International Firms

1 2 3 4 5 6 7 Expected Estimated Review by Ref. Selection Proposals Implementi Description of Assignment Cost (US$ Bank No. Method Submission ng Agency millions) (Prior / Post) Date 1 Consultancy services for Construction Supervision of Gulu- 3.0 QCBS Prior 19-Jan-11 UNRA Atiak road

2 Consultancy services for Construction Supervision of Vurra- 4.3 QCBS Prior 30-Dec-10 UNRA Arua-Oraba Road

3 Consultancy services for Construction Supervision of 2.5 QCBS Prior 28-Apr-11 UNRA Kamwenge-Fort Portal Road

4 Consultancy services for Feasibility Studies, Design, Tender Assistance and Supervision for Refurbishment/ 0.9 QCBS Prior 15-Apr-11 UNRA Reconstruction 5 UNRA station offices

5 Consultancy services for Design and preparation of Bidding 3.9 QCBS Prior Documents for full reconstruction 10-May-11 UNRA of Tororo-Mbale-Soroti road.

6 Consultancy services for Design and preparation of Bidding 3.8 QCB Prior Documents for full reconstruction 10-May-11 UNRA of Lira-Kamudini-Gulu road.

National Roads Data Collection Study (Implementation of RMS and 2.1 QCBS Prior Ongoing UNRA Addendum No. 1)

9 Consultancy services for Black Spot 0.5 QCBS Prior UNRA Identification study, UNRA 14-Jul-11

11 Consultancy services for Post Implementation Monitoring and 0.4 QCBS Prior 14-Jul-11 UNRA Evaluation framework study

12 Consultancy services for Study for establishing Technical Audit 0.3 QCBS Prior 16-Aug-11 UNRA Guidelines

13 Technical Assistance for Capacity Building Support to the Uganda 3.7 QCBS Prior 22-Apr-11 UNRA National Roads Authority (UNRA)

14 TA to UNRA - Procurement 0.34 ICS Consultant Prior 18-Nov-10

15 Procurement Specialists (2 No.) 0.24 ICS Prior 12-Jan-11 UNRA

16 TA to UNRA - Axle Load Control 0.12 Advisor ICS Prior 08-Feb-11 UNRA

17 TA to UNRA - Ferry Services 0.12 Advisor ICS Prior 22-Mar-11 UNRA

18 TA to UNRA - Communications 0.12 ICS Specialist Prior 22-Mar-11 UNRA 20 Consultancy services for the establishment of Crash Data Base, including developing guidelines for 1.1 QCBS Prior 12- May- 11 MOWT the efficient collection and analysis of crash data statistics countrywide 21 Consultancy services for Feasibility study and Detailed design for 3.2 QCBS Prior 01-Mar-11 MOWT introduction of BRT in GKMA 22 Consultancy services for Study to update the Draft National Transport 0.25 QCBS Prior 10-Aug-11 MOWT Policy 23 Consultancy Services for establishment of a Metropolitan 0.3 QCBS Prior 06-Apr-11 MOWT Area Transport Authority (MATA)

24 Consultancy Services for Establishment of Multi - Sector 1.0 QCBS Transport Regulatory Authority Prior 06-Apr-11 MOWT (MTRA)

25 TA for MTRA 0.5 QCBS Prior 10-Aug-11 MOWT 26 Consultancy Services for 1.1 QCBS establishing a DUCAR Agency Prior 22-Mar-11 MOWT

27 Consultancy Services for Stochastic Conditional Survey for District, 0.45 QCBS Urban and Community Access Prior 16-Jun-11 MOWT Roads

28 TA Monitoring and Evaluation 0.15 QCBS Advisor Prior 28-Mar-11 MOWT

29 Consultancy Services for the review/update of the Traffic and Road Safety Act 1988 and 0.25 QCBS Prior 31-May-11 MOWT Consolidation of the Road Safety Regulations

Annex 5: Economic and Financial Analysis

Economic Analysis for the Upgrading of Kamwenge-Fort Portal road (66.2 km) to Paved Road Standard

Project Costs

1. Economic analyses for the upgrading of Kamwenge – Fort Portal Road was undertaken using the Highway Development and Management Model (HDM-4). The analyses were based on economic costs, which excluded taxes and duties. Further, a standard conversion factor of 0.83 has been used to convert financial costs to economic costs. A discount rate of 12 percent was used in the analysis with an appraisal period of 20 years.

2. The current road is a gravel road in poor condition. The projects appraised in the economic analysis comprise mainly the construction of a new sub – base, base and a bituminous surfacing for the main carriageway and its shoulders; upgrading the road furniture; and the installation of drainage structures. Three alternative design standards are defined for the road, which are: Alternative A – Gravel Surface, Alternative B – Double Bituminous Surface Treatment (DBST) on 200mm crushed stone base course, 150mm mechanically stabilized sub base and 150mm natural gravel sub grade, and Alternative C – 50mm Asphalt Concrete on 200mm crushed stone base course, 150mm mechanically stabilized sub base and 150mm natural gravel sub grade.

3. The financial and economic costs for the upgrading of this road project can be summarized as follows in Table A5-1:

Table A5-1: Financial & Economic Costs of Upgrading Kamwenge-Fort Portal Road Total Cost (US$ million) Cost/km (US$) Ref. Length Description Cost Type Alternatives No. km A B C A B C

Kamwenge – Financial 68.46 79.01 87.27 1.03 1.19 1.32 1 66.2 Fort Portal Economic 57.17 65.92 72.78 0.86 1.00 1.10

4. The maintenance standard adopted for each alternative for use in the HDM 4 based analysis was scheduled routine and periodic maintenance standard. The maintenance strategy and costs for Alternatives A (Base Option), B (Upgrade to DBST) and C (Upgrade to AC) are detailed in Appendix 1 (Tables a – c) to this Annex 5.

Traffic Assumptions

5. Traffic growth from 2008 – 2028 was taken to be 5 percent up to 2014, 7.5 percent up to 2021, 6.5 percent up to 2027, and five percent thereafter for all vehicle types.

6. Kamwenge – Fort Portal road was taken as one link for economic analysis purposes. The traffic counts are fully detailed in the Traffic and Economic Analysis sections of the Feasibility Study Report and the results are summarized in Table A5-2. The HDM analysis is primarily based on economic factors to calculate the viability of the proposed upgrading of the road to bitumen standard. The results are predominantly influenced by road roughness which is greatly improved due to the pavement upgrading.

Table A5-2: Base Year Traffic Traffic ADT, 2007 Traffic Section Lot Lot Name Homogeneous Non- Motorized Length km Sections Motorized Lot Kamwenge – Fort Kamwenge – Fort Portal Portal 1,569 788 66.2

7. It is worth noting from the traffic composition that motorcycles make up to 63.4 percent of all the motorized vehicles. Table A5-3 presents the motorized traffic composition and the unit road user costs, in US$ per vehicle-km, for the DBST option, with and without the project. On average, there will be a 50 percent reduction on unit road user costs with the DBST option.

Table A5-3: Traffic Composition and Unit Road User Costs for DBST Option Mini Medium Heavy Light Medium Heavy Motorcycle Car Pickup Bus Bus Bus Truck truck Truck Traffic Composition 63.4% 15.0% 12.5% 2.9% 0.2% 0.1% 4.2% 1.3% 0.4% (%) Road User Costs Without 0.12 0.49 0.61 0.69 0.77 1.62 0.68 1.08 1.54 Project (US$/vehicle- km) Road User Costs With Project 0.08 0.26 0.29 0.32 0.38 0.67 0.33 0.53 0.77 (US$/vehicle- km)

Results of the Economic Analysis

8. The full results of the economic analysis are set out in Table A5-4 and the results of the sensitivity analyses are shown in Table A5-5.

9. The analysis undertaken using HDM-4 indicate that for all the two options of B – Upgrade to DBST and C – Upgrade to Asphalt Concrete all compared against the A – Do – Nothing (Gravel) option indicate that the DBST option B offers the best results with the highest NPV. The results for the Kamwenge-Fort Portal road, for the DBST option give a NPV (at a 12 percent discount rate) of US$19.9 million and an Economic Internal Rate of Return (EIRR) of 16.8 percent. The overall project (i.e. Nyakahita – Kazo – Kamwenge – Fort Portal) has an EIRR of 19.6 percent and NPV of US$ 117.4 million. The economic analysis results for the two surface options are in Table A5-4.

Table A5-4: Results of Economic Analysis, Base Case DBST Option AC Option

Project Road Sections NPV @ 12% NPV @ 12% EIRR (%) EIRR (%) (USD million) (USD million) Lot III: (Kamwenge-Fort Portal) 16.8 19.9 15.7 16.35 Project Road 19.6 117.4 18.5 107.6

Sensitivity Analysis

10. The base sensitivity analyses undertaken on the DBST option examined the impact on economic feasibility of assuming:

 20 percent lower traffic growth rate;

 20 percent higher investment costs; and

 A worst-case scenario combining 20 percent lower traffic growth rate and 20 percent higher investment costs.

11. The sensitivity analyses indicated that for the worst case scenario (20 percent lower traffic growth rate and 20 percent higher investment costs) for Kamwenge – Fort Portal Road, the DBST Option would yield an EIRR of 13.2 percent and an NPV of US$5.7 million. On the other hand, an EIRR of 13.4 percent and NPV of US$20.5 million is obtained when a corridor wide (i.e. Nyakahita – Kazo – Kamwenge – Fort Portal) sensitivity analysis is done as shown in Table A5 – 5 below. The upgrading to paved road standard for the corridor from Nyakahita – Kamwenge is being financed by the African Development Bank and Government of Uganda (GoU) and upgrading works commenced in 2011. The results from the sensitivity analysis indicate robustness of the overall investment.

Table A5-5: Sensitivity Analysis of DBST option Cost Increase by 20%+Traffic Growth Decrease by 20% Lots EIRR (%) NPV US $ million Lot III (Kamwenge- Fort Portal) 13.2 5.7 Project (Nyakahita-Kazo-Kamwenge-Fort Portal 13.4 20.5

12. The DBST Option was selected as it presents a more robust investment (i.e. has a positive NPV and EIRR > discount rate) under the worst case situation in the sensitivity analysis.

13. Details on Economic Analysis for Kamwenge – Fort Portal Road are given in the Feasibility Study Report for Upgrading Nyakahita-Kazo-Kamwenge- Fort Portal Road.

Conclusion

14. According to the economic analysis of the project, the DBST option provides the best result on investment with a higher NPV and EIRR. Most importantly, the results from the stress tests on the project indicate that it is a robust investment that will yield a positive return on investment even with lower traffic growth levels and higher investment costs.

15. Therefore, the Upgrading Kamwenge- Fort Portal road project is a viable investment with DBST construction option.

Appendix 1: - Maintenance Strategy and Costs for Alternatives A, B and C

Table (a): Maintenance strategy and costs for Alternative A (Gravel) Financial Economic Maintenance Standards Unit Cost Cost 1. Base Alternative/ Do Nothing - gravel road Gravel resurfacing of 150mm @ 4 year intervals US$ per cu.m 49 40 Grading every 180 days US$ per km 5000 4150 Spot Re-gravelling of 100mm @ 40 cu.m per year if gravel US$ per cu.m 15 12.45 thickness < = 100mm Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 580 481.4

Table (b): Maintenance strategy and costs for Alternative B (DBST) Financial Economic Maintenance Standards Unit Cost Cost 1. Maintenance Before Upgrading - gravel road Gravel resurfacing of 150mm @ 4 year intervals US$ per cu.m 49 40 Grading every 180 days US$ per km 5000 4150 Spot Re-gravelling of 100mm @ 40 cu.m per year if gravel US$ per cu.m 15 12.45 thickness < = 100mm Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 580 481.4 2. Improvement Alternative B- DBST Maintenance of the existing Gravel Road before the improve facilities open to traffic in 2013 Grading every 12 months (Max IRI 20 m/km) US$ per km 5000 4150 Spot Re-gravelling of 100mm @ 40 cu.m per year if gravel thickness <= 100mm US$ per cu.m 15 12.45 Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 580 481.4 3. Maintenance After Upgrading - DBST i.e. after facilities open to traffic in 2013 DBST Resealing (Double Surface Dressing) of 20mm if US$ per sq.m 7.6 6.2 carriageway cracked area >= 25% Edge Repair if edge break area <= 100sq.m/km US$ per sq.m 4 3.32 Pothole patching if potholes >= 2nos/km US$ per sq.m 5 4.15 Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 2000 1660

Table (c): Maintenance costs for Alternative C (Asphalt) Financial Economic Maintenance Standards Unit Cost Cost 1. Maintenance Before Upgrading - gravel road Gravel resurfacing of 150mm @ 4 year intervals US$ per cu.m 49 40 Grading every 180 days US$ per km 5000 4150 Spot Re-gravelling of 100mm @ 40 cu.m per year if gravel US$ per cu.m 15 12.45 thickness < = 100mm

Financial Economic Maintenance Standards Unit Cost Cost Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 580 481.4 2. Improvement Alternative C- ASPHALT Maintenance of the existing Gravel Road before the improve facilities opens to traffic at 2013 Grading every 12 months (Max IRI 20 m/km) US$ per km 5000 4150 Spot Re-gravelling of 100mm @ 40 cu.m per year if gravel thickness <= 100mm US$ per cu.m 15 12.45 Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 580 481.4 3. Maintenance After Upgrading – DBST, i.e., after facilities open to traffic in 2013 Asphalt Concrete Edge Repair if edge break area <= 100sq.m US$ per sq.m 4 3.32 Pothole patching if potholes >= 2nos/km US$ per sq.m 5 4.15 Crack Sealing US$ per m 0.89 0.74 Routine Maintenance (miscellaneous) @ 1 year intervals US$ per km/yr 2000 1660 25mm overlay every 5th year US$ per sq.m 10.5 8.72

IBRD 38496 UGANDA TRANSPORT SECTOR DEVELOPMENT PROJECT (TSDP) ADDITIONAL FINANCING

ROADS BEING PAVED UNDER TSDP AND THE AF PAVED ROADS ROAD WORKS TO BE DESIGNED UNDER TSDP GRAVEL ROADS UGANDA ROADS UPGRADED OR RECONSTRUCTED NATIONAL CAPITAL UNDER RDPP DISTRICT CAPITALS ROAD WORKS DESIGNED UNDER PREVIOUS MAIN CITIES BANK PROJECTS BEING RECONSTRUCTED/PAVED UNDER GOU OR DP FINANCING INTERNATIONAL BOUNDARIES ROAD BEING PAVED UNDER THE AfDB FINANCING

Source: Uganda National Road Authority (UNRA).

30°E 32°E This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information 0 25 50 75 100 Kilometers shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 0 25 50 75 Miles To SUDANS U D A N Juba To Faradje 4°N 4°N

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