The World Bank Report No: ISR12898 Implementation Status & Results Uganda Kampala Institutional and Infrastructure Development Project (P078382) Public Disclosure Copy Operation Name: Kampala Institutional and Infrastructure Development Project Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive Date: 17-Jan-2014 (P078382) Country: Uganda Approval FY: 2008 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): KCCA Key Dates Board Approval Date 06-Nov-2007 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date 30-Apr-2009 Last Archived ISR Date 04-Aug-2013 Effectiveness Date 19-Nov-2008 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 24-Nov-2010 Project Development Objectives Kampala Institutional and Infrastructure Development Project (P078382) Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve institutional efficiency of KCC through implementation of the SFR. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Component(s) Component Name Component Cost Component 1: Institutional Development 5.80 Component 2: City Wide Infrastructure and Services Improvement 28.50 Component 3: Project Implementation, Monitoring and Evaluation 2.80 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview The Project is a SDR 22 million (US$ 33.6 million) APL. The Project Development Objective is to improve the institutional efficiency of Kampala Capital City (KCC) through implementation of the Strategic Framework for Reform (SFR) of the KCC. The project has three components: (i) Component 1 - Institutional development - focusing on activities that support organizational development and governance, the implementation of the Financial Recovery Action Plan, and actions to enhance effectiveness of service delivery; (ii) Page 1 of 6 The World Bank Report No: ISR12898 Component 2 - Kampala City Infrastructure and Services Improvement - focusing on rehabilitation of high priority infrastructure which were identified as critical to maintaining the productivity and welfare of the City; and (iii) Component 3 - Project Implementation and M & E activities - focusing on management activities associated with the implementation of the project, the establishment and implementation of a comprehensive monitoring and evaluation (M&E) system and the preparation of the next phase of the project. Public Disclosure Copy The main PDO indicators are: (i) KCC to reduce overdue liabilities from UGX 8 billion to UGX 3 billion; (ii) increase the share of KCC own source revenue spent on service delivery from 10% to 30%; (iii) increase KCC own source revenue from UGX 22 billion to UGX 30 billion; and (iv) increase public satisfaction in service delivery in: roads from 18% to 50%, drainage from 22% to 31%, and solid waste from 44% to 60%. Overall, the project objective, which is focusing on the institutional reform of Kampala city, is still relevant. As of November 8, 2013 the project had achieved the intended outcomes as follows: (i) overdue liabilities were reduced to zero (baseline - UGX8.9 billion, and project target – UGX0.5 billion), (ii) share of KCCA own source revenue spent on service delivery – 34% (baseline 18%, target – 34%), (iii) KCCA owns source revenue increased to UGX55.71 billion (base line – UGX 22 billion, and target – UGX 33.5 billion), and (iv) public satisfaction in service delivery in (a) Roads, (b) Drainage, and (c) solid waste increased from 18%, 22% and 44% (baseline) to 29%, 22% and 46% against the targets of 50%, 80%, and 70% respectively. In addition, the triggers for moving from APL 1 to APL 2 had been met as follows: (i) KCCA's new organizational system is in place and operational - top management (deputy directors and above) are “on contract” (i.e. three year renewable contracts with implicit incentives for performance), (ii) KCCA has established and implementing a formal public consultation process, (iii) KCCA has been implementing a financial recovery action plan (FRAP) which resulted into increase in OSR from UGX 22 billion in FY2008/9 to UGX55.71 billion in FY2012/13, (iv) KCCA has a comprehensive O&M plan for infrastructure in place, with Quality Management System (QMS) introduced in Engineering and Works and Physical Planning Directorate and plans are underway to roll the system to the other Directorates/Departments under the proposed KIIDP 2, and (v) KCCA has an effective implementation of infrastructure rehabilitation and maintenance in place where infrastructure investments are being selected based on sound appraisal and public consultation. The overall performances of the KCCA has improved. Management have introduced a zero tolerance policy for corruption, staff are being appraised bi-annually using the balance score system and appropriate disciplinary actions taken on errant staff. The review of the overall human resource management (HRM) policy has been completed. The Authority has developed and adopted a new corporate strategy (successor to the SFR). Draft assets register has been developed. These positive developments show the improvements in the institutional performances of the Authority in line with the project objective. There had been delays in implementation of project activities due to delays in obtaining Parliamentary approval of the credit, delays in timely procurement, delays in compensating the PAPs, and challenges associated with contract management. As a consequent, the project closing date was first extended by 24 months because of the one year delay in project effectiveness occasioned by the Constitutional requirement for obtaining Parliamentary approval for the credit and delays in verification and payment of compensation to the project affected persons (PAPs), as well as the challenges of getting utility bodies to relocate their services in order to give right of way for civil works. The second extension of an additional 12 month extension was made to allow all the construction works on the Lubigi Channel, the two roads upgrading works packages, and the expansion of the Kitezi landfill to be completed. Although the institutional objectives which deals with change management have been achieved, there have been delays in achieving the infrastructure results, which are anticipated to be fully achieved by the new closing date of the project, which is now December 31, 2013. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Uganda Kampala District Kampala Results Project Development Objective Indicators Page 2 of 6 The World Bank Report No: ISR12898 Indicator Name Core Unit of Measure Baseline Current End Target Reduction of KCC's overdue liabilities Text Value UGX 8 billion UGX 0 billion UGX0.5 billion Date 07-May-2007 08-Nov-2013 31-Dec-2013 Public Disclosure Copy Comments Target met and over Target was revised from performed. KCCA has fully UGX3 billion to UGX0.5 paid verified overdue liabilities billion. and not contracting new liabilities. Increase the % share of KCC own source Text Value 18% 34% 34% revenue spent on service delivery Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments This target has been New target of 34% agreed achieved. A new target of during MTR 34% was agreed upon for closing date. Bulk of KCCA OSR is spent on service delivery since wages and salaries are paid by central government. Increase KCC's own source revenue Text Value UGX 24 billion UGX55.71 billion UGX 33.5 billion Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments Target over achieved. KCCA new target of 33.5 Billion Revenue Directorates agreed during MTR instituted a number of measures (documenting and mapping all revenue, tax payers sensitization, partnering with URA through data base sharing, introduction of revenue audit system, introduction of revenue service standards, in- house mentoring of staff , and Public Disclosure Copy decentralization of revenue collection to Divisions) which have resulted into more than double revenue increase from base year. Page 3 of 6 The World Bank Report No: ISR12898 Increase in public satisfaction in service Text Value (a) Roads 18%; (b) Drainage Roads (29%), Drainage (a) Roads 50%; (b) Drainage delivery in (a) Roads, (b) Drainage and (c) 22%; and (c) Solid waste 44% (22%), and Solid waste (46%) 31%; and (c) Solid waste 60% Solid waste Date 07-May-2007 08-Nov-2013 31-Dec-2013 Public Disclosure Copy Comments Level of satisfaction as Phase 1 Roads (9.8Kms) measured by the second and completed. Phase 2 Roads last citizen Report card (3.11 Kms) and Lubigi Report. channel to be completed before project closing on December 31, 2013. Average traffic growth on KIIDP upgraded Percentage Value 2.00 0.00 20.00 roads Sub Type Supplemental number of people directly affected by floods Number Value 8800.00 0.00 0.00 along Lubigi channel Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Comp 1: Reduction in building plan permit Text Value 1 year 2 months 2 months approval processing Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments Approval of building plan target of 2 months was permit reduced from 1 year to agreed during MTR an average of 2 months Comp 1: Percentage of property rate demand Text Value 30% 100% 100% notes issued to property owners Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments Base line was 30% and target MTR revised the target to 90%. As of Nov 2013 KCCA 100% had issued 100% of the property demand notes. Public Disclosure Copy Comp 2: Gravel roads upgraded (Kms) Text Value 0 9.2Kms 11.75 kms Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments Phase 1 roads totaling Total actual is now 12.01Km 8.9Kms is completed and (Phase 1 - 8.9Kms and Phase handed over to KCCA and is 2 - 3. 11 Kms) being used. Contract for phase 2 Road works totaling 3.11Kms is to be completed before December 31, 2013. Page 4 of 6 The World Bank Report No: ISR12898 Comp 2: Poor quality bitumen roads and Text Value 348.08 kms 0 0.00 kms associated drains improved and strengthened Date 07-May-2007 08-Nov-2013 31-Jan-2013 (Kms) Comments This activity has been Dropped after restructuring. Public Disclosure Copy dropped during restructuring of the project since all roads maintenance in the country are now being funded under the Uganda National Road Funds. The project efficiency and PDO which is institutional strengthening still holds. Comp 2: Primary drainage channel expanded Text Value 0 3.4Kms 3.6 kms and lined (Kms) Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments By end of November 2013, Target will be achieved by Contractor had completed project closing. 96% of the civil works. Remaining 4% to be completed before project closing by December 31, 2013. KCCA hasstepped up its supervisory function by putting six dedicated staff on site to ensure timely completion of the remaining 4% of the works before project closure. Comp 3: KCC utilizing results of annual Text Value 0 2 2 Citizens Score Card to measure service Date 07-May-2007 08-Nov-2013 31-Dec-2013 delivery satisfaction Comments The second Annual Citizen's Target achieved Report Card was the last, planned under the project. Roads rehabilitated, Non-rural Kilometers Value 0.00 11.80 11.75 Public Disclosure Copy Date 07-May-2007 08-Nov-2013 31-Dec-2013 Comments Phase 1 roads totaling 8.9 Actual total on completion Kms has been completed and (phase 1 - 8.9Kms and phase handed over to KCCA. Phase 2 - 3.11 Kms) will be 12.01 2 of Roads works totaling Kms. 3.11 Kms is 96% complete. Remaining 4% will be completed before project closing on December 31, 2013. Page 5 of 6 The World Bank Report No: ISR12898 Data on Financial Performance (as of 25-Nov-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P078382 IDA-43670 Effective 06-Nov-2007 20-Feb-2008 19-Nov-2008 31-Dec-2010 31-Dec-2013 P098012 TF-96279 Effective 15-Apr-2010 15-Apr-2010 15-Apr-2010 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P078382 IDA-43670 Effective USD 33.60 33.60 0.00 29.70 4.05 88.00 P098012 TF-96279 Effective USD 33.60 0.96 0.00 0.00 0.96 0.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation - Restructuring History Level two Approved on 19-Jan-2011, Level two Approved on 08-Mar-2013 Related Projects P098012-Kampala Solid Waste Project Page 6 of 6