Document of
The World Bank
Report No: ICR00002228
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IDA-46790 IDA-49490 TF-11094)
ON
CREDIT IDA-46790
IN THE AMOUNT OF SDR 120 MILLION
(US$190 MILLION EQUIVALENT)
CREDIT IDA 49490
IN THE AMOUNT OF SDR 47.4 MILLION
(US$75 MILLION EQUIVALENT)
AND
GRANT TF-11094
IN THE AMOUNT OF £6.05 MILLION
(US$ 8.0 MILLION EQUIVALENT)
TO THE
GOVERNMENT OF THE REPUBLIC OF UGANDA
FOR A
TRANSPORT SECTOR DEVELOPMENT PROJECT
June 5, 2017
Transport and ICT Global Practice
Africa Region
CURRENCY EQUIVALENTS
(Exchange Effective Rate December 2015)
Currency Unit = Uganda Schilling (UGX)
US$ 1.00 = UGX 3335
UK£ 1.00 = US$ 1.48
US$ 1.00 = SDR 0.6307
FISCAL YEAR
July 1 – June 30
ABBREVIATIONS AND ACRONYMS
AF / Additional FinancingAfDB / African Development Bank
APL / Adaptable Program Loan
BRT / Bus Rapid Transit
CAS / Country Assistance Strategy
DANIDA / Danish International Development Agency
DBST / Double Bituminous Surface Treatment
DFID / U.K. Department for International Development
DRC / Democratic Republic of Congo
DRS / Department of Road Safety
DP / Development Partner
DUCAR / District, Urban, and Community Access Roads
EAC / East African Community
EC / European Commission
EIA / Environmental Impact Assessment
EIRR / Economic Internal Rate of Return
ESIA / Environmental and Social Impact Assessment
ESMP / Environmental and Social Management Plan
GDP / Gross Domestic Product
GIS / Geographic Information System
GKMA / Greater Kampala Metropolitan Area
GoU / Government of Uganda
GRC / Grievance Redress Committee
HDM-4 / Highway Development and Management Model, version 4
ICR / Implementation Completion and Results Report
IDA / International Development Association
ISR / Implementation Status and Results Report
JICA / Japan International Cooperation Agency
KCCA / Kampala Capital City Authority
M&E / Monitoring and Evaluation
MATA / Metropolitan Area Transport Authority
MIS / Management Information System
MoFPED / Ministry of Finance, Planning, and Economic Development
MoWT / Ministry of Works and Transport
MTR / Midterm Review
MTRA / Multi-sector Transport Regulatory Authority
NEMA / National Environmental Management Authority
NERAMP / North Eastern Road Corridor Asset Management Project
NGO / Nongovernmental Organization
NPV / Net Present Value
NRSC / National Road Safety Council
NRSA / National Road Safety Authority
NTPS / National Transport Policy and Strategy
OPRC / Output-and Performance-based Road Contract
PAD / Project Appraisal Document
PAP / Project-Affected Person
PDO / Project Development Objective
PDU / Procurement and Disposal Unit (UNRA)
PIU / Project Implementation Unit
PPIAF / Public-private Infrastructure Advisory Facility Trust Fund
RAP / Resettlement Action Plan
RCDS / Road Crash Database
RMS / Road Management System
RSDP / Road Sector Development Program
SIL / Specific Investment Loan
TMT / Top Management Team
TSDP / Transport Sector Development Project
TSDMS / Transport Sector Data Management System
UNRA / Uganda National Roads Authority
URF / Uganda Road Fund
URURA / Urban and Rural Roads Authority
Senior Global Practice Director: / Jose Luis Irigoyen
Practice Manager: / Aurelio Menendez
Project Team Leader: / Negede Lewi
ICR Team Leader: / Richard Martin Humphreys/Stephen Muzira
ICR Author: / Peter Freeman
UGANDA
Transport Sector Development Project
CONTENTS
Data Sheet
A. Basic Information
B. Key Dates
C. Ratings Summary
D. Sector and Theme Codes
E. Bank Staff
F. Results Framework Analysis
G. Ratings of Project Performance in ISRs
H. Restructuring (if any)
1. Project Context, Development Objectives and Design
2. Key Factors Affecting Implementation and Outcomes
3. Assessment of Outcomes
5. Assessment of Bank and Borrower Performance
7. Comments on Issues Raised by Borrow/Implementing Agencies/Partners
Annex 1. Project Costs and Financing
Annex 2a. TSDP Outputs by Component
Annex 2b. Operational Risk Assessment Framework
Annex 3. Economic and Financial Analysis
Annex 4. Bank Lending and Implementation Support/Supervision Processes
Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR
Annex 6. List of Supporting Documents
MAP
A. Basic InformationCountry: / Uganda / Project Name: / UGANDA TRANSPORT SECTOR DEVELOPMENT PROJECT
Project ID: / P092837 / L/C/TF Number(s): / IDA-46790, IDA-49490, TF-11094
ICR Date: / 6/5/2017 / ICR Type: / Core ICR
Lending Instrument: / Specific Investment Loan / Borrower: / GOVERNMENT OF UGANDA
Original Total Commitment: / XDR 120.00 million / Disbursed Amount: / XDR 106.96 million
Revised Amount: / XDR 106.96 million
Environmental Category: B
Implementing Agencies:
Uganda National Roads Authority (UNRA)
Co-financiers and Other External Partners:
United Kingdom Department for International Development; Japanese International Cooperation Agency
B. Key Dates
Process / Date / Process / Original Date / Revised / Actual Date(s)
Concept Review: / 02/05/2008 / Effectiveness: / 08/05/2010 / 07/15/2010
Appraisal: / 09/30/2009 / Restructuring(s): / 06/16/2011
05/31/2013
Approval: / 12/10/2009 / Midterm Review: / 06/10/2012 / 05/10/2013
Closing: / 06/30/2014 / 01/31/2016
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: / Unsatisfactory
Risk to Development Outcome: / Substantial
Bank Performance: / Unsatisfactory
Borrower Performance: / Unsatisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank / Ratings / Borrower / Ratings
Quality at Entry: / Unsatisfactory / Government: / Unsatisfactory
Quality of Supervision: / Unsatisfactory / Implementing Agency/Agencies: / Unsatisfactory
Overall Bank Performance: / Unsatisfactory / Overall Borrower Performance: / Unsatisfactory
C.3 Quality at Entry and Implementation Performance Indicators
Implementation Performance / Indicators / QAG Assessments (if any) / Rating
Potential Problem Project at any time (Yes/No): / No / Quality at Entry (QEA): / None
Problem Project at any time (Yes/No): / Yes / Quality of Supervision (QSA): / None
DO rating before Closing/Inactive status: / Unsatisfactory
D. Sector and Theme Codes
Original / Actual
Major Sector/Sector
Public Administration
Public administration - Transportation / 11 / 11
Transportation
Roads and highways / 89 / 89
Major Theme/Theme/Sub Theme
Economic Policy
Trade / 4 / 4
Trade Facilitation / 4 / 4
Private Sector Development
ICT / 14 / 14
ICT Solutions / 14 / 14
Urban and Rural Development
Rural Development / 45 / 45
Rural Infrastructure and service delivery / 45 / 45
Urban Development / 37 / 37
Urban Infrastructure and Service Delivery / 37 / 37
E. Bank Staff
Positions / At ICR / At Approval
Vice President: / Makhtar Diop / Obiageli Katryn Ezekwesili
Country Director: / Diarietou Gaye / John McIntire
Practice Manager/Manager: / Aurelio Menendez / C. Sanjivi Rajasingham
Project Team Leader: / Negede Lewi / Dieter E. Schelling
ICR Team Leader: / Richard Martin Humphreys/Stephen Muzira
ICR Primary Author: / Peter Nigel Freeman
F. Results Framework Analysis
Project Development Objectives (from Project Appraisal Document)
The project development objective is to improve the connectivity and efficiency of the transport sector through: (i) improved condition of national road network; (ii) improved capacity for road safety management; and (iii) improved transport sector and national road management.
Revised Project Development Objectives (as approved by original approving authority)Not applicable.
(a) PDO Indicator(s)Indicator / Baseline Value / Original Target Values (from approval documents) / Formally Revised Target Values / Actual Value Achieved at Completion or Target Years
Indicator 1: / Average vehicle operating costs (US$ per vehicle-km) reduced on the Gulu-Atiak and Vurra-Oraba roads.
Value
quantitative or
qualitative) / US$0.352 / US$0.224 / US$0.224
Date achieved / 07/15/2010 / 06/30/2014 / 01/31/2016
Comments
(including %
achievement) / Fully achieved by 2014. Data based on Highway Development and Management Model, version 4 manual (HDM-4). Note: Kamwenge-Fort Portal added at AF.
Indicator 2: / Travel time on Gulu-Atiak and Vurra-Oraba roads reduced from 2 hours (2009) to 1 hour (2014).
Value
quantitative or
qualitative) / 2 hours / 1 hour / 1 hour
Date achieved / 07/15/2010 / 06/30/2014 / 01/31/2016
Comments
(including %
achievement) / Fully achieved by 2014. Data based on survey by UNRA Directorate of Planning
Indicator 3: / National roads in poor condition reduced from 36% to 15%
Value
quantitative or
qualitative) / 36% / 15% / 22%
Date achieved / 07/15/2010 / 06/30/2014 / 01/31/2016
Comments
(including %
achievement) / Not achieved; target of 15% not reached. Indicator was reworded at AF
“Roads in good and fair condition as a share of total classified roads (percent)”
Indicator 4: / Access of rural population to all season roads in the target areas increased from 64% to 90%
Value
quantitative or
qualitative) / 64% / 90% / 84%
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Partially achieved. Some 4.95 million people to be provided with access to an all-season access road. The final beneficiary estimate was 4.17 million. This indicator was reworded at AF to “Share of rural population with access to an all-season road (percent)”
Indicator 5: / Annual rate of growth of road accident fatalities declines after the National Road Safety Agency (NRSA) becomes operational
Value
quantitative or
qualitative) / 7% / Less than 7% / 4% / -3.2%
Date achieved / 07/15/2010 / 12/31/2014 / 05/14/2011 / 01/31/2016
Comments including % achievement / Though technically achieved, this was not due to the project. The NRSA was turned down by the Cabinet. Road safety campaigns by the police were likely responsible for the decline in road fatalities. Indicator was changed at AF to “Annual rate of road accident fatalities (7 percent)”
(b) Intermediate Outcome Indicator(s)
Indicator / Baseline Value / Original Target Values (from approval documents) / Formally Revised Target Values / Actual Value Achieved at Completion or Target Years
Indicator 1: / Km of road rehabilitated/upgraded
Value
quantitative or
qualitative) / 0 km / 159 km / 225 km / 166 km
Date achieved / 07/15/2010 / 12/31/2014 / 05/14/2011 / 01/31/2016
Comments
(including %
achievement) / Not achieved at closure. Original target of 159 km exceeded with additional 7 km of road through Arua town. However, works on the 66 km Kamwenge to Fort Portal road only 49% complete when the Credit was cancelled. Since then the road has been completed and the target met, using Government of Uganda funding.
Indicator 2: / National Road Safety Authority (NRSA) created and operational
Value
quantitative or
qualitative) / Road Safety managed by Government Department / NRSA established and operational / NRSA creation turned down by Cabinet
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Not achieved. Although the road safety policy statement was agreed, Cabinet turned down the creation of NRSA in November 2014 due to insufficient information.
Indicator 3: / Crash database established and operational
Value
quantitative or
qualitative) / Crash database not yet established / Database established and fully operational / Database established
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Achieved. Database established, made functional and tested in the pilot regions. Data collected from other regions still to be put in system manually
Indicator 4: / Detailed design and bidding documents for phase 1 bus rapid transit system prepared
Value
quantitative or
qualitative) / Design and bidding documents not prepared / Documents completed and approved / Documents completed and approved
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Achieved. Designs and reports approved by a technical committee and by stakeholders at a workshop.
Indicator 5: / Framework for Metropolitan Area Transport Authority (MATA) prepared
Value
quantitative or
qualitative) / No framework in place / Framework drafted and approved / Framework drafted, but not yet approved
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Partially achieved. Framework drafted and received financial clearance, but yet to be approved by Cabinet.
Indicator 6: / Transport Policy Updated
Value
quantitative or
qualitative) / Policy not updated / Policy updated and approved / Policy drafted, but not yet approved
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Partially achieved. Revised policy drafted and amended, but financial clearance requested before presentation to the Cabinet.
Indicator 7: / Traffic and Road Safety Act Legal framework updated
Value
quantitative or
qualitative) / Legal framework not updated / Legal framework amendment agreed by management / Legal framework drafted, but yet to be legislated
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Partially achieved. Work done by consultant deemed unsatisfactory and amendment drafted in-house.
Indicator 8: / Transport Sector Data Management System (TSDMS) established
Value
quantitative or
qualitative) / No TSDMS / TDMS established / TDMS established and operational
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Achieved. System is operational and Ministry now produces an Annual Sector Performance Review
Indicator 9: / Multisector Transport Regulatory Authority (MTRA) established
Value
quantitative or
qualitative) / No MTRA / MTRA established and functioning / Cabinet did not approve
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Not achieved. The draft Bill was not approved. The Cabinet was reluctant to create new institutions and MoWT determined it would only prioritize the establishment of NRSA and MATA
Indicator 10: / District, Urban and Community Access Roads (DUCAR) agency established
Value
quantitative or
qualitative) / No DUCAR agency / DUCAR agency established and operational / DUCAR not established
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Not achieved. Despite agreement from stakeholders in districts, municipalities and town councils, the request to clear the financial implications of the agency has not been responded to and it has not been submitted to Cabinet.
Indicator 11: / UNRA share of administrative costs as part of overall budget is less than 5%
Value
quantitative or
qualitative) / Not available / less than 5% / Less than 5 percent
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Achieved. After the restructuring of UNRA by the Board, Ministry of Finance, Planning and Economic Development accepted an increase in the wage bill starting July 2015
Indicator 12: / UNRA Management Information System (MIS) established including red flag system
Value
quantitative or
qualitative) / No system / System in place / System in place
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Partially achieved. A Contract Management System is in place, but not yet fully functional. A review to improve functionality is ongoing.
Indicator 13: / Average time deviation from procurement plan
Value
quantitative or
qualitative) / Not done / Less than 10% / Not available
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Not achieved. UNRA could not provide this information, due to the restructuring of the institution.
Indicator 14: / Annual Customer Satisfaction Survey to be instituted
Value
quantitative or
qualitative) / Not done / Done / Done
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / Achieved. Carried out by the Uganda Road Fund
Indicator 15: / Capacity (number of staff) of Internal Audit Unit of UNRA increased to carry out technical audits
Value
quantitative or
qualitative) / 6 / 14 / 7
Date achieved / 07/15/2010 / 12/31/2014 / 01/31/2016
Comments
(including %
achievement) / This indicator was added when the AF was approved. It was not achieved during the life of the project.
G. Ratings of Project Performance in ISRs
No. / Date ISR
Archived / DO / IP / Actual Disbursements
(US$, millions)
1 / 04/30/2010 / Satisfactory / Satisfactory / 0.00
2 / 12/12/2010 / Satisfactory / Satisfactory / 0.00
3 / 07/27/2011 / Satisfactory / Moderately Satisfactory / 4.00
4 / 02/05/2012 / Satisfactory / Moderately Satisfactory / 10.09
5 / 07/07/2012 / Satisfactory / Moderately Satisfactory / 31.93
6 / 01/03/2013 / Satisfactory / Moderately Satisfactory / 31.93
7 / 07/21/2013 / Moderately Satisfactory / Moderately Unsatisfactory / 67.53
8 / 01/28/2014 / Moderately Satisfactory / Moderately Unsatisfactory / 100.57
9 / 08/04/2014 / Moderately Unsatisfactory / Unsatisfactory / 113.09
10 / 02/24/2015 / Moderately Satisfactory / Moderately Unsatisfactory / 123.25
11 / 08/17/2015 / Moderately Satisfactory / Moderately Unsatisfactory / 175.92
12 / 02/18/2016 / Unsatisfactory / Unsatisfactory / 175.92
H. Restructuring (if any)
Restructuring Date(s) / Board Approved PDO Change / ISR Ratings at Restructuring / Amount Disbursed at Restructuring in US$, millions / Reason for Restructuring & Key Changes Made
DO / IP
06/16/2011 / S / MS / 4.00 / Additional Financing: Inclusion of Kamwenge - Fort Portal Road, strengthening of UNRA Internal Audit Unit and extension of closing date by one year to 01/31/2016.
05/31/2013 / S / MS / 44.27 / Reallocation of amounts
- Disbursement Profile
1
This Implementation Completion and Results Report (ICR) for the Uganda Transport Sector Development Project has a unique significance in that it highlights issues where an overly complex project was designed in a manner that was incompatible with the available capacity in Government. The project was restructured, and additional finance provided, to add a road section that was not initially identified as challenging from a safeguards point of view, despite the fact that it presaged a considerable influx of labor to a poor rural area, where there were also some systemic social issues, without any attempt to appropriately manage the adverse impacts on the affected communities. This resulted in a complaint to the Inspection Panel and acknowledgement by World Bank management that there were serious weaknesses in the preparation, implementation and supervision of the project. The contractor failed to rectify shortcomings on a range of issues that impacted the communities, and the World Bank first suspended disbursements and then took the exceptional step of cancelling the Credits. Following these events, the World Bank carefully reviewed its entire portfolio of similar projects, the way it considers environmental and social issues in project design and implementation, and its Standard Bidding Documents to improve environmental and social provisions in contracts for both civil contractors and supervising engineers. It also issued guidelines for staff on managing the risks of adverse impacts on communities from a temporary project-induced influx of labor. Particular attention has been given in this ICR to the lessons learned from these events.
1. Project Context, Development Objectives and Design
1.1 Country Context
- Uganda is a landlocked country in East Africa bordered by the Democratic Republic of Congo (DRC), Kenya, Rwanda, South Sudan, and Tanzania. It has a rapidly growing population of 34.6 million people, with 55 percent under 18 years of age.[1] Uganda is classified as a low-income country and in 2015 had a gross domestic product (GDP) per capita of US$670.[2] However, the country has substantial natural resources, including fertile soils, regular rainfall and sizeable mineral deposits of copper and cobalt. More recently, reserves of both crude oil and natural gas have been discovered. Coffee is an important export commodity, but over 80 percent of the population live in rural areas and are reliant on subsistence agriculture.
- Following independence from Britain in 1962, Uganda sporadically experienced unrest and conflict. Corruption and human rights issues have also caused concern among development partners (DPs), and this has hampered the investment climate. On the other hand, the United Nations Refugee Agency reported that in 2015 Uganda was hosting over half a million refugees mostly from South Sudan, Burundi and the DRC. It recognized that Uganda has a progressive policy toward such people, providing land, protection and the right to be employed or run a business.[3]
- Beginning around 2009, exogenous shocks, including the global economic crisis and surges in international commodity prices, negatively affected the country’s growth rate. Other issues reinforced this situation—primarily a lower export performance, adverse weather conditions, declining development aid, as well as high inflation. A subsequent tightening of monetary policy reduced GDP growth to 3.4 percent in 2012, down from the 7 to 8 percent range in 2008 and the earlier years in the decade.[4] Nevertheless, Uganda was able to surpass the 2015 Millennium Development Goal of halving the poverty rate.[5] The share of the population living below the poverty line declined from 35 percent in 2001 to 22 percent by 2013. This trend has been attributed in part to a diversification of economic activity away from an over-reliance on farm activities in favor of nonfarm household enterprises.[6]
1.2 Sector Context