Language: English

Original: English








PROJECT: COMMUNITY AGRICULTURAL INFRASTRUCTURE
IMPROVEMENT PROGRAMME PROJECT 2 (CAIIP-II)
COUNTRY: UGANDA

PROJECT APPRAISAL REPORT
Date: 8 August, 2008






Appraisal Team
Team Leader: : Alex Mend, Principal Agronomist, OSAN.1
Team Members: J ustus Kabyemera, Senior Agricultural Economist, OSAN.1,
Yasser Ahmad, Senior Financial Analyst, OSAN.1,
Leon Sanchez, Principal Agro-Industry Expert, OSAN.1,
Asaph Nuwagira, Agriculture and Rural Development Specialist, UGFO),
Emmanuel Yamoah, Consultant Infrastructure Specialist.

Sector Manager: Chiji Ojukwu, OSAN.1
Sector Director: Aly Abou-Sabaa, OSAN
Regional Director: Aloysius Ordu, OREA


Peer Reviewers

Mumina Wa-Kyendo, Principal Transport Engineer, OINF.2; Wycliffe Hara, Principal
Agricultural Economist, OSAN.1; Gisela Giesler, Senior Gender Specialist, OSHD


TABLE OF CONTENTS
1


I STRATEGIC THRUST & RATIONALE.........................................................................1
1.1 Project Linkages with Country Strategy and Objectives...........................................1
1.2 Rationale for Banks Involvement.............................................................................1
1.3 Donor Coordination 2
II PROJ ECT DESCRIPTION..............................................................................................3
2.1 Project components....................................................................................................3
2.2 Technical Solutions Retained and Other Alternatives Explored...............................3
2.3 Project Type 3
2.4 Project Cost and Financing Arrangements...............................................................4
2.5 Projects Target Area and Population........................................................................5
2.6 Participatory Process for Project Identification, Design and Implementation...........5
2.7 Bank Group Experience, Lessons Reflected in Project Design.................................5
2.8 Key Performance Indicators......................................................................................6
III PROJ ECT FEASIBILITY ..............................................................................................6
3.1 Economic and Financial Performance.......................................................................6
3.2 Environmental and Social Impacts............................................................................6
IV IMPLEMENTATION.....................................................................................................8
4.1 Implementation Arrangements..................................................................................8
4.2 Monitoring..............................................................................................................11
4.3 Governance..............................................................................................................11
4.4 Sustainability. 12
4.5 Risk Management 12
4.6 Knowledge Building 12
V LEGAL INSTRUMENTS AND AUTHORITY............................................................13
5.1 Legal instrument......................................................................................................13
5.2 Conditions Associated with Banks Intervention...................................................13
5.3 Compliance with Bank Policies..............................................................................13
VI RECOMMENDATION................................................................................................13

Appendix I. Socioeconomic Indicators...............................................................................14
Appendix II. Table of ADBs portfolio in Uganda...............................................................15
Appendix III. Key related projects financed by the Bank and other Development Partners in
Uganda 16
Appendix IV. Map of the Project Area.................................................................................18
Appendix IV a) Number of Districts and Sub-Counties to be covered under CAIIP-II
(Northern and Eastern Districts) 19
Appendix IV b) Districts and Additional Sub-Counties in CAIIP-I Districts to be covered
under CAIIP-II (Central and Eastern Districts)20


1
Technical Annexes are contained in the Project Implementation Document (PID). These include the
detailed cost tables, implementation modalities, disbursement and procurement processes, project
feasibility, including economic and financial analysis. This report will be used jointly with the PID and
the Project Preparation Report.



i
Currency Equivalents
As of June 2008

Currency Unit = Ugandan Shillings (UGX)
UA 1 = UGX 2,730.95
UA 1 = USD 1.62069

Fiscal Year
July 1 June 30

Weights and Measures

1 metric 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

AAMP : Area-based Agricultural Modernization Programme
ADF : African Development Fund
AWPB : Annual Work Plan & Budget
CAIIP : Community Agricultural Infrastructure Improvement Programme
DP : Development Partners
GoU : Government of Uganda
IFAD : International Fund for Agricultural Development
MoFPED : Ministry of Finance, Planning and Economic Development
MOLG : Ministry of Local Government
MoWT : Ministry of Works and Transport
NAADS : National Agricultural Advisory Services
NCB : National Competitive Bidding
NSADP : Northwest Smallholder Agricultural Development Project
PEAP : Poverty Eradication Action Plan
PMA : Plan for Modernisation of Agriculture
PFT : Project Facilitation Team
UJAS : Uganda Joint Assistance Strategy
WB : World Bank



ii
Loan Information
Clients information

BORROWER: Government of Uganda

EXECUTING AGENCY: Ministry of Local Government


Financing plan

Source Amount (UA) Instrument

ADF LOAN

UA 45.00 million

Project Loan
Government UA 5.11 million Equity
Recipient Communities UA 0.81 Equity
TOTAL COST UA 50.92 million


ADBs key financing information


Loan currency

UA
Interest type* N/A
Interest rate spread* N/A
Commitment fee* 0.5%
Other fees* 0.75% Service Charge
Tenor 600 months
Grace period 120months
FIRR, NPV (base case) B/C=1.56;NPV
UGX347.8 million
EIRR (base case) 30%

*if applicable
Timeframe - Main Milestones (expected)


Concept Note approval

April, 2008
Project approval September, 2008
Effectiveness March, 2009
Last Disbursement December, 2014
Completion J uly, 2014
Last repayment 50 years; December,
2064




iii
Project Summary

1.1 Project Overview: The proposed Community Agricultural Infrastructure Improvement
Programme Project 2 (CAIIP-II) will cover 15 districts in Northern and Eastern Uganda in 65
sub-counties. In addition, it will also cover another 26 districts in CAIIP-I areas in 32 sub-
counties. The project consists of three components with the following outputs: (i) Rural
Infrastructure Improvement (ii) Community Mobilization and (iii) Project Management. The
project duration is 5 years commencing from year 2009. Total project cost is estimated at
UA50.92 million with Bank share of UA45.0million (88.4%) and Government contribution
of UA5.11million (10%), while the local communities will contribute UA0.81million (1.6%).

1.2 The project will benefit a population of 5.3 million from 1.02 million households (or
18.5% of the 2007 national projected population). It is expected to increase the volume of
agricultural produce marketed by 45% and increase household incomes by 50% at
completion. The project will be implemented by the districts and sub-counties with oversight
from the Project Facilitation Team (PFT). The beneficiary communities will participate in the
prioritization of infrastructure which will be most beneficial to them while their capacity will
be improved through training and equipping them with tools to enable their effective
management of operations and sustainable maintenance of the infrastructure investments.

1.3 Needs Assessment: The overall concept and actualization of CAIIP was borne
through the Banks review of Ugandas agriculture and rural sector in 2005. The review
recommended increased investment in community agricultural infrastructure within the
framework of the Programme for Modernization of Agriculture (PMA) Pillars where major
financing gaps had been identified. CAIIP-2 is among the many initiatives that are geared
towards enhancing development in the North with particular focus on restoring the
agricultural potential and food security of the region which has been affected by armed
conflict for the past 20 years. All socio-economic indicators in Northern Uganda are well
below the national average and the Government would like to address this development
anomaly in a comprehensive manner and in the shortest time possible. The project will also
complement other Government programmes, especially the National Agricultural Advisory
Services (NAADS) in increasing production.

1.4 Banks Added Value: The Banks comparative advantage and added value to finance
this project emanates from its accumulated experience acquired through successful
implementation of its large agricultural portfolio in Uganda. The Bank financed operations
include agricultural infrastructure projects such as the Area-based Agricultural Modernization
Programme (AAMP), the Northwest Smallholder Agricultural Development Project
(NSADP) and CAIIP-1. The findings of the AAMP Impact Study (May 2008) are indicative
of the direct relationship between investments in rural roads improvement and the increase in
production and marketing of agricultural produce; hence increased incomes among the rural
communities. These attributes have been well articulated into the design of CAIIP-2.

1.5 Knowledge Management: The knowledge gained through the implementation of
similar 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 will inform the stakeholders on how to put the acquired knowledge attributes into
practical use for better results-oriented achievements.



iv
Results-Based Logical Framework
UGANDA COMMUNITY AGRICULTURAL INFRASTRUCTURE IMPROVEMENT PROGRAMME -PROJECT II (CAIIP-II)
INDICATIVE TARGETS TIMEFRAME/
Existence of Baseline
HIERARCHY OF OBJECTIVES EXPECTED RESULTS
AND THEME
REACH
(TARGET
POPULATION)
PERFORMANCE
INDICATORS
Baseline Target
ASSUMPTIONS AND RISKS
Goal
1. Contribute to poverty reduction and
economic growth in Uganda through
enhanced commercialization of agriculture.
Impacts
1.1 Agricultural production increased

1.2 Average household income
increases
Local Communities as a
whole

Population reached is 5.3
million
Volume of agricultural
produce marketed increased

Better prices of farmproduce
obtained
Volume of agricultural produce
marketed increased 45% by PY5
Average household income
increases 50% by PY 5
i) GOU maintains political stability,
maintains security and adheres to e to
policy.
ii) District staff may not be sufficiently
motivated
iii) Thecommunities may not maintain the
infrastructural facilities
Project Purpose:
Increasefarmers incomes through
investments in rural infrastructures and
their sustainable management by well
mobilized communities
Project Outcomes
1. Volume of staples marketed in
Project areaby smallholders increased
2. Post harvest losses reduced and
quality and prices increased
3. Increasein income of rural farmers
participating in project, especially
women
1. Communities in each of the
97 participating sub-counties
(CAIIP-I and CAIIP-II)
2. Women groups in project
area
3. Adjoining sub-counties
1. % increase of staples
marketed
2. % reduction in post-harvest
losses
3. % increase of agricultural
produce marketed, as % of
total production,
4. % increase in farmers
share of themarket price
4. increase in number of
women involved in marketing





Agricultural produce
marketed, as % of total
production, 20% (2003)
1. Marketed staples increased by at
least 20% by PY5
2. 40% reduction in post-harvest
losses by PY5
3. Agricultural produce marketed
increased 60/70% in the project
areas
4. Farmers share of the market
increased by 20% by PY5
5. 70% of market stall operators
and agro-processing are women
GOU continues to follow its current
PEAP, PMA and Decentralization policies
and assures their adequate funding


Activities
A. Rural InfrastructureImprovement
Component Cost : UA 36.151 million

1. Support to Rural road improvement

2. Support to Sub-county Market Structures
+Agro-Industry services

3 Rural electrification for markets

B. Community Mobilization
Component Cost: UA 2.114 million

C. Project Management
Component Cost : 2.287 million
Project Outputs
1. District and Community Roads
rehabilitated and maintained

2. Market structures constructed and
maintained

3. Agro-processing units installed and in
use

4. Increased access to market
information and new skills, especially
for women groups

5. Timely and problemfree
implementation

6. Maintain operations within budget

Rural households in 97
participating sub-counties in
the 13 Districts in the North
and 28 Districts in Central and
East

Farming population in project
area

District and community staff

ResponsibleUnit in Sub-
counties and Districts for
overseeing themarkets

1. Length of feeder and
community access roads
rehabilitated
2. Number of market places
constructed;

3. Number of agro-processing
and storage equipment
installed.

4. Number and types of
power sources installed in the
markets
5. Project implemented on
time

1. 225 km of district roads and
4365 km of community access
roads rehabilitated by PY5
2. 97 Market places constructed;
3. 56 rice hullers; 97 grain mills; 28
honey extractors, 14 peanut past
machines, 10 tomato pulpers, 56
cassava chipping machines, 97
produce stores, 22 milk coolers; 28
peanut crackers and 65 cold rooms
4. 97 Solar; 97 Diesel; and energy
from 20km of grid extension.
provided
5. No slippageon project
performance and timely audit
report submissions
Timely Project management at both PFT
HQ and participating districts

Adherence to transparent procurement and
fiduciary practice

Districts and Sub-counties commitment
to theprogramme activities

Staff of relevant calibre available recruited
& motivated

Coordinating ministries committed to
project implementation through IPC
Source of Funds (UA Million):
ADF 45.00
GoU 5.113
Beneficiaries 0.808
Total 50.922
6. Number of women
members of
Infrastructure
Management Committee
6. Women make up 30% of
the IMC




v
PROJECT TIME FRAME (July 2009 December 2014)





1
REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE ADB GROUP TO THE
BOARD OF DIRECTORS ON A PROPOSED LOAN/GRANT TO UGANDA FOR THE
COMMUNITY AGRICULTURAL INFRASTRUCTURE IMPROVEMENT
PROGRAMME PROJECT 2 (CAIIP-II)

Management submits the following Report and Recommendation on a proposed loan for UA
45 million on ADF terms to finance the Community Agricultural Infrastructure
Improvement Programme Project-2 (CAIIP-II) in Uganda

I STRATEGIC THRUST & RATIONALE
1.1 Project Linkages with Country Strategy and Objectives

The CAIIP is consistent with the second Pillar of the third Poverty Eradication Action Plan
(PEAP 2005/ 2008 and extended to 2009) Enhancing production, competitiveness and
incomes. The Project is also well aligned with the seventh Pillar of the Plan for
Modernization of Agriculture (PMA - 2000) Physical Infrastructure, with emphasis on
improvement of rural roads and markets. The PMA is the strategy and operational framework
for the PEAP for modernizing the agricultural sector. The project is rooted in the Uganda
J oint Assistance Strategy (UJ AS, 2005/06 to 2008/09), the harmonized business plan of the
Development Partners (DPs) in Uganda, which is focused towards implementing the Pillars
of the PEAP. Hence the Pillars of the UJ AS and the PEAP are similar and mutually
supportive. The improvement of rural roads will contribute to the implementation of the
countrys 10-Year District, Urban and Community Roads Investment Plan (DUCARIP
2001 to 2011), which derives from the PEAP and aims to facilitate movement of agricultural
produce from rural households to rural and urban markets, as well as providing access to
social services for the rural population. The project will also complement other Government
programmes especially the NAADS in increasing production.
1.2 Rationale for Banks Involvement

The Bank has a large agricultural portfolio in Uganda with considerable accumulated
experience in the Sector. Congruent to Governments policy shift from conventional
production oriented to market oriented agriculture through infrastructural development, the
Bank in 2000 and 2001 financed two agricultural infrastructure projects, namely AAMP, and
NSADP. The Banks review of Ugandas agriculture and rural sector carried out in 2005
recommended investment in community agricultural infrastructure where major financing
gaps were found to exist under the Pillars of the PMA, particularly in respect to infrastructure
for access to markets and agro-processing. The Government conceived the CAIIP initiative to
extend on a wider scale the successful results and impacts coming from the AAMP and
NSADP. The Bank funded the first project (CAIIP-I within the limits of available resources
with co-financing from IFAD. CAIIP-II is therefore a roll-over from CAIIP-I. By supporting
the implementation of CAIIP-II, the Bank will have contributed to the development of the
Northern region of Uganda, which was adversely affected by the armed conflict for the past
20 years.

The project also augurs well with the Banks response to address the current food crisis in
Africa in the medium term, through the enhancement of agricultural production and
productivity by investing in rural infrastructure. The Banks comparative advantage and
added value derives from its cumulative experience and positive achievements from
implementing rural infrastructure projects within its large agricultural portfolio in Uganda.



2

Project Objective: The overall sector goal of the project is to contribute to poverty reduction
and economic growth in Uganda through enhanced commercialization of agriculture. Its
specific objectives are to enhance farmers access to markets, attract competitive prices and
increased incomes through improvements in rural infrastructures and their management by
well mobilized communities.

1.3 Donors Coordination

Size

Sector or subsector*
GDP Exports Labor Force
Agricultural Sector 26.5% 90% 71%
Players - Public Annual Expenditure (average 2003/2004 to 2006/2007)**
Government Donors
UA m UA 22.7 m UA 25.9 m

AfDB 19.9%
% 46.7% 53.3% IDA 18.3%
IFAD 17.4%
Danida 14.1%
USAID 12.2%
EC 6.3%
DfID 5.2%
Italy 3.1%
FAO 2.0%
J ICA 1.5%
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 sub-sector
**** L: leader, M: member but not leader, none: no involvement

Comments on Donor Coordination:

The Bank is the lead Development Partner in the agricultural sector in Uganda, with a share
of about 19.9% of total financing. In undertaking its agricultural portfolio, the Bank
collaborates with other Development Partners, especially IFAD and the EU. In an effort to
harmonize Development Partner intervention in the sector, the Bank has partnered with the
other DPs in the formulation of the UJ AS
2
to support the GoU to realize its PEAP outcome
targets. The UJ AS was drawn in realization of the DPs comparative advantage in choice of
sectors and performance in the delivery of development support. An Agricultural Sector
Working Group comprising of representatives of Government Officials and Development
Partners has been revitalized and tasked, with increased focus sector support programming of
which the Bank Group is represented by its Field Office.



1. Germany, Norway, TheNetherlands, Sweden, United Kingdom, World Bank AfricaRegion, IFC Sub Saharan Africa Department, Multinational
Investment Guarantee Agency.



3
II PROJECT DESCRIPTION

2.1 Project components

Table 2.1: project components

No. Component name Est. cost
(UA) million
Component description

1. Rural Infrastructure 45.74 Improvement of Rural Roads
Markets, Agro-Processing Units and Storage
Facilities, and Energy for Markets
2. Community
Mobilization
2.49 Community Sensitization
Capacity Building
3. Programme
Management
2.69 Technical Support
Monitoring and Evaluation
Financial Management
2.2 Technical Solutions Retained and Other Alternatives Explored

The approach to this project supports a shift from traditional agricultural production oriented
investment to one in rural infrastructure improvements, as a catalyst for enhancing market
competitiveness and incomes. The technical solutions considered for the provision of the
infrastructure are simple and locally available and is based on the achievements and lessons
learnt from the infrastructure completed under the Bank-funded Area-Based Agricultural
Modernisation Programme (AAMP). Initially, it was proposed to construct markets
separately from agro-processing facilities, but, after considering the synergetic and added-
value effect, an integrated unit combining all the facilities in one location was adopted as an
innovative approach. This offers flexibility to farmers to decide on the form in which to sell
their produce depending on the available technologies and profitability levels. The other
innovation is that the markets will be leased to private operators rather than run by the sub-
counties.

Table 2.2: Project Alternatives Considered and Reasons for Rejection

Alternative name Brief description

Reasons for rejection

Water for
Production
Dams and Irrigation Already covered by other Bank funded projects
such as Farm Income

Ferry transport Supply and Operation of Ferry for
lake districts for easy transportation
in lieu of road improvement.
Project is for infrastructure improvement. GoU
has agreed to finance the purchase of the ferry
under a different programme.

2.3 Project Type

This is a stand-alone operation, which will be implemented as an individual project. This
design was deemed to be the most amenable being a derivative of AAMP and roll out of
CAIIP-I. The project has specific outputs and key performance indicators that shall be
monitored on a regular basis. The adopted design lends itself to accomplishing this objective
more effectively.



4
2.4 Project Cost and Financing Arrangements

The total project cost, including price contingencies (6% domestic and 2.5% foreign) and
physical contingencies (10%), but excluding duties and taxes, is estimated at UA 50.92
million of which UA 23.67 million (46%) is in foreign exchange and UA 27.25 million
(54%) in local costs. These costs will be covered by an ADF loan of UA 45.00 million and
GoU and local communities contributions of UA 5.11 million (in kind contribution in
addition to taxes and duties) and UA 0.81 million respectively. Standard conditions
applicable to ADF Loan Agreements shall apply for loan effectiveness. Specific conditions
for first disbursement include the opening of Special Account at the Bank of Uganda in
which to deposit transfers from the Bank for project operations and provision of a letter of
comfort with regards to Government ownership of land for the construction of infrastructure
works. These will ensure smooth commencement of the project and the GoU has agreed to
them. Adequate resources are available under the current country allocation for the project.

Table 2.3: Project cost Estimates by Component (000s)
(UA '000)
Local Foreign Total
% Foreign
Exchange
% Total
Base Costs
Rural Infrastructure Improvement 19,053.0 17,098.0 36,151.0 47 89
Community Mobilization 772.6 1,341.5 2,114.0 63 5
Project Coordination & Facilitation 649.5 1,637.9 2,287.4 72 6
Total Base Costs 20,475.1 20,077.4 40,552.4 50 100
Physical Contingencies 1,565.9 1,729.5 3,295.4 52 8
Price Contingencies 5,212.4 1,862.0 7,074.4 26 17
Total 27,253.4 23,668.8 50,922.2 46 126

Table 2.4: Sources of Finance

UA'000
Source F.E Local Currency Total %Total
ADF 23,668.8 21,331.2 45,000.0 88.4
GOU - 5,113.4 5,113.4 10.0
Beneficiaries - 808.8 808.8 1.6
Total 23,668.8 27,253.4 50,922.2 100.0

Table 2.5: Project Cost by Category of Expenditure ('000)




















(UA '000) % Foreign Base
Local Foreign Total Exchange Costs
I. Investment Costs
A. Civil Works 12,824.2 8,549.5 21,373.7 40 53
B. Vehicles 19.8 178.6 198.5 90 -
C Motorcycles 20.3 183.1 203.4 90 1
D. Equipment 606.4 5,492.1 6,098.5 90 15
E. Materials and Input 21.3 32.0 53.3 60 -
F. Technical Assistance 79.5 696.0 775.5 90 2
G. Studies and Supervision 270.2 1,245.7 1,515.9 82 4
H. Training and Capacity Building 591.8 887.8 1,479.6 60 4
I. Cross-Cutting Issues 73.9 295.6 369.5 80 1
J. AUDIT - 91.5 91.5 100 -
Total Investment Costs 14,507.6 17,651.8 32,159.4 55 79
II. Total Recurrent Costs 5,967.5 2,425.6 8,393.1 29 21
Total BASELINE COSTS 20,475.1 20,077.4 40,552.4 50 100
Physical Contingencies 1,565.9 1,729.5 3,295.4 52 8
Price Contingencies 5,212.4 1,862.0 7,074.4 26 17
Total PROJECT COSTS 27,253.4 23,668.8 50,922.2 46 126



5

Table 2.6: Expenditure Schedule by Components including Contingencies (UA'000)

2.5 Projects Target Area and Population

The project target area will cover 15 districts in Northern and Eastern Uganda in 65 sub-
counties. In addition it will also cover another 26 districts in CAIIP-I areas in 32 sub-
counties. It covers about 32.3% of Ugandas total land area with a population of about 5.3
million (2002 census projections) belonging to 1.02 million households (about 18.5 percent
of the 2007 national projected population). The main direct beneficiaries of the project will
include mainly smallholder farmers and the community at large, including traders, vehicle
owners and market operators and contractors. The project will increase the volume of agricultural
produce marketed by 45% and increase household incomes by 50%.
2.6 Participatory Process for Project Identification, Design and Implementation

The process was triggered by an Economic and Sector Work/Agriculture and Rural Sector
Review undertaken by the Bank in 2005 and concluded with a stakeholders consultative
workshop in February 2006. This was immediately followed by a tripartite meeting of the
GoU, Development Partners in the Agriculture Sector and the Bank. Both the preparation and
appraisal missions consulted a wide spectrum of stakeholders, including central and local
government officials, development partners, the private sector service providers; and project
beneficiaries in the respective districts and sub-counties. A stakeholders workshop was also
held to discuss and agree on the activities and coverage of the project.
2.7 Bank Group Experience, Lessons Reflected in Project Design

Pertinent lessons have been drawn from ADBs current and past agricultural portfolio,
especially from AAMP, NSADP and CAIIP-1, as well as those of other DPs. Most relevant
are those from the AAMP, whereby a recent Impact Study of the Project (May 2008) found
out that: (i) There is a direct relationship between the rehabilitation/construction of rural
roads and the increase in production and marketing of agricultural produce; and hence
increased incomes; (ii) The participation of project beneficiaries during project preparation
and labour incentives facilitate rehabilitation of roads at the community level; (iii) Adequate
budgetary allocations at district and sub-county levels is necessary for sustainable
maintenance of rehabilitated roads. These have been duly reflected in the project design and
include: (i) broad client involvement in priority setting; (ii) decentralisation of the
procurement of works; (iii) selection of qualified and committed programme staff; and (iv)
involvement of Development Partners from the outset of project design to elicit buy-in,
support and creation of synergies with on-going development initiatives.
Financial control, delays in financial transaction and reporting has been a challenge in past
projects. This is being addressed by ensuring the training of district accountants on financial
2009 2010 2011 2012 2013 Total
Rural Infrastructure Improvement 7,845.7 8,495.6 10,480.5 10,933.4 7,987.5 45,742.8
Community Mobilization 1,152.2 306.5 318.6 348.7 362.7 2,488.7
Project Coordination & Facilitation 604.1 418.4 453.7 679.7 534.8 2,690.7
Total PROJ ECT COSTS 9,602.1 9,220.5 11,252.8 11,961.8 8,885.1 50,922.2



6
management and control systems to enable them to undertake the requisite financial
accounting in a timely and efficient manner.

2.8 Key Performance Indicators
The Key Performance Indicators (KPIs) will include:

(i) Attained reach of 5.3 million people
(ii) The volume of agricultural produce marketed to increase by 60%;
(iii) Share of market price by farmers to increase by 20%;
(iv) Length of rural roads rehabilitated (225 km of district roads and 4365 km of
community access roads);
(v) 97 market places constructed, and equipped with storage capacity, agro-
processing equipment installed (56 rice hullers; 97 grain mills; 28 honey
extractors, 14 peanut past machines, 10 tomato pulpers, 56 cassava chipping
machines, 97 produce stores, 22 milk coolers; 28 peanut crackers and 65 cold
rooms), and power supply installed (97 Solar; 97 Diesel; and energy from
20km of grid extension. provided)
(vi) Level of timeliness in project implementation achieved (to operate within the
permitted 10% slippage in timing of project activities).


III PROJECT FEASIBILITY
3.1 Economic and Financial Performance
Table C.1: key economic and financial figures

NB: detailed calculations are available in Annex B6

The underlying assumptions for economic viability are: (i) The effects of the Programme in
economic terms are estimated over a 20 year period; (ii) All duties, taxes, price and physical
contingencies were excluded in the calculations; (iii) All investments in social services i.e.
within the framework of the Community Development component, is excluded from the
economic analysis as it is difficult to quantify; and (iv) Local costs have been shadow prices
using a standard deviation factor (SCF) of 0.9 at an inflation rate of 7%. (For more details, see
Annex B.7).
3.2 Environmental and Social Impacts
Environment

The Project is classified as Category 2, as the site specific environmental and/or social
impacts can be minimized by the application of mitigation measures.

On the positive side, the roads improvement will lead to improved transportation services,
which in turn will result in better access to health centres and improved delivery of social
services, travel time savings and an increase in the volume of trade and commercial activities.

On the negative side, there is air and noise pollution, occupational health and safety risks,
increased transmission of HIV/AIDS and STDs, and temporary disturbance during
FIRR, NPV (base case) B/C=1.56 ;NPV=UGX347.8 million
EIRR (base case) 30%



7
construction and operation phases. Increased run-off, erosion of embankments with resulting
wetland/river sedimentation, induced deforestation and loss of water catchments areas are
potential negative impacts during the operational phase. The National Environmental
Management Authority (NEMA) will review and, if satisfied, provide a Certificate of
Approval of EIA for the Annual Work Plan (AWP) to Ministry of Local Government
(MoLG) with conditions of approval for environmental mitigation measures identified for
each sub-project. In addition, environmental remediation measures around the rural
infrastructures, particularly feeder and community roads (tree planting, grass, etc.); and
environmental sensitization measures at the sub-counties level by the DEO will be provided.

Climate Change

In recent years, some districts in the project area have experienced unusual climatic changes
resulting into occasions of flash floods, especially in low/flat plains. These have had serious
effects on the road infrastructure curtailing transport and movement between districts. The
design of the project has taken this aspect into consideration, particularly for the feeder and
community roads that will be constructed under the project. This will include ensuring use of
quality/certified construction materials, raising the height/camber of the district/feeder roads
to facilitate easy drain of rain water off the road surface; installing sizable culverts and
drains; and institution of a robust road maintenance plan.
Gender

The project will promote gender relations and interaction through a number of initiatives that
have been included in the design of the project. The improvement of the feeder and
community roads and the construction of markets and installation of agro-processing
facilities will positively affect the structure, quality of working conditions and volume of
business undertaken by women. It is expected that women will constitute around 70% of
operators of market stalls and agro-processing and about 30% of the membership of
Infrastructure Management Committees. Women participating as members of the labour
gangs (at least 50%) will be remunerated in accordance with the amount of work completed.
The added income would facilitate a better livelihood, including an improvement in the
health of women and children at the household level. There are no direct negative impacts on
gender as a result of project implementation. However, the presence of male labour gangs
during the construction phase of the infrastructure and influx of traders from urban centres
after their completion and their interaction with local communities could increase the
incidence of communicable diseases, including HIV/AIDS and STDs in the project areas.
Social

The project is geared to alleviating poverty among the project beneficiaries. This objective will
be attained through enhanced economic activity and access to markets as well as value addition
to agricultural commodities. With enhance market access and better prices being offered for
agricultural commodities, more rural people will be attracted to engage in agricultural
production; hence reduce the incidence of poverty with a reasonable distribution of wealth
among the beneficiaries. Some of the most pertinent social benefits will include improved access
to healthcare facilities, schools and the overall monetisation of the rural communities through
growth of markets, new businesses and economic development along the rehabilitated roads.
Enhanced interaction between the urban and rural communities especially through marketing of
agricultural commodities could increase incidences of HIV/AIDS. This could be mitigated
against through increased awareness campaigns and education programmes. Water puddles in



8
pits from excavation of earth and gravel for road rehabilitation could be potential breeding sites
for malaria mosquitoes. To mitigate against this, provision has been made to ensure the filling of
these pits/burrows. Upon closure of the project, the respective District Road Engineers will
ensure adherence to this environmental/social requirement.

Involuntary Resettlement

The project would not involve any involuntary movement of the population.


IV IMPLEMENTATION
4.1 Implementation Arrangements

The MoLG, which is the Executing Agency (EA) for CAIIP-I, will also be mandated with
executing CAIIP-II. The Programme Facilitation Team (PFT) for CAIIP-I which currently
includes the following staff: Programme Facilitator, Financial Controller, Accountant and
Infrastructure Engineer,, will also be responsible for the day-to-day coordination and
monitoring of implementation of the CAIIP-II activities. The PFT will be strengthened by the
recruitment of two additional staff, an Agro-processing Specialist and a Monitoring and
Evaluation Officer. The PFT will be supported by a small Zonal Office, based at Lira, to
provide technical support and facilitate and monitor implementation of CAIIP-II activities.
The Zonal Office staff shall compose of an engineer, accountant, community mobilisation
officer and monitoring and evaluation officer. The implementation of project activities at the
District level would be carried out through the established structures under the office of the
Chief Administrative Officer (CAO) with the support of the PFT.

Procurement and Disbursement Arrangements:

Procurement

All procurement of goods, works and acquisition of consulting services financed by the Bank
will be in accordance with the Bank's Rules of Procedure for Procurement of Goods and
Works or, as appropriate, Rules of Procedure for the Use of Consultants, using the relevant
Bank Standard Bidding Documents. The procurement arrangements are given in Table 4.1
below.

Civil Works: Procurement of civil works (comprising Rehabilitation of District and
Community Access Roads and Marketplace Structures, including Housing for facilities, in 41
districts and 97 sub-counties), estimated in aggregate at UA 26.92 million, will be undertaken
through NCB procedures. These include the rehabilitation of 225 km of District Roads
[valued at UA 2.35 million] and 4,365 km of Community Access Roads [valued in aggregate
at UA 17.61 million]. Other civil works include Routine and Recurrent Maintenance of 439
km of District Roads [estimated at UA 120,200], Marketplace Structures in 97 Sub-Counties
[valued at UA 4.13 million] and Housing for Agro-Processing Facilities [valued at UA 2.23
million] will all be procured through NCB procedures. The character, location and sizes of
these works are such that they are unlikely to attract bids from outside Uganda, and there are
local contractors sufficiently qualified and in a number sufficient to ensure competitive
bidding. Routine and Recurrent Maintenance of 8,515 km of Community Access Roads



9
[estimated at UA 1.27 million in aggregate] will be undertaken through Community
Participation, specifically in the interest of project sustainability.

Goods: Procurement of Vehicles and Motorcycles for Monitoring and Supervision, valued at
UA 461,700, will be through International shopping. Assorted Agro-Processing Equipment
(Milk Coolers, Grain Millers, Rice Hullers, etc), valued at UA 3.66 million in aggregate, and
Rural Energy Facilities, valued at UA 3.54 million, will also be procured through Local
Shopping procedures. The quantities and character of these goods are such that they could not
possibly interest suppliers from outside Uganda, and there are local suppliers sufficiently
qualified and in a number sufficient to ensure competitive bidding. Labour implements and
materials, valued at UA 71,800, will be procured through National Shopping procedures. This
is because the goods are readily available off-the-shelf items, and there is an adequate
number of national suppliers and agents of qualified foreign suppliers to ensure competitive
prices.

Table 4.1: Procurement Arrangements (UA'000)

N.C.B. Shortlist Other N.B.F. Total
A. WORKS
Civil Works 26,439.5 - 1,270.1 - 27,709.6
(26,439.5) (461.3) (26,900.8)
B. GOODS
- - 227.7 - 227.7
(227.7) (227.7)
- - 233.4 - 233.4
(233.4) (233.4)
- - 7,354.1 - 7,354.1
(7,354.1) (7,354.1)
- 62.1 - 62.1
(62.1) (62.1)
C. SERVICES
- 966.6 - - 966.7
(966.6) (966.6)
- - 1,699.9 - 1,699.9
(1,699.9) (1,699.9)
- 1,601.0 - - 1,601.0
(1,601.0) (1,601.0)
- - 447.4 - 447.4
(447.4) (447.4)
- 99.9 - - 99.9
(99.9) (99.9)
D. PERSONNEL 5,113.4 5,113.4
E. OPERATING COST - - 5,407.1 5,407.1
(5,407.1) (5,407.1)
TOTAL 26,439.5 2,667.5 16,701.8 5,113.4 50,922.3
(26,439.5) (2,667.5) (15,893.0) - (45,000)
Studies and Supervision
Contractual Services
Financial Audit
Motorvehicles
Motorcycles
Office and other Equipment
Material and Inputs
Technical Assistance and Consultancies
Training and Capacity Building

Note: Figures in parenthesis are the respective amounts financed by African Development Fund
* Other includes: National Shopping, Direct Purchase and Community Participation
** Non-Bank Funded: Items financed by Beneficiaries and the Government

Services: Apart from the allocation of UA 71,500 to NEMA, specifically for environmental
baseline studies, to be undertaken on the basis of a memorandum of understanding between
the PFT and NEMA, the procurement of consulting services [valued in total at UA 792,500],
design studies and supervision [valued at UA 1.609 million], and audit services [valued at
UA 100,000], will be undertaken on the basis of shortlists. The selection procedures will be
based on technical quality with price consideration. There will be Advance Action for
Acquisition (AAA) of consultancy services so as to commence recruitment of the design
consultants early. Training and Community Mobilization Services will be procured through
Direct Negotiations procedures (using the services of NAADS, PFT, Districts, Sub-Counties,
Community Groups, etc.). This is because, given the perfect knowledge of local customs and



10
local environment required, the assignments are considered as requiring single sources of
expertise. Miscellaneous Expenditures, especially Operating Expenses will be undertaken
using existing GOU systems acceptable to the Bank.

National Procedures and Regulations: Ugandas national procurement laws and regulations
have been reviewed and determined to be acceptable.

Executing Agency: The MoLG through the PFT will be responsible for managing the
procurement of goods, works, and consulting/training services. The resources, capacity,
expertise and experience of the PFT (see Annex 4) are adequate to carry out the procurement.

General Procurement Notice: The text of a General Procurement Notice (GPN) will be
discussed and agreed with the Borrower, and this will be issued for publication in the UNs
Development Business, upon approval by the Board of Directors of the loan proposal.

Review Procedures: For all activities requiring the Prior Review of ADF, the following
documents are subject to review and approval by the Bank before promulgation (except where
post-procurement rules apply): Specific Procurement Notices; Tender documents/Requests for
Proposals; Tender evaluation/Evaluation of Proposals' reports, including recommendations for
contract award; and Draft contracts, if these have been amended from drafts included in the
tender invitation documents.

Post Review Procedures: Post procurement review procedures will be applied for individual
contracts of value less than the following thresholds:

Civil Works: UA 100,000.
Goods: UA 50,000.
Services: UA 20,000.

Adoption of New Procurement Procedures: The indicated mode of procurement above will
be aligned to the new Procurement Rules and Procedures that will come into force with effect
from 1
st
October 2008.

Disbursement Arrangements

The Special Account (SA) method and the Direct Payment method will be used. The MoLG
will open a SA in foreign currency at Bank of Uganda (BoU) into which part of the loan
resources will be deposited. It will also open a Local Currency Account (LCA) at the BoU.
Thereafter, funds will be transferred from the SA to the LCA as and when required to finance
the project activities. Other expenses, especially for minor works, goods and services and all
the expenses under miscellaneous will be paid through the SA. The ADF will replenish the
SA after the PFT has provided valid justifications for the use of at least 50% of the previous
deposit, plus outstanding unjustified balance of the earlier tranche. The opening of the SA
and the LCA will be a condition precedent to first disbursement. The Direct Payment method
will be used to finance major civil works, goods, and services.

The current arrangements for flow of funds under CAIIP-I will be adopted by CAIIP-II. The
overriding principle will be to provide an incentive to each district to account quickly such
that a fast performing district, that manages its contracts well, does not get held back because
another is slow to account for its expenditures. Following on from the assessment of the
financial and audit control environment which was found to be adequate, the ceiling of the



11
SA will be fixed at UA 1.1 million. Current Bank guidelines on disbursement will apply and
these will be illustrated in more detail through the issuing of a disbursement letter to the
Government.

The signatories to both the SA and the LCA shall be the Permanent Secretary (MoLG), the
PFT Programme Facilitator and the PFT Financial Controller as is the current practice. Each
district will also have a district programme account (DPA) and the signatories to this will be
the CAO, the CFO and an alternate signatory, the Programme Support Officer (PSO).

Audit Arrangements

The PFT will maintain proper financial reports and audited accounts, copies of which will be
made available to the Bank not more than six (6) months after the end of each Ugandan
financial year. The PFT will be assisted by each of the districts accounts offices who will
provide a reinforcement function. The Audit reports will be prepared by an independent audit
firm under the auspices of the Office of the Auditor General of Uganda, whose costs will be
paid for by the Project. The PFT will also submit to the Fund regular quarterly progress
reports which will follow the official Bank Group reporting guidelines.
4.2 Monitoring

Timeframe Milestone Monitoring process / feedback loop
Year 1 Baseline study PFT and Districts to monitor
Year 1 5 Implementation Beneficiaries, Districts, MoWT & PFT
Year 1-5 Audit Reports Annually by PFT
Year 2 Impact study Beneficiaries, sector goals to be monitored by NAADS
Year 3 Impact study Beneficiaries, sector goals to be monitored by NAADS & MoWT
Year 3 Mid-Term Review Bank and PFT to monitor
Year 4 Impact study Beneficiaries, sector goals to be monitored by NAADS & MoWT
Year 5 Impact study Beneficiaries, sector goals to be monitored by NAADS, MoWT
Year 5 Project Completion Report PFT and District to monitor
4.3 Governance

The main governance issues or risks relate to contracting and bidding procedures especially
for construction of markets, agro-processing facilities and feeder/community roads.
Moreover, there is risk on the quality of construction materials used by contractors. To avert
irregularities in the bidding and contracting procedures, the standard Bank
bidding/contracting procedures and guidelines will be used. Additionally, the Government
has a well systemized procurement procedure, which has been successfully applied under
other on-going Bank projects, including AAMP and CAIIP-1. To ensure adherence to the
requisite quality of construction materials, the contractors will be supervised by the
respective District Roads Engineers in collaboration with the Project Facilitation Team
(PFT). Building/construction materials will be certified by these agencies prior to undertaking
any construction at site. Furthermore, provision has been made under the project for an
annual audit to be carried out covering all aspects of project implementation including
procurement issues. In order to enhance the capacity of staff to combine their routine work
and additional work from the project, a logical division of labour will be instituted between
project and district staff blended with joint meetings and inspections. Capacities of district
staff will also be strengthened through tailor made training programmes under the project.




12
4.4 Sustainability

The Government has high regard to the rehabilitation of rural infrastructure, particularly rural
roads for which additional budgetary resources have been allocated in recent years. The
rehabilitated rural roads will be maintained through a combination of regular budgetary
allocations from the Central Government (conditional grants for roads maintenance) and
through districts own resources for road maintenance. Community access roads will be
maintained by the communities in respective localities, modalities of which will be set up by
the Sub-counties. Additional revenue will accrue to the Districts and Sub-Counties from
leasing of markets and agro-processing facilities. Thus they would be able to maintain the
facilities in a sustained manner.

Generally, activities initiated by the project will be sustained through adherence to the
following mechanisms/approaches: (i) governments strong commitment to the process of
decentralisation and institutional reform; (ii) private sector participation in line with
Governments policies, especially in promoting agro-processing and rural energy; and (iii) by
building synergy and effective linkages with agricultural production related projects.

4.5 Risk Management

The project faces two main risks: 1) that the communities may not sufficiently maintain the
infrastructural facilities provided. This will be minimized by ensuring that the provision of
infrastructure is demand-driven and that the communities are fully sensitized and mobilized
for prioritization, selection and maintenance; 2) that the District and Sub-county staff may not
be sufficiently motivated to provide the necessary technical support to the communities. This
will be minimized by ensuring that facilities, including adequate operating funds and
necessary logistics support are provided to motivate work ethic amongst staff. The Project
will also sustain the incentive mechanism already in-built under the AAMP

4.6 Knowledge Building

The project is expected to generate considerable knowledge attributes that will add value to
the overall design and management of similar projects in future. Knowledge will be derived
from the adopted design, in terms of adaptive maintenance procedures, integrated
market/agro-processing units; and their management arrangements. Moreover, the systematic
monitoring modalities will inform project management, beneficiaries, the Government and
other stakeholders the status of project implementation and address constraints in a consistent
and timely manner.

To facilitate follow-up on emerging knowledge attributes, the project by design has various
studies including a baseline and an impact study at the end of the project, that will inform the
Government and the beneficiaries pertinent knowledge issues that can be put into practical
use for better result-oriented achievements. Other knowledge tracking processes include
regular supervisions, Mid-Term Review and Project Completion Report. Knowledge
attributes would be systematically elaborated during stakeholders workshops and
documented for wide dissemination to respective project stakeholders and other regions of
the country through various means, including Government publications and Audio-Visuals
Aids (posters, leaflets, flyers, etc).




13
V LEGAL INSTRUMENTS AND AUTHORITY
5.1 Legal instrument

ADF Loan to the Government of the Republic of Uganda.
5.2 Conditions Associated with Banks Intervention
Conditions Precedent to Entry into Force: Shall be subject to the fulfilment by the
Borrower of the provisions of Section 5.01 of the General Conditions of the Fund.

Conditions Precedent to First Disbursement: (i) Provided evidence of having opened
one foreign currency special account (SA) and local currency account (LCA) in the Bank
of Uganda for the deposit of the proceeds of the loan and for transfer of funds from the
special account respectively, and (ii) Provide Letter of Comfort stating that the land
where the market infrastructure is to be constructed shall belong to the Government or
the Community.

Other Conditions: Recruited, within six (6) months of the first disbursement, two (2)
additional staff to the PFT, (i) one Agro-processing Specialist and (ii) one Monitoring
and Evaluation Specialist, all of whose qualifications and experience will be
acceptable to the Fund.
5.3 Compliance with Bank Policies

(X) This project complies with all applicable Bank policies.
( ) The following 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 loan of UA 45
million to the Government of Uganda for the purposes and subject to the conditions stipulated
in this report.














14

Appendix 1




Year Uganda Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators

Area ( '000 Km) 241 30 307 80 976 54 658
Total Population(millions) 2007 30.9 963.7 5 448.2 1 223.0
Urban Population (%of Total) 2007 12.9 39.8 43.5 74.2
Population Density (per Km) 2007 128.1 31.8 65.7 23.0
GNI per Capita (US$) 2006 300 1 071 2 000 36 487
Labor Force Participation - Total (%) 2005 45.6 42.3 45.6 54.6
Labor Force Participation - Female (%) 2005 47.6 41.1 39.7 44.9
Gender -Related Development Index Value 2005 0.501 0.486 0.694 0.911
Human Develop. Index (Rank among 174 countries) 2005 154 n.a. n.a. n.a.
Popul. Living Below$ 1 a Day (%of Population) 2000 35.0 34.3
Demographic Indicators
Population Growth Rate - Total (%) 2007 3.2 2.3 1.4 0.3
Population Growth Rate - Urban (%) 2007 4.6 3.5 2.6 0.5
Population <15 years (%) 2007 49.1 41.0 30.2 16.7
Population >= 65 years (%) 2007 2.4 3.5 5.6 16.4
Dependency Ratio (%) 2007 106.4 80.1 56.0 47.7
Sex Ratio (per 100 female) 2007 100.1 99.3 103.2 94.3
Female Population 15-49 years (%of total population) 2007 21.5 24.2 24.5 31.4
Life Expectancy at Birth - Total (years) 2007 51.5 54.2 65.4 76.5
Life Expectancy at Birth - Female (years) 2007 52.2 55.3 67.2 80.2
Crude Birth Rate (per 1,000) 2007 46.6 36.1 22.4 11.1
Crude Death Rate (per 1,000) 2007 13.4 13.2 8.3 10.4
Infant Mortality Rate (per 1,000) 2007 76.9 85.3 57.3 7.4
Child Mortality Rate (per 1,000) 2007 127.4 130.2 80.8 8.9
Total Fertility Rate(per woman) 2007 6.5 4.7 2.8 1.6
Maternal Mortality Rate (per 100,000) 2006 435.0 723.6 450 8
Women Using Contraception (%) 2006 23.7 29.8 61.0 75.0
Health & Nutrition Indicators
Physicians (per 100,000 people) 2004 7.9 39.6 78.0 287.0
Nurses (per 100,000 people) 2004 57.9 120.4 98.0 782.0
Births attended by Trained Health Personnel (%) 2006 42.1 50.4 59.0 99.0
Access to Safe Water (%of Population) 2006 67.1 62.3 80.0 100.0
Access to Health Services (%of Population)* 2004 49.0 61.7 80.0 100.0
Access to Sanitation (%of Population) 2006 10.7 45.8 50.0 100.0
Percent. of Adults (aged15-49) Living withHIV/AIDS 2005 6.7 4.7 1.3 0.3
Incidence of Tuberculosis (per 100,000) 2005 368.8 300.7 275.0 18.0
Child Immunization Against Tuberculosis (%) 2006 91.0 83.7 85.0 93.0
Child Immunization Against Measles (%) 2006 89.0 75.4 78.0 93.2
Underweight Children (%of children under 5 years) 2006 15.9 28.6 27.0 0.1
Daily Calorie Supply per Capita 2004 2 348 2 436 2 675 3 285
Public Expenditure on Health (as %of GDP) 2004 2.5 2.4 1.8 6.3
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2006 117.3 96.4 91.0 102.3
Primary School - Female 2006 114.6 92.1 105.0 102.0
Secondary School - Total 2006 22.3 44.5 88.0 99.5
Secondary School - Female 2006 19.9 41.8 45.8 100.8
Primary School FemaleTeaching Staff (%of Total) 2005 38.7 47.5 51.0 82.0
Adult Illiteracy Rate - Total (%) 2007 26.8 33.3 26.6 1.2
Adult Illiteracy Rate - Male(%) 2007 18.3 25.6 19.0 0.8
Adult Illiteracy Rate - Female(%) 2007 35.2 40.8 34.2 1.6
Percentage of GDPSpent on Education 2004 5.1 4.7 3.9 5.9
Environmental Indicators
Land Use (Arable Land as %of Total Land Area) 2005-07 25.3 6.0 9.9 11.6
Annual Rate of Deforestation (%) 2000-07 2.0 0.7 0.4 -0.2
Annual Rate of Reforestation (%) 2000-07 10.9
Per Capita CO2 Emissions (metric tons) 2005-07 0.1 1.0 1.9 12.3
Sources : ADB 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
April 2008
Infant Mortality Rate
( Per 1000 )
65
70
75
80
85
90
95
2002 2003 2004 2005 2006 2007
Uganda Africa
GNI per capita US $

0
200
400
600
800
1000
1200
2001 2002 2003 2004 2005 2006
Uganda Africa
Population Growth Rate (%)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2002 2003 2004 2005 2006 2007
Uganda Africa
Life Expectancy at Birth (years)
1
11
21
31
41
51
61
71
2002 2003 2004 2005 2006 2007
Uganda Africa


15
Appendix II. Table of ADBs portfolio in Uganda
List of active projects (loans and grants) by Sector


ADB
ADF
Loan
ADF
Grant NTF ADB ADF
ADF
Grant
NTF
1 Northwest Smallholder Agricultural Development Project 15/12/99 20/11/00 18/05/01 nil 17.60 nil nil nil nil nil 17.60 15.36 87.3% 31/12/08 effective
2 Area-based Agricultural Modernization Programme 13/09/00 30/05/01 14/11/03 nil 9.67 nil nil nil nil nil nil 9.67 6.79 70.2% 30/06/08 effective
3 Fisheries Development Project 12/06/02 14/11/02 9/05/03 nil 22.00 nil nil nil nil nil nil 22.00 6.99 31.8% 31/01/10 effective
4 National Livestock Productivity Improvement Project 04/12/02 02/06/03 12/04/04 nil 23.74 2.80 nil nil nil nil nil 26.54 11.95 45.0% 31/12/09 effective
5 FarmIncome Enhancement& Forestry Conservation project 29/09/04 18/01/05 17/05/06 nil 31.57 9.85 41.42 5.02 12.1% 31/12/10 effective
6 Community Agricultural Infrustructure Improvement Programme- Project 1 31/01/07 17/05/2007 21/09/07 nil 30.00 nil nil nil nil nil nil 30.00 0.60 2.0% 31/12/13 effective
147.23 46.71 31.7%
7 Road Sector Support Project 1 (Kabale Kisoro Bunagana Rd) 27/04/05 19/05/05 15/09/05 nil 27.01 1.49 nil nil nil nil nil 28.50 16.26 57.1% 31/12/10 effective
8 Road Sector Support Project 2 (Fort portal Bundibugyo Rd) 17/2/07 non non nil 56.65 1.35 nil nil nil nil nil 58.00 nil 0.0% n/a not effective
9 Road Sector Support Project supplementary Loan 20/12/2006 22/01/2007 18/02/2008 nil 32.99 nil nil nil nil nil nil 32.99 nil 0.0% 31/12/10 effective
119.49 16.26 13.6%
10 Small Towns Water Supply & Sanitation Project 24/11/04 18/01/05 13/06/05 12.26 6.15 18.41 15.20 82.6% 31/12/08 effective
11 Rural Water Supply & Sanitation Programme 19/12/05 23/01/06 9/05/06 40.00 40.00 27.34 68.4% 31/12/10 effective
58.41 42.54 72.8%
12 Rural Microfinance Support Project 24/11/99 29/05/00 23/02/01 nil 13.10 1.84 nil nil nil nil nil 14.94 14.87 99.5% 30/04/08 effective
13 Support to the Health Sector Strategic Plan II 08/11/2006 22/01/2007 04/06/07 nil 20.00 nil nil nil nil nil nil 20.00 0.42 2.0% 31/12/12 effective
14 Support to ESIP (Education II) 21/12/00 30/05/01 18/06/01 nil 20.00 2.38 nil nil nil nil nil 22.38 22.05 98.5% 30/04/07 effective
15 Support to Post Primary Education and Training Project (Education III) 19/12/05 23/01/06 25/04/06 20.00 20.00 5.23 26.2% 31/12/11 effective
77.32 42.15 54.5%
Approved Amount UA million Amount Cancelled (UA million)
Serial No. Project Description
Status (completed, on-
going, etc)
Net
Commitments
(UA million)
Amount
Disbursed
(UA million)
Disbursed
(%)
Deadline for Last
Disbursement
A. AGRICULTURE
Approval Date Signature Date
Effectiveness
Date
Agriculture - Sub Total
B. TRANSPORT
Transport - Sub Total
1.00
Water and Sanitation - Sub total
D. SOCIAL
Social - Sub Total


16
Appendix II. Table of ADBs portfolio in Uganda
List of active projects (loans and grants) by Sector

16 Institutional Support Project for Good Governance 17/11/04 18/01/05 14/03/05 9.00 9.00 4.93 54.8% 31/12/08 effective
9.00 4.93 54.8%
17 Mineral Resources Management &Capacity Building Project 29/09/04 18/01/05 18/01/05 5.35 5.35 2.11 39.4% 31/12/10 effective
5.35 2.11 39.4%
18 Bujagali Transmission Interconnection Project 26/06/07 26/10/07 non 19.21 nil nil nil nil nil nil 19.21 2.61 13.6% n/a not effective
436.01 154.70 35.5%
19 Lakes Edward and Albert Fisheries Pilot Project 22/10/03 04/03/04 04/03/04 1.65 1.65 1.25 75.8% 30.06.2008 effective
20 Creation of Sustainable Tsetse and Trypanosomiasis Free Areas 08/12/04 19/05/05 30/12/05 6.55 0.24 6.79 0.33 4.9% 31/12/11 effective
8.44 1.58 0.19
21 Bujagali Hydro Power Project 29/06/07 non 21/12/2007 72.17 nill nil nil nil nil nil nil 72.17 nil nil n/a effective
22 Sheraton Kampala Hotel 18/09/02 20/11/2002 06/05/03 6.02 6.02 6.02 100.00 31/12/03 fully disbursed
78.19 6.02 7.70
522.64 162.30 31.05
E. MULTI SECTOR
GRAND TOTAL INCLUDING MULTI NATIONAL AND PRIVATE SECTOR PROJECTS
H. PRIVATE SECTOR OPERATION
F. MULTI NATIONAL PROJECT
Multi Sector - Sub total
F. INDUSTRY
Industry - Sub total
GRAND TOTAL FOR PUBLIC SECTOR OPERATIONS
Multi National Projects- Subtotal
Private Sector Operation - subtotal
G. ENERGY



17

Appendix III: Key related projects financed by the Bank and other development partners in Uganda
PROJECT NAME COVERAGE SOURCE%
FUNDS
AMOUNT
(millions)
STARTING ENDING PLANNED OUTPUTS
A. DISTRICT ROADS
1.District Roads Regravelling Project
(Northern Roads Corridor) (STABEX)
District of Toronto, Bigiri, Jinja, Mukono,
Wakiso, Mpigi, Masaka
EU EUR11.4 J uly 2003 Dec 2007 1315kmRehabilitation;3000km
Maintenance
2. DANIDA RSPS-2 District Roads
Component.
15 Districts Of North and North Eastern
Uganda
DANIDA DKK 120 J une 2003 Dec 2007 700kmRehabilitated;
3000kmMaintenance
3. Area Based Agricultural Modernization
Programme (AAMP)
13 Districts of Western and Southern Western
Uganda
ADB US$ 13.6 J une 2004 J une 2008 1100kmRehabilitated
4. Northwest Smallholder Agricultural
Development Project (NSADP)
Adjumani, Moyo,Yumbe, Nebbi, Arua,
Koboko and Maracha and Terego Districts
ADB UA 17.6 2000 Dec 2008 205kmConstructed
5. District Roads Maintenance (PAF) All Districts GOU UGX 18,000 1999 Continuous Routine Maintenance of 1800km
6. Roads All Uganda EU EUR15 2008 2011
7. Community Agricultural Infrastructure
Improvement Project1 (CAIIP-1)
26 District In Central and Eastern Uganda ADB UA30 J uly 2007 2012 Rehabilitation of 390kmand Maintenance
of 587kmof District roads
B. COMMUNITY ACCESS ROADS
1. DANIDA RSP2 Community Access Roads
Component
Mbale, Sironko, Kapchorwa, and Lira, Kumi,
Soroti
DANIDA US$4.0 2003 Dec 2007 400kmRehabilitated
2. Area Based Modernization Programme
(AAMP)
13 Districts of western and South Western
Uganda
IFAD US$2.3 J une 2004 December
2010
1438kmRoutine Manual Maintenance /
Rehabilitation
3. Northwest Smallholder Agricultural
Development Project (NSADP)
Adjumani, Moyo,Yumbe, Nebbi, Arua,
Koboko and Maracha and Terego Districts
ADB UA 17.6 2000 Dec 2008 1600kmRoutine Manual Maintenance /
Rehabilitation
4. Northern Uganda Social Action
Fund(NUSAF)
Northern and North Eastern Uganda IDA US$2.3 2004 2008 410km
5. Local Government Development
Programme (LGDP)
In Most Districts of the Country IDA US$1.4 2000 Continuing 250kmRehabilitated so far.
6. Community Agricultural Infrastructure
Improvement Project1 (CAIIP-1)
26 District In Central and Eastern Uganda ADB UA30 J uly 2007 2012 Rehabilitation of 3510Kmand
Maintenance of 5267kmof Community
Access Roads (CAR)
C. MARKETS
1. North West Agricultural Sector
Development Programme(NWASDP)
North West Uganda ADB Part of B.3
above
May 2001 2008 22 Markets; 200kmaccess road
Rehabilitation;340kmof Maintenance
2. District Development Support Programme 5 Districts in Western Uganda IFAD US20.6 Dec. 2001 Dec. 2006 Agricultural extension services and
physical infrastructure
3. Community Agricultural Infrastructure
Improvement Project1 (CAIIP-1)
26 District In Central and Eastern Uganda ADB UA30 J uly 2007 2012 Construction of 78 functional markets in
78 sub-counties within 26 districts.
D. ENERGY
1. Energy for Rural Transformation Project
(ERT)
All Uganda WB US$123 2007 2008 Facilitates investments in commercially
oriented rural electrification projects
2. Energy All Uganda EU EUR10 2008 2011


18

Appendix IV. Map of the Project Area

Community Agricultural Infrastructure Improvement Programme (CAIIP)

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Budud a
Buda ka
Ma nafw a
Na mu tumba
Buk wa
Butalej a
Lya ntond e
Kisoro
Buk ed ea
Kab er a maid o
Ibanda
Kan ung u
Kal iro
Kampa la
Mbale
Kobok o
Kap chor wa
Busia
Sir onk o
Dokol o
Jinja
Ruk ung iri
Maracha
Tor or o
Ssembabule
Bundi bug yo
Kay ung a
Amol atar
Ntung amo
Mity a na
Kab ar ole
Mba ra ra
Kamweng e
Pal lisa
Ig an ga
Kab ale
Na ka song ola
Luwero
Buli isa
Kat ak wi
Yumb e
Adj uman i
Moy o
Naka sek e
Kumi
Amur ia
Ising ir o
Oya m
Wa ki so
Ma yug e
Kasese
Abi m
Busheny i
Kyenj ojo
Na kapir ipir it
Nebbi
Mubende
Kamul i
Kiru hura
Sor oti
Kibog a
Kotid o
Kiba al e
Masak a
Mpig i
Ar ua
Ra kai
Gulu
Kal ang ala
Kaa bon g
Apa c
Hoima
Ma si ndi
Bug ir i
Pader
Lira
Mor oto
Amur u
Kitg um
Muk ono
Legend

CAIIP-1 Districts:
CAIIP-2 Districts






This map has been drawn by the African Development Bank Group exclusively for the use of the 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.
N
E W
S
Not to Scale


19
Appendix IV (a). Number of Districts and Sub-counties to be covered
under CAIIP-II (Northern and Eastern Districts)


District Total No. of Sub-
counties in the
District
No. of sub-counties at
35% coverage
AMOLATAR 4 3
AMURIA 9 3
BUKEDEA 5 3
DOKOLO 5 3
JINJA 11 4
GULU 14 5
KABERAMAIDO 9 3
KATAKWI 9 3
AMURU 8 3
KITGUM 19 7
KUMI 11 4
LIRA 19 7
PADER 18 6
SOROTI 17 6
WAKISO 17 6
TOTAL 175 65



20
Appendix IV (b). Districts and Additional Sub-counties in CAIIP-I Districts to be
covered under CAIIP-II (Central and Eastern Districts)


District Total No. of Sub-
counties in the
District
Initial No. of
CAIIP-1 Sub-
counties
Additional
Sub-counties at
35% Coverage
Total
BUDAKA 6 3
0 3
BUDUDA 7 3
0 3
BUKWA 5 3
0 3
BUTALEJA 7 3
0 3
IGANGA 19 3
3 6
KALIRO 5 3
0 3
KAMULI 18 3
2 5
KAPCHORWA 12 3
1 4
KAYUNGA 9 3
0 3
KIBAALE 19 3
3 6
KIBOGA 13 3
1 4
LYANTONDE 6 3
0 3
MANAFWA 10 3
0 3
MASAKA 23 3
3 6
MBALE 14 3
1 4
MITYANA 9 3
0 3
MPIGI 17 3
2 5
MUBENDE 11 3
0 3
MUKONO 28 3
5 8
NAKASONGOLA 9 3
0 3
NAMUTUMBA 6 3
0 3
PALLISA 21 3
3 6
RAKAI 20 3
3 6
SIRONKO 19 3
3 6
SSEMBABULE 7 3
0 3
TORORO 17 3
2 5
TOTAL 337 78
32 110