THE REPUBLIC OF UGANDA Budget Monitoring Report July 2008-June 2009 July 2009 Ministry of Finance, Planning and Economic Development P.O.Box 8147 Kampala www.finance.go.ug TABLE OF CONTENTS TABLE OF CONTENTS ......................................................................................................... 1 ABBREVIATIONS AND ACRONYMS ......................................................................................... 3 Executive Summary ................................................................................................................. 6 CHAPTER 1: INTRODUCTION .............................................................................................. 20 1.1 Process ............................................................................................................................. 20 1.2 Limitations of the report .................................................................................................. 20 1.3 Structure of the report ...................................................................................................... 20 CHAPTER 2: FINANCIAL PERFORMANCE .................................................................. 21 2.0 Introduction ...................................................................................................................... 21 2.1 Sectoral financial performance ........................................................................................ 21 2.2 Financial performance of selected districts ...................................................................... 30 CHAPTER 3: Physical Performance ................................................................................... 45 3.1 AGRICULTURE ............................................................................................................. 45 3.1.1 Introduction............................................................................................................... 45 3.1.2 National Livestock Productivity Improvement Project (NLPIP) .............................. 45 3.1.3 Cotton Development Organization ........................................................................... 58 3.1.4 Issues and Lessons from Monitoring the Agricultural sector in FY 2008/09 ........... 67 3.2 EDUCATION .................................................................................................................. 71 3.2.1 Introduction: ............................................................................................................. 71 3.2.2 Emergency Construction and Rehabilitation of Primary Schools. ........................... 71 3.2.3 ADB III Education Project (O949): .......................................................................... 74 3.2.5 Construction of USE schools: ................................................................................... 79 3.2.6 School Facilitation Grant (SFG) .............................................................................. 81 3.2.7 Development of BTVET............................................................................................. 86 3.2.8 Presidential pledges: ................................................................................................ 87 3.2.9 Inspection Grant: ...................................................................................................... 89 3.3 ENERGY ......................................................................................................................... 91 3.3.1 Introduction............................................................................................................... 91 3.3.2 Bujagali Interconnection .......................................................................................... 91 3.3.3 Mpanga Dam Construction....................................................................................... 93 3.3.4 Bugoye Dam Construction ........................................................................................ 95 3.3.5 Kisiizi Dam Construction .......................................................................................... 97 3.3.6 Buseruka Dam Construction .................................................................................... 98 3.3.7 Nyagak HEP Dam Construction ............................................................................. 100 3.3.8 WENRECO .............................................................................................................. 102 3.3.9 Energy Saving Stoves in Households in 14 Districts ............................................ 103 3.3.10 Energy Saving Institutional Stoves in Schools, Prisons and Police ..................... 108 3.3.11 UEDCL Off-Grids in Adjumani and Moyo ........................................................... 111 3.3.12 Oil Mining and Exploration in the Albertine Garben ........................................... 113 3.4 HEALTH........................................................................................................................ 117 1 3.4.1 Introduction............................................................................................................. 117 3.4.2 Rehabilitation of Regional Referrral Hospitals ..................................................... 117 3.4.3.Mulago Hospital Complex, Cancer and Heart Institutes ....................................... 124 3.4.4 Support to the Health Sector Strategic Plan Project II (SHSSP) ........................... 126 3.4.5 Primary Health Care Activities in the Districts ...................................................... 129 3.5 INDUSTRIALIZATION ............................................................................................... 144 3.5.1 Introduction: ........................................................................................................... 144 3.5.2 Development of Industrial Parks ............................................................................ 144 3.5.3 Ministry of Tourism, Trade and Industry ................................................................ 148 3.5.4 Uganda Industrial Research Institute (UIRI) ......................................................... 149 3.5.5 Uganda National Bureau of Standards................................................................... 152 3.6 ROADS .......................................................................................................................... 153 3.6.1 Introduction............................................................................................................. 153 3.6.2 Construction of Matugga – Semuto – Kapeeka Road ............................................. 157 3.6.3 National Roads Maintenance Programme.............................................................. 159 3.6.4 Transport Corridor Project .................................................................................... 171 3.6.5 District, Urban and Community Access Roads Maintenance Programmes ........... 174 3.6.6:Interconnectivity Roads Improvement Programme ................................................ 183 3.7 WATER AND SANITATION ...................................................................................... 187 3.7.1. Introduction............................................................................................................ 187 3.7.2. Rural Water Supply and Sanitation (RWSS) Vote Function .................................. 188 3.7. 3. Urban Water Supply and Sanitation ..................................................................... 204 3.7.4. Water for Production ............................................................................................. 212 3.8 MICROFINANCE ......................................................................................................... 215 3.8.1 Introduction........................................................................................................ 215 3.8.2 Findings ............................................................................................................. 215 3.8.3 Challenges.......................................................................................................... 217 CHAPTER 4: CONCLUSIONS AND RECOMMENDATIONS ........................................... 219 4.1 CONCLUSIONS............................................................................................................ 219 4.2 RECOMMENDATIONS ............................................................................................... 226 REFERENCES ........................................................................................................................ 232 ANNEXES ............................................................................................................................... 233 2 ABBREVIATIONS AND ACRONYMS AAMP Area Based Agricultural Modernisation Programme ADB African Development Bank ADF African Development Fund B.O.Q Bills of Quantities BMAU Budget Monitoring and Accountability Unit BMU Beach Management Unit BOOT Build Own Operate Transfer BTVET Business Technical and Vocational Education and Training CAO Chief Administrative Officer CAR Community Access Roads Rehabilitation CBPP Contagious Bovane Pleuropneumonia CDO Cotton Development Organisation CP Community Polytechnic CSOs Civil Society Organisations D&L Defects and Liability DANIDA Danish International Development Agency DEO District Education Officer DFO District Fisheries Officer DHO District Health Officer DIS District Inspector of Schools DRC Democratic