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Uganda-Country-Public-Private-Partnerships-Diagnostic.Pdf Draft February 15, 2017 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. Draft February 15, 2017 Table of Contents Acronyms ...................................................................................................................................................................... 3 Acknowledgments ......................................................................................................................................................... 6 Executive Summary ....................................................................................................................................................... 9 Key Findings ................................................................................................................................................................. 9 Key Actions ................................................................................................................................................................. 11 Uganda: As Things Stand ............................................................................................................................................ 12 How Uganda Can Accelerate Its PPP Program: Emerging Priorities .......................................................................... 16 Short-Term Priorities ................................................................................................................................................... 17 Medium-Term Priority ................................................................................................................................................ 20 How the World Bank Group and Other Multilateral and Bilateral Agencies Can Help: Strengthening Uganda’s PPP Program ............................................................................................................................................... 20 Introduction ................................................................................................................................................................. 23 Themes and Key Questions ......................................................................................................................................... 24 1. Country Snapshot .................................................................................................................................................... 25 1.1 Macroeconomic and Other Data ................................................................................................................ 25 1.2 Infrastructure Bottlenecks .......................................................................................................................... 27 1.3 Business Climate ....................................................................................................................................... 28 1.4 Gender Inclusion ........................................................................................................................................ 30 2. PPP Experience........................................................................................................................................................ 32 2.1 PPP Experience: An Overview .................................................................................................................. 32 2.2 Past PPP Experience by Sector .................................................................................................................. 40 2.3 Subnational PPPs ....................................................................................................................................... 53 2.4 Kampala Capital City Authority ................................................................................................................ 54 2.5 Status of Current Pipeline Development .................................................................................................... 55 2.6 Conclusion ................................................................................................................................................. 63 3. Stakeholder Support and Ownership ...................................................................................................................... 66 3.1 Government Ownership of PPPs ............................................................................................................... 66 3.2 Public Sector/Civil Society ........................................................................................................................ 67 3.3 Private Sector ............................................................................................................................................. 67 3.4 PPP Champion ........................................................................................................................................... 68 3.5 Public Opinion/Civil Society and Private Sector Support ......................................................................... 68 4. Legal and Institutional Framework .......................................................................................................................... 71 4.1 General PPP-Enabling Legislation with Institutional Structures .......................................................... 71 4.2 Institutional Framework ............................................................................................................................. 73 1 4.3 Specific Legislation and Regulation of Unsolicited Proposals ............................................................. 82 4.4 Judicial and Conflict Resolution Framework ............................................................................................. 82 5. Government Support and Managing Fiscal Risk ................................................................................................. 90 5.1 Budgetary System and Public Investment Management ............................................................................ 90 5.2 PPP Project Preparation Funding and Framework for Government Support to PPPs ........................... 95 5.3 Framework for Managing Fiscal Commitments and Contingent Liabilities .............................................. 95 6. Access to Finance .................................................................................................................................................. 101 6.1 Past Financing Experience ....................................................................................................................... 101 6.2 Current Project Finance Market and Limitations ..................................................................................... 101 6.3 Capital Markets and Institutional Investors ............................................................................................. 102 6.4 Climate Finance Market........................................................................................................................... 104 7. Transparency and Accountability .......................................................................................................................... 106 7.1 Audit Framework for PPPs ...................................................................................................................... 106 7.2 Disclosure Framework for PPPs .............................................................................................................. 107 8. Gap Assessment ..................................................................................................................................................... 108 Annex: Comparison of Uganda’s PPP Experience with Regional Peers ................................................................... 111 2 Draft February 15, 2017 ACRONYMS AfDB African Development Bank bbl barrels BEC Bundibugyo Energy Cooperative BEL Bujagali Energy Limited BFP Budget Framework Paper CAA Civil Aviation Authority CDC CDC Group Plc (Formerly the Commonwealth Development Corporation) DFCU Development Finance Company of Uganda DTT digital terrestrial television EIA Environment Impact Assessment EPC Engineering, Procurement and Construction
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