THE REPUBLIC OF UGANDA Annual Budget Monitoring Report July 2009 - June 2010 September 2010 Ministry of Finance, Planning and Economic Development P.O.Box 8147 Kampala www.finance.go.ug 1 TABLE OF CONTENTS ............................................................... Error! Bookmark not defined. ABBREVIATIONS AND ACRONYMS ....................................................................................... 5 Foreword ....................................................................................................................................... 11 Executive Summary ...................................................................................................................... 12 CHAPTER 1: INTRODUCTION ................................................................................................. 30 1.1 Process ................................................................................................................................ 30 1.2 Limitation of the report ....................................................................................................... 30 1.3 Structure of the report ......................................................................................................... 30 CHAPTER 2: FINANCIAL PERFORMANCE ........................................................................... 31 2.1 Introduction. ............................................................................................................................ 31 2.1.2 Objectives ............................................................................................................... 31 2.1.3 Scope and methodology .......................................................................................... 31 2.2 Vote Analysis ...................................................................................................................... 31 2. 3 Financial Performance of Selected Districts for the Financial Year 2009/10 ................... 42 2.3.1 Introduction/Background ............................................................................................. 42 2.3.2 Objectives .................................................................................................................... 42 2.3.3 Scope and methodology .......................................................................................... 43 2.3.4 FINDINGS ............................................................................................................. 43 2.4 Conclusions ......................................................................................................................... 60 2.4.1 Financial performance ................................................................................................. 60 2.4.2 Recommendations ........................................................................................................ 63 CHAPTER 3: PHYSICAL PERFORMANCE ............................................................................. 64 3.1 AGRICULTURE ................................................................................................................ 64 3.1.1 Introduction .................................................................................................................. 64 3.1.2 Agriculture Marketing Support Project ....................................................................... 67 3.1.3 Integrated Pests and Disease Management .................................................................. 74 3.1.4 National Livestock Productivity Improvement Project (NLPIP)................................. 77 3.1.5 Support for Tea Cocoa Seedlings Project .................................................................. 100 3.1.6 Summary findings of other projects monitored in FY 2009/10 ............................ 111 3.2 EDUCATION ................................................................................................................... 118 3.2.1 Introduction: ............................................................................................................... 118 2 3.2.2. Utilization of the Euro 23m under the Royal Netherlands Embassy support FY 2008/09 ............................................................................................................................... 119 3.2.3 Pre-Primary and Primary ........................................................................................... 134 3.2.4. Secondary Education: ............................................................................................... 137 3.2.5 Development of TVET: ........................................................................................ 152 3.2.6 BTVET ....................................................................................................................... 154 3.2.7 Development of Teacher Education: ......................................................................... 157 3.2.8 Presidential Pledges for FY 2009/10: ........................................................................ 158 3.2.9. Inspection Grant: ................................................................................................... 172 3.3 ENERGY .......................................................................................................................... 174 3.3.1 Introduction ........................................................................................................... 174 3.3.2 Energy Planning, Management and Infrastructure Development ......................... 181 3.3.3 Large Hydropower Infrastructure ......................................................................... 219 3.3.4 Petroleum Exploration, Development and Production ......................................... 221 3.3.5 Key policy issues .................................................................................................. 225 3.4 HEALTH........................................................................................................................... 230 3.4.1 Introduction ................................................................................................................ 230 3.4.2 Rehabilitation of Regional Referral Hospitals Project............................................... 230 3.4.3 District Infrastructure Support Program .................................................................... 240 3.4.4 Support to the Health Sector Strategic Plan Project II ............................................. 245 3.4.5 Primary Health Care and PRDP Grants to Local Governments ........................... 249 3.5 INDUSTRIALIZATION .............................................................................................. 274 3.51: Introduction ................................................................................................................ 274 3.5.2 Ministry of Finance, Planning and Economic Development (MFPED) .................... 275 3.5.3 Uganda Industrial Research Institute ......................................................................... 280 3.5.4 Uganda National Bureau of Standards (UNBS) ........................................................ 283 3.5.5 Uganda Investment Authority (UIA) ......................................................................... 284 3.6 Information and Communication Technology ........................................................... 288 3.6.1 Introduction ........................................................................................................... 288 3.6.2 National Transmission Backbone and E-Government Infrastructure Project....... 289 3.7 ROADS ............................................................................................................................. 301 3.7.1 Introduction ................................................................................................................ 301 3.7.2 Reconstruction of Priority Sections of Kampala (Busega) - Masaka Road ............... 302 3 3.7.3 Upgrading of Masaka - Mbarara and Masaka – Kyotera Roads ................................ 307 3.7.4 Upgrading of Soroti – Dokolo – Lira Road ............................................................... 310 3.7.5 National Roads Maintenance Programme ................................................................. 317 3.7.6 District, Urban and Community Access Roads Maintenance Programmes .............. 328 3.7.7 Interconnectivity Improvement Project ..................................................................... 331 3.7.8 Project for Construction of Selected Bridges............................................................. 338 3.7.9 Key Policy Issues ....................................................................................................... 343 3.7.10 Conclusions .............................................................................................................. 345 3.7.11 Recommendations .................................................................................................... 346 3.8 WATER AND SANITATION ......................................................................................... 348 3.8.1 Introduction ................................................................................................................ 348 3.8.2. Rural Water Supply and Sanitation Vote Function................................................... 351 3.8.3. Urban Water Supply and Sanitation Vote Function ................................................. 379 3.8.4. Water for Production................................................................................................