Contacts
In Washington: Lance Morrell +1 (202) 458 -0448
lmorrell@worldbank.org In Uganda: Steven Shalita +256 (414)302-206
sshalita@worldbank.org WASHINGTON, December 18, 2007 – The World Bank Board of Executive Directors today approved a US$55 million International Development Association (IDA) credit* to support the Uganda Government’s implementation of the Public Financial Management Reform Program and the Decentralization Policy Strategic Framework. The Local Government Management and Services Delivery (LGMSD) Project aims to strengthen the ability of Ministries, Departments and Agencies (MDAs) and Local Governments (LGs) to plan and manage resources in collaboration with communities for improved service delivery. The project therefore seeks to harmonize service delivery at the local level, align sectors and increase coordination in support of sub-national service delivery. “Uganda’s experience with decentralization policy formulation and implementation has served as a ‘flagship’ experience for the region” said Lance Morrell, Task Team Leader for the project.“The Bank has supported extensive dialogue to examine the Uganda experience on decentralization and promoted twining arrangements between Uganda and other countries that could benefit from the Uganda experience. There is, therefore, strong rationale for the Bank to continue being engaged in the Decentralization/PFM reforms through policy dialogue and specific investment lending to support the implementation of these reforms.” The 10-year project will run in two phases from 2008–2017. The first phase of the project, which will run from 2008–2011, has three components that are aligned to support the implementation of the Public Financial Management reform, the Decentralization Policy Strategic Framework and Institutional and Policy Support. The first component ―Support to the Public Financial Management Systems Reform Program, worth US$20.1 million― will be utilized to strengthen Public Financial Management at central and local government levels and to ensure the efficient, effective, transparent and accountable use of public resources as a basis for poverty eradication and improved service delivery. The second component ―Support to the Local Government Sector Investment Plans, worth US$32.2 million― will support LG infrastructure development which is supported by the Government of Uganda’s Local Development Grants (LDGs). The LDGs are discretionary development funds provided to deliver quality and sustainable basic services and empower communities to effectively participate in the planning, implementation, monitoring and evaluation of community-level initiatives for service delivery and livelihoods. Under LGMSD, IDA support will provide technical assistance, works, goods, training, community development grants and logistical support. The third component ―Institutional and Policy Support, worth US$2.7 million― will encompass the management activities associated with the implementation of the project, the establishment and implementation of a comprehensive monitoring and evaluation system and the preparation of the next phase of the project. LGs currently take about 30 percent of the national budget and they are responsible for the delivery of basic services such as primary education, primary health care, water and sanitation, districts, urban and community roads, and agriculture extension services to farmers. They are front line service providers to the population and major contributors to the fight against poverty. “The proposed operation is consistent with priorities described in the Government’s Poverty Eradication Action Plan, which emphasizes decentralization as a mechanism to increase local autonomy and strengthen both upward and downward accountability” said Grace M. Yabrudy, Country Manager for Uganda.“It is also aligned with the Uganda Joint Assistance Strategy, which includes the objective of improved public service delivery. Uganda has reached a critical level of decentralization and over the past years it has provided numerous learning opportunities for other developing countries both within and outside the region. Support to the sector by the Bank cannot be abandoned at this critical stage and moment of the reform.” *The 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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