uganda markets and agricultural trade improvement
TRANSCRIPT
AFRICAN DEVELOPMENT BANK
UGANDA
MARKETS AND AGRICULTURAL TRADE IMPROVEMENT
PROGRAMME: PROJECT – 2
(MATIP – 2)
OSAN DEPARTMENT
November 2014
TABLE OF CONTENTS
I – STRATEGIC THRUST & RATIONALE ............................................................................ 1 1.1. Project linkages with country strategy and objectives ................................................ 1
1.2. Rationale for Bank’s involvement............................................................................... 2 1.3. Donors coordination .................................................................................................... 3
II – PROJECT DESCRIPTION ................................................................................................. 4 2.1 Project development goal and objective...................................................................... 4 2.2 Project components ..................................................................................................... 4
2.3 Technical solution retained and other alternatives explored ....................................... 5 2.4 Project type .................................................................................................................. 5 2.5 Project cost and financing ........................................................................................... 6 2.6 Project’s target area and population ............................................................................ 8 2.7 Participatory process for project identification, design and implementation .............. 8
2.8 Bank Group experience, lessons reflected in project design ....................................... 9
III – PROJECT FEASIBILITY ............................................................................................... 10 3.1 Economic and financial performance ........................................................................ 10
3.2 Environmental and Social impacts ............................................................................ 10 IV – IMPLEMENTATION ...................................................................................................... 13
4.1 Implementation arrangements ................................................................................... 13
4.2 Monitoring and Evaluation........................................................................................ 15 4.3 Governance................................................................................................................ 16 4.4 Sustainability ............................................................................................................. 16
4.5 Risk management ...................................................................................................... 17 4.6 Knowledge building .................................................................................................. 17
V – LEGAL INSTRUMENTS AND AUTHORITY............................................................... 18 5.1. Legal instrument: .......................................................................................................... 18 5.2. Conditions associated with Bank’s intervention ........................................................... 18
5.3. Other Conditions: The GoU shall have:........................................................................ 18
5.4. Compliance with Bank Policies .................................................................................... 19 VI – RECOMMENDATION ................................................................................................... 19
Appendix I. Country’s Selected Comparative Socio-economic Indicators
Appendix II: Table of ADB’s portfolio in Uganda Appendix III. Key related projects financed by the Bank and other development partners in
the country Appendix IV. Loan Allocation Proceeds in (Million USD) Appendix V. Procurement Arrangement (Million USD)
Appendix VI. Map of the Project Area
i
Currency Equivalents
As of September, 2014
Currency Unit = Ugandan Shillings (UGX)
UA 1 = UGX 3,973.59
UA 1 = USD 1.53836
USD 1 = UGX 2583.00
Fiscal Year
July 1 – June 30
Weights and Measures
1metric tonne = 2204 pounds (lbs)
1 kilogramme (kg) = 2.200 lbs
1 metre (m) = 3.28 feet (ft)
1 millimetre (mm) = 0.03937 inch (“)
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
ADB
ADF
AAMP
BOU
CAIIP
DP
EIRR
ESMP
FIRR
GoU
HDI
ICB
LCA
LGSSP
M&E
MA
MC
MIS
MMC
MOFPED
African Development Bank
African Development Fund
Area-based Agricultural Modernisation
Programme
Bank of Uganda
Community Agricultural Infrastructure
Improvement Programme
Development Partners
Economic Internal Rate of Return
Environmental and Social Management
Plan
Financial Internal Rate of Return
Government of Uganda
Human Development Index
International Competitive Bidding
Local Currency Account
Local Government Sector Support Plan
Monitoring and Evaluations
Market Account
Municipal Council
Market Information System
Market Management Committee
Ministry of Finance, Planning and
Economic Development
MOLG
MOU
MoWT
MTR
NAADS
NCB
NEMA
NPV
NSADP
PFT
PY1
PY2
PY3
PY4
PY5
RBLF
PPP
SME
SRN
TOT
UGFO
VA
Ministry of Local Government
Memorandum of Understanding
Ministry of Works and Transport
Mid-Term Review
National Agricultural Advisory Services
National Competitive Bidding
National Environment Management
Authority
Net Present value
Northwest Smallholder Agricultural
Development Project
Project Facilitation Team
Programme Year One
Programme Year Two
Programme Year Three
Programme Year Four
Programme Year Five
Result-Based Logical Framework
Public-Private-Partnership
Small and Medium Scale Enterprise
Special Risk Note
Training of Trainers
Uganda Field Office of ADB
Vendor Association
ii
Loan Information
Client’s information
BORROWER: Government of the Republic of Uganda
EXECUTING AGENCY: Ministry of Local Government
Financing plan
Source Amount (USD) Instrument
ADB Loan
84.20 Million
Project Loan.
Government 9.53 Million
TOTAL COST 93.73 Million
ADB’s key financing information
Loan / grant currency
US Dollars
Loan Type Enhanced variable spread type
Interest rate * Base Rate + Funding Cost Margin + Lending
Margin
Base Rate Floating Base Rate based on 6 month LIBOR
with free option to fix the Base Rate.
Funding cost margin The six months adjusted average of the
difference between: (i) the refinancing rate of
the Bank as to the borrowings linked to 6-
month LIBOR and allocated to all its floating
interest loans denominated in USD and (ii) 6-
month LIBOR ending on 30 June and on 31
December. This spread shall apply to the 6-
month LIBOR which resets on 1 February and
on 1 August. The Funding Cost Margin shall
be determined twice per year on 1 January for
the semester ending on 31 December and on 1
July for the semester ending on 30 June.
Lending Margin 60 basis point (0.60%)
Commitment Fee Not Applicable
Other fees* Not Applicable
Tenor 20 years maximum
Grace period 5 years maximum
FIRR
NPV (UGX base case )
20%
218 042.80 Million
EIRR (base case) (26%)
*if applicable
iii
Timeframe - Main Milestones (expected)
Concept Note approval
February, 2014
Project approval December,, 2014
Effectiveness June, 2015
Loan Closing Date June, 2020
Completion December, 2020
Last repayment 20 years;
December, 2039
iv
PROJECT SUMMARY Overview: The Markets and Agricultural Trade Improvement Programme (MATIP) is
designed to re-develop markets in 21 Municipalities and Town Councils in Uganda. This
intervention is based on the conclusions of a feasibility study that was commissioned by the
Government of Uganda (GOU) in March 2008, to review and assess the infrastructural and
operational state of the local markets across the country. The study concluded that the
markets are poorly managed, seriously dilapidated, overpopulated with vendors well beyond
their carrying capacities under poor working environment, nationwide. The Government then
approached the African Development Bank for support in reconstructing and modernizing
the markets. The Bank responded by approving a loan of UA 38.00 million to finance
MATIP-1 in 2009, which is currently at 85% level of implementation. It is expected to close
in 2015. MATIP-1 has assisted the Government to reconstruct 7 major markets in Kampala,
Jinja, Mbale, Gulu, Lira, Hoima, and Fort Portal. As resources were not adequate to
reconstruct all the markets identified, it was agreed that the project would be implemented as
a programme, expanding the project as funds become available.
Needs Assessment: MATIP-2 is therefore an expansion of MATIP -1 to reconstruct an
additional 11 of the remaining 14 markets. It will be implemented in 9 Municipal and 2
Town Councils respectively in all the four regions of Uganda, namely, Entebbe (Kitoro),
Masaka, Mbarara, Arua, Moroto (Lopedur), Soroti, Tororo, Kasese, Busia, Kitgum, and
Lugazi. The components of the project are i) Market Infrastructure Development, ii) Value
Addition and Trade Facilitation (including Capacity Building); and iii) Project Management
and Coordination. The project will be implemented over five years (2015-2020) and is
estimated to cost USD 93.73 million. The Bank will contribute USD 84.20 million (89.80%)
and the GoU USD 9.53 million (10.2%). The maintenance of the main infrastructure will be
financed by the Local Government at the beginning but will be ceded to the beneficiaries
over time. The primary beneficiaries will be the 16,951 current registered vendors whose
numbers are expected to rise by the time the project commences (at least 60% women) after
reconstruction of the markets. The indirect beneficiaries are estimated over 900,000
households within the catchment of the markets. Key impacts (tangible and non-tangible
benefits) include improved marketing conditions, value addition/processing and trading
capacity, increased volumes and sales of agricultural commodities and other merchandise,
increased employment and income, leading to improved livelihoods, enhanced quality of
produce, choice and availability all year round. The project will foster public private
partnership through a modernized management of the reconstructed markets between Vendor
Associations (VAs) and Market Management Committees (MMCs).
Bank’s added value: The project complements previous Bank interventions in Uganda,
especially the Area-based Agricultural Modernization Programme (AAMP), the Northwest
Smallholder Agricultural Development Project (NSADP) and the Community Agricultural
Infrastructure Improvement Projects – Project 1, 2 and 3 (CAIIP-I, CAIIP-II and CAIIP-III),
which mainly link the rural setting, with the larger urban markets. This would facilitate the
promotion of increased marketing/trading, cross-border trade and regional integration on a
wider scale. The Bank, through financing rural-based infrastructure initiatives, especially in
constructing agricultural-based markets, has carved a niche of linking primary rural markets
with secondary urban ones and strengthening the agriculture value chain in Uganda, thus
giving it a comparative advantage in this area. The vast experience accumulated through the
implementation of AAMP, NSADP and more recently CAIIP-I, CAIIP-2, CAIIP-3 and
v
MATIP-1 will be an added-value with vertical integration, towards creating huge multiplier
effects for commercial agriculture in Uganda.
Knowledge Management: A number of further analytical studies/surveys are planned to
be undertaken by the project, with a view to generating information that will guide
stakeholders in decision making as project implementation progresses. The analytical work
will mainly focus on areas that were not adequately covered by the Feasibility Study,
especially in value addition and value chain analyses, linkages between the rural and urban
markets; and cross border trade. Moreover, the project will develop a Market Information
System (MIS) that will generate data pertaining to prices, sources and volumes of
commodities to be shared with all stakeholders. The knowledge gained through the
implementation of previous projects in Uganda has been duly applied in designing this
project. In the same pattern, the knowledge that will be generated by this Programme will be
instrumental in designing and managing similar projects in future. The results from various
studies under the project, notably, log frame baseline and impact assessment studies at
project inception and completion will provide valuable information and data to stakeholders
on how to further improve on project interventions and achieve the desired outcomes.
vi
MATIP-2– RESULTS-BASED LOGICAL FRAMEWORK
Country and project name: UGANDA : Markets and Agricultural Trade Improvement Programme, Project 2 - (MATIP-2)
Purpose of the project (MATIP-2): Improve marketplace economic and social infrastructure for about 150000 – 200,000 households in 11 Municipal/Urban Councils
RESULTS CHAIN PERFORMANCE INDICATORS BASELINE TARGET MEANS OF
VERIFICATION
RISKS/MITIGATION
MEASURES
IMP
AC
T
Increased incomes and poverty reduction as
a result of commercialization and increased trade on Agricultural produce;
1.1: Volume of agricultural produce traded increased
(MT) 1.2: Average household income increased
1.3: Volume of processed agricultural produce
increased
2015
1.1: 1,608,038
1.2: 660,000
1.3: 402,009
2021
1.1: 1,688,440
1.2: 693,000
1.3: 422,100
Bureau of Statistics (UBOS) reports
Household Surveys
OU
TC
OM
ES
2.1. Improved marketing conditions
vendors with improved health
environment
2.2. Quality of produces improved
2.3 Improved income to vendors and
Councils
2.1.1: vendors using market facilities (women)
2.1.2 % people receiving clean water/better
sanitation
2.1.3: % increase in new businesses (of which
women and youth)
2.1.4: % increase in traded agricultural
produced
2.2.1: agricultural products graded &
standardized
2.2.2: %. Increase on agro-processing and
value addition businesses (of which women
and youth)
2.3.1: % Increase in income to vendors(of
which women) MUGX
2.3.2: % Increase annual revenue to Councils
2015
2.1.1: 16,951 (60%)
2.1.2: 30
2.1.3: 0
2.1.4: 20
2.2.1: 5
2.2.2: 5
2.3.1: 2
2.3.2: 3.5
2019
2.1.1: 32,000
(60%)
2.1.2: 90
2.1.3: 20 (15)
2.1.4: 35
2.2.1: 20
2.2.2: 20 (15)
2.3.1: 30 (70)
2.3.2: 30
Bureau of Statistics
(UBOS) reports
Household and
Market surveys
Impact Surveys
Risk 1: Private sector may not be
motivated to participate in value
addition activities.
Mitigation 1: Provision of
Business Development Support
Services to potential SMEs actors
will motivate them to participate
in the project under “public-
private partnership”.
Risk 2: High user rental charges
set by the Urban Councils after
redevelopment
Mitigation2: Government is
currently reviewing Market Act to
ensure that the process of setting
user fees involves all stakeholders
including vendors
OUTPUTS
1. Market Infrastructure
Development
1.1 Market infrastructure redeveloped
(better access to clinics, day care
centres, and clean water & sanitation
systems).
1.1: No of urban markets redeveloped
1.2: No of clinics
1.3: No of day care centres for children
1.4: No of water & sanitation systems
2015
1.1: 0
1.2: 0
1.3: 0
1.4: 0
2019
1.1: 11
1.2: 11
1.3: 11
1.4: 11
Enterprise surveys
Monitoring reports
Risk 3: Facilities are not well
maintained, under-utilized.
Mitigation 3: A streamlined
market management system
will be established, including
the establishment of a
dedicated account for O&M.
vii
OU
TP
UT
S
2. Value addition and Trade/
Market Facilitation
2.1 Quality control, grading and
standardization systems established
2.2 High level Pilot Value addition
processing mini plants installed
2.3 Skilled improved in specialized
fields
2.4 Linkages established Market to
CAIIP agro-processing facilities
2.1: No. actors trained on food quality,
standards, safety, nutrition (of which women)
2.2: No. first and high levels value addition
equipment installed
2.3: No. of actors (vendors, SMEs) trained in
specialized fields (of which women)
2.4: No of CAIIP Agro-processing facilities
linked to the markets
2.1: 0
2.2: 0
2.3: 0
2.4: 0
2.1: 20,000
(14,000)
2.2: 5
2.3: 20,000
(14,000)
2.4.: 20
Household surveys
Program reports
Supervision reports
OUTPUTS
3. Project Management
3.1 Program work plan and operations
are implemented
3.2 Program activities monitored and
information produced regularly
3.1: Rate of implementation of the annual work
plan (No. of technical and progress
reports/year) which follows MATP-1 format
3.2: No. of people trained on health related
issues (HIV/AIDS, Malaria, Tuberculosis, (of
which women)
2015
3.1: 0
3.2: 0
2019
3.1: 95 (4)
3.2: 20,000
(14,000)
Program
agreements
Supervision and
Financial
management
reports, M&E
reports
Risk 4: Fulfilment of loan
conditions significantly delayed.
Mitigation 4: UGFO will work
and follow up closely with the
Government to ensure the timely
fulfilment of the conditions.
KE
Y A
CT
IVIT
IES
Component 1:Market Infrastructure Development:
Construction of common market vending infrastructure such as lockups, stalls, sheds/pitches/kiosks, warehousing and wholesale facilities for the bulky
produce; facilities for private service providers such as Banks/microfinance institutions.
Component 2: Value Addition and Trade Facilitation F first level value addition equipment, quality control, grading and standardization systems.
Component 3: Program Management: Capacity Building: Training and sensitization of the PFT, Government staff and the vendors, studies and
consultancy services; and Project Management: will comprise provision of vehicles, office equipment and furniture, administrative costs and staff salaries.
Total Project Cost USD million:
Component 1: 66.91
Component 2: 8.88
Component 3: 5.17
Contingencies : 12.77
viii
Project Timeframe
1
REPORT AND RECOMMENDATION OF THE MANAGEMENT TO THE BOARD
OF DIRECTORS ON A PROPOSED LOAN TO UGANDA FOR THE MARKETS
AND AGRICULTURAL TRADE IMPROVEMENT PROGRAMME: PROJECT – 2
(MATIP-2)
Management submits the following Report and Recommendation on a proposed loan for
USD 84.20 million (Eighty Four Million Two Hundred Ten Thousand, United States Dollars)
on ADB terms to finance the Markets and Agricultural Trade Improvement Project – 2
(MATIP-2) in Uganda.
I – STRATEGIC THRUST & RATIONALE
1.1. Project linkages with country strategy and objectives
1.1.1 The project is consistent with Uganda’s National Development Plan (NDP) 2010-2015,
which has been designated by GoU as the first of a series of six 5-year NDPs to translate the
country’s Vision 2040 into action. The NDP’s core objectives are to increase household
income; generate employment; develop the infrastructure; increase access to quality social
services; promote science and technology; and develop human capital. The Project is also
consistent with the Bank’s CSP (2011-2015) with its two pillars focusing on (i) the
development and rehabilitation of critical economic infrastructure and increased agricultural
productivity; and (ii) improving capacity skills development for poverty reduction, both of
which are well aligned to the NDP. MATIP-2 (see section 1.2) is identified by the CSP-MTR
as one of the key investment projects to be supported by the Bank under its first pillar
mentioned above. The CSP (2011 – 2015), for which MTR was concluded in December
2013, is also well aligned with the Bank’s Ten Year Strategy (2013-2022).
1.1.2 The Project’s activities, notably, re-construction of urban markets’ infrastructure and
promotion of value addition/agro-processing to enhance household incomes are also
consistent with the country’s Agricultural Sector Investment Plan (DSIP) 2010, the Rural
Development Strategy (RDS) of the Ministry of Finance, Planning and Economic
Development (MoFPED) which focuses on market access development for agricultural
produce, and the Local Government Sector Support Plan (LGSSP). The project activities will
also lend support to the Government’s plans for trade, agro-processing and marketing, which
encourages production for the export market. The project is also consistent with the
Government’s National Trade Policy of August 2008, which advocates for effective and
efficient institutions, a supportive legal framework, adequate and efficient trade facilitating
infrastructure; cross border trade and regional integration; and appropriate human capital and
skills in both the private and public sectors. The Government considers markets as public
goods and strategic components in its quest for poverty reduction and economic growth.
Consequent to the findings of the 2008 Feasibility Study, which found most of the country’s
market structures to be badly dilapidated, overwhelmed in terms of capacity and not well
managed, the Government felt it compelling to reconstruct the markets across the country, in
line with the felt needs of and requests from the users of the markets and the Local Councils.
1.1.3 Regionally, the project is consistent with Pillar 2 of the NEPAD’s Comprehensive
African Agricultural Development Programme (CAADP), which focuses on improvement of
agricultural infrastructure and trade-related capacities for enhanced market access; and with
the Millennium Development Goal of halving poverty by 2015.
2
1.1.4 The Project was originally programmed to be financed under the ADF 13 window. Due
to reduced ADF allocations to Uganda and the high importance the Government attaches to
the re-development of these markets, the Government has requested the Bank to provide
financing for the Project under ADB terms. The Government of Uganda is committed to
operationalising its National Development Plan (NDP) but remains with the challenges of
fully financing all activities using the limited budgetary resources available. The budget
allocation to the sector remains low at about 4% of the total budget. The Government will co-
finance the Project up to 10.2% of the total Project costs. This contribution is in addition of
provision of 18% in taxes for all the works and goods, in kind contributions in form salaries
for government staff assigned to Project both at national and municipal levels, and the
required office spaces.
1.2. Rationale for Bank’s involvement
1.2.1 The Markets and Agricultural Trade Improvement Programme is designed to re-develop
markets in 21 Municipalities and Town Councils as rolling projects. In March 2008, the
Government of Uganda (GOU) commissioned a feasibility study to review and assess the
infrastructural and operational state of the local markets across the country. The study
concluded that the markets are poorly managed, seriously dilapidated, overpopulated with
vendors well beyond their carrying capacities under poor working environment, nationwide.
They were all lacking in many basic amenities including toilets, drainage and sewage
systems. Armed with the results of the study, the Government of Uganda approached the
African Development Bank for support in reconstructing and modernizing the markets. The
Bank responded by approving a loan of UA 38.00 million to finance MATIP-1 in 2009,
which is currently at 85% level of implementation. It is expected to close in 2015.
1.2.2 MATIP-1, which will close in 2015, has assisted the Government to reconstruct 7 major
markets in Kampala, Jinja, Mbale, Gulu, Lira, Hoima, and Fort Portal. As resources were not
adequate to reconstruct all the markets identified, it was agreed that the project will be
implemented as a programme, expanding the projects as funds become available. MATIP-2 is
planned to reconstruct 11 of the remaining markets. The Bank has accumulated valuable
experiences under MATIP-1 and has also vast experience through the implementation of
other market infrastructure projects, predominantly in the rural setting, including the Area-
Based Agricultural Modernization Programme (AAMP) completed in 2009, Northwest
Smallholder Agricultural Development Project (NSADP) completed also in 2009 and more
recently the Community Agricultural Infrastructure Improvement Project I, II & III (CAIIP-1,
CAIIP - 2 and CAIIP-3) under implementation; with considerable impact on the livelihoods
of the beneficiary communities and the economy as a whole.
1.2.3 Linking rural markets with the urban areas is an important step towards creating
synergies, value addition and gainful employment. The rural roads infrastructure that has
been developed under various DP projects, including the ADB, will facilitate the supply
chain. The reconstructed markets will improve hygiene conditions, reduce post-harvest
losses, install facilities to meet demand, for example cold storage units for fish storage,
provide increased trade opportunities between rural and urban areas, and serve as wholesaling
centres for intra-urban and cross-border trade, especially for agricultural commodities that
constitute 50% to 70% of products traded in the target markets. Further, about 80% of women
in Uganda are engaged in agriculture production and trading activities. Access to markets is a
primary constraint to increasing their income and improving their livelihoods. The overall
objective of this intervention is to ensure the smooth functioning and efficiency of the
3
agricultural marketing system for a wide range of commodities produced in rural areas and
sold in the local markets, in region and globally.
1.2.4 The project is also in line with the Bank’s focus on financing capital intensive hardware
infrastructure related development activities, while other donor agencies undertake the
software services. It also fits well with the Bank’s overall Ten Year Strategy for 2013-2022
and the Bank’s Agricultural Sector Strategy (under revision). Furthermore, MATIP fits well
within the Bank’s Framework for Reduction of Post-Harvest Losses in Africa (PHLP -2010-
2014), also under revision.
1.2.5 Due to line-up of priority projects for ADF Window, the Uganda Government
communicated to the Bank that the Markets and Agricultural Trade Improvement Project-
phase II cannot be taken up in 2014 and instead expressed its desire to use ADB window. In
May 2014 the Bank approved a credit policy to grant ADF countries access to the ADB
sovereign window under a specific set of criteria. A Special Risk Note (SRN) to analyse the
fulfilment of the criteria spelt out in the new credit policy (Paragraph 13) to determine
Uganda’s eligibility has just been concluded. Management concluded that Uganda fulfilled
the conditions set by the aforementioned policy document, and should be granted access to
ADB sovereign window to finance public projects in the areas of energy, transport,
agriculture and water.
1.3. Donors coordination
Sector or
subsector* Size
GDP Exports Labor Force
Agricultural Sector 22.6% 90% 82%
Players - Public Annual Expenditure (average 2007/2008 to 2011/2012)**
Government Donors
UA m UA 31.4 m UA 52.0 m
AfDB 33.1%
% 36.1% 63.9% IDA 27.9%
IFAD 11.4%
USAID 8.0%
Danida 7.6%
EC 5.9%
JICA 1.8%
Italy 1.7%
FAO 1.6%
Level of Donor Coordination
Existence of Thematic Working Groups Y
Existence of SWAPs or Integrated Sector Approaches Y
ADB's Involvement in donors coordination*** M****
* as most appropriate; ** Years [yy1 to yy2]; *** for this sector or subsector
**** L: leader, M: member but not leader, none: no involvement
1.3.1 The Bank is one of the major Development Partners (DPs) in Uganda, providing about
33.1% of development assistance in the agriculture and rural development sector. The Bank
collaborates closely with the other Development Partners, especially the World Bank, IFAD,
USAID, JICA, and the EU for agricultural related projects, within the framework of the
4
Agriculture and Rural Development Donor Coordination Group. The Group has been greatly
invigorated through the Bank’s field presence. In an effort to harmonize Development Partner
intervention, the Bank has partnered with the other DPs under the umbrella of the
Agricultural Sector Development Partners Group (ASDPG) to undertake development
interventions in the choice of sub-sectors and activities where it has a comparative advantage.
The ASDPG is currently chaired by Danida. The Group is well informed about the project
through consultations with the Bank Teams both at preparation and appraisal missions. The
Uganda Field Office is an active member of this group, which relates with the overall Heads
of Missions Local Development Partners Group (LDPG), currently chaired and coordinated
by the World Bank.
II – PROJECT DESCRIPTION
2.1 Project development goal and objective
2.1.1 The overall sector goal is to contribute to poverty reduction and economic growth in
Uganda through enhanced commercialization of agricultural produce and other merchandise.
The specific objective is to improve marketplace economic and social infrastructure thus
inducing incremental production and marketing of agricultural commodities, enhancing the
incomes of vendors, reducing post-harvest losses, increasing employment and customer
satisfaction.
2.2 Project components
2.2.1 The Project comprises three major components namely: (i) Market Infrastructure
Development, (ii) Value Addition and Trade facilitation (including Capacity Building); and
(iii) Project Management and Coordination as shown in Table 2.1 below.
Table 2.1: Project components
No. Component
name
Est. cost
M (USD)
Component description
1 Market
Infrastructure
Development
78.02
(83.23%)
Market Infrastructure: Development of 11 markets in Arua,
Mbarara, Busia, Tororo, Soroti, Entebbe (Kitoro), Kasese,
Moroto (Lopedur), Masaka, Kitgum and Lugazi each of which
includes:
(i) Market Infrastructure include: construction of lockups,
saloons, secretariats services etc., warehousing and wholesale
facilities; restaurants; stalls with lockers for food stuffs,
groceries, clothes, shoes; stalls for fish (especially fresh) and
meat, cold storage rooms and fish dressing rooms;
(ii) Services- space for private service providers such as
Banks/ microfinance institutions, clinics/ pharmacies and day-
care centres;
(iii) Access and Grounds – paved distributor and access
corridors, public parking/loading and off-loading areas, and
enhanced landscaping within the market place;
(iv) Health/Safety and Environmental – a system of fire
hydrant points, firefighting, portable fire extinguishers, water
supply, toilet facilities solid and liquid waste disposal system.
2 Value
Addition and
Trade
Facilitation
10.14
(11%)
This component comprises the following:
(i) Construction of mini-storage facilities before and after
cleaning/grading activity including housing for the processing
facilities of maize, beans and groundnut;
(ii) Provision of five units of first level value addition
5
equipment for cleaning, grading/sorting and de-stoning in
Busia, Soroti, and Arua markets (2 unit each for maize and
beans, 1 unit for groundnut);
(iii) Establishment of quality control, management,
grading and standardization systems;
(iv) Provision of two high level processing facilities for
maize in Busia and Arua Markets;
(v) Facilitate linkage of produce to agro-processing
facilities under the Community Agricultural Infrastructure
Improvement Programme (CAIIP), located around the market
areas;
(vi) Establish and promote use of market information
systems to facilitate trade.
3 Capacity
Building and
Project
Management
5.57
(6%)
This component consists of:
Capacity Building: Training and sensitization of the PFT,
Government staff, the vendors and agro-processors, studies
and consultancy services.
Project Management: Provision of vehicles, office equipment
and furniture, administrative costs and staff salaries
(Government contribution).
2.3 Technical solution retained and other alternatives explored
2.3.1 The selected technical design for the proposed project reflects critical success factors
that contribute towards efficient functioning market. These include: (i) providing a safe and
secure place to conduct trade; (ii) ensuring an environmentally sustainable market is in place;
(iii) allow for commercial exchange of produce and encourage social interaction amongst the
communities; (iv) incorporate efficient management practices and (v) creating adequate space
functionality that is commensurate with the growth rate of the markets; and accessibility by
both buyers and sellers. The following are the alternatives considered but rejected for the
reasons stated below.
Table 2.2: Project alternatives considered and reasons for rejection
Alternative Brief description Reasons for rejection
Alternative 1 All Markets – to have
uniformly designed
structures across the
country as opposed to
site specific designs
Budgetary Constraints as designs proved to
require high initial capital investment;
Diversity of the Municipal and Town Councils in terms of
site layouts, populations size, number of vendors and
degree of economic activity
Alternative 2 Ground level buildings
instead of two story
building
Due to limitations of land in city/town councils it was
necessary to optimize maximize use of land by adopting a
multi-storey building.
Alternative 3 Livestock-related
infrastructure
development
Due to investment in milk collection centres from previous
projects and the presence of private sector, the project did
not consider investment in collection facilities to avoid
facilities that would not be used. Similarly, due to
environmental consideration, investment in abattoirs was
not considered.
2.4 Project type
2.4.1 This investment project which is part of MATIP Programme is financed with an ADB
loan to support construction of the identified eleven markets and the development of value
6
chain on grain based commodities to add value at the market with backward integration to
production.
2.5 Project cost and financing
2.5.1 Project Costs: The total cost of the project is estimated at USD 93.73 million, net of
taxes and based on 2014 prices, comprising USD 53.01 million or 56.55% in local costs and
USD 40.72 million or 43.45% of the total cost in foreign cost. This cost is inclusive of
physical and price contingencies estimated at average rates of 8% respectively. The price
contingencies were estimated on the basis of actual and projected levels of local and foreign
inflation rates of about 6.8-4.9% and 2.2% per annum, respectively. The physical
contingencies are estimated from 0 to 10%. All project costs are exclusive of taxes, and
therefore Government should provide budget allocation for VAT in each financial year in
addition to the 10.2% Government contribution. A summary of project cost estimates by
components, expenditure categories, and schedule are presented in Tables 2.3, 2.4 and 2.5
below, while details are provided in the Technical Annexes – Volume II of the appraisal
report.
Table 2.3: Summary Project Cost by Component
COMPONENTS
UGX Million
USD Million
% FE
% Base Costs
Local Foreign Total Local Foreign Total
MARKET INFRASTRUCTURE DEVELOPMENT 88 284.80 84 547.71 172 832.51 34.18 32.73 66.91 49 83
VALUE ADDITION AND TRADE LINKAGES 16 633.52 6 296.03 22 929.56 6.44 2.44 8.88 27 11
PROJECT MANAGEMENT & COORDINATION 10 980.89 2 367.63 13 348.53 4.25 0.92 5.17 18 6
Total BASELINE COSTS 115 899.22 93 211.37 209 110.59 44.87 36.09 80.96 45 100
Physical Contingencies 8 631.80 8 196.56 16 828.35 3.34 3.17 6.51 49 8
Price Contingencies 12 394.14 3 781.02 16 175.16 4.80 1.46 6.26 23 8
Total PROJECT COSTS 136 925.15 105 188.95 242 114.10 53.01 40.72 93.73 43 116
At the exchange rate 1 USD= UGX 2583
Table 2.4: Summary Project Cost by Expenditure Categories
Expenditures categories UGX Million
USD Million
%FE % BC
Local Foreign Total Local Foreign Total
I. INVESTMENT COSTS 105 671.82 90 356.89 196 028.72 40.91 34.98 75.89 46 94
A. WORKS 78 335.29 77 914.70 156 249.99 30.33 30.16 60.49 50 75
Value Chain Market 39 593.06 39 593.06 79 186.13 15.33 15.33 30.66 50 38
Other Markets 37 480.46 37 480.46 74 960.92 14.51 14.51 29.02 50 36
Other works 1 261.77 841.18 2 102.94 0.49 0.33 0.81 40 1
B. GOODS 503.82 4 534.38 5 038.21 0.20 1.76 1.95 90 2
1. Vehicle 17.50 157.50 175.00 0.01 0.06 0.07 90 _
2. Equipment 486.32 4 376.88 4 863.21 0.19 1.69 1.88 90 2
Processing equipment 470.00 4 230.00 4 700.00 0.18 1.64 1.82 90 2
Office Equipment 11.32 101.88 113.21 0.00 0.04 0.04 90 0
Other equipment 5.00 45.00 50.00 0.00 0.02 0.02 90 0
C. SERVICES 26 832.71 7 907.81 34 740.52 10.39 3.06 13.45 23 17
1. Training 9 310.00 - 9 310.00 3.60 - 3.60 0 4
Training of staff 1 690.00 - 1 690.00 0.65 - 0.65 0 1
Training of Beneficiaries 7 620.00 - 7 620.00 2.95 - 2.95 0 4
2. Technical Assistance 16 409.71 7 165.81 23 575.52 6.35 2.77 9.13 30 11
7
Expenditures categories UGX Million
USD Million
%FE % BC
Local Foreign Total Local Foreign Total
3. Studies 918.00 612.00 1 530.00 0.36 0.24 0.59 40 1
4. Audit 195.00 130.00 325.00 0.08 0.05 0.13 40 0
II. RECURRENT COSTS 10 227.39 2 854.48 13 081.87 3.96 1.11 5.06 22 6
A. PERSONNELS 5 734.00 - 5 734.00 2.22 - 2.22 0 3
B. OPERATING COSTS 4 493.39 2 854.48 7 347.87 1.74 1.11 2.84 65.00 3.51
B1. DAILY SUBSISTANCE ALLOWANCE 71.88 - 71.88 0.03 - 0.03 0 0
B2. OPERATION & MAINTENANCE 4 141.92 2 761.28 6 903.20 1.60 1.07 2.67 40 3
1. Insfracture O&M 1 873.80 1 249.20 3 123.00 0.73 0.48 1.21 40 1
2. Vehicle O&M 1 680.00 1 120.00 2 800.00 0.65 0.43 1.08 40 1
3. Equipment O&M 588.12 392.08 980.20 0.23 0.15 0.38 40 0
B3. GENERAL OPERATING EXPENSES 279.60 93.20 372.80 0.11 0.04 0.14 25 0
TOTAL BASE COSTS 115 899.22 93 211.37 209 110.59 44.87 36.09 80.96 45 100
Physical Contingencies 36.09 44.87 80.96 3.34 3.17 6.51 49 8
Price Contingencies 3.34 3.17 6.52 4.80 1.46 6.26 23 8
TOTAL PROJECT COSTS 115 938.64 93 259.42 209 198.06 53.01 40.72 93.73 43 116
Table 2.5: Summary Project Cost Schedule by Components (USD million)
COMPONENTS Project Years
2015 2016 2017 2018 2019 Total
1. MARKET INFRASTRUCTURE DEVELOPMENT 19.74 24.69 19.78 1.51 1.19 66.91
2. VALUE ADDITION AND TRADE LINKAGES 0.64 1.37 3.46 1.98 1.42 8.88
3. PROJECT MANAGEMENT & COORDINATION 0.41 0.47 1.45 1.43 1.41 5.17
Total BASELINE COSTS 20.79 26.53 24.69 4.92 4.03 80.96
Physical Contingencies 1.88 2.42 2.01 0.11 0.09 6.51
Price Contingencies 0.51 1.86 2.63 0.62 0.64 6.26
Total PROJECT COSTS 23.18 30.82 29.33 5.65 4.75 93.73
2.5.2 Project Financing Arrangement: ADB loan will finance 100% of market infrastructure
(Component 1) and the value addition and Market Facilitation activities (component 2). The
Government will finance capacity building activities related to Value Chain and Trade,
salaries at the local government level (Municipal and town councils), External Audit
processes, and, compliance certification by NEMA. The Government of Uganda will also
finance some recurrent costs of the project facilitation unit housed in the Ministry Local
Government, as well as maintenance of major infrastructure at the beginning of the project.
The beneficiaries will be responsible for the operation and maintenance of value addition
processing equipment first level units provided by the project in Busia, Arua and Soroti,
second level units in Busia and Arua Markets according to the conditions that will be agreed
between the Government and the operators. The breakdown of financing for the project is
presented in the Table 2.6.
Table 2.6: Financing Plan of the project
SOURCES OF FINANCING UGX Million USD Million
Financing
% Local Foreign Total Local Foreign Total
ADB LOAN 113 109.92 104 386.38 217 496.30 43.79 40.41 84.20 89.8
GOV-UGANDA/BENEFICIARIES 23 815.23 802.57 24 617.81 9.22 0.31 9.53 10.2
TOTAL COST 136 925.15 105 188.95 242 114.10 53.01 40.72 93.73 100.0
8
2.5.3 Counterpart Funds: The contribution of the Government will comprise of 10.2% (USD
9.53 million) and 18% in taxes for all the works and goods under ADB resources amounting
to USD15.16 million. Hence the overall government contribution to the project is USD24.69
million, representing 26.34% of the total cost of project.
2.5.4 The Government of Uganda has been very committed to the implementation of its
National Development Plan (NDP1) 2010 – 2015. The second National Development Plan
(NDP11) for the period 2016 – 2020 currently under consideration is expected to be approved
by June 2015. A significant number of its supporting operations are funded by the Bank with
total commitments of UA 689.15 million (Appendix 2). The GoU is already contributing UA
264.40 million in counterpart funds, in addition to taxes, compensations and rights of way.
Additionally, government overall budget for FY 2014/15 amounts to USD5.5 billion; of
which 21.2% is devoted to works, transport and agriculture. The debt level has increased to a
Nominal Debt to GDP Ratio of 29.9% on account of large infrastructure projects; but
Uganda’s Debt Service to Revenue of 9.1% remains sound.
2.6 Project’s target area and population
2.6.1 Eleven (11) markets will be reconstructed in the following Municipal Councils:
Mbarara, Masaka, Kasese, Arua, Soroti, Busia, Moroto Tororo, Entebbe, and the Town
Councils of Kitgum, and Lugazi. The 18 markets to be covered under MATIP-1 and MATIP-
2 were chosen based on the level of trading activity, potential for private-public partnership
in agribusiness and value addition, potential to boost cross-border and regional trade with
neighbouring countries, scope for expansion, environmental issues, readiness of temporary
relocation arrangements/agreements and support from Councils. It is estimated that over
900,000 households (approximately 4.5 million people) within the catchment of the markets
will benefit directly or indirectly from the project. According to the Socio-Economic Gender
Disaggregated Profile conducted by the Project Feasibility Study, about 150,000 households
will be headed by women. The project will also have positive multiplier effects for rural
farmers through increased demand for their produce, and therefore increased farm gate prices.
2.7 Participatory process for project identification, design and implementation
2.7.1 The formulation of the project was largely participatory, with the relevant stakeholders
fully involved in the process of project identification through to its design. The preparation of
the Government Feasibility Study involved a rigorous participatory approach, whereby the
relevant stakeholders, particularly Authorities of the respective Municipal/Town Councils
and the directly affected market vendors, were fully consulted. Likewise, at preparation and
appraisal phases, the Bank team visited 7 of the 11 MATIP-2 beneficiary Councils, in the
process of which it interacted with the Central and Local Government Authorities
(Municipal/Town Councils), vendors and their associations; private sector agencies,
including market Leasers; development partners and other relevant Government agencies.
The preparation team also held consultative meeting with critical stakeholders on appropriate
value addition activities that could be accommodated in the markets and their management
arrangements.
2.7.2 The objective of the consultations was to reconfirm the effective demand of the
markets, the appropriate designs per area, confirmation of the proposed market management
modalities, the willingness to pay for the market services and confirmation of the
arrangements for movement of vendors to temporary sites and their reinstatement to the new
9
markets. During consultations, more focus was given to women vendors in terms of their
special requirements, as they constitute about 70% of the vendors. All stakeholders welcomed
the project and expressed their readiness to cooperate to ensure its successful implementation.
2.8 Bank Group experience, lessons reflected in project design
2.8.1 The first Project under the MATIP programme is on-going with all works about 90%
completed. To date, five out of seven markets have been completed and handed over to the
beneficiaries, improving the business environment of vendors. The lessons from MATIP-1
include: (i) overrun of contract duration of the markets where a realistic time frame will be
allocated at the tendering stage; and (ii) lack of clarity in the allocation of public services
such as banking space, pharmacy, day care centre, car parking, etc. which the present design
has accommodated. These services will belong to the Urban Authorities but will be
competitively leased out to private operators.
2.8.2 Further, the Bank has considerable experience in implementing rural market
infrastructure projects in Uganda, including the Area-based Agricultural Modernization
Programme (AAMP) and the Northwest Smallholder Agricultural Development Project
(NSADP), and the Community Agricultural Infrastructure Improvement Programme –
Projects (CAIIP 1, 2, and 3). To start with, implementation of these projects has (i) enhanced
agricultural commodity trade, including linkages between rural and urban markets as well as
improvement of the commodity value chain; (ii) improved design of markets to address
accessibility and security concerns of female traders; (iii) improved integration of the VAs,
and enhanced participation of the private sector, in the management and operation and
maintenance of the markets. MATIP 2 would benefit from the implementation of MATIP-1
from improvements in the flow, justification, and consequent replenishment of the Special
Account (SA); and (ii) improvements in construction work ensuring enhanced capacity of the
local contractors. Additional lessons learned from the World Bank funded Market
Infrastructure Development Project include the need: i) for appropriate layout and designs
suited for different localities; ii) to ensure Government contribution without the need for
extra-budgetary allocation; and iii) the need for a strong M&E system with baseline data.
2.9 Key performance indicators
2.9.1 Key project performance indicators are based on standardized core sector indicators
developed by the Bank. Baselines and targets have been established. Outcome indicators will
be: (i) Improved marketing conditions and opportunities for farmers and vendors; (ii) Quality
for major crops maize, groundnut and beans improved; and (iii) Improved income to vendors
and Councils. The Output indicators will include: (i) Designs for the 11 markets reviewed
and redeveloped; (ii) 15 first level value addition equipment installed; (iii) 30% women
represented in market management committees; (iii) 2 high level pilot processing plants
installed; (iv) 20,000 vendors trained in Entrepreneurship (70% women); (v) 20,000 vendors
trained in Business Development (70% women); (vi) 20,000 vendors trained in Gender and
Leadership (70% women); (vii) 20,000 SMEs trained on standards and 5,000 people trained
on health related issues (majority women); (viii) 20 CAIIP Agro-processing facilities linked
to the markets.
10
III – PROJECT FEASIBILITY
3.1 Economic and financial performance
3.1.1 A financial assessment of the programme was undertaken using cost-benefit analysis
of ex-ante activity models, and on the basis of prevailing 2014 market prices. The key
assumptions underlying the analyses include: (i) successful Program implementation will
generate benefits in the areas of agro-processing, agro-industries, and related activities (agro
dealers, machinery rental services, artisans and equipment fabricators), as well as other
important benefits but difficult to quantify such as health, education, public works; (ii) a 25-
year time period was used; (iii) the opportunity cost of capital (OCC) was estimated to be
12%. A Standard Conversion Factor (SCF) of 0.9 has been used to generate economic prices.
Summary of financial and economic analysis is in Annex VII and further elaborated in Annex
B6 in Volume II of the appraisal report.
3.1.2 Financial analysis: The financial analysis, based on the above assumptions, yielded a
combined net financial impact of UGX 218 042.81 million Net Present Value (NPV) with an
internal rate of return (IRR) of 20%. Thus, the project is financially feasible.
Table 3.1: Principal Economic and Financial Results
NPV (base scenario) UGX 218 042.80 million
IRR (base scenario) 20 %
ERR (base scenario) 26 %
3.1.3 Economic analysis: The economic analysis, based on the above assumptions yielded a
combined net present value (NPV) of UGX 237 539.91 million for a 25-year economic
period and an economic rate of return (ERR) of 26%.
3.1.4 Sensitivity analysis: The results of financial and economic analyses are quite robust in
the event of successive increase in project costs. As shown in the Technical Annex B6,
project cost increases by 10, 15, 20, 25% would reduce the ERR by 5%, 8%, 10% and 12%
respectively. An increase in project costs by 20% (switching values) would have to occur
before the Project benefits reduces to break-even point at 12%, the opportunity cost of
capital.
3.1.5 The financial and economic results show that MATIP 2 is financially and
economically viable as it enhances agricultural value chain incomes, competitiveness and
wealth creation (jobs creation, increase in income, food and nutritional security). The detailed
financial and economic performance analyses of the Project are presented in Annex B7 in
Volume II of the appraisal report.
3.2 Environmental and Social impacts
3.2.1 Environment: According to Bank’s environmental regulations, the proposed Project
falls under Category 2 i.e. projects for which induced negative impacts’ mitigation measures
have been identified and incorporated in the project design. Therefore, a detailed
Environmental Impact Assessment (EIA) will not be required, as no irreversible
environmental effects were identified, and as such only an Environmental and Social
Management Plan (ESMP) is prepared. The Environmental and Social Management Plan
11
(ESMP) for the 11 markets were carried out in 2010/2011; and were reviewed during
MATIP-2 project appraisal to align them with the current realities.
3.2.2 The project will abide by all environmental regulations as stipulated in the Uganda
National Environment Act, CAP 153 and Public Health and Sanitation Act. Accordingly,
necessary mitigation measures have been incorporated in the initial planning and design
stages of the proposed project. The implementation of the proposed project will have both
positive and negative environmental impacts in the selected markets. Some of the positive
impacts will include: (i) improved trading environment in a well and nicely constructed
trading structures; (ii) improved working environment through improved drainage systems
and improved waste management systems; (iii) reduced congestion in the markets hence
mitigating the risks of contracting diseases. The negative impacts include: (i) environmental
degradation in the relocation sites due to sudden increase in population; (ii) excavation and
demolition activities that could result in increase in construction debris; (iii) air and noise
pollution; (iv) loss of business as a result of unwillingness by the customers to go to new sites
(See Technical Annex B7 for details).
Social:
3.2.3 Gender: The project will support gender capacity building activities for MATIP-2
stakeholders as discussed in Technical Annex B7.4. Ugandan women comprise 51% of the
population and about 33% of rural households are female headed. Women play a vital role in
ensuring household food and nutritional security. However their autonomy as food producers
is usually affected by their limited ownership and access to land, financial services, extension
services and markets, plus cultural and social barriers that hinder their full participation in
agricultural and other economic activities. In general, the decision to grow most crops is
taken by both husband and wife, but women tend to make more decisions on food crops
whilst men predominate in decision making on cash crops. Fortunately, although Uganda has
been ranked poorly at number 161 out of 187 in gender inequality index in the world, it is one
of the countries that have shown rapid progress in the human development index, according
to the UNDP Human Development Report of 2013, indicating that more and more women
just like their men counterparts are progressively getting empowered and subsequently
engaged in economic development, a factor that will be accelerated by the MATIP-2 Project
whose majority beneficiaries (about 60%) are women. It is also important to note that Uganda
has political will at the highest level of government to address gender inequality backed up
by legal instruments such as the National Gender Policy, Employment Act, Equal
Opportunity Act, and others. Consequently, MATIP - 2 will focus on recognising the role of
women in marketing, food and nutrition security, reducing inequality, participation of women
in decision making, representation of women in management committees of the markets and
other development activities. The project will support, at least 30% involvement of women in
management of markets and value addition infrastructure as part of gender empowerment.
3.2.4 The Project will employ a gender sensitive approach in order to maximise participation
of women in the project as well as their productivity at household levels Such gender
sensitive economic activities include formation of women groups among market vendors to
advocate for better women marketing activities, community-level value addition to empower
local communities where the majority beneficiaries are women, and in crop processing value
addition and preservation technologies. Special training material for women will be
elaborated and the training oriented towards the specific needs such as business
development, entrepreneurship, SMEs engagement, HIV/AIDS education and awareness, etc.
12
which, sometimes can only be reached through separate courses for men and women. More
than 50% of the beneficiaries of such trainings will be women because women comprise
about 60% of the vendors.
3.2.5 Most of the women are in child-bearing age category and therefore special facilities
have been designed such as day care units for children to cater for the special needs of
women. The day care facilities will also act as starting points for formal learning. In addition
special sanitary facilities, including space for changing of clothes and bathing have been
included in the design of the markets to positively improve the welfare of women vendors.
The Project will establish gender monitoring and progress tracking system. The gender audit
will be part of the beneficiary impact assessment which will be carried out in PY3 to access
the progress made in achieving women and youth participation.
3.2.6 Youth: In addition, the youths are strongly disadvantaged in the competition for jobs
in the formal economy since they lack skills, work experience and have no (or have only
limited) social networks compared to the older people. The young people also comprise
greater proportion in the population of Uganda. Young people will thus be engaged (and
should be given priority) in the value chain activities at the markets. To enhance their skills,
training for skill enhancement will be oriented towards those persons directly involved in
value chain activities.
3.2.7 HIV/AIDS: The construction area is within the city/town councils and does not
necessarily envisage creation of construction camp for workers. Those notwithstanding, HIV
and AIDS continue to be a major public health and socio-economic challenge adversely
affecting all the sectors of the Ugandan economy. The 2011 Uganda Aids Indicator Survey
(UAIS) indicates that 7.3% of Ugandans aged 15-49 are infected with HIV. HIV prevalence
is higher among women (8.3%) than among men (6.1%), and higher in urban (10.7%) women
than among women in rural areas (7.7%). Overall, 3.7% of young women and men age 15-24
are HIV-positive. The country HIV and AIDS Prevention and Control Bill, 2009 requires
HIV and AIDs education in all the work places. The project will thus include a HIV/AIDS
prevention programmes with more focus on women and youths in order to reduce the high
infection rates among these groups. In this regard, the project will provide a series of
trainings on health related issues for the various stakeholders of the markets.
3.2.8 Involuntary resettlement: There will be no involuntary resettlement as a result of the
project. However, since the construction of the new market structures will be undertaken on
the current market sites, vendors will be moved to temporary sites for a period of
approximately 1-1.5 years to give way for the construction. Approximately 700 to 2000
vendors per market will be provided with alternative temporary sites to enable them continue
operating in the course of construction of the new structures. The temporary relocation does
not require a resettlement plan since the vendors are the direct beneficiaries of the market
improvement programme, and the cost of the movement will be borne by the Government.
The temporary sites will be provided with minimum amenities, including water and
electricity to enable the continuation of the marketing activities with minimum disruption.
The vendors will be moved systematically with assurance of no loss of assets or livelihood.
3.2.9 In almost all project sites, vendors expressed their willingness to move to temporary
sites during reconstruction of the markets, on condition that the incumbent vendors get first
priority during reinstatement to the new markets. It was therefore agreed that Memoranda of
Understanding (MOUs) would be signed between the individual Vendors and the respective
Municipal/Town Councils on the modalities of movement and reinstatement. During these
13
consultations, except for undue political grand-standing, vendors expressed satisfaction with
the manner in which relocation, registration, and certification was undertaken under the on-
going MATIP-1.
IV – IMPLEMENTATION
4.1 Implementation arrangements
4.1.1 The Project will be implemented through an existing Project Facilitation Team (PFT) in
the Ministry of Local Government, which will be the Executing Agency. The PFT which
comprises of the project coordinator, financial management specialist, rural infrastructure
advisor, 5 infrastructure engineers, M&E specialist, Agro-industry specialist, rural energy
expert, two accountants, two community development officers and support staff is already
implementing a number of Bank-funded Projects, including CAIIP-1, CAIIP-2, MATIP-1,
and CAIIP-3. It should be noted that CAIIP-1 and CAIIP-2 will close by the end of 2014 just
before activities of MATIP-2 commence while MATIP-1 will close in September 2015. The
Head of the PFT will be the overall coordinator of the Project assisted by the current staff
contingent. The PFT will be responsible for the executions of all project activities, including
preparation and submission of all procurement documents to the Bank for review and
approval, ensure that Project activities are initiated and are adequately budgeted for,
consolidate Project records, compile and submit all disbursement applications and quarterly
progress reports; undertake annual audits of all Project accounts and submit the audit reports
to the Bank. Implementation of Project activities at the Municipal/Town Council level will be
carried out through the established structures under the office of the Town Clerk with the
coordination and guidance of the PFT. Each Municipal/Town Council will designate a
Project Support Officer (PSO) among its staff, who will coordinate implementation and
technical supervision of the Project, including sensitization of vendors, training, and
monitoring and evaluation in the respective local governments.
4.1.2 The project has been designed to be implemented over a period of five years. The technical
design is to be reviewed and finalized by the end of the second quarter of PY1. The first year of
project implementation will be focused mainly on the relocation of vendors and sensitization of
the vendors and communities in participatory approaches. The PFT has the necessary staff and
ready to implement the project. The bulk of project activities will take place in PY 2 to 4 in order
to ensure that identified activities can be implemented before project closure.
4.1.3 Procurement Arrangements: All procurement of works under ICB (International
Competitive Bidding) and acquisition of consulting services will be carried out in accordance
with the Bank’s “Rules and Procedures for Procurement of Goods and Works”, dated May
2008 as amended from time to time and “Rules and Procedures for the Use of Consultants”
dated May 2008 as amended from time to time, using the relevant Bank Standard Bidding
Documents and provisions stipulated in the Legal Agreement. The Ministry shall prepare a
Procurement Plan and submit it to the Bank for review and approval before negotiations of
the Legal Agreement. The summary of the procurement arrangements is attached as
Appendix V and the detailed procurement arrangements are explained in Technical Annex
B5.
4.1.4 The Ministry of Local Government has a Procurement and Disposal Unit (PDU) staffed
with six procurement officers headed by a Principal Procurement Officer. The PDU is
responsible for procurement across the Ministry including all procurements for Bank
14
financed projects being implemented by the existing PFT. Working with the PFT has enabled
the procurement staff gain experience in procurement for donor funded projects. A contracts
committee is in place and functional. The procurement workload at the ministry is not much
and the current structure of the PDU is satisfactory for implementation of the Bank financed
operation. Based on the assessment carried out, procurement risk is low. In order to ensure
timely implementation of the project, advance contracting for selection of consultants for
design review and construction supervision of the markets and for procurement of civil works
will be used.
4.1.5 Civil Works: Procurement of all civil works above USD 4.5 million per contract will
be carried out under International Competitive Bidding (ICB) procedures without
prequalification, using the Bank’s Standard Bidding Documents (SBD). Works procured
under this method would include construction of 11 markets valued at USD 69.80 Million
spread throughout the country and each market would constitute a lot. Works valued at less
than USD 4.5 million will be procured under National Competitive Bidding (NCB). Works
procured under this method will include shelters for other agro-processing equipment.
4.1.6 Goods: Procurement of contracts for goods above USD 450,000 per contract will be
carried out under International Competitive Bidding (ICB) procedures, using the Bank’s
Standard Bidding Documents (SBDs). Goods procured under this method, would include
value addition processing equipment. Contracts for other agro processing equipment all
valued at USD 420,000 will be procured under the Bank’s National Competitive Bidding
procedures. Contracts for goods valued at below USD 150,000 per contract will be procured
through shopping. Goods procured under this method would include two vehicles and office
equipment.
4.1.7 Consulting Services and Training: These comprise consultancy services for design
review and construction supervision; studies (baseline, monitoring and evaluation and
environmental studies); and financial audit. Contracts for consulting services for design
review and construction supervision of the markets valued at USD 10.57 million to be
packaged into 11 assignments will be done using an international shortlist under Quality and
Cost Based Selection (QCBS). Contracts for consulting services for five (5) studies totalling
USD 0.68 million will be procured under Quality and Cost Based Selection, and Selection
Based on Consultant’s Qualification where appropriate. Financial audit services will be
undertaken by the Government Auditor General.
4.1.8 Training of selected district staff valued at USD 0.75 million; seminars and
workshops for beneficiaries, local communities targeting farmers groups, women groups and
Parish Development Committees and other stake holders valued at USD 3.42 million will be
procured through the existing applicable government manual of procedures for training.
Capacity building of district officers will be conducted to strengthen their capacity for
working in partnership with local communities and managing infrastructure developed under
the project and to establish necessary structures that ensure maintenance and sustainability of
the investments.
4.1.9 Miscellaneous Expenses: Personnel costs valued at USD 2.57 million and operating
costs valued at USD 3.29 million shall be undertaken using the applicable government
manual of procedures.
15
4.1.10 Financial Management: The Financial Management (FM) capacity of the MoLG is
adequate for the implementation of the project. The MoLG has proper financial structures in
place as well as adequate staff to carry out the FM responsibilities of the project. It is already
implementing four similar Bank projects. The PFT’s Financial Management specialist (FMS)
will be in charge of the day to day financial management operations of the project guided by
the existing Project’s operations manual which is in line with the MoLG’s financial policies
and procedures.
4.1.11 The MoLG uses the Government of Uganda’s (GoU’s) Integrated Financial
Management Information System (IFMIS) for capturing financial transactions. It has been
agreed that the project will fully use the IFMIS, for all payments and reporting.
4.1.12 The FM management processes will follow the MoLG’s (GoU’s) annual budgeting
cycle which starts in July and ends in June. These procedures are stipulated in the financial
policies and procedures as documented in the operation’s manual. The annual project
financial statements will be prepared in accordance with the International Public Accounting
Standards (IPSAs) cash basis annually by 30th
September. The annual financial statements
should include: (i) a Balance sheet that shows assets and liabilities; (ii) a statement of
Receipts and Expenditures showing separately Bank’s funding, those of counterpart, and cash
balances; (iii) Statement of Special Accounts, in both Uganda Shillings and U.S. Dollar
accounts and (iv) Notes to the Financial Statements describing the applicable accounting
principles in place and a detailed analysis of the main accounts. In addition, the Project will
provide an update on financial performance of the project as part of the Quarterly Progress
report (QPR) as required by the Bank not later than 45 days after the end of the Quarter.
4.1.13 Financial Reporting and Audit: The project financial statements will be audited by
Uganda’s Auditor General using the Bank’s audit terms of reference. The audited project
financial statements will be submitted to the Bank within six months after the close of the
fiscal year. At the project mid-term or any other time as deemed necessary, a value for
money Audit will be carried out by the Auditor General or his appointee, using Terms of
Reference agreed between the Bank and Government. In addition, the MoLG Internal audit
department provides internal audit services to all projects which serve as pre audits mainly
for civil works certificates. These services will be available to the project.
4.1.14 Disbursement Arrangement: Three Bank’s disbursement methods: Special Account
(SA), the Direct Payment and Reimbursement methods will be available for use by the
project. The MoLG will open both a Local Currency Account (LCA) and a SA in foreign
currency at the Bank of Uganda (BoU) into which part of the loan resources will be
deposited. Funds will be transferred from the SA to the LCA as and when required to finance
project activities. The financial management and procurement capacity of the MoLG has
been assessed to be adequate. Most of the disbursement will be through Direct Payment and
very little through the SA (see Table of Loan proceeds allocation in Appendix IV).
4.2 Monitoring and Evaluation
4.2.1 Monitoring would be an integral part of project management activities. A
comprehensive monitoring and evaluation system for the Programme was established during
MATIP-1 and the same system will be used for MATIP-2. In using the performance
indicators and targets specified in the Results based Logical Framework (RBLF), project
implementers tracking progress towards project results are expected to take special note of
16
changes that reflect advancement towards the translation of outputs into development
outcomes. In developing monitoring and planning indicators, they would be disaggregated
along gender lines. The Monitoring and Evaluation unit of PFT will be responsible for the
overall monitoring and evaluation of Project activities on behalf of the Ministry of Local
Government. A gender sensitive baseline study will be undertaken in PY1 which will be
followed up with annual gender sensitive surveys to assess performance and impact of project
activities. The PFT M&E specialist will be responsible for compiling the gender sensitive
quarterly and annual progress reports. The Bank will conduct regular follow-ups, review and
supervision missions to closely monitor project implementation. The latter will be undertaken
twice a year given the national coverage of the project. Resources have been provided for the
M&E schedule.
4.3 Governance
4.3.1 International assessments show that Uganda has progressed its accountability and
transparency ratings and indicators of Governance including corruption control, rule of law,
regulatory quality and Government effectiveness. The 2013 Ibrahim Index of African
Governance (IIAG) ranked Uganda 18th out of 52 African countries. The 2013 IIAG
provided Uganda’s performance across four categories of governance namely (a) Safety &
Rule of Law (27th out of 52), (b) National Security (77.9 out of 100), (c) Gender (7th out of
52), and (d) Human Development (20th out of 52). Uganda’s average score was 56 out of 100
which was higher than the continental average of 51.6. The 2012 World Bank Institute’s
Worldwide Governance Indicators rated Uganda as follows (0=low and 1=high): (a) voice
and accountability = 0.34; (b) political stability and absence of violence = 0.19; (c)
Government effectiveness = 0.33; (d) regulatory quality = 0.44; (e) rule of law = 0.45; and (f)
control of corruption = 0.18. The proposed measures in terms of project implementation
include: (i) provision of financial management manual to guide Project staff; (ii) utilization of
internal audit to identify pre-audit transaction challenges; (iii) regular submission of progress
reports, and (iv) training of the PFT staff in fiduciary services.
4.4 Sustainability
4.4.1 The participatory approach adopted during the project design and envisioned to be
extended during the implementation phase will enhance the ownership of project’s activities
and realizations by the main stakeholders ensuring its sustainability. This will be fostered by
the capacity building for the Ministry of Local Government staff and vendors’ associations
in the delivery of related services. The implementation of some project’s activities and the
management/maintenance of infrastructures built, especially the value addition facilities, will
be handed over to private sector operators in a public-private partnership arrangement, to
ensure sustainability. The private sector entity would be competitively recruited. The
development of value chains will enhance the development of PPP and the evolution of the
whole production chain towards a market oriented system.
4.4.2 As regards the management of the markets themselves, they will be operated and
managed by the existing vendors’ associations and the project will ensure that at least 30% of
women are represented in the market management committees. Management guidelines will
be developed by the supervising consultant for the operation and maintenance of the markets
to ensure the participation of the beneficiaries, as the Councils gradually devolve the
ownership of the structures to the vendors’ associations/market management committees
(MMCs), thus fostering PPP. The Operations and Maintenance (O&M) of the markets would
17
be undertaken collaboratively between the Councils and the MMCs. The cost of routine
maintenance after handing over (in PY3, PY4 and PY5) would be borne by the Municipal
Councils/ Town Councils and MMCs as per the agreed terms in the memorandum of
understanding (MOU) to be signed between the two parties. To facilitate this, all the vendors
and other users of the facilities would pay rent to the Municipalities/Councils out of which
the Councils would allocate a minimum of 15% for the purpose. The money will be deposited
in a dedicated account, for which both the VA/MMCs and Councils, will be co-signatories.
The remaining balance to cover the O&M cost shall be covered from the contribution of
vendors. The running cost of any equipment provided for under the Project would be borne
by the users.
4.5 Risk management
4.5.1 The project faces the following potential risks as identified in the Result Based Logical
frame and proposed some mitigation measures summarized below.
Table 4.1: Risk mitigation measures
Risk Rating Mitigating Measures
1
The sustainability of the markets
and value addition facilities,
particularly its O&M schedules;
Medium streamlined market management system will be
established, including the establishment of a
dedicated account for O&M, and bringing
DANIDA-ABI Trust (Agro Business Initiative)
onboard to strengthen the private sector angle of
the value addition facilities;
2
The possibility of a prolonged
construction of the markets
compelling the vendors to stay
longer at temporary market sites
with potential loss of income by
both the Vendors and Councils;
Low Close monitoring of implementation of the project
by both the Government and the Bank;
3
The private sector may not be
adequately motivated to participate
in value addition in the re-
developed markets;
Low Provision of Business Development Support
Services to potential SMEs actors will motivate
them to participate in the project under PPP.
Moreover provision of facilities for other services
such as banks/microfinance institutions, clinics,
pharmacies, day-care centres, restaurants, cloth
stalls will create a growth node that will attract the
private sector.
4
Lack of transparency in the
allocation of facilities after
completion and gray areas in the
relationship between the vendors
and Municipalities.
Low Lessons learnt during the allocation of MATP-1
facilities were considered during the design of
MATIP-2 and an elaborated MOU will be signed
between the two parties and the vendors relocated
to temporally locations will get first priority.
4.6 Knowledge building
4.6.1 A number of studies/surveys are planned to be undertaken through the project, with a
view to generating information that will inform both the vendors and the councils, Ministries
as well as other stakeholders in the course of decision making. The analytical work will
mainly focus on areas of value addition and value chain analysis; linkages between the urban
and rural markets and cross border trade. Moreover, the project will develop a Market
18
Information System (MIS) that will generate data pertaining to prices, sources and volumes
of commodities to be shared with all stakeholders. All knowledge attributes generated from
the project will be shared with the respective Government and Municipal Council authorities,
the Bank, Development Partner agencies and civic society at large as facilitation tools in
future decision making processes.
V – LEGAL INSTRUMENTS AND AUTHORITY
5.1. Legal instrument:
ADB Loan to the Government of the Republic of Uganda
5.2. Conditions associated with Bank’s intervention
Conditions Precedent to Entry into Force: The entry into force of the Loan Agreement
shall be subject to the fulfilment by the Borrower of the provisions of Section 12.01 of
the General Conditions of the Fund.
Conditions Precedent to First Disbursement: The obligations of the Fund to make the
first disbursement shall be conditional upon the entry into force of the Loan
Agreement in accordance with the immediately preceding paragraph and the
fulfilment by the Borrower of the following conditions:
(i) Provided evidence of having opened one foreign currency special account (SA)
for the deposit of the proceeds of the loan; and one local currency account
(LCA) for transfer of funds from the special account, in the Bank of Uganda.
(ii) The Borrower shall provide the Bank with a Letter of Comfort with a proof
stating that the land, where the market infrastructure is to be constructed,
belongs to the Government or a Government entity (Municipal/Town Councils).
5.3. Other Conditions: The GoU shall have:
(i) Within 6 months of the fulfilment of conditions precedent to first disbursement of the
loan, Memoranda of Understanding (MOU) will be signed with individual vendors in
each of the markets to be developed under the project. Such MOU will indicate the
temporary sites with basic facilities where the vendors will be temporarily
accommodated and that they will have first priority of allocation of the rehabilitated
markets when completed;
(ii) Within 6 months of effectiveness of first disbursement, liaise with the beneficiary
Municipal/Town Councils to designate an officer among their ranks to be an overseer
of the implementation of the Project and a link between the Municipal/Town Council
and the PFT.
19
5.4. Compliance with Bank Policies
(i ) This project complies with all applicable Bank policies.
(ii) No exceptions to Bank policies are recommended for approval. The project complies
with all other applicable Bank policies
Non-standard conditions (if applicable): N/A
VI – RECOMMENDATION
Management recommends that the Board of Directors approve the proposed ADB
loan of USD 84.20 million to the Government of Uganda for the purposes of implementing
the Markets and Agricultural Trade Improvement Programme: Project-2 (MATIP-2) and
subject to the conditions stipulated in this report.
I
Appendix I. Country’s Selected Comparative Socio-economic Indicators
Year Uganda Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2011 242 30,323 98,458 35,811Total Population (millions) 2012 35.6 1,070.1 5,807.6 1,244.6Urban Population (% of Total) 2012 13.7 40.8 46.0 75.7Population Density (per Km²) 2012 48.9 34.5 70.0 23.4GNI per Capita (US $) 2011 510 1 609 3 304 38 657Labor Force Participation - Total (%) 2012 38.5 37.8 68.7 71.7Labor Force Participation - Female (%) 2012 49.1 42.5 39.1 43.9Gender -Related Dev elopment Index Value 2007-2011 0.509 0.502 0.694 0.911Human Dev elop. Index (Rank among 186 countries) 2012 161 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2009-2011 38.0 40.0 22.4 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2012 3.2 2.3 1.3 0.3Population Grow th Rate - Urban (%) 2012 4.7 3.4 2.3 0.7Population < 15 y ears (%) 2012 48.3 40.0 28.5 16.6Population >= 65 y ears (%) 2012 2.5 3.6 6.0 16.5Dependency Ratio (%) 2012 103.1 77.3 52.5 49.3Sex Ratio (per 100 female) 2012 100.1 100.0 103.4 94.7Female Population 15-49 y ears (% of total population) 2012 22.0 49.8 53.2 45.5Life Ex pectancy at Birth - Total (y ears) 2012 54.5 58.1 67.3 77.9Life Ex pectancy at Birth - Female (y ears) 2012 55.2 59.1 69.2 81.2Crude Birth Rate (per 1,000) 2012 44.2 33.3 20.9 11.4Crude Death Rate (per 1,000) 2012 11.8 10.9 7.8 10.1Infant Mortality Rate (per 1,000) 2012 72.7 71.4 46.4 6.0Child Mortality Rate (per 1,000) 2012 114.5 111.3 66.7 7.8Total Fertility Rate (per w oman) 2012 6.0 4.2 2.6 1.7Maternal Mortality Rate (per 100,000) 2010 310.0 417.8 230.0 13.7Women Using Contraception (%) 2012 37.0 31.6 62.4 71.4
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2004-2010 11.7 49.2 112.2 276.2Nurses (per 100,000 people)* 2004-2009 130.6 134.7 187.6 730.7Births attended by Trained Health Personnel (%) 2006-2010 41.9 53.7 65.4 ...Access to Safe Water (% of Population) 2010 72.0 67.3 86.4 99.5Access to Health Serv ices (% of Population) 2000 49.0 65.2 80.0 100.0Access to Sanitation (% of Population) 2010 34.0 39.8 56.2 99.9Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2011 7.2 4.6 0.9 0.4Incidence of Tuberculosis (per 100,000) 2011 193.0 234.6 146.0 14.0Child Immunization Against Tuberculosis (%) 2011 86.0 81.6 83.9 95.4Child Immunization Against Measles (%) 2011 75.0 76.5 83.7 93.0Underw eight Children (% of children under 5 y ears) 2006-2011 16.4 19.8 17.4 1.7Daily Calorie Supply per Capita 2009 2 137 2 481 2 675 3 285Public Ex penditure on Health (as % of GDP) 2010 9.0 5.9 2.9 8.2
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2010-2012 113.2 101.9 103.1 106.6 Primary School - Female 2010-2012 114.2 98.4 105.1 102.8 Secondary School - Total 2010-2012 28.1 42.3 66.3 101.5 Secondary School - Female 2010-2012 25.8 38.5 65.0 101.4Primary School Female Teaching Staff (% of Total) 2010-2011 40.9 43.2 58.6 80.0Adult literacy Rate - Total (%) 2010 73.2 67.0 80.8 98.3Adult literacy Rate - Male (%) 2010 82.6 75.8 86.4 98.7Adult literacy Rate - Female (%) 2010 64.6 58.4 75.5 97.9Percentage of GDP Spent on Education 2008-2012 3.3 5.3 3.9 5.2
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2011 33.8 7.6 10.7 10.8Annual Rate of Deforestation (%) 2000-2009 2.0 0.6 0.4 -0.2Forest (As % of Land Area) 2011 14.5 23.0 28.7 40.4Per Capita CO2 Emissions (metric tons) 2009 0.1 1.2 3.1 11.4
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
COMPARATIVE SOCIO-ECONOMIC INDICATORS
Uganda
May 2013
0102030405060708090
100
2004
2005
2006
2007
2008
2009
2010
2011
2012
Infant Mortality Rate( Per 1000 )
Ugan da Africa
0
200
400
600
800
1000
1200
1400
1600
1800
2003
2004
2005
2006
2007
2008
2009
2010
2011
GNI Per Capita US $
Ugan da Africa
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2004
2005
2006
2007
2008
2009
2010
2011
2012
Population Growth Rate (%)
Uganda Africa
1
11
21
31
41
51
61
71
2004
2005
2006
2007
2008
2009
2010
2011
2012
Life Expectancy at Birth (years)
Ugan da Africa
II
Appendix II: Table of ADB’s portfolio in Uganda
AfDB's Ongoing Portfolio in Uganda - 30 August 2014
1st Date of
DisbursementADB
ADF
Loan
ADF
Grant
1 Community Agricultural Infrustructure Improvement Programme- Project II 17/09/08 11.05.2009 02/09/09 23/10/09 nil 45.00 nil nil 45.00 29.01 64.5% 31/12/14
2 Markets and Agricultural Trade Improvement (MATIIP) 25/03/2009 13.05.2009 05/02/10 17/03/10 nil 38.00 nil nil 38.00 31.81 83.7% 30/09/15
3 Community Agricultural Infrustructure Improvement Programme III 03/05/2011 10/06/2011 22/02/12 21/03/2012 nil 40.00 nil nil 40.00 1.58 4.0% 31/12/2016
123.00 62.40 50.7%
4 Road Sector Support Project 2 (Fort portal Bundibugyo Rd) (103KM) 17/12/07 15/05/08 18/11/2009 20/01/2010 nil 56.65 nil 1.35 58.00 52.10 89.8% 31/08/15
5 Road Sector Support Project 3( Nyakahaita Ibanda Rd)(143KM) 25/09/09 12/04/2010 13/07/2011 29/07/2011 nil 80.00 nil nil 80.00 70.68 88.4% 31./12/15
6 Road Sector Project 4 ( Kigumbba Masindi Rd) 135 KM 13/03/2013 07/11/2013 08/08/2014 nil nil 72.94 nil nil 72.94 - 0.0% 30/06/2018
210.94 122.78 58.2%
7 Kampala Sanitation Project 16/12/2008 11/05/2009 18/02/10 16/07/10 nil 35.00 nil nil 35.00 10.34 29.5% 31/08/2016
8 Kawempe Urbarn Poor and Sanitation Improvement Project 4/1/2013 02/04/2013 02/04/2013 26/04/2013 nil nil 0.99 0.99 0.41 41.4% 04/04/2016
9 Water Supply and sanitation program 5/10/2011 11/01/2012 26/09/2012 nil 40.00 nil 3.59 43.59 20.77 47.6% 30/06/2016
79.58 31.52 39.6%
10 Rehabilitation of Mulago and KCC Clinics 06/07/2011 11/01/2012 02/07/2012 28/08/2012 nil 46.00 10.00 nil 56.00 6.58 11.8% 31/12/2016
11 Support to Post Primary Education and Training Project (Education IV) 25/11/08 11/05/2009 31/08/09 22/12/09 nil 52.00 nil nil 52.00 37.80 72.7% 31/12/14
12 Education V Project (HEST) 21/11/2012 05/07/2013 18/11/2013 nil 67.00 nil nil 67.00 0.88 1.3% 31/12/2017
13 Rural Income and Employment Enhancement Project 17/11/09 12/04/10 14/02/08 05/06/08 nil 10.20 nil 0.00 10.20 8.67 85.0% 31/07/2015
185.20 53.93 29.1%
14 Bujagali Transmission Interconnection Project 28/06/07 26/10/07 23/04/08 14/02/08 nil 19.21 nil nil 19.21 16.72 87.0% 31/03/2015
15 Mbarara-Nkenda/Tororo-LiraTransmission Lines Project 16/12/08 26/03/2010 18.02..2011 20/04/11 nil 52.50 nil nil 52.50 22.84 43.5% 31/08/15
71.71 39.56 55.2%
670.43 310.19 46.3%
16 NELSAP 1 27/11/08 13/05/09 04/07/2011 25/10/2011 nil 7.59 nil 0.00 7.59 1.80 23.7% 31/12/15
17 Lake Victoria Water Supply and Sanitation program phase II 17/12/2010 04/04/211 04/04/11 31/01/2012 nil nill nil 11.13 11.13 3.77 33.9% 31/12/2015
18.72 5.57 29.8%
0.00 0.00 0.00
689.15 315.76 45.82
Private Sector Operation - subtotal
Social - Sub Total
GRAND TOTAL INCLUDING MULTI NATIONAL AND PRIVATE SECTOR PROJECTS
H. PRIVATE SECTOR OPERATION
F. MULTI NATIONAL PROJECT
GRAND TOTAL FOR PUBLIC SECTOR OPERATIONS
Multi National Projects- Subtotal
Energy - Sub total
Agriculture - Sub Total
B. TRANSPORT
Transport - Sub Total
Water and Sanitation - Sub total
D. SOCIAL
A. AGRICULTURE
Approval Date Signature Date
Disbursement
Effectiveness
Date
Approved Amount UA million
Serial
No.Project Description
Net Commitments (UA
million)
Amount
Disbursed (UA
million)
Disbursed (%)Deadline for Last
Disbursement
III
Appendix III. Key related projects financed by the Bank and other development partners in the country PROJECT NAME COVERAGE SOURCE
of FUNDS
AMOUNT
(millions)
STARTING ENDING PLANNED OUTPUTS
A. AGRO-PROCESSING/ VALUE ADDITION
1. Danida U-Growth Programme National Danida US$38 2010 2013 Agri-business/ Private Sector
support
2.Danida aBi Trust National Danida US63 2013 2016 Value Chain approach
3.EU Small and medium Agribusiness Development
Fund
National EU Euro 15 2013 2017 Agricultural business finance
4.USAID Livelihoods and Enterprises for Agric.
Development
National USAID US$35.9 2008 2013 Increased market access
5.Agricultural Technology and Agribusiness
Advisory Services
National IDA US$127 2011 2016 Value Chain Development
6.Agriculture Cluster Development Project National IDA US$108 2014 2019 Value addition and Market access
B. DISTRICT ROADS
1. DANIDA U-Growth Programme. 15 Districts Of North and North Eastern
Uganda
DANIDA DKK 120 June 2009 Dec 2013 700km Rehabilitated;
3000kmMaintenance
2. Area Based Agricultural Modernization
Programme (AAMP)
13 Districts of Western and Southern
Western Uganda
AfDB US$ 13.6 June 2004 March 2009 1100km Rehabilitated
3. North West Region Small Holder Agricultural
Development Project (NSADP)
Adjumani, Moyo,Yumbe, Nebbi, Arua,
Koboko and Maracha and Terego Districts
AfDB UA 17.6 2000 June 2009 205km Constructed
4. District Roads Maintenance (PAF) All Districts GOU UGX 18,000 1999 Continuous Routine Maintenance of 1800km
5. Roads All Uganda EU EUR15 2008 2012
6. Community Agricultural Infrastructure
Improvement Programme Project 1 (CAIIP-1)
26 District In Central and Eastern Uganda AfDB UA30 July 2007 2012 Rehabilitation of 390km and
Maintenance of 587km of District
roads
7. Community Agricultural Infrastructure
Improvement Programme Project 2 (CAIIP-2)
15 Districts in Northern and Eastern
Uganda
AfDB UA45 Sept 2009 Dec 2014 225km of feeder roads to be
rehabilitated
C. COMMUNITY ACCESS ROADS
2. Area Based Modernization Programme (AAMP) 13 Districts of western and South Western
Uganda
IFAD US$2.3 June 2004 December
2010
1438km Routine Manual
Maintenance / Rehabilitation
3. North West Region Small Holder Agricultural
Development Project (NSADP)
Adjumani, Moyo,Yumbe, Nebbi, Arua,
Koboko and Maracha and Terego Districts
AfDB UA 17.6 2000 June 2009 1600km Routine Manual
Maintenance / Rehabilitation
4. Northern Uganda Social Action Fund(NUSAF) Northern and North Eastern Uganda IDA US$2.3 2004 2008 410km
5Municipal Infrastructure Programme All Municipal Councils IDA US$150 2013 2017 Rehabilitation of Municipal roads
6. Community Agricultural Infrastructure
Improvement Programme Project 1 (CAIIP-1)
26 District In Central and Eastern Uganda AfDB/IFAD UA30 July 2007 2012 Rehabilitation of 3510Km and
Maintenance of 5267km
7. Community Agricultural Infrastructure
Improvement Programme Project 2 (CAIIP-2)
15 Districts in Northern and Eastern
Uganda
AfDB UA45 Sept 2009 Dec 2014 4,365km of access roads to be
rehabilitated
IV
8. District Livelihood Support Programme (DLSP) 13 Districts West, North and Eastern
Uganda
IFAD US$27.4 2007 2014 2,400km to be rehabilitated
9. Northern Uganda Social Action Fund 2 (NUSAF-
2)
Northern Uganda IDA USD100 2009 2014 240km of community access roads
as a sub-component
10. Community Agricultural Infrastructure
Improvement Project 3 (CAIIP-3)
Western Uganda AfDB UA 40 2012 2016 4000 km roads to be rehabilitated
D. MARKETS
1. North West Agricultural Sector Development
Programme(NWASDP)
North West Uganda AfDB Part of B.3
above
May 2001 June 2009 22 Markets; 200km access road
Rehabilitation;340km of
Maintenance
2. Agricultural Marketing & Agro-processing
Support Programme
All Uganda (10 districts covered) IFAD US$30 2011 2015 Seeks to connect farmers to markets
and enhance enabling environment
3. District Development Support Programme 5 Districts in Western Uganda IFAD US20.6 Dec. 2001 Dec. 2006 Agricultural extension services and
physical infrastructure
4. Community Agricultural Infrastructure
Improvement Project1 (CAIIP-1)
26 District In Central and Eastern Uganda AfDB/IFAD UA30 July 2007 2012 Construction of 78 functional
markets in 78 sub-counties within
26 districts.
5. Markets and Agricultural Trade Improvement
Project (MATIP-1)
Countrywide in Municipalities and Town
councils
AfDB UA38 Sept 2009 Sept 2014 7 urban markets
E. ENERGY
1. Energy for Rural Transformation Project (ERT)
(1&2)
All Uganda WB US$140 2007 2016 Facilitates investments in
commercially oriented rural
electrification projects
2. Energy All Uganda EU EUR10 2008 2011
V
Appendix IV. Loan Allocation Proceeds in Million USD
LIST OF GOODS AND SERVICES
ADB LOAN
GOU/BENEFICAIRIES PROJECT
LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL
A. WORKS 30.33 30.16 60.49 - - - 30.33 30.16 60.49
Value Chain Market 15.33 15.33 30.66 - - - 15.33 15.33 30.66
Other Markets 14.51 14.51 29.02 - - - 14.51 14.51 29.02
Other works 0.49 0.33 0.81 - - - 0.49 0.33 0.81
B. GOODS 0.2 1.76 1.95 - - - 0.20 1.76 1.95
Vehicle 0.01 0.06 0.07 - - - 0.01 0.06 0.07
Processing equipment 0.18 1.64 1.82 - - - 0.18 1.64 1.82
Office equipment - 0.04 0.04 - - - - 0.04 0.04
Other equipment - 0.02 0.02 - - - - 0.02 0.02
C. SERVICES 6.36 2.77 9.13 4.04 0.29 4.32 10.39 3.06 13.45
1. Training - - - 3.60 - 3.60 3.60 0.00 3.60
Training of staff - - - 0.65 - 0.65 0.65 0.00 0.65
Training of Beneficiaries - - - 2.95 - 2.95 2.95 0.00 2.95
2. Technical Assistance 6.36 2.77 9.13 0.00 - 0.00 6.35 2.77 9.13
3. Studies - - - 0.36 0.24 0.59 0.36 0.24 0.59
4. Audit - - - 0.08 0.05 0.13 0.08 0.05 0.13
D. PERSONNELS - - - 2.22 - 2.22 2.22 0.00 2.22
E. OPERATING COST - 1.11 1.11 1.74 - 1.74 1.74 1.11 2.84
Unallocated 6.92 4.61 11.53 1.23 0.02 1.25 8.14 4.64 12.78
TOTAL PROJECT COSTS 43.79 40.41 84.20 9.22 0.31 9.53 53.01 40.72 93.73
VI
Appendix V. Procurement Arrangement (in USD Million)
Project Categories
USD ' million
Use of Bank
Procurement
Procedures
Others Non-
Bank-
Funded
Total
1. Civil Works
1.1 Construction of 11 Markets
1.2 Works for Agro-processing facilities
2. Goods
2.1 Value addition processing Equipment
2.2 Other Agro-processing Equipment
2.3 Vehicles
2.4 Office Equipment
3. Consulting Services
3.1 Design Review and Supervision of Civil Works
3.2 Studies (Baseline, M &E,ESMP e.t.c)
3.3 Audit
4. Training
4.1 Training of Staff
4.2 Training of Beneficiaries
5. Miscellaneous
5.1 Personnel Costs
5.2 Operating Costs
TOTAL
69.10[69.10]
0.94[0.94]
1.71[1.71]
0.42[0.42]
0.08[0.08]
0.05[0.05]
10.57[10.57]
82.87[82.87]
0.75[0.00]
3.42[0.00]
3.29[1.21]
7.46[1.21]
0.68
0.15
2.57
3.40
69.10[69.10]
0.94[0.940
1.71[1.71]
0.42[0.42]
0.08[0.08]
0.05[0.05]
10.57[10.57]
0.68[0.00]
0.15[0.00]
0.75[0.00]
3.42[0.00]
2.57[0.00]
3.29[1.21]
93.73[84.08]
VII
Appendix VI. Map of the Project Area
This map has been drawn by the African Development Bank Group exclusively for the use of readers of the
report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its
members any judgement concerning the legal status of a territory nor any approval or acceptance of these
borders.