Two decades of political and economic turmoil severely eroded the living standards that Ugandans had enjoyed in the initial years after 1962 independence. By 1986, government expenditure on health was one-tenth the 1970s level, on infrastructure one-quarter. Lack of essential services brought increases in waterborne diseases. Nine towns, including the largest urban areas of Kampala and Jinja, were covered by the relatively well-managed National Water and Sewerage Corporation which provided 50 percent of the people with access to piped water. However coverage of remaining urban areas was about 15 percent and just 20 percent of rural areas had adequate water supply.
IDA financed a Small Towns Water project to improve water and sanitation infrastructure in 11 towns outside the Corporation’s reach. The project used a demand-driven approach whereby communities participate in the financing, planning, implementation and management of water and sanitation systems.
New water supply service extended to about 161,000 people and improved service for another 30,000.
Highlights:
- About 70 percent of households (vs. 5 percent in 1994) depend on piped water as their primary source in project areas. (The remaining 30 percent uses improved point sources).
- Service was contracted to local private operators (today, there are six local operators managing 34 towns.)
- Reviews during and after project closure showed that most of the towns were breaking even in their operation and maintenance costs, thus demonstrating sustainability of the systems which was expected to be further enhanced by progressive expansion in the customer base.
- Less time is spent collecting and transporting water: 70 percent of the households spend about 15 minutes fetching water and are within 50 meters of a safe water source compared to only 13 percent at the start of the project. Women and children benefited most from the reduction in the burden associated with collecting water.
- There is increased awareness of good hygiene: most households surveyed by an independent study reported cleaning their latrines daily due to availability of water and could name a waterborne disease associated with dirty hands.
- US$40.8 million in actual cost financing from 1994 to 2003.
- This project was the first in the country and the region using a demand-driven model based on international best practice. Services to the poor are ensured by providing varying levels of service, subsidizing connection cost and providing poor people with a voice as stakeholders and customers. The lessons and knowledge generated by the project have been replicated country-wide in over 45 towns and in other countries in the region.
- IDA supported the government of Uganda in key urban water supply and sanitation reforms in the management of small towns by separating asset ownership and oversight from professional management of operations by the private operators.
The project has been mainstreamed: financing is now provided by IDA through budget support. Meanwhile, the success enabled IDA to leverage other funds. Today, a global donor program administered by IDA is helping towns to expand their customer base and connections and deepen the participation of the local private operators possibly through longer term contracts. The program is also strengthening the Water Authorities Unit’s capacity to effectively support towns and private operators.
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