Contacts
In Washington: Solomon Alemu +1 (202) 473-4075
salemu@worldbank.org; In Uganda: Steven Shalita +256 (414)302-206
sshalita@worldbank.org WASHINGTON, November 6, 2007 – The World Bank Board of Executive Directors today approved a US$33.6 million International Development Association (IDA) credit1 to support the Kampala Institutional Infrastructure Development Project (KIIDP). Kampala - Uganda’s capital city– is the hub of Uganda’s economic, political, and administrative activities. The Kampala Institutional Infrastructure Development Project aims at improving the institutional efficiency of Kampala City Council (KCC) through implementation of the second Strategic Framework for Reform (SFR II) – an in-house strategy developed by KCC to: restructure its administration and management, liberalize service delivery, institute financial and fiscal reforms, and improve the organization’s image and public relations. “The economic future of Uganda is intrinsically related to the performance of Kampala as a locus of productive activity and investment. The city must provide reliable services and infrastructure for all its residents. Strengthening KCC is, therefore, critical to the success of Uganda’s economy,” said Solomon Alemu, Task Team Leader for the project. It is estimated that about 80 percent of the country’s industrial and services sectors are located in Kampala and the city now generates over 50 percent of Uganda’s Gross Domestic Product. The 10-year project will run in three phases from 2008 – 2017. The first phase of the project, which will run from 2008 – 2010, has three components that are aligned to support the implementation of the second Strategic Framework for Reform. The first component, worth US$5.8 million, will be utilized for institutional development and will include: supporting organizational development and governance; implementing a financial recovery plan; and strengthening service delivery. The second component, worth US$28.5 million, will finance city-wide infrastructure and services improvements. This will include: drainage system improvement, traffic management, road maintenance and up-grading, solid waste management, and urban markets infrastructure. The third component, worth US$2.8 million, will encompass project management activities and establishment and implementation of a comprehensive monitoring and evaluation system. Kampala is currently the largest urban center in Uganda with a population of about 1.8 million, and an annual demographic growth rate of about 3.9 per cent compared to the national average of 3.3 per cent. At this rate, the city’s population will reach 2.4 million by 2012, which will require proper planning and management. “Though Kampala is the country’s largest urban centre, it has not kept pace with its economic and demographic growth. We hope this project will facilitate the necessary reforms to improve the city’s infrastructure and service delivery. The Bank is, therefore, committed to supporting KCC and government in its drive for urbanization, good governance and improved service delivery,” said Grace M. Yabrudy, Country Manager for Uganda. ### For more information on the World Bank’s work in sub-Saharan Africa visit: http://www.worldbank.org/afr For more information on the World Bank’s work in Uganda visit: www.worldbank.org/uganda For more information about this project visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=374864&menuPK=374971&Projectid=P078382 1The credit is provided on standard International Development Association (IDA) terms, with a commitment charge of 0.10 percent per annum and a service charge of 0.75 percent per annum (on the disbursed credit balance) over a 40 year period of maturity which includes a 10-year grace period. |
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