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35847Main.Pdf Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 35847-UG PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 22.0 MILLION Public Disclosure Authorized (US$33.6 MILLION EQUIVALENT) TO THE REPUBLIC OF UGANDA FOR THE KAMPALA INSTITUTIONAL AND INFRASTRUCTURE DEVELOPMENT ADAPTABLE PROGRAM LOAN (APL) PROJECT IN SUPPORT OF THE FIRST PHASE OF THE STRATEGIC FRAMEWORK FOR REFORM FOR Public Disclosure Authorized KAMPALA URBAN DEVELOPMENT PROGRAM September 12,2007 AFT: Water and Urban 1 Eastern Africa Country Cluster 1 AFRICA Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective July 3 1,2007) Currency Unit = Uganda Shillings (USh) Ush 1 = US$O.O005 US$ 1.53 = SDR 1 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan CFAA Country Financial Accountability Assessment CPAR Country Procurement Assessment Report CTB Central Tender Board DE0 District Environment Officer DPP Director of Public Prosecutions DWD Directorate of Water Development EA EnvironmentalAnalysis ECOSAN Ecological Sanitation Project EFMP Economic and Financial Management Project ERR Economic Internal Rate of Return EMP EnvironmentalManagement Plan FA Financing Agreement FINMAP Financial Management and Accountability Project FMM Financial Management Manual FRAP Financial Recovery Action Plan GAC Governance and Anti-Corruption GIS Global Information System GOU Government of Uganda IAF Inter Agency Forum ICT Information, Communication and Technology IDA International Development Association IFMS Integrated Financial Management System IFR Interim Financial Report IG Inspectorate of Government IGG Inspector General of Government ISR Implementation Status Report KCC Kampala City Council KFRAP Kampala Financial Recovery Action Plan KIIDP Kampala Institutional and Infrastructure Development Project KUSIP Kampala Urban and Improvement Project KUTIP Kampala Urban Traffic Improvement Plan LCA Leadership Code Act LGA Local Government Act LGDP Local Government Development Program LGFAR Local Government (Financial and Accounting) Regulations FOR OFFICIAL USE ONLY M&E Monitoring and Evaluation MOFPED Ministry of Finance, Planning and Economic Development MOLG Ministry of Local Government MTEF Medium-Term Economic Framework NCRP Nakivubo Channel Rehabilitation Project NEMA National Environment Management Authority NGO Non-GovernmentalOrganization NPV Net Present Value O&M Operations and Maintenance OAG Office of the Auditor General PCU Project Coordination Unit PDE Procuring and Disposal Entity PDO Project Development Objective PDU Procurement and Disposal Unit PEAP Poverty Eradication Action Plan POCA Prevention of Corruption Act PPDA Public Procurement and Disposal of Public Assets Authority PPO Principal Procurement Officer RAP Resettlement Action Plan SFR Strategic Framework for Reform SIL Specific Investment Loan SPSCP Second Private Sector Competitiveness Project TOR Terms of Reference UFUP Uganda First Urban Project UJAS Uganda Joint Assistance Strategy URA Uganda Revenue Authority UTODA Uganda Taxi Operators and Drivers Association WID Wetlands Inspection Division WRD Water Resources Department WSSP Wetlands Sector Strategic Plan This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Vice President: Obiageli K. Ezekwesili Country Director: John Murray McIntire Sector Manager: Jaime M. Biderman Task Team Leader: Solomon Alemu UGANDA Kampala Institutional and Infrastructure Development APL 1 Project CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ................................................................. 3 1. Country and sector issues .................................................................................................... 3 2 . Rationale for Bank involvement ......................................................................................... 4 3 . Higher level objectives to which the project contributes .................................................... 5 B. PROJECT DESCRIPTION ................................................................................................. 6 1. Lending instrument ............................................................................................................. 6 2 . Program objective and phases ............................................................................................. 6 3 . Project development objective and key indicators.............................................................. 7 4 . Project components ............................................................................................................. 7 5 . Lessons learned and reflected in the project design ............................................................ 9 6 . Alternatives considered and reasons for rejection ............................................................ 10 C. IMPLEMENTATION ........................................................................................................ 10 1. Partnership arrangements (if applicable) .......................................................................... 10 2 . Institutional and implementation arrangements ................................................................ 10 3. Monitoring and evaluation ofoutcomeshesults ................................................................ 12 ... 4 . Sustainability..................................................................................................................... 12 5 . Critical risks and possible controversial aspects ............................................................... 13 6 . Credit conditions and covenants ....................................................................................... 14 D. APPRAISAL SUMMARY ................................................................................................. 14 1. Economic and financial analyses ...................................................................................... 14 2 . Technical ........................................................................................................................... 15 3 . Fiduciary ........................................................................................................................... 15 4 . Social................................................................................................................................. 17 5 . Environment ...................................................................................................................... 18 6 . Safeguard policies ............................................................................................................. 19 7 . Policy Exceptions and Readiness...................................................................................... 21 Annex 1: Country and Sector or Program Background......................................................... 22 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 26 Annex 3: Results Framework and Monitoring........................................................................ 27 Annex 4: Detailed Project Description...................................................................................... 30 Annex 5: Project Costs ............................................................................................................... 35 Annex 6: Implementation Arrangements ................................................................................. 36 Annex 7: Financial Management and Disbursement Arrangements ..................................... 38 Annex 8: Procurement Arrangements ...................................................................................... 49 Annex 9: Economic and Financial Analysis ............................................................................. 62 Annex 10: Safeguard Policy Issues ............................................................................................ 71 Annex 11: Governance and Anti-Corruption (GAC) Action Plan......................................... 82 Annex 12: Project Preparation and Supervision ..................................................................... 96 Annex 13: Documents in the Project File ................................................................................. 97 Annex 14: Statement of Loans and Credits .............................................................................. 98 Annex 15: Country at a Glance ............................................................................................... 100 MAP: Non-Bank Map of Uganda UGANDA KAMPALA INSTITUTIONAL AND INFRASTRUCTURE DEVELOPMENT APL PROJECT IN SUPPORT OF THE FIRST PHASE OF THE STRATEGIC FRAMEWORK FOR REFORM FOR KAMPALA URBAN DEVELOPMENT PROGRAM PROJECT APPRAISAL DOCUMENT AFRICA AFTU 1 Date: September 12,2007 Team Leader: Solomon Alemu Country Director: John McIntire Sectors: Roads and highways (40%); Flood Sector Managermirector: Jaime M. Biderman protection (3 5%); Sub-national government administration (25%) Themes: Municipal governance and institution building (P) Project ID: PO78382 Environmental screening category: Partial Assessment Lending Instrument: Adaptable Program
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