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World Bank Document The World Bank Report No: ISR7453 Implementation Status & Results Uganda Local Government Management and Services Delivery Project (P090867) Operation Name: Local Government Management and Services Delivery Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 30-Jul-2012 Project (P090867) Public Disclosure Authorized Country: Uganda Approval FY: 2008 Product Line:IBRD/IDA Region: AFRICA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Ministry of Local Government, Ministry of Finance, Planning and Economic Development Key Dates Public Disclosure Copy Board Approval Date 18-Dec-2007 Original Closing Date 31-Dec-2011 Planned Mid Term Review Date 19-Nov-2010 Last Archived ISR Date 30-Jan-2012 Effectiveness Date 19-Nov-2008 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date 15-Nov-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) Strengthen the ability of the MDAs and LGs to plan and manage resources in collaboration with communities for service delivery Has the Project Development Objective been changed since Board Approval of the Project? Yes No Public Disclosure Authorized Component(s) Component Name Component Cost Strengthening Public Financial Management Systems 20.10 Support to the Local Government Sector Investment Plan 129.40 Institutional and Policy Support 2.70 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Public Disclosure Authorized Overall Risk Rating Moderate Moderate Implementation Status Overview This report is being prepared following the June 2012 implementation support mission (ISM). At this time the disbursement for this operation stands at US$45 million out of a total credit of US$ 55 million representing 84% disbursement rate by end of June 2012. Public Disclosure Copy The project was restructured in 2011 and the closing date was extended by 12 months to December 31, 2012. Page 1 of 6 Public Disclosure Authorized The World Bank Report No: ISR7453 The LGMSD was designed as an Adaptable Program Loan (APL). The objective of the fist phase is to strengthen the ability of the Ministries, Departments and Agencies (MDAs) and Local Governments (LGs) to plan and manage resources in collaboration with communities for service delivery. The project had three components: Component 1 - Support to the Public Financial Management (PFM) system reform program - intended to strengthen PFM at central and LGs levels and to ensure efficient, effective, transparent and accountable use of public resources; Component 2 - Support to the LG Sector Investment plans (LoGSIP) - support LGs infrastructure development through the (a) GoU local development grant (LDG), (b) professionalization of LG staff, and (c) support to LGs in Northern Uganda which were weak and emerging from situation of civil war. The PDO indicators are (i) percentage of LGs in Northern Uganda meeting the minimum conditions to access the Local Development Grant (LDG), (ii) percentage of LGs which have a computerized financial management system completing the final accounts within three months after the end of a fiscal year; (iii) percentage of higher LGs registering 20% increase in own source revenue from baseline of 2005/06 and (iv) at least 75% of the LDG is invested in education, health, water, and roads sectors consistent with the GoU Poverty Eradication Action Plan (PEAP) priority areas. To date the following have been achieved: (1) 88% (32 of 40 Districts) in Northern Uganda have met the minimum conditions of the Program compared to a baseline of 30% and a target of 85%; (2) 100% (8 out of 8) LGs which have a computerized financial management system completing the final accounts within three months after the end of the fiscal year compared to 0% (nil) at base year and a target of 90%; (3) 80% of the LDG is invested in education, health, water and roads sectors consistent with PEAP compared to base line of 65% and a target of 85%. The performance of higher LGs with respect to own source revenue (OSR) increase will be compiled based on the audited final accounts of LGs which will be submitted by the office of the Auditor General (OAG). Public Disclosure Copy From the above, the project have achieved its PDO and the overall project implementation is maintained at Satisfactory. The implementation of the various activities under the project components have progressed well. Excellent progress has been made in the roll-out of the integrated financial management system (IFMS) Tier 2 to LGs. With the start date of August 2011, the integrated financial management system (IFMS) Tier 2 solution went live in March 2012 in six LGs. During this short period of time the application was customized, equipment procured and delivered, civil works completed (including the building of a generator room and delivery of generator for each of the six LGs). Government continued to fulfill its commitment in disbursing the local development grant (LDG) to LGs, and LGs have continued to use the LDG as per the guideline issued by Government. From FY2008/09 to date, out of the total sub-projects financed by the LDG, about 91% have been focusing on complementing and completing works on existing service delivery centers in LGs in order to make them more functional and only 9% were new works. Overall, 81% of the sub-projects were found to comply with service delivery packages. Notable progress has also been made on the CDD sub-component as well as the capacity building grant (CBG). To date 224 LG staff has been admitted to institutions of higher learning to pursue post-graduate diplomas in a wide range of fields including Public Administration and Management, Procurement, Administration Law, and Human Resource Management. The training has developed a pool of LGs cadres for appointments in various positions in Government and has improved the functional capacities of LGs in management and reporting. Overall, the project is on track in meeting most of its triggers, which will be used as the basis to move to the next phase of the program. Out of the six project triggers, four have been achieved, one is on track and only one relating to "75% of LG structures fully funded" is unlikely to be met due to the creation of many districts which has resulted into increase in public administration cost through the need for increase in staffing and associated wage bill. The two consultancy studies commissioned by GoU (one on holistic financing of LGs and the other on structure of LGs in light of possible creation of Regional LGs) will be completed around August 2012. GoU has shared the draft reports of the two studies with the mission. The results of these two studies will inform GoU on the most appropriate structure and staffing level of LGs. The project's original objective is still relevant within the context of the overall APL Program objective which is to enhance the LGs ability to plan and manage human and financial resources for effective and sustainable delivery of LG services. The second phase of the APL will build on the achievements under the fist phase to ensure LGs' capacity is further strengthened to deliver quality public service in a participatory and sustainable manner. Locations Country First Administrative Division Location Planned Actual Uganda Masaka District Masaka District Uganda Not Entered Mulago Uganda Not Entered Luzira Public Disclosure Copy Uganda Lira District Lira Page 2 of 6 The World Bank Report No: ISR7453 Country First Administrative Division Location Planned Actual Uganda Kampala District Kampala Uganda Jinja District Jinja Uganda Wakiso District Entebbe Uganda Arua District Arua District Uganda Gulu District Gulu District Uganda Jinja District Jinja District Public Disclosure Copy Uganda Kabale Kabale District Uganda Kabarole District Kabarole District Uganda Kasese District Kasese District Uganda Lira District Lira District Uganda Mbale District Mbale District Uganda Mbarara District Mbarara District Uganda Moroto District Moroto District Uganda Mukono District Mukono District Uganda Soroti District Soroti District Uganda Tororo District Tororo District Uganda Wakiso District Wakiso District Uganda Butambala District Ntinda Results Project Development Objective Indicators Public Disclosure Copy Page 3 of 6 The World Bank Report No: ISR7453 Indicator Name Core Unit of Measure Baseline Current End Target % of LGs in the Northern Uganda meeting the Text Value 30% 88% 85% minimum conditions to access the LDG Date 12-Oct-2007 02-Dec-2011 31-Dec-2012 Comments 23% (9 of 40 Districts) in 35 out of 40 Districts in the 2007/08. North met the minimum conditions and accessed the LDG. % of LGs which have computerized financial Text Value 0 % 100% (8 out of 8 HLGs) 90% management system complete the final Date 12-Oct-2007 20-Jun-2012 31-Dec-2012 accounts within three months after the end of the fiscal year Comments 57% (8 of 14) in 2007/08. The number of HLGs reduced Public Disclosure Copy from 14 to 8 when KCCA with its 5 divisions became an Authority on March 1, 2012 and therefore ceased tobe a LG, the number of "HLGs" for this indicator has been maintained to 14 since KCCA and its divisions are still benefiting from the IFMS support under the project. KCCA, its Divisions. All the remaining 8 LGs are completing final account within three months of the end of the FY. % of Higher LGs registering at least 20% Text Value 10% (10 of 98 HLGs) 66% (65 of 98 HLGs) 45% increase in own source revenue from the Date 12-Oct-2007 20-Jun-2012 31-Dec-2012 baseline year of 2005/06 Comments 35% (35 of 98 HLGs) in This indicator has a time lag 2007/08. of one FY since the source is the audited final accounts of LGs. the above figure is for FY2009/10 and will be updated during the next mission when the MoLG compiles the results for the audited accounts for FY2010/11.
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