Document of The World Bank Public Disclosure Authorized Report No: ICR00002916 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-43670) ON A CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 22.0 MILLION (US$ 33.6 MILLION EQUIVALENT) TO THE REPUBLIC OF UGANDA FOR A KAMPALA INSTITUTIONAL AND INFRASTRUCTURE DEVELOPMENT ADAPTABLE PROGRAM LOAN (APL) PROJECT Public Disclosure Authorized June 27, 2014 Public Disclosure Authorized Urban Development & Services Practice 1 (AFTU1) Country Department AFCE1 Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective July 31, 2007) Currency Unit = Uganda Shillings (Ushs) Ushs 1.00 = US$ 0.0005 US$ 1.53 = SDR 1 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS APL Adaptable Program Loan CAS Country Assistance Strategy CRCS Citizens Report Card Surveys CSOs Civil Society Organizations EA Environmental Analysis EIRR Economic Internal Rate of Return EMP Environment Management Plan FA Financing Agreement FRAP Financial recovery action plan GAAP Governance Assessment and Action Plan GAC Governance and Anti-corruption GoU Government of Uganda HDM-4 Highway Development and Management Model HR Human Resource ICR Implementation Completion Report IDA International Development Association IPF Investment Project Financing IPPS Integrated Personnel and Payroll System ISM Implementation Support Missions ISR Implementation Supervision Report KCC Kampala City Council KCCA Kampala Capital City Authority KDMP Kampala Drainage Master Plan KIIDP Kampala Institutional and Infrastructure Development Project LGDP Local Government Development Program M&E Monitoring and evaluation MDGs Millennium Development Goals MoLG Ministry of Local Government MTR Mid-term review NCRP Nakivubo Channel Rehabilitation Project NEMA National Environmental Management Agency ii NPV Net Present Value OAG Office of the Auditor General PAP Project Affected Persons PCU Project Coordination Unit PDO Project Development Objectives PDU Procurement and Disposable Unit PEAP Poverty Eradication Action Plan PIP Project Implementation Plan QAG Quality Assurance Group QMS Quality Management System RAP Resettlement Action Plan SFR Strategic Framework for Reform TA Technical Assistance UFUP Uganda First Urban Project UJAS Uganda Joint Assistance Strategy Ushs Uganda Shillings VOC Vehicle Operating Costs Vice President: Makhtar Diop Country Director: Philippe Dongier Sector Director: Jamal Saghir Sector Manager: R. Mukami Kariuki Project Team Leader: Martin Onyach-Olaa ICR Team Leader: Chyi-Yun Huang iii UGANDA Kampala Institutional and Infrastructure Development Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 9 3. Assessment of Outcomes .......................................................................................... 16 4. Assessment of Risk to Development Outcome ......................................................... 25 5. Assessment of Bank and Borrower Performance ..................................................... 25 6. Lessons Learned ....................................................................................................... 27 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 28 Annex 1. Project Costs and Financing .......................................................................... 29 Annex 2. Outputs by Component ................................................................................. 30 Annex 3. Economic and Financial Analysis ................................................................. 35 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 62 Annex 5. Beneficiary Survey Results ........................................................................... 64 Annex 6. Stakeholder Workshop Report and Results ................................................... 66 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 67 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 75 Annex 9. APL Triggers, Benchmarks and Status ......................................................... 76 Annex 10. List of Supporting Documents .................................................................... 78 iv A. Basic Information Kampala Institutional Country: Uganda Project Name: and Infrastructure Development Project Project ID: P078382 L/C/TF Number(s): IDA-43670 ICR Date: 04/12/2014 ICR Type: Core ICR GOVERNMENT OF Lending Instrument: APL Borrower: UGANDA Original Total XDR 22.00M Disbursed Amount: XDR 21.74M Commitment: Revised Amount: XDR 22.00M Environmental Category: B Implementing Agencies: Kampala Capital City Authority Cofinanciers and Other External Partners: NA B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 05/11/2004 Effectiveness: 11/19/2008 11/19/2008 12/03/2010 Appraisal: 05/07/2007 Restructuring(s): 12/27/2012 Approval: 11/06/2007 Mid-term Review: 04/30/2009 11/24/2010 Closing: 12/31/2010 12/31/2013 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: v C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Flood protection 23 23 Rural and Inter-Urban Roads and Highways 23 23 Solid waste management 23 23 Sub-national government administration 31 31 Theme Code (as % of total Bank financing) City-wide Infrastructure and Service Delivery 50 50 Municipal finance 25 25 Municipal governance and institution building 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Makhtar Diop Obiageli Katryn Ezekwesili Country Director: Philippe Dongier John McIntire Sector Manager: Rosemary Mukami Kariuki Jaime M. Biderman Project Team Leader: Martin Onyach-Olaa Solomon Alemu ICR Team Leader: Chyi-Yun Huang ICR Primary Author: Chyi-Yun Huang F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project development objective (PDO) is to support the Recipient’s efforts to improve the institutional efficiency of KCC, through the implementation of the Strategic Framework for Reform of the KCC. Revised Project Development Objectives (as approved by original approving authority) The PDO was not revised. vi (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Reduction of KCC's overdue liabilities Value UGX0.5 quantitative or UGX 8 billion UGX 3 billion UGX 0 billion billion Qualitative) Date achieved 06/01/2006 12/31/2010 12/31/2012 12/31/2013 103%. Target achieved and surpassed. While an amount of UGX 2.6 billion was still recorded as KCCA liabilities, there are no supporting documents for the Comments claims. KCCA is in the process of clearing off the liabilities officially through (incl. % the Accountant General. So far, public notices have been published in the print achievement) media requesting for potential claimants to come forward but no response was received. Thus the liabilities would be written off by mid-year after further verification by the Accountant General. Increase the percentage share of KCC own source revenue spent on service Indicator 2 : delivery. Value quantitative or 10% 30% 34% 32.7% Qualitative) Date achieved 06/01/2006 12/31/2010 12/31/2012 12/31/2013 Comments 96%. Target mostly achieved. Original target was achieved but slightly below (incl. % revised target which was higher than original target. achievement) Indicator 3 : Increase KCC's own source revenue. Value UGX33.5 quantitative or UGX 22 billion UGX30 billion UGX55.71 billion billion Qualitative) Date achieved 06/01/2006 12/31/2010 12/31/2012 12/31/2013 166%. Target achieved and well surpassed. KCCA performed well in increasing Comments its own source revenue collections from property rates, ground rent, licenses, (incl. % hotel tax, advertisements and other sources mainly due to improvement in achievement) efficiency of the Revenue Directorate. Increase in public satisfaction in service delivery in (a) Roads, (b) Drainage and Indicator 4 : (c) Solid waste (a) Roads (a) Roads 50%; (b) Value (a) Roads 18%; (b) 50%; (b) (a) Roads 29%; (b) Drainage 31%; quantitative or Drainage 22%; and (c) Drainage 31%; Drainage 22%; and and (c) Solid waste Qualitative) Solid waste 44% and (c) Solid (c) Solid waste