Uganda - European Community Joint Annual Report 2003

Uganda - European Community Joint Annual Report 2003

Uganda - European Community
Joint Annual Report
2003
Government of Uganda
European
Ministry of Finance
Commission
Planning and Economic
Development
1
EXECUTIVE SUMMARY
The development policy in Uganda remains focused on the reduction of poverty and is based on the
Poverty Eradication Action Plan (PEAP), which has been undergoing a review for its 3rd version to
be finalised by June 2004.
In 2003, GoU published the results of the Household Survey 2002/03 that revealed a change of
trend in the poverty reduction. Whereas previously there was evidence of a decline from 44% in
1997 to 35% in 2000, from 2003 the latest figures show an increase to 38%, as well as increased
levels of inequality as measured by the Gini coefficient. According to GoU, the new edition of
Uganda’s Poverty Reduction Strategy Paper (PRSP), will aim to reverse these trends through
restored growth focused on the agricultural sector with an increased emphasis on human resource
development and improved efficiency of public sector expenditure, including reduced corruption
and greater performance accountability.
The political situation during the reporting period witnessed major developments such as the
proposal by the Cabinet, on the basis of the constitutional review report, to lift the two-term
presidential limit to offer to President Museveni the possibility to continue in office. GoU also
initiated political dialogue on the country’s political pluralism. In spite of the increase in security
expenditure, the operations of the LRA expanded in Northern Uganda and caused serious
humanitarian consequences. Donors have expressed doubt about the success of a purely military
solution, but a meaningful dialogue with the LRA seems very difficult. The situation with Rwanda
had normalised by the end of the year and the UPDF pulled out of the DRC, replaced by MONUC.
GoU pursued its disarmament initiative in Karamoja. In 2003, Uganda signed the East African
Community agreement with Tanzania and Kenya.
Although GoU expenditures were only 5.35% higher in 2002/03 than in 2001/02, several sectors
such as defence, public administration and domestic interests payment overshot their ceilings.
Domestic revenue performed well. GoU started its strategy to limit over the medium term the fiscal
deficit before grants to mitigate the adverse effect of donor dependency and the need to mop up the
liquidity created by the high fiscal deficit. Budget support fell short of projections due to some
delays, including from the EC PABS IV and to reduction by several donors of their disbursement
following the increase in defence spending. Corruption and respect of the rule of law continued to
be an issue in 2003. Amnesty International raised concerns about the lack of respect for opposition
supporters and Transparency International ranked Uganda 113 out of 133. On the positive side, in
2003 GoU finalised the implementation of the Leadership Code over wealth declaration.
The GDP growth of 5% was again below GoU’s target of 7% and with the growth rate per capita
only 1.4% in 2002/03 was the lowest over a long period. The increase in agriculture output was
less than half the previous year at 2.2% with the share of the non-monetary output remaining at the
same levels as the previous years. On the contrary transport and telecommunication have
performed well above their historical average.
In 2003 GoU continued its strategy towards an export-led economy by increasing the priority given
to the Plan for Modernisation of Agriculture, the Medium Term Competitiveness Strategy and the
scope of the Strategic Export initiatives. Over 2003, GoU remained unable to allocate sufficient
funding to the maintenance budget and even now blocks donor funding of what appears to be a
continued shortfall for the next 6-8 years, which will continue to constraint development. In 2003,
most donor funded support to the improvement of the network recorded positive developments,
including for feeder roads. The institutional reform in the sector is being seriously delayed
including the transfer to the private sector and this has forced the NAO to change the allocations of
funding within this focal sector of the 9th NIP. Whereas substantial progress was achieved in the
water sector, the situation of sanitation is seriously lagging behind. The sector performance of the
health sector has continued to improve this year, mainly through efficiency gains since the overall
budget allocated to the sector has been constant. These positive developments were confirmed by
the mid term review of the HSSP that has also identified new challenges. Budgetary allocations
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remained at its previous high levels for education. By the end of the year, GoU published worrying
figures on the dropouts in UPE. Only 78% of the children who enrolled in the scheme in 1997
reached the end of P7, showing limited real progress compared to the pre-UPE situation.
In the focal sectors of the 9th NIP, the implementation of the on-going programmes under 6, 7, 8 and
9th EDF, under regional funding and STABEX FMO has registered progress in 2003. An
implementation agreement on the current budget support PABS IV could be finalised and
disbursement has resumed (24.5 million €). The programme supporting economic growth
(Tourism, microfinance, …) have efficiently contributed to their objectives and several of them are
now core to GoU and private sector partnership in this regard. The EDF interventions in transport
and infrastructure, Kagamba-Rukungiri (STABEX), Jinja-Bugiri (8th EDF) and Kampala by-pass
(8th EDF) have recorded important progress in 2003, coping with the delays of the previous years.
In the water sector the STABEX and NIP funded projects have also progressed substantially and
after several revisions of their design have resumed progress, although not at the expected pace. In
rural development, whereas impressive progress was achieved in the implementation of the 8th EDF
funded Forest resources management and conservation project, the development of the agriculture
and more specifically the achievement of the PMA, supported by several STABEX funded projects,
does not yet translate into real economic growth and increase in income for the poor rural
population. Achieving results remain a real challenge for this focal sector of the 9th NIP.
In social sector and in areas outside the focal sector, similar progress could be reported, although on
of the most successful projects in the health sector: the Blood Bank’ sustainability is at stake due to
the fact that GoU did not fulfil its funding commitments. The 8th EDF funded Micro-projects,
Acholi and Human Rights projects have largely met their objectives in 2003, whereas the STABEX
funded Karamoja project is now back on track after having faced a serious management problem in
2002.
Regional programmes have also progressed substantially, including the recently adopted new
programme for the implementation of the Fisheries Management Plan of Lake Victoria.
NSA have all along the year benefit from a specific support programme of capacity building.
Disbursement of STABEX transfers remains slow with about one third of the funds remaining to be
spent, mainly form the last 1999 FMO.
ECHO interventions amounted to 8 million € to cover projects in health, nutrition, food security,
non-food items, water and sanitation in northern Uganda. The NGO funded to implement these
programmes are mainly focusing on the situation of IDPs.
The objectives of the 9th NIP still address very relevant concerns and cover support in sectors where
the EC has certainly a comparative advantage. Moreover, with donor coordination being very
active and comprehensive in Uganda, the programme identified under the 9th EDF have been fully
taken into account by the other agencies that have developed their own strategies accordingly,
avoiding duplication of interventions and favouring the development of synergies.
The Delegation and the NAO have analysed the current programming of the 9th NIP portfolio and
do not see a need to make any fundamental change to the overall programming strategy of the 9th
EDF and the selected focal sectors. Full implementation of the pipeline will depend on GoU’s
capacity to proceed with the submission of proposals that are under preparation. It will also depend
on the capacity of GoU to implement the policies conditioning the start of the programmes funded
from the 9th EDF.
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2
THE POLICY AGENDA OF UGANDA
The overriding objective of Government of Uganda (GoU) development policy is poverty reduction
of in Uganda within the framework of the Poverty Eradication Action Plan (PEAP). The PEAP has
been undergoing the second successive from July 2002 in a highly participatory manner in
preparation for a third 3-year phase starting in July 2004. Up until 2000 there was evidence of a
decline in income poverty from 44% in 1997 to 35% (7 million people) in 2000. The Government
is concerned that this trend has reversed with the latest figures from 2003 showing an increase to
38% (9.8 million people). Recent studies also show increased levels of inequality. The revised
PEAP will aim to reverse these trends through restored growth focused on the agricultural sector
and rural development with an increased emphasis on human resource development and improved
efficiency of public sector expenditure. The revised PEAP will also increase the profile of trade and
its role in poverty eradication.
The second (2000) version of the PEAP is structured around four overarching pillars:
•
•
•
•
Rapid and sustainable economic growth and structural transformation
Good governance and security
Increased ability of the poor to raise their incomes; and
Enhanced quality of life of the poor
GoU aims to achieve increased levels of economic growth by establishing an enabling environment
for private sector development whilst maintaining macro-economic stability. A Secretariat for the
Medium Term Competitive Strategy and the Strategic Exports Programme commenced work in
2003 to identify priorities and monitor progress in implementing agreed reforms and government
investments in close consultation with the private sector. Emphasis is being placed on developing
the export competitiveness and improved market access. GoU is promoting public-private
partnerships to facilitate desired development outcomes and impact on poverty reductionThe
Energy for Rural Transformation (ERT) programme aims to increase rural access to energy from
the present 1% to 10% by 2010. The Road sector Development Plan has been updated for the
period to 2010 and plans are underway for the establishment of a Roads Authority and the
privatisation of the railways. A consultative process has been initiated in the tourism sector to
coordinate quality improvements and joint marketing initiatives based on research findings. During
2003 an International Trade Policy has been developed. Negotiations on the formation of an East
African customs union are at an advanced stage with signing of an agreement planned during 2004.
GoU’s primary macro-economic objective is the reduction of the fiscal deficit following rapid
increases in expenditure between 1997/8 and 2001/. This will be achieved through gradual
reduction of dependency on donor funding, improved efficiency in revenue collection and in public
sector programming and budgeting. In addition a new programme has been put in place to build the
capacity of local governments in the management and accountability for service delivery and the
Fiscal Decentralisation Strategy to streamline the process of transferring funds to Local
Government’s was approved and introduced in 15 Districts as a pilot in 03/04.
GoU has continued to prioritise reforms relating to pillar two: good governance and security as
confirmed by Uganda’s rating from Transparency International improved from 3rd in 2001 to 17th
in 2003. The second National Integrity Survey in 2003 also found improvements in public
perception of corruption and improved service delivery but dissatisfaction with procurement and
contracting procedures, especially at Local Government level. All public accounts are now audited
and submitted to Parliament for review. In 2003 all Ministries and Departments produced final
accounts on time allowing submission of consolidated accounts to the Auditor General (AG) before
the end of the calendar year. The Poverty Action Fund (PAF) monitoring system has been
integrated into the budget process. The Public Procurement and Disposal of Public Assets Act was
passed in 2003 allowing decentralisation of procurement within clear guidelines. A central
authority is being established to ensure compliance, standards and development of capacity. The
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Public Finance act, which came into force in July 2003, provides greater control by Parliament over
public resources and makes the executive fully accountable to Parliament. The AG is now
empowered to audit classified expenditure and a separate Accountant General has been appointed,
with one of his duties to strengthen the internal auditing procedures. The Directorate of Ethics and
Integrity is coordinating changes in the legislation relating to accountability. The Prevention of
Corruption Act to consolidate legislation on corruption went to Cabinet towards the end of 2003 for
review. The Access to Government Information Bill is currently under preparation and work is
commencing on a Whistleblowers’ Bill. During 2003 all senior Government officials were required
to make their declarations of wealth under the 2002 Leadership Code. A Commission of Enquiry
into the police led to termination of identified corrupt officers and a second Commission of Enquiry
into the URA was initiated. As regards security, military efforts are ongoing to bring the war in the
north to an end and there have been new initiatives to bring about disarmament. A Prisons Bill,
which seeks unification of the prison system to attain standards that promote public confidence in
dealing with offenders, has been presented to Cabinet. The harmonisation of the Amnesty and
Anti-terrorist Acts seeks to reduce armed conflicts in war-affected areas in order to promote peace
and stability.
The review of the Plan for the Modernisation of Agriculture (PMA), which is the principle
programme for achieving pillar 3: increased ability of the poor to raise their incomes, reported that
reasonable progress had been achieved, but greater efforts are required to ensure impact throughout
the country. It is expected that this component of the PEAP will be given a higher priority in the
revised PEAP.
GoU has continued to provide significant resources to Pillar 4: actions, which directly improve the
quality of life of the poor, focused on delivery of the identified priorities of primary education,
basic health care, and access to clean water. In the past few years education’s share of the budget
has amounted to over 24% mainly targeting universal primary education. As a result, primary
school enrolment rose from 3 million in 1997 to 7.5 million in 2003. Future policy will aim to
increase net enrolment to 100%, reduce the number of dropouts, eliminate gender gaps, improve the
quality of education, and ensure equity across different social groups. Government is also planning
to expand access to secondary schools and vocational and technical training to absorb a higher
proportion of children completing primary education. A Mid-Term Review of the Health Sector
Strategic Plan found that there have been significant improvements in health sector outputs,
reflecting improved access and utilisation of the Minimum Health Care Package by the Ugandan
population. GoU intervention has targeted delivery of services to vulnerable groups through
improved physical access to facilities, abolishing cost sharing, improved management of resources
and building a partnership with NGO providers. A major concern in the sector is the poor level of
reproductive health with a negative trend in maternal mortality and high levels of fertility. Future
interventions will aim to reverse this trend through improved training, facilities, supervision and
community empowerment. The sector plans to strengthen preventive health care activities.
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3
UPDATE ON THE POLITICAL, ECONOMIC AND SOCIAL SITUATION
3.1
The political situation
The year 2003 was marked by the completion of the Constitutional Review Report (CRC). Among
others, it recommended the lifting of the two-term limit for the President that had to be settled in a
referendum. Cabinet recommended the removal of the term limit altogether in its proposals,
although the initial views of those drafting the CRC was different. Some Members of Parliament
(MPs) opposed to the proposal that the two-term presidential limit be lifted, embarked on a
countrywide mobilisation against moves to have President Museveni continue in office after 2006.
GoU initiated negotiations with political parties on the country’s transition to political pluralism. It
came up with the idea to increase consensus for national interest. Several political groups (the G-7)
agreed to work together in negotiating the transition. Earlier on in the year, the Movement National
Executive Committee and National Conference recommended the introduction of fully-fledged
multi-party democracy. In their position paper the political groups recommended among others that
the cabinet and Movement proposal to lift the two-term limit for the presidency be abandoned and a
National Conference held in 2004.
In Northern Uganda the operations of the Lord Resistance Army (LRA) expanded into districts
outside Acholi-land and caused extremely serious humanitarian consequences: 1.25 million IDPs
according to UN/OCHA estimates and around 8,000 new abductions were recorded. Donors
expressed doubt about the eventual success of a purely military strategy against LRA, but the nature
of this rebel group – the pseudo-religious ideology of the leader, the widespread atrocities mainly
directed against members of the rebels’ ethnic kin – makes a meaningful dialogue with a view to
seeking a peaceful settlement very difficult. There is some hope that successful peace negotiations
in Sudan could lead to improved security in the border regions and a reduction in external support
to the LRA.
Uganda’s relations with Rwanda came under stress at the beginning of the year, with threats of the
Rwandan army attacking Uganda, after Uganda accused Rwanda of fighting the Uganda People
Defence Force (UPDF) under the guise of Congolese rebels in Bunia, in north-eastern DR Congo
(DRC). However, by the end of the year the situation had normalized. Fighting in Ituri intensified
with international calls for Uganda to pull out of the area. The UPDF pulled out and was replaced
by MONUC but Defence Minister, Amama Mbabazi warned that the army would re-enter DRC if
dissident groups took advantage of the security vacuum in Ituri region to attack Uganda.
3.2
3.2.1
Annual Household Survey
Socio-economic trends
In November 2003 the Uganda Bureau of Statistics (UBOS) presented the main results of the eighth
Uganda National Household Survey (UNHS) for 2002/03. The findings of the survey estimate the
population of Uganda at around 25 million with an average household size of 5 persons. The
majority of the population (52.4%) is below 15 years of age, a continuing trend that is more
important in urban areas.
The UNHS reveals that net primary enrolment for children aged 6-12 is below the 98% target at
only 86%. The details show that 29% of the children aged 6 have never attended school. Across
regions, the northern region is worst affected with 21% of the children aged 6-12 never having
attended school. Dropouts from primary school have reached a very high percentage. The survey
found that the majority of children who dropped out did so due to cost, and this proportion rose
from 56% in 1999/00 to 63% in 2002/03. Although tuition is covered by UPE, the schools are
charging parents for exercise books, teachers housing, school running costs and transportation that
are prohibitive to the parents.
The second Participatory Poverty Assessment (PPA II) report quoted ill health as the most frequent
cause and consequence of poverty both in rural and urban areas. Despite the fact that malaria is still
5
the main cause of ill health in Uganda, mosquito net usage is still very low with only 11% of
Ugandans reporting using them. Malaria accounted for 56% of all the persons who fell sick.
GoU outpatient facilities are the fifth most important source of health care with use at only 9%, a
drop from 18% in 1999/00. The delivery of heath services by private clinics featured prominently
(36%, up from 29%), drug shops (13% up from 10%), health centres (11% up from 3%) and home
treatment (11% down from 23%). UNHS reveals that awareness of HIV/AIDS is generally high
with 90% of the respondents reporting that they have heard of it. More than half of the population
know at least two ways (out of three) of avoiding contracting HIV/AIDS, although health workers,
who are supposed to give this information reach only 8% of the population.
Housing and household assets have generally improved all over the country. Overall 78% of the
population occupy their own house, though in Kampala, this goes down to as low as 28%. The
most common land tenure type is customary, especially in northern (85%) and in eastern (73%)
regions. This land was principally governed by clans who allocated plots of land to its members.
The survey results show that 68% of the households have access to safe water (tap, boreholes,
protected wells or springs), a percentage ranging from 84% in urban areas, but down from 87% in
1999/00, to 57% only in rural areas where this is an increase from 51%.
Collection of consumption and non-consumption expenditure data is a key component in the
UNHS. The monthly consumption expenditure per household represents a real1 increase of 4%
over a period of 3 years between the two last surveys, a trend that is mainly observed in the rural
areas. The central region registers a 10% increase, but the northern registered the lowest increase of
around 1%. Per capita, the consumption registered a real increase of 5% in the rural areas and 7%
in the urban ones, with urban areas in the central and northern regions and Kampala registering the
highest increase at 16.9 and 11%r respectively.
3.2.2
Poverty estimates
In order to compare poverty, home consumption is further re-valued into market prices and regional
differences in food prices are adjusted. The real mean consumption per capita show after these
adjustments a 2.6% increase compared to 1999/00. The annualised growth of 0.9% represent a
dramatic deceleration compared to the annualised rate of 4.9% implied between 1992 and 1999/00.
Moreover, between the 1999/00 and 2002/03 surveys there has been effectively no average growth
in living standards in rural areas.
The absolute poverty line used in the survey is based on Appleton2. The method focuses on the cost
of meeting calorie needs, given the food basket of the poorest half of the population and some
allowances for non-food needs3. Using the full sample of 2002/03, UBOS estimates that 39% of
Ugandans are poor, corresponding to nearly 9.8 million persons4, excluding districts that were not
surveyed in 1999/00 for security reasons the percentage of the population living below the poverty
line rose from 34% to 38%, corresponding to 8.9 million persons. This rise is statistically
significant. Despite some modest economic growth, poverty increased in both urban and rural
areas, which is a contrast to trends in the 1990s, where growth was stronger and appeared to be
broadly shared.
1
Comparing nominal estimates of consumption with the CPI
2
Appleton (2001), Changes in Poverty in Uganda, 1992-1997, chapter in P. Collier and R. Reinnikka, Firms, households and
government in Uganda recovery, World Bank, Washington DC and Appleton (2001), Poverty in Uganda, 1999/00: Preliminary
estimates from the UNHS, mimeo, School of Economics, University of Nottingham, Nottingham.
3
Datt, G. and M. Ravaillon (1992), Growth and redistribution components of changes in poverty measures: a decomposition with
application to Brazil and India in the 1980s, Journal of Development Economics 38:275-295
4
These figures exclude Pader district that could not be surveyed for security reasons
6
Although rural areas remain poorer than urban areas (42% vs. 12%), the proportionate rise in
poverty is actually higher in urban areas (+20%), than in rural ones (+13.5%). The increase in
poverty is most marked in the eastern region (from 35 to 46%); the proportion of people in poverty
rose less in western regions (26 to 31%). In central region, the rise is significant for P1 and P2.
Only the northern region sees no rise in poverty, a conclusion that requires further investigations.
Between the 1999/00 and 2002/03 survey, the Gini coefficient measuring inequality of household
consumption, and hence inequality, has risen from 0.395 to 0.428. The increase occurred both in
rural and urban areas, although it was more pronounced in the latter. Since there was positive,
though low, growth, it is the change in distribution rather than growth that explains the entire rise in
poverty during the period.
3.3
3.3.1
Public finance
Overall GoU expenditures
GoU expenditures for 2002/03 amounted to Shs 2,777.4 billion, equivalent to 23.7% of GDP5. This
is an increase of 5.35 % over the outturn for 2001/02. Although overall expenditure were within the
approved budget (98.8%), expenditures on domestic interest payments and on recurrent non-wage
expenditure categories exceeded budgeted levels by 60% and 4 % respectively. The overshoot in
the non-wage recurrent expenditure category was focused mainly in the areas of Defence (39.7%)
and Statutory (4.8%) with ‘Other Ministries’ contributing a further 0.8%. These overshoots were
funded by cuts in other areas of the budget.
3.3.2
Revenue performance
Domestic revenues performed slightly better than budgeted, over performing by 0.3%, because of a
good performance by URA. Compared to the previous fiscal year, domestic revenues increased by
14.4% in 2002/03. URA was able to meet the target for FY 2002/03 by realising a surplus of Shs
9.12bn (0.7%). The good performance is attributed to income taxes and VAT while Excise duty
and Customs duty have continued to perform poorly.
3.3.3
The fiscal deficit
The 2002/03 budget marked the first year of GoU’s medium term deficit reduction strategy which
aims to reduce the fiscal deficit before grants to 6.5% of GDP by the end of the decade. According
to MoFPED, such a reduction is necessary because the rapid increase in GoU expenditure between
1997/98 and 2001/02 as a result of a planned increase in GoU spending has pushed up interest rates,
crowded the private sector out of credit markets, and raised interest costs for the GoU budget,
because of the need to mop up the liquidity created by the high fiscal deficit. GoU is also
concerned about the likely adverse effects of over dependency on donor inflows on Uganda’s
exports, due to the appreciation of the real exchange rate.
GoU made a start in cutting the fiscal deficit in 2002/03. The fiscal deficit before grants fell from
13.1% of GDP in 2001/02 to 11.3% of GDP in 2002/03; including grants it was also reduced, to
4.4% from 5.9% in the previous year.
3.3.4
Budget support loans and grants
The performance of donor budget support inflows fell short of projections but exceeded the
discounted amount used for budgeting purposes. Out of the US$ 480.5 million projected for the
fiscal year, US$ 458 million, or 95.3% was received. The shortfall in absolute level of projected
budget support was mainly due to delays and to the fact that a number of donors reduced their
programmed disbursements following GoU decision of a 23% adjustment in the budget to fund
increases in defence spending
5
Shs 11,706 billion for FY 2002/03
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3.3.5
Budget execution
Overall sectoral performance during the FY 2002/03 was 103.5% of the budgeted expenditure.
Eight of the eleven sectors under review performed above the approved budget. The highest over
performance was 113.5%, recorded by the Security sector, Health (96.9%), Education (97.3%), and
Accountability (97.9%) on the contrary spend within their budgets.
The overall financial performance for the roads and works sector in FY 2002/03 was 93.9%. The
lowest performing vote was District Roads maintenance that performed at only 77% due to a large
cut of 4.1 billion shilling to provide resources for “security” roads.
The over-performance of the agricultural sector (104.8 percent) for the FY 2002/03 was an
improvement compared to that of FY 2001/02 (86.4 percent). The performance at the national level
was slightly higher than the performance at the district level. The over-performance of the
agricultural sector at the national level arose out of the Strategic Exports Initiative
The Education sector performed well within it’s ceiling at 97.3%, though this was lower than the
previous fiscal year when it registered a performance of 99.5%. The Health Sectors overall budget
releases performed at 96.4 % during FY 2002/03, which is higher than in the previous FY 2001/02
performance registered at 95.8%. Wage performance was lower at 86.1% (vs. 93.5% in 2001/02).
The water sector performed at 92.4%. Wage releases were at 104.1% while non-wage performed at
88% of the approved budget. Higher performance was registered at the district level.
Justice, Law and Order sector (JLOS) performed at 102.4%, which was an improvement, compared
to the previous FY (99.0%). However there was over performance in the wage releases of 123.2
percent in the Ministry of Internal Affairs, due to the recruitment of additional Local Defence Units
(LDUs).
3.4
3.4.1
Governance
Human rights, rule of law, good governance and fight against corruption
Concern about the increasing incidents of harassment, arrest and incommunicado detention of
opposition supporters, especially of the Reform Agenda was raised by Amnesty International.
Concern was also raised about the execution of soldiers with the UPDF adopting the death penalty
as an expedient form of punishment. The Chairperson of the Uganda Human Rights Commission
was also concerned that the Chiefs of Military Intelligence (CMI) and the Internal Security
organization were the worst violators of human rights.
Conflict in Northern Uganda saw a geographical expansion of the Lord Resistance Army (LRA)
into districts outside Acholi-land. The conflict spread to the eastern part of the country and Lira
district also became an LRA target, after a number of LRA groups started raiding villages close to
Lira town for the first time in the 17 years since the insurgency began.
Meanwhile, the Constitutional Court declared null and void two sections of the Political Parties and
Organisations Act saying that they made Uganda a one-party state and the Movement a political
party.
Corruption continued to be an issue during 2003 with Uganda ranked 113 out of 133 among the
World’s most corrupt countries by Transparency International. Efforts to improve the image of the
country continued with 2003 seeing the finalisation of the wealth declaration effort in application of
the Leadership Code.
3.4.2
Conflict prevention
In September 2003, Sudan renewed the protocol allowing the UPDF to extend military operations
into southern Sudan in pursuit of the LRA rebels for 6 months. Under the agreement, GoU also
requested the government of Sudan to have the countries’ technical teams convene as soon as
possible to finalise issues concerning the military operations so that peace can return to southern
Sudan and northern Uganda.
8
The peace agreement signed in 2002 was completed with 500 former UNRF II rebels already
integrated into the UPDF receiving their resettlement and amnesty packages
Uganda withdrew her troops from DRC. After four years of bloody hostility, Uganda and the DR
Congo also agreed to tighten security against rebels using each other’s territory to wage war. They
also agreed to deepen bilateral trade by streamlining civil aviation communication The two
countries also agreed to re-establish the Permanent Joint Commission as a mechanism to improve
relations. Continued ethnic clashes in the Ituri region resulted in a steady increase of refugees into
the western Uganda district of Bundibugyo, while more than 20,000 Congolese entered Hoima
district in western Uganda through Lake Albert following the bloody tribal clashes. However, with
the intervention of MONUC the situation began to normalise by the end of the year.
GoU pursued a continuous effort in 2003 to implement the relatively successful disarmament
initiative in Karamoja through the National Disarmament Committee. The results of these actions
were unfortunately not very encouraging and sometimes even contrary to their objective. Promises
to beef up the police and the judiciary to ensure peace and administration of justice have not yet
been fulfilled.
3.5
3.5.1
Economic situation, structure and performance
Overall macroeconomic performance
GDP
Real GDP growth in 2002/03 reached 5.0%, which was once again lower than GoU’s target of 7%.
GoU (and IMF) believe that this is due to a slowdown in the growth of food crop agriculture, on
account of the deterioration in climatic conditions, relative to the very good conditions that
prevailed in 2002Bank of Uganda projects a growth rate of 5.5% on average over the period ending
2006/07, with an estimation of 4.9% in 2003/04.
GDP per capita
As a result of a high population growth rate, real GDP per capita growth has remained below the
5% level set out in the PEAP. In fact, the 1.4% growth rate in per capita GDP in 2002/03 is the
lowest over a long period. Even if real GDP growth returns to a growth path of 7% per annum,
population growth rates will need to slowdown to just under 2% per annum to enable a real GDP
per capita growth rate of 5% per annum. Short of this, poverty eradication targets are likely not to
be met.
GDP components
Agricultural output is estimated to have increased slightly by just 2.2% in 2003 compared to an
increase of 4.8% the previous year. A lower food crop output offset the strong growth in cash crop
production by 9%, especially in coffee and cotton production. There was no expansion in overall
non-monetary agriculture. Livestock, fisheries and forestry maintained stable growth. Within the
agricultural sector, the ratio of monetary to non-monetary output has remained constant, therefore
challenging the implementation of the Plan for Modernisation of Agriculture (PMA).
Inflation
Monetary policy in FY 2002/03 has remained focused on achieving price stability through
containing annual average underlying inflation6 at 5% or less. Lower food crop production in 2003
led to a strong rebound in food crop prices, which caused an increase in headline inflation7. Annual
headline inflation, has risen, and averaged 9.0% for the year. By contrast, annual underlying
6
Underlying inflation excludes the volatile food crop component of the Consumer Price Index basket, and is therefore a more
appropriate monetary policy indicator than headline inflation.
7
which includes the food crop component of the CPI basket.
9
inflation has risen less quickly and averaged 4.7% in 2003. In its medium term economic outlook
for Uganda, BoU expects headline inflation to average 5.9% in 2003/04.
Exchange rate
The Shilling/US$ exchange rate depreciated by 9.4% in 2003. The depreciation took place mainly
during the first semester 2003. It was mainly due to speculation at the height of the Iraq war and
the perceived possibility of not receiving the World Bank PRSC of US$166 million. Since July
2003, the shilling appreciated by 1.2% compared to its lowest to the USD at 1,998 in June.
Export performance
Total earnings from merchandise exports for the year 2003 are projected at US$600 million. This
represents an increase of about 30% over last year. The substantial increase in export earnings this
year is due to the recovery in the world export prices for commodities, but is also linked to the
depreciation of the USD vis-à-vis the Euro, which is the currency of Uganda’s main export markets.
Coffee exports amounted to US$95.22 million in 2003, a slight decrease from US$96.54 million in
2002 in value that hides a 36% decrease in volume, partially due to coffee wilt disease. Les than
2.4 million (60-kilogram) were exported and the average coffee price for the year was US$0.66 per
kilogram compared to an average unit price of US$0.48 per kilogram registered in 2002
3.5.2
Economic growth
Informal Sector
The informal sector is becoming an increasing component of the national economy, it comprises of
small-scale businesses, usually with self-employed activities. They operate with low level of
organisation, low capital, low technology and often on temporary premises. Usually they are not
supported by formal financing institutions, and are not registered with GoU and tax authorities. The
UNHS revealed that 36% of the households are operating a household enterprise, which are twice as
common in rural areas. More than half the household enterprises reported start-up capital as their
major constraint to establishing their business.
The Plan for Modernisation of Agriculture
The implementation of the PMA is under the guidance of the PMA Steering Committee and coordinated by the PMA Secretariat. The secretariat, under EC funding, procured a consultant for
developing the Warehouse Receipts System and Agricultural Commodity Exchange, and procured a
consultant to collect and collate data for the indicators in the PMA monitoring and evaluation
framework. A PMA joint review was carried out and 135 on-going projects in PMA related
government ministries and agencies for the compliance with PMA principles were reviewed. In
addition, support was given to review and recruit a Change Management Specialist to support the
Core Implementation Team (CIT) of the National Agricultural Research System (NARS).
The National Agricultural Advisory Services (NAADS) continued implementing activities to
establish effective and sustainable demand driven services. During FY 2002/03 NAADS benefited
from 7 funding sources to the tune of 17.2 billion Ushs NAADS operational area expanded from 24
sub-counties in 2001/02 to 100 sub-counties in 2002/03. While rolling out to new districts and subcounties awareness creation and education are vital activities before full implementation of
extension activities. Implementation is carried out through the 8,632 existing farmers’ groups.
An independent Review of the PMA programme concluded that whilst there has been good
progress in implementation of some components of the PMA a major effort was now needed to
coordinating the different components and to speed up the process of implementation so that real
impact is seen in the rural areas. At the end of 2003, funding for the PMA secretariat could not be
secured from the MTEF, leaving to donors the responsibility to fund it outside the budget through
project support.
10
The Medium Term Competitive Strategy for the private sector (MTCS)
The Strategic Exports Programme (SEP)
The Medium Term Competitiveness Strategy (MTCS) and the Strategic Exports Programme (SEP)
are the key policy instruments for delivering the first pillar of PEAP, achieving rapid economic
growth and structural transformation.
In infrastructure and utilities, a lot of progress has been made towards improved access, lower costs,
and better quality of services. Less progress has been made in the energy sector where the
privatisation process is still ongoing. Some progress has also taken place in the area of airport
services with adequate facilities at Entebbe to handle more planes, export products and tourists. In
spite of its dilapidates infrastructure, the railways currently handle between 30% to 40% of the
country’s bulk cargo to and from the ports of Mombasa and Dar-es-salaam. Access to land remains
an important constraint to investment. The process of acquiring a land title remains cumbersome
and costly. Under the EAC Customs Union, has emerged the need for harmonisation of the policy
and regulations.Commercial Justice is critical to business growth as it builds confidence, ensures
property ownership and facilitates contracting. The process of handling cases has reduced from a
benchmark of 10 months to 6 months in 2002 and now down to 3.4 months as of June 2003. The
growing confidence in the commercial justice sector has resulted in increased confidence in the
legal system leading to an increase in the number of cases (about 50 per month) being registered at
the court. Enforcement of judgments is being addressed by strengthening the regulations guiding
court bailiffs and improving regulatory provisions for insolvency. However, some important
supportive institutions are still weak. Over the last three years, significant progress has been made
in the financial sector. The privatisation of the Uganda Commercial Bank (UDB) to Stanbic Bank;
the passage of the Micro-Deposit Taking Institutions Act; the Financial Institutions Act, the launch
of the Microfinance Outreach Plan and the expanded use of Leasing facilities, automatic teller
machines (ATMs) and credit guarantee schemes are some of the positive developments.
Commercial bank assets and deposit rates have grown significantly in the recent past and the nonperforming assets (NPAS) have declined from 39% in 1999 to 3% as of June 2003. However, the
cost of borrowing remains high and is still perceived as a major constraint by over 60% of the
business establishments in Uganda. However, the current institutional architecture is lacking in
terms of resources (human and financial) and regulatory framework. The Ministry of Tourism,
Trade and Industry (MoTTI) needs to build its capacity to address global trade negotiation issues to
promote export growth, set quality standards and enforce them. The Commission supports the
Trade and Tourism departments, but a broader institutional reform process is required for the entire
Ministry and the associated agencies (UNBS and UEPB).
Over the last two years about 70 billion shilling has been directly spent on the eight sectors
constituting the strategic exports programme (SEP)8. The activity areas on which resources have
been spent include distribution of planting materials and stock including improved goats, cattle and
fish by; developing new employment and export earning opportunities through skills development;
export product diversification; and, building market infrastructure.
An on going study is undertaking a medium term review of the programme and will provide the
necessary analytical inputs to helping enhance the programme objectives. The study should help
clarify the SEP linkage with the MTCS and PMA programmes, evaluate the adequacy of the
management, supervision and monitoring institutional framework, define opportunities for
enhanced donor and private sector participation/involvement in the programme, and the
effectiveness with which resources are being applied. The findings of the study will be used to
inform the budget process for FY 2004/05, as was required by the donors during the PER in June
2003.
8
The initiative provides the following funds: coffee (UShs 2 billion); tea (UShs 1bn); cocoa (UShs 0.1bn); fish fry (UShs 0.8bn);
land for the Vegetable Oil Development Project (UShs 0.4bn); and the new cotton programme (UShs 1bn).
11
Labour productivity, measured in terms of value added per worker, is much lower in Uganda, at
US$ 1,189 compared to neighbouring, Kenya (at US$2,733) and Tanzania (at US$ 1,862 Uganda’s
low labour productivity is especially low in the MSE sector. This could be attributed to low
capitalization, scale of enterprises, high concentration in agro-industry and poor work habits.
Uganda’s tax rates are comparable to rates of neighbouring countries. Uganda’s corporate tax rate
of 30% and VAT at 17% is comparable to the rate of 30% and 20% for Tanzania, and 32.5% and
18% for Kenya, respectively. The Uganda Revenue Authority (URA) has already taken significant
measures to address administrative constraints. However, there are still complaints, related to the
duty drawback, valuation and corruption in general.
3.5.3
Trade policy - Regional Integration
In pursuing export-led growth, GoU is party to several regional and multi-lateral agreements and
beneficiary of market access initiatives offered by the US (AGOA), EU (EBA) and GSP-based
preferences to Canada and Japan. While the mandate for trade policy formulation and negotiation
lies with MoTTI, it is in fact shared with the Ministries of Foreign Affairs (MoFA) and Finance
(MoFPED). A national trade policy document is being developed under the MTTI with support
from DfID and EU, and is intended to provide a cohesive framework for trade policy development
in Uganda.
As far as EPA’s are concerned, Uganda is one of the 16 members of the ESA group. Officials from
the lead Ministries have been involved in some preparatory work, and a full-scale programme of
activities is developed. The East African Community (EAC) is at advanced stages of integration
and there is political commitment to conclude a Customs Union Protocol in the first quarter of
2004. So far, efforts have been made to finalise studies to inform the negotiation process, mainly
on private sector development strategy; legal, institutional and administrative structures of the CU;
and, application of the principle of asymmetry. Consultation also took place on the draft bills as the
framework for the CU Protocol, including competition policy and law, and customs law.
On the common external tariff, a consensus was reached on the bands (3 plus one for ‘special
products’), on the rates (0, 10, 25% to be reduced to 20% in 5 years) and finally on the
circumstances and procedures for review. But negotiations could not be finalised on the
classification of a limited number of items. Most of the products concerned are inputs for the
manufacturing of finished goods in Uganda and are covered by a duty exemption in Uganda,
whereas their classification in the CET would place them in the 10% tariff band for intermediaries’
products.
Public-private dialogue is a key feature in Uganda’s trade policy processes. The Inter-Institutional
Trade Committee, a forum that brings together stakeholders in the public, the private sector and
civil society, is currently under review. It is to be formalised by a legal instrument and restructured
to deal with all trade issues. I n the meantime, consultations with Non-State Actors (NSA) are
generally sporadic. There is need to strengthen the capacity of the civil society, including the
private sector, to effectively dialogue with GoU on trade issues.
As far as regional integration is concerned, there is need for support targeted towards mitigating the
effects of deeper integration, both in GoU and the private sector. The viability of such assistance
would increase if implemented at EAC level. At the national level, there is need to support or
complement capacity building in trade policy, including strengthening institutions, research and
studies, and creating an effective consultative framework that brings on board NSA.
3.6
3.6.1
Infrastructure Expansion
Roads and transport
In 1996 GoU put in place the Ten Years Road Sector Development Programme (RSDP), which
was revised for a new ten year period during the 2002 Road Conference. The programme sets out a
comprehensive approach of key road investment combined with major policy and institutional
12
reforms to achieve a sustainable, safe and efficient road network. The programme has three main
components: maintenance, network improvement and institutional development.
3.6.2
Maintenance
Over the reporting year, GoU remained unable to adhere to the RDSP road maintenance objectives.
The already modest maintenance provision in the FY 2002/03 budget was followed by a 2003/04
budget provision which only showed an increase of the previous budget with the annual increments
agreed between donors and GoU, but which did not make up for the 2002/03.
The new budget policy blocks donor funding of what appears to be a structural shortfall in road
maintenance during the coming six to eight years, because as part of the new budgeting policy
additional donor funding will reduce GoU contributions to this budget heading. Under this budget
ceiling, it would be well possible that the funds earmarked for road maintenance in the current
CSP/NIP have to be re-programmed.
The practical consequences of this budget policy are a reason for concern, as inadequate
maintenance budgets will unavoidably cause an increase in the already existing backlog of periodic
maintenance. Overdue periodic maintenance tends to become rapidly more expensive and,
eventually, will call for extensive rehabilitation interventions or even reconstruction. Once best
practices for road maintenance have been established, further reduction of the road maintenance
budgets is only possible through road closures and/or traffic restrictions. Both measures are a
constraint to development, which calls for an extended road network, increased mobility and no
transport restrictions.
3.6.3
Network improvement
During 2003, good progress could be noted notably in the implementation of the World Bank
financed projects. They essentially concern up-grading of existing gravel main roads to bitumen
standard and as such will result in a decrease of the relatively high proportion of main roads with a
gravel driving surface.
Delays in tendering for the EDF funded road projects means that investments foreseen to start
during the fourth quarter of 2002 only commenced during the third quarter of 2003 (KagambaRukungiri Road) or were awarded only during the fourth quarter of 2003 (Jinja-Bugiri Road and
Kampala Northern By-Pass). The projects concern upgrading of one gravel main road to bitumen
standard (Kagamba-Rukungiri, 30 Km), rehabilitation of an existing bitumen road (Jinja-Bugiri, 62
Km) and construction of an entirely new road (Kampala Northern By-Pass, 22 Km).
EDF funds were put in place and are being proposed for the improvement of feeder roads and
institutional capacity building in the districts concerned. The current programme covers 7 districts,
improvement of 1,250 km and maintenance of 3,000 km. The proposed second phase will cover 15
districts, improvement of 2,600 km and maintenance of 7,000 km.
3.6.4
Institutional Development
Restructuring of the Ministry of Works, Housing and Communication (MoWHC) and establishment
of an autonomous Road Agency are part of the objectives of RSDP. They should have been
accomplished by end 2003 / begin 2004. Implementation of the reforms is seriously delayed. On
31 December 2003, legislation required for the establishment of the Road Agency had yet to be
proposed to Parliament. Transfer of road maintenance to the private sector is lagging behind the
policy targets and the intended share of the private sector (80%) is far from being reached. Strongly
linked with this is, of course that the institutional changes in the road maintenance section of the
Ministry are also behind schedule.
The significant delays in these reform measures make have caused the NAO to propose to reprogramme the 9th EDF funds earmarked for support to this reform and to use these funds for the
rehabilitation of priority sections in the Kampala-Katuna Road.
13
A further consequence of the delays in the restructuring of the Ministry is that there is insufficient
capacity for policy formulation and regulatory and monitoring functions. Hardly any action can be
noted in the dialogue between Ministry and the private sector, notably in respect of lower transport
rates and higher efficiency in the transport industry. Policy enforcement also remains weak in
respect of declared targets like increasing the share of rail transport, reducing overloading and
improving road safety.
It is regrettable that these weaknesses have to be noted as they impact directly on the very core
objectives of the Uganda-EU co-operation in the transport sector.
3.6.5
Water Supply and Sanitation
Meeting the MDGs in this sector will have a major impact notably with respect to meeting the
targets set for the health sector. The efforts required to bridge the presently still very wide gaps
between MDGs and the Ugandan reality will require major improvements and investments.
In the water sub-sector progress has been made in improving the percentage of the population that
has access to reliable water. The overall percentage stood at 52% by mid 2002. In the rural areas
this percentage was 58% in June 2003 and is projected to improve to 61% by June 2004. In major
towns these percentages are 63% and 66% respectively. Management of the urban water schemes is
progressively being handed over to private operators in line with established policies. However,
little progress can be noted in designing and tendering for one large and established water supply
company that would manage the water supply installations in towns with a population in excess of
15 - 25,000 people.
There has been little improvement in the very sub-standard situation in the sanitation sub-sector.
Only a very small part of the population has access to sanitation (less than 10%) and very little
progress in improving this situation can be reported for the year 2003.
GoU is preparing a dossier intended to demonstrate that it should qualify for contributions from the
EU Water Initiative.
3.7
Social developments
Social developments indicators - Source MoES, MoH, MoFPED, UN, UNICEF, WB
Type
Impact
Outcome
3.7.1
Indicator
1. Proportion of population
below $1 per day
2. Prevalence of moderately
or severly underweight
children (under five years of
age)
Maternal mortality
3. Under-five mortality rate
4. Net enrolment ratio in
primary education
5. Primary completion rate
6. Ratio of girls to boys in:
-primary education
-secondary education
-tertiary education
7. Proportion of births
attended by skilled health
personnel
8. Proportion of 1 year old
children immunised against
measles
9. HIV prevalence among 1524 year old pregnant women
10. Proportion of population
with sustainable access to an
improved water source.
1999/2000
2000/2001
2001/2002
34%
2002/2003
2003/2004
(forecasts)
2004/2005
(forecasts)
38%
23%
152
505
127
70%
71%
354
103
83%
86%
98%
100%
22%
0.96
0.79
0.82
23.0%
19.0%
20.3%
35.0%
62%
67%
84%
> 80%
6.5%
6.1%
6.2%
5.5%
53.0%
55% (rural)
62% (urban)
58%(rural)
63% (urban)
61%(rural)
66% (urban)
0.64
0.51
0.75
0.52
25.0%
53%
> 80%
65% (rural) 70%
(urban)
Health
The Health Sector performance has continued to improve into the fourth year of the HSSP I
implementation. The assessment is based on performance against HSSP indicators and agreed
targets for the FY 2002/03.
14
Progress against Indicators and Undertakings
A number of indicators have surpassed the annual target for FY 2002/03: OPD attendance, DPT
3/Pentavalent coverage, proportion of approved posts filled by trained health workers. Others are
close to target: HIV sero-prevalence, proportion of TB cases notified. The downward trend in the
proportion of women delivering in public and PNFP health unit seems to have been halted.
Indicator
Baseline Value
2000 / 01
2001 / 02
2002 / 03
Target
2003/04
1999/00
OPD Utilisation
0.40
0.43
0.60
0.72
0.7
DPT 3 / Pentavalent vaccine coverage
41 %
48 %
63 %
84%
85%
Deliveries at Health Facilities
25.2 %
22.6 %
19 %
20.3 %
35%
Approved Posts filled by Trained Health
Workers (excluding Nursing Assistants)
33 %
40 %
42 %
67%
48%
National Average HIV Sero – prevalence as
captured from ANC Surveillance sites
6.8 %
6.1 %
6.5 %
6.2%
5%
Table: Progress against PEAP Indicators
Comparing intersectoral performance over the years underlines the effect of the 2002 census figures
that have been used to calculate the ratios for FY 2002/03, whereas previous years used projected
populations from the 1991 census that turned out to be an underestimate given the actual intercensual population growth rate of 3.4% compared to 2.5% previously used in estimates
Financial inputs into the sector amounted to US$7.2 per capita against an estimated requirement of
US$28 per capita as indicated in the Health Financing Strategy (HFS). The proportion of the health
sector resource envelope contributed to by the GoU budget (including donor budget support)
continued to rise during the FY 2002 / 03, the second year in which the GoU budget contribution
exceeded the contribution of donor projects to the sector envelope. The stakeholders in the health
sector have been able to determine medium term and annual priorities against which the modest
increases in the budget can be applied.
The Mid Term review of the HSSP I noted satisfactory progress of the health sector with
implementation of the HSSP, and concluded that HSSP strategies were still relevant and
appropriate. However a number of challenges were noted which need to be dealt with in order for
the HSSP to make its contribution to the achievement of the PEAP targets.:
The process to make the transition from HSSP I to HSSP II was initiated at the end of 2003. This
process which is expected to last at least one year will see the final draft HSSP II strategy debated
and adapted during the 10th JRM of October / November 2004.
3.7.2
Education
The sector has continued to make progress towards achieving its goals as highlighted by the May
and November Education Sector Reviews.
The situation of school sanitation and hygiene has also shown an improving trend, although a lot
still needs to be done. In 1997, the pupil/stance ratio was estimated at 700: 1, with many schools
especially in rural areas having no latrines at all, and those with latrines not separating them for
boys and girls. By 2000 the ratio had improved to 96:1 with 80% of schools having separate
facilities for girls. The School Facilitation Grant (SFG) has also availed facilities for children with
special needs. According to the 2002 EMIS data, the pupil/ stance ratio is now 64:1, with 3% of the
districts having reached the recommended ratio of 40:1.Water coverage is estimated at 50% of
schools having access to safe water
15
Indicator
Target
Actual
2002
Actual
2003
Comment
Pupil: Teacher ratio
54:1
57:1
56:1
Still below target although an improvement from
65:1 in 2000 and 59:1 in 2001.
(At end of 2003 no of teachers on the payroll
was 122,716 which is below 122,884 which was
the minimum expected number assuming 700
teachers access the payroll every month. MoPs
is expected to present a justification)
Pupil: Core text Book
ratio
P1-P2:0
P3-P4: 3:1/4:1
by subject
P5-P7: 3:1
later adjusted
to 0
P1-P2:0
P3-P4 =3:1
Pupil: Classroom ratio
92:1
94:1
94:1
6,835,525
7,373,151
Gross Enrolment at
Primary level
P1-P2 – have non-textbook material. The0
P3-P4-; The actual enrolment is 1,052,173 and
981,182 respectively. There distributed books
were as follow: English 786,512; Maths:
737,479; Science: 700,993; SST: 958,895,
Religious Studies: 337,487; Agriculture 340,993.
The distribution exceeded the set targets.
An increased enrolment (6,835,525) the sector
exceeded its target for construction of
classrooms with the total number achieved of
73,104 against a target classroom stock of 70,978
by May 2003.
This figure is given by MoES with an expected
5% rise from last financial year.
Table : Progress against PEAP Indicators (Education)
A number of issues emerged as urgent during the year:
During the permanent consultation among stakeholders among all the concerns raised, several
issues have emerged as requiring urgent attention:
•
Applying the agreed sanctions against errant officials to effectively address the continued
failure of several local governments to comply with respective guidelines and the negative
effect of this on the delivery of quality education services;.
•
Synchronising the review of the primary education curriculum and ultimately that for
secondary education with teacher education and the assessment system;
•
Designing urgent interventions to reduce primary school pupil dropout and high repetitions
rates which threaten to undermine the gains of UPE.
Gross enrolment rates (GER)
Net enrolment rates (NER)
Boys
Girls
Total
Boys
Girls
Total
2000
132%
124%
128%
119%
112%
116%
2001
132.91%
127.76%
129.85%
120%
115.86%
117.51%
2002
128.4%
124.3%
126.3%
99.9%
99.8%
99.85%
2003*
129.84%
125.01%
127.42%
101.12%
100.36%
100.74%
Table: Primary enrolment rates by gender, 2000-2003
The gross enrolment in 2000 was too high compared to 2002 because of mass enrolments across
boarders and reliance on population figures of 1991 population census. Enrolments have been
increasing steadily at all levels for primary.
16
In terms of quality, Ugandan statistics also reveal positive trends. The key quality indicators
tracked in primary during the implementation of ESIP I are ratios of teachers, textbooks, and
classrooms to students.
Indicator
Pupil/classroom ratio
Pupil/teacher ratio
Pupil/textbook ratio (P3 -P7)
Net primary enrolment
Net enrolment ratio (12-year-olds in primary 7)
2000
106:1
65:1
6:1
110.69
8.17
2001
98:1
58:1
2002
94:1
55:1
117.51
9.79
125.66
10.58
2005 target
95
53
3:1
98
n/a
Table: Key indicators of access and quality in primary education (Source: Annual Education Statistical Abstracts 2000, 2001, 2002)
There has been a provision of instructional materials to all children in school resulting in the
reduction of the pupil/book ratio from 6:1 in 2000 to 3:1 in the 2003. GoU has also constructed new
classrooms and completed the unfinished ones. This has led to a reduction in the pupil/ classroom
ratio from above 116:1 in 1998 to 94:1 in 2002. However this may deteriorate to 95:1 in 2005 due
to unprecedented increases in enrolment completed with constraining budgetary provision for SFG
which are shared between construction of classrooms and teachers houses.
At the same time, pupil/teacher ratio improved from more than 100:1 in 1998 to 54:1 in 2002, as
teacher recruitment increased from 82,148 teachers in 2000 to 118,784 in 2002
17
4
AN OVERVIEW OF PAST AND ONGOING EC CO-OPERATION
4.1
4.1.1
Focal Sectors (and macroeconomic support)
Macroeconomic support and Economic Reform (7th, 8th and 9th EDF)
Budget Support
Uganda is eligible for structural adjustment assistance in accordance with Article 246 of the Lomé
IV-bis Convention on the basis of its economic reform programme agreed with the IMF and the
WB Poverty Reduction Strategy Programme (PRSP). The country has a completely convertible
currency and is therefore eligible for direct budget support according to Art 224.
The current EC budget support is provided through a 74,690,000 € Poverty Alleviation Budget
Support (PABS) 4 programme, under 8th EDF funding. GoU requested the release of the first
tranche with some delay on the planned timetable in November 2001 (instead of March), due to the
fact that the supporting material was only finalised in September 2001, following difficulties in
reaching agreement on sector indicators and targets, which had been approved by all donors at the
sector level. Due to the lack of clear output and outcome indicators coming out of the education
and health reviews the Implementation Agreement that would allow the release of the second
tranche (24.5 million €), could not be finalised before July 2003 and the payment processed in
December.
Economic Reform (Private sector development and regional integration)
The 8 ACP UG 37, Uganda Sustainable Tourism Development Programme (UG-STDP) of €5
million started in December 2002, with the TA commencing their assignment in early 2003. The
implementation of the programme was delayed due to the need to improve the accountability and
monitoring of EC funded programmes in the tourism sector. The initial focus of the programme has
been on research and analysis to assist in the design of a growth strategy for the sector.
The matching grant scheme supporting the development of the Small Scale Enterprises in Uganda
managed by the Private Sector Foundation Uganda (PSFU) under the 7 ACP UG 13 commitment is
working beyond expectations. Due to the closing of EBAS, the NAO and the Delegation have
prepared an extended programme to contribute to capacity building by increasing management and
financial skills, including both medium and larger scale enterprises.
The drafting of the financial proposal for the second phase of the Support to Feasible Financial
Institutions and Capacity building Efforts (SUFFICE), a programme that grew out of the 7th EDF
Micro Projects income generation programme, was finalised in September 2002 and eventually
approved in 2003. Given the active role of the programme, the very positive results of its
evaluation and the monitoring by the AIDCO independent monitoring mission, the NAO agreed to
fund its activities up to December 2003 from Stabex 92 interest, in line with the provisions of the
FMO 92.
The Uganda Programme for Trade Opportunities and Policy (UPTOP) was finalised in June 2002
through an agreement between the NAO, Ministry of Trade, Tourism and Industry (MoTTI) and the
Delegation. Once the implementation modalities were agreed upon, the programme started in April
2003. MoTTI and the PSFU are jointly responsible for implementation under the co-ordination of a
specific unit serving both the public and the private sectors.
Funding was made available for a number of studies in support of GoU’s efforts to review and redirect, where necessary, its Strategic Exports Programme. Consultancies on the production and
marketing of tea, coffee, livestock and fish were undertaken, along with proposals for the
implementation of GoU’s ICT policy and WRS-ACE.
Together with the Austrian Regional Bureau, the Commission supports the MTCS/SEP secretariat
that is monitoring the implementation of this strategy in a public-private partnership. So far the
secretariat, which started its activities in May 2003, has revived the strategy and is mainstreaming
18
private sector development within GoU policy, putting an emphasis of developing a transparent and
comprehensive “level playing field”.
Institutional and Administrative Reform – Capacity Building Support for Programme Management
The Tax Policy Department (TPD) of MoFPED support is yet to start due to the lack of expertise
available in the international market. TPD is now envisaging an alternative approach.
The EC has confirmed its commitment to capacity building within MoFPED by extending its
support to the Budget Department. Such support should be extended under 9th EDF funding in
order to continue to support the monitoring and evaluation (M&E) endeavours of GoU.
Support to the NAO under 8th EDF (8 ACP UG 14) for international TA and local support under
Stabex funding are on track.
4.2
Transport & Economic and Social Infrastructure (7th, 8th and 9th EDF)
Funding of infrastructure for
transport, water supply and
Sector
€ Million
€ Million
€ Million
€ Million
sanitation
occupies
a
very
important place in the cooperation
39.6
52.4
98.1
107.0
Main Roads
between Uganda and the European
Districtict Roads
4.5
12.0
25.0
Commission. Since the 6th EDF,
approximately € 428 million have
Urban Roads
0.7
23.0
been earmarked for this sector.
Rail and Air
3.6
10.0
1.6
Transport
(see table).
Investments in
transport
infrastructure
cover main
Water Supply &
21.5
24.9
4.4
Sanitation
roads, district roads and urban
roads, as well as rail and air
65.4
114.8
116.1
132.0
Totals:
transport infrastructure.
Largescale water supply projects have been implemented in Kampala and are about to be built in a
number of smaller towns far away from the capital. Micro-projects cater for water supply projects
for communities in the remote rural areas. Sanitation projects in both urban and rural areas are
implemented with strong community participation.
6th EDF
4.2.1
th
7 EDF
8th EDF
9th EDF
Transport infrastructure
In the road sector important progress was made during 2003 in launching tenders for projects
subject of financing decisions during 2001 and 2002:
- Works and services were tendered in January 2003 for the STABEX funded Kagamba –
Rukungiri Road. The tender was successful and works started in July 2003.
- Works and services for the Jinja - Bugiri Road were tendered in March 2003. The works tender
had to be cancelled due to lack of acceptable bids within the available budget. Negotiations
resulted in the award of contract shortly before the Christmas break of 2003 and parties will sign
the contract by end January 2004.
- Works for the Kampala Northern By-Pass were tendered in May 2003, but the start of the tender
procedure for the services was delayed until July 2003. The works tender was successful and a
contract award was approved shortly before the Christmas break of 2003. Unfortunately, delays
in the land acquisition for this project by GoU may delay formalisation of the contract award and
subsequent signature of the works contract. Evaluation of the technical offers for the service
contract was started shortly after Christmas.
Works on the Malaba border post were completed in September 2003, which implies a delay in
excess of 4 months exclusive of agreed time extensions. The contractor has submitted relatively
substantial claims, which were still being analysed at the end of the reporting period.
19
The Channelling Agreement drawn on 1992 STABEX funds for repairs to the Kampala–Malaba
railway line was replaced by an agreement covering the in-house execution of the track repair
works by Uganda Railways Corporation. All necessary procurement was undertaken during 2003
and the track repair works will start in February 2004. Restricted tenders were launched for
specialist works to the railway bridge over the Nile and for the replacement of a number of big
culverts. These tenders were successful and works started in October 2003.
Completion of the feasibility study and detailed engineering design for the Kampala-Katuna section
of the Northern Corridor, the major intervention proposed for 9th EDF financing, was delayed as
GoU and the Consultant could not find a way forward after a very critical review of the
Consultant’s recommendations for the rehabilitation of this road section by an independent expert.
The Transport Research Laboratory of the UK will now undertake a further review of the dossier
and make recommendations for a way forward in an effort to break the impasse.
4.2.2
Water Supply and Sanitation
The Gaba I Rehabilitation Project, Phase I, was funded from STABEX 1998 for an amount of €
2.45 million. A logical complement to the first phase was agreed upon by the NAO, ensuring that
both pumpimg and water treatment capacity were brought back to approximately 75,000 m3 a day.
The awarded works contract started in March and should be completed by March 2004.
Implementation of the Mid Western Towns Water Supply Project is progressing more slowly than
planned. The service contracts started in December 2001 and January 2002 for the provision of
technical assistance for institutional capacity building and the design of the extension of water
supply installations in Hoima, Masindi and Mubende. Contrary to the findings of the preliminary
study, the design consultant concluded that Hoima and Mubende could best be served with ground
water from 60 to 70 metre deep boreholes. The design was finalised for Masindi Town Water
supply. The works contracts were tendered and awarded during the second quarter of the year. The
works commenced in June 2003 and should be completed by September 2004, but due to the slow
progress recorded to date, the NAO already issued formal complaints to the contractor.
Several sewerage systems were studied and designed for all three towns. However, none of the
systems evaluated was found to be sustainable and this project component has been put on hold.
Other solutions to an improved sanitation in the three towns are being studied.
4.2.3
Rural Development (7th, 8th and 9th EDF)
Forest Resources Management & Conservation Project
After the approval of the new National Forest Policy in 2002, the President enacted the Forestry and
Tree Planting Bill in 2003, which started the process of creating the new National Forestry
Authority (NFA). The NFA will be responsible for the management of all the country’s forest
reserves The transition period after the decision to move this responsibility from the Forest
Department (FD) in MoWLE to the NFA has been chaotic and anarchistic. Many actors in the
forestry sector (including MoWLE officials) have taken advantage of this to carry out unauthorised
logging.
In 2003, the National Forest Management & Conservation project worked through the FD but will
in the future be funded through the NFA, as foreseen in the Financial Agreement. Three donors
(EC/EDF, DFID and NORAD) created a basket fund to financially support NFA during the four
first years.
Lastly, the plantation scheme for saw logs plantation was established. The scheme has been much
in demand as the applications received so far cover an area bigger than foreseen for the whole five
year project period.
20
Developments in the Agricultural Sector
The EC provided resources to establish and strengthen the operations of the PMA secretariat. In
addition, funding of NAADS under the same agreement was instrumental for expanding the
programme from 6 to 21 districts by the end of 2003. The EC also provided funds from STABEX
resources to support the review of the NARS, arising from which a draft bill has been produced and
will shortly be tabled before Parliament.
The EC continued to provide support to the National Agricultural Research Organisation (NARO)
in overcoming coffee wilt disease, and in developing improved agro-forestry and post-harvest
technologies and farming practices for distribution to the farming community.
Support was also provided to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF)
in the field of policy and project planning, in the form of a senior sector advisor who has continued
providing valuable professional assistance to both MAAIF and the PMA Secretariat.
4.2.4
Social Sectors (7th and 8th EDF)
8 ACP UG 005 (Improvement of Sexual and Reproductive Health – ISRH)
Project ends at end of 2005. A mid term review process is underway.
8 ACP UG 011 (Uganda Blood Transfusion Services – UBTS) + 8 ACP TPS 018 (Regional
Training Programme)
The UBTS board is now in place and this the ground for the
The two main funding sources have been GoU and EDF. The EC supported phase was structured in
such a way as to progressively increase the resource inputs on a sliding scaled that would enable
GoU to progressively take over the responsibility of providing this essential service to its citizens,
from 50% in 2000 to 90% in 2004.
But, GoU provided only 50% of its financial agreement commitments., which did not allow UBTS
to upgrade its equipment as had been planned and introduce the automated blood grouping system.
UBTS thus continues to use manual blood grouping methods, which contribute tow work overload
and increase changes of clerical errors.
The availability of the timely funding remains very crucial for the success of blood transfusion
service largely due to the nature of the required consumables. GoU shortfalls in funding the existing
financing agreement remain an area of concern. There should be zero tolerance for stock outs of
safe blood at hospitals and HC IV’s. A financial sustainability plan urgently needs to be put in
place.
4.2.5
Projects and Programmes outside Focal Sectors
The 8 ACP UG 29 Human Rights and Good Governance Programme (5 million €) has made a
positive contribution to building capacity of key human rights institutions in Uganda. Positive
aspects were registered in the DANIDA basket fund arrangement in support of Ugandan Human
Rights Commission (UHRC) and strong potential in some programme components like Kasese
District Network that applied a human rights based approach (HRBA). The programme has also
supported the establishment of a national programme for civic education and the introduction of
community service in Uganda through a pilot project.
For the 8 ACP UG 32 Acholi Programme (4 million €) 2003 was the second year of
implementation. As in previous years the insecurity in the 3 beneficiary districts of the Acholi
Programme (Gulu, Kitgum, Pader) was hampering the execution of construction, the flow of
information and financial transactions. Despite this difficult situation 92 micro projects are in
progress, most of them started in 2003. 46 other projects are completed and ready to be officially
handed over to the beneficiaries in beginning of 2004
21
Due to major problems related to management, the Karamoja Programme (STABEX) implemented
a small fraction of the activities planned for 2003. The entire management team was changed and
the structures and procedures were revised, using the experience from the restructuring of the Micro
Projects Program. The new team has made a promising start and there is now a platform for good
results in the coming years. Although very limited during 2003, the programme has made a
significant contribution to increased access of social service facilities in the three districts (Moroto,
Kotido and Nakapiripiriti). Support to initiatives to reduce the insecurity in the region has also been
given from the programme.
After a major restructuring in 2002, the 8 ACP UG 13 Micro-projects programme (15 million €) is
now functioning very well and has become a model for other similar programmes in Uganda and in
other countries. A clearer repartition of responsibilities between the stakeholders has shortened the
time for decision making without jeopardising the necessary control and monitoring. The
Programme has, since its start in 2000, made a significant contribution to increased access and
sustainable utilisation of social service facilities in the eight partner districts (Adjumani, Apac,
Bugiri, Busia, Moyo, Nakasongola, Nebbi and Pallisa) by the provision of social infrastructure
combined with capacity building of community institutions and local administrations. Up to June
2003, the Programme has realised 591 Micro projects in primary education, primary health care and
drinking water. Works are contracted to private contractors with a positive spin-off to the rural
labour market.
4.2.6
Utilisation of resources for Non-State Actors (NSA)
In 2003, an interim support to Ugandan civil society was implemented from STABEX funds
(190.000 €) in preparation of a comprehensive EC Civil Society Capacity Building Programme
under the 9th EDF. A standing Civil Society Steering Committee was elected and mandated to
represent civil society in the context of the 9th EDF programme. The Financing Proposal was
drafted in broad consultation with various stakeholders. This is one of the first examples of
effective financial support to non-state actors in ACP countries under the Cotonou agreement.
4.3
4.3.1
Other instruments
EIB
The EIB has been supporting investment projects in Uganda since 1981, beginning with a study
loan for a mining project under the first Lomé Convention. 19 finance operations have been
approved so far, and contracts signed for a total of 181 M EUR, mostly from risk capital resources
(90 % of the total) as opposed to financings from the EIB’s own resources.
In 1995, the EIB launched its first Apex global loan for SME lending, involving a number of
selected commercial and development banks as intermediaries. The Apex loans are granted to the
Republic of Uganda at an interest rate of 1 % p.a., for on-lending to the intermediary banks either in
local or in foreign currency. The funds are allocated for the financing of loans of a minimum
duration of 5 years to private enterprises in the productive sectors of the economy, including since
2002 education and healthcare provision. Interest rates for the intermediaries are set for lending in
forex at the EIB’s standard rate or for lending in Shillings at a local market reference rate computed
by Bank of Uganda. Given the scarcity of long-term funds on the local market, the Apex global
loans met with considerable demand. Three operations have been implemented of a total volume of
80 M EUR. A fourth operation of 30 M EUR – still funded under the Lomé IV Convention – was
granted in 2003 and signed in October 2004; the allocation of funds is expected to start quickly.
The EIB’s activities in 2003 focussed on the allocation of funds for private sector investment
projects under the third Apex global loan. Through loans of a total of 16 M EUR, 41 projects were
financed in various productive sectors of the economy, namely in education (12 projects), agro- and
food industry (10 projects) as well as tourism (8 hotel projects), involving the creation of some 1
200 permanent jobs.
22
4.3.2
Regional co-operation
Uganda is a member of three of the four organisations under which the Regional Indicative
Programme in the Eastern and Southern Africa (ESA) is implemented (Commission de l’Ocean
Indien, Common Market for Eastern and Southern Africa, East African Community and the
Intergovernmental Authority on Development).
The Regional Strategy Paper/ Regional Indicative Programme for the East and Southern Africa
(ESA) was signed and Uganda is a member to three of the four organizations under this programme.
Pan African Programme for the Control of Epizootic (PACE)
PACE was developed with the overall objective of establishing a lower cost national and
continental epidemiological surveillance network for the main animal diseases.
During 2003, the Ugandan component of the PACE finalised the Rinderpest Emergency
Preparedness Plan; continued with the vaccination against contagious bovine pluro pneumonia
(CBPP) and other major epidemic diseases; and also continued with the surveillance of rinderpest,
CBPP and other major epizootics. It provided loans to 23 private practices in order to improve the
delivery of veterinary services; provided further training to staff in epidemiology and diagnosis
The current financial agreement is supposed to come to an end in October 2004, but the mid-term
review of the programme has recommended an extension up to the end of 2006.
Farming in Tsetse Controlled Areas (FITCA)
The Ugandan component of FITCA is being implemented by MAAIF and covers 12 districts in the
south eastern region. During 2003, the project generated comprehensive sets of data; introduced
low cost community based tsetse and trypanosomiasis control techniques; and introduced
appropriate farming practices, in addition to carrying out capacity building.
Tsetse, tyrpanosomiasis, household and village surveys were completed in all 12 districts for 165
geo-referenced sites. Analysed information was used to generate risk maps and reports, which will
be used for policymaking and implementation of activities by farmers. Tsetse
surveillance/monitoring was carried out in 800 fixed monitoring sites. The support provided to 12district trap manufacturing units provided a direct increase in the deployment of deltamethrin
impregnated tsetse traps resulting into a reduction of tsetse infestation rates by 75-100%.
Several appropriate farming practices suitable for high tsetse /trypanosomiasis risk areas were
introduced as well; pastures were established; and, a regional and referral health centre was
upgraded. A study to assess marketing channels for crops, livestock and the products was carried.
A participatory impact assessment was also done and a final report is being awaited. Lastly, the
current financial agreement, which was supposed to come to an end in December 2003, was
extended up to the end of December 2004.
Regional Programme to Support Agricultural Research in East Africa
The Association for Strengthening Agricultural Research in Eastern and Central Africa
(ASARECA) is an organisation of the National Agricultural Research Systems (NARS) in the 10
countries of Eastern and Central Africa (ECA) - Burundi, D.R. Congo, Eritrea, Ethiopia, Kenya,
Madagascar, Rwanda, Sudan, Tanzania, and Uganda. A Financing Agreement was signed in
December 2000 providing 29.3 million € to the Regional Programme to Support Agricultural
Research in East Africa (RSP) extending the programme duration to 2007. The EC provides
funds for technical assistance (Regional Support Unit) with the objective of assisting ASARECA in
the implementation and management of the EC regional support programme. In 2003, the
implementation of the programme was slower than expected. However, six network coordinators
were contracted and eight EDF funded regional research networks are now in operation. The
23
networks have started with their strategic planning activities, have prepared work programmes and
are arranging for the implementation of research projects.
The Implementation of the Fisheries Management Plan for Lake Victoria
Based on the findings of the Lake Victoria Fisheries Research project, the Regional Authorizing
Officer (RAO) submitted a request to finance the implementation of the Fisheries Management Plan
of Lake Victoria. Arising out of a feasibility study, a financial proposal was approved by the EDF
committee and a financial agreement of €29.9 million was approved by the Commission in early
2003. Some start funds were provided to the LVFO Secretariat
4.3.3
STABEX
Transfers under Lomé IV from STABEX 1st Protocol, 1990, 1991, 1993, 1995 and 1999 amounts
to approximately €176 million, as compensation for export losses from coffee, tea and hides and
skins. STABEX is intended to be a quick disbursement facility. However, as for other ACP
countries, this has not worked out as fast as envisaged. End 2003, it represented a total undisbursed balance of 56.2 million €, of which €10.9 million were committed and with contracts in
place.
STABEX 1st Protocol: The funds have been committed under a single agreement in support of the
agricultural extension programme (NAADS), with activities to be completed by mid 2004.
STABEX 1990: an amount of 37,687,319 € was allocated, including interest transferred. The FMO
is disbursed to over 99% of the fund value including interest earned.
STABEX 91: an amount of 34,209,813 € was allocated and no new commitment during 2003. The
FMO is committed to over 97%, including interest earned, of which 96% has been contracted and
94% disbursed.
The 1992 FMO: an allocation of 24,338,606 € plus interest was made available for coffee, tea, and
export diversification as well as debt relief. The only new commitment during the period was a
feasibility study for a Coffee out growers’ Scheme, which was completed during the year. The
FMO is committed to 96% of the fund balance including the interest earned, of which 86% has been
contracted and 70% disbursed.
STABEX 93: An initial allocation of 46,247,763 €, plus interest, provides for the use of funds for
rural infrastructure and for the natural resources sector. The 93 FMO is now committed to 97% of
the fund value including interest earned to date with contracted amounts of 76% and disbursement
at %50.
STABEX 95: An initial allocation of 430,212 €, plus interest. There had been no commitments for
this FMO in 2003. 95% of the FMO value including interest earned to date has been committed, of
which 95% has been contracted and 59% disbursed.
STABEX 1999: 31,445,176 € has been allocated, plus interest. The FMO provides for specific
support to the agriculture sector and to strengthen private sector development. The FMO was
signed in April 2004. Of the total funds made available only €14,481,000 has been transferred to
the control of the NAO. The balance of the funds including interest is being held under an account
managed by the European Commission.
4.3.4
ECHO
In 2003, ECHO’s funding for Uganda amounted to € 8 million, out of which € 2 million was drawn
from the EDF funds envelope B. A total of 11 projects covering mainly Health and Nutrition, Food
Security, Non Food items, Water & Sanitation and Humanitarian coordination interventions were
initiated / implemented in Northern Uganda.
The health situation in Northern Uganda worrisome. Most of the health posts in the countryside
have been looted or destroyed or abandoned by the health staff in fear of attacks from the rebel
24
LRA. This has resulted in a situation where the larger district hospitals remain the only available
service points even for most basic health services. In addition, these district hospitals have become
a focal point for considerable numbers of IDPs in search of safety from LRA attacks.
To ease the pressure on the main health structures, AVSI, IRC, AISPO, MSF France and MEDAIR
were funded to implement projects aimed at reducing morbidity and mortality rates in the affected
districts.
There is general low water coverage for the populations; this coupled with the overcrowding in
these areas is a major contributor to the prevalence of diseases such as malaria, diarrhoea and
respiratory infection. ACF, IRC, OXFAM and COOPI are implementing projects in the northern
districts to improve the sanitation and water supply and the level of health education.
To increase the ability of the local population to respond to their food needs and decrease
dependency on food aid and outside food inputs, AVSI and OXFAM distributed seeds and tools to
households in Kitgum and Pader districts.
Most of the IDPs lost their belonging as they flee from their villages to the places where they have
settled. In Lira, COOPI has been funded to provide 13,000 households with basic NFIs. MEDAIR
is to provide NFIs to Katakwi, Danish Red Cross to Kitgum and Pader and OXFAM to Kitgum.
To ensure information sharing on the humanitarian situation and a coordinated response, UNOCHA
was funded and carried out central and on site coordination of humanitarian assistance to IDPs
during displacement, return and reintegration in the northern districts of Gulu, Pader and Kitgum.
25
5
5.1
PROGRAMMING PERSPECTIVES FOR THE FOLLOWING YEARS
Integration of EC/EU policy objectives and commitments
The Ugandan development policy and the EU development objectives are certainly very well in line
since both are aiming at poverty eradication. This objective has guided the drafting of the CSP and
selection of the focal sectors of the 9th NIP and has not fundamentally changed.
Whether for focal or for non-focal sectors, the interventions of the 9th EDF still address very
relevant concerns and cover support in sectors where the EC has certainly a comparative advantage.
Moreover, with donor coordination being very active and comprehensive in Uganda, the
programme identified under the 9th EDF have been fully taken into account by the other agencies
that have developed their own strategies accordingly, avoiding duplication of interventions and
favouring the development of synergies.
The participation of the None State Actors (NSA) is enshrined in the programming of the 9th EDF
through specific support to the private sector and to the civil society. This participation will remain
a crucial part of the process and the NSAs have been, are and will be directly involved in the
programming process itself, either through wide consultative workshops or through direct
consultations focusing on the beneficiaries of the programmes, including for the mid-term review.
In this regard, the decision to finance the Civil Society Capacity Building programme under the 9th
EDF (8 million €), taken in December 2003 was very timely
Likewise, after wide consultation and common identification missions with the World Bank, the
programme to support the private sector development and more specifically the MTCS is planned to
provide similar support to the private sector in close collaboration with the World Bank and other
donors. The financing proposal should be finalised by June 2004 for this 14 million € programme
(9 from NIP + 4 from Stabex 99). The programme will among more direct interventions aim at
improving the investment environment, build the capacity of the private sector organisations to
articulate reliable lobbying positions and provide them the institutional framework within the public
service to get their concerns addressed with the right priorities.
Better economic infrastructures, including roads are for most of the sectors, whether economic or
social, a major priority that was fully taken into account while identifying the 9th NIP. Although
GoU remain committed to implement the 10-year RDSP, the commitments are not properly
reflected in the budget allocation and in the decision-making process on axle load control. The
current level of infrastructure maintenance budget is by far insufficient to guarantee the
sustainability of the EDF investment in the construction of new roads. Likewise, the
implementation of the axle load control remains too weak and does not provide sufficient
constraints to reduce and eventually eradicate a practice that does not either guarantee the
sustainability of the investments in the construction of new roads.
Adequate funding of road maintenance and immediate implementation of appropriate axle load
control legislation were identified as necessary assumptions for the timely implementation of the 9th
EDF focal sector of infrastructure. Should GoU fail to properly address these issues in a timely
manner, such investments of the EDF would certainly not have the poverty eradication impact
initially envisaged and could be reconsidered.
The continued support for the PMA under the Rural Development Programme remains a
cornerstone in the EC programme, as it is fully compliant with Uganda’s poverty eradication
strategy. PMA is a complex undertaking, which requires high levels of coordination, and a
commitment of line-ministries to harmonise work across sectoral barriers. Not all of this has been
achieved as yet, and it will take some more time before the optimal working modalities for the
PMA are developed, accepted and implemented. Whereas previously much of the support to the
PMA has been given through a number of projects, consolidation of some of the projects into a
single sector programme is almost completed. Support to NAADS and NARS under one
26
programme is likely to strengthen research and extension linkages, which is one area where
coordination is critical for the success of the PMA.
5.2
Proposal on a review and adaptation of the CSP
The Delegation and the NAO have analysed the current programming of the 9th NIP portfolio and
do not see a need to make any fundamental change to the overall programming strategy of the 9th
EDF and the selected focal sectors. However, there may be need to provide for increased scope and
financing to these sectors in response to the outcome of the PEAP Revision, which will indicate
new prioritisation for which additional resources may be required. Moreover, the costing of the
PEAP priorities could provide clearer and more precise indications of GoU’s objectives and needs
for additional support, either through budget support or stand-alone projects.
Since there is currently an over-programming in the 9th NIP, there may be a need to consider the
allocation of additional resources under the ‘A’ envelope within the coming year. Full
implementation of the pipeline will depend on GoU’s capacity to proceed with the submission of
proposals that are under preparation. It will also depend on the capacity of GoU to implement the
policies conditioning the start of the programmes funded from the 9th EDF.
The Delegation and the NAO have identified the possibility to support a recovery programme for
northern Uganda. This region of the country faces unforeseen dismantling of its socio-economic
environment due to the long lasting conflict against the rebels of the LRA. Together with a specific
intervention focusing on conflict resolution (2 million €), the recovery programme for northern
Uganda (50 million €) will aim to strengthen efforts at both a regional and national level to mitigate
factors supporting the continuation of conflict and to promote positive factors, which influence
moves towards peace and reconciliation. This programme will aim to create incentives and a
conducive environment for peace.
The NAO, with several of his peers from the ACP, appeals to ensure that the proposed effectiveness
of any changes to the modalities of FLEX should coincide with the start of Cotonou. With the rules
used so far to establish the eligibility of FLEX, although Uganda has suffered from deteriorating
terms of trade, especially for coffee, she did not qualify for FLEX. The ACP will bring this to the
attention of the RAO/NAO meetings in the first semester 2004.
Should the FLEX be applied with effect in 2000, Uganda would benefit from approximately of a 60
million €, which would, together with the programme for the support of northern Uganda fully
utilised the ‘B’ envelope. Such a situation would thus not allow for a transfer from resource from
the ‘B’ to the ‘A’ envelope to cover the current over-programming.
27
6
CONCLUSIONS
NAO and EC Delegation have taken stock of the decision to maintain the Country Strategy and
reduce the B envelope by EUR 53.1 million. The main points emerging from the MTR meeting in
Uganda are the following:
6.1
Country analysis
The pro-poor policy of GoU will be closely monitored by EC particularly in the context of PAF
provisions, progress towards MDG targets, reduction in inequities and levels of military
expenditure. It will also be critical to take concrete measures to reduce population growth should
per capita GDP not be eroded, particularly for the rural poor.
EC welcomes the maturing process of multiparty politics consolidation and encourages GoU to
uphold the rule of law and principles of transparency and qualitative governance.
The EC jointly with EU Member States shall pursue an open and frank political dialogue with GoU
revolving around its transition towards a multiparty democracy.
6.2
Poverty Eradication Action Plan (PEAP)Revision
GoU has finalised in October 2004 the PEAP revision. Ongoing and future EDF programmes will
be strongly supportive of the PEAP which should provide the overarching framework for donor
funded activities in Uganda. The EC wherever possible will seek to facilitate a common EU
response to the revised PEAP.
EC is concerned that the elections might have an impact on the quality of the budget process and
funding levels of PEAP priorities.
6.3
´B envelope´ and support to GoU´s recovery programme
NAO and EC Delegation based on the MTR decision to reserve € 20 million of the B envelope for
post-emergency and rehabilitation activities are preparing under the coordination of the Office of
the Prime Minister a programme responding to the short-term needs of the populations affected by
conflict. This programme will in particular take into account the lessons learnt of the ongoing
Acholi and Karamoja programmes and will be developed in close consultation with the European
Community Humanitarian Office (ECHO).
6.4
Role of NSAs
The first EDF 9 programme to be approved provided direct support to NSAs and is considered to be
a model for ACP countries. The level of partnership with NSAs in Uganda can be considered to be
28
increasingly strong. This has been evident in the role of NSAs in the PEAP revision, the dialogue in
all key sector working groups and in the effective implementation of programmes at a decentralised
level. NAO and Delegation will seek to strengthen NSA involvement in the Cotonou programming
exercise by developing a road map for enhanced NSA involvement in the Country Strategy. This
shall not be seen in isolation and shall build on the considerable efforts that have already been
undertaken to strengthen the participation of NSA in the preparation and implementation of the
PEAP.
6.5
Main challenges in EDF 9 programming
¾ For the PMA, EC and GoU have been compelled by AIDCO to switch from basket funding to
budget support. While the development of the PMA Secretariat and steering committee are
critical to “pull together” the PMA towards a common programmatic framework, there should
be a clear a commitment that MAAIF will be able to take over the related budgetary provisions.
This is all the more important since the current approach seeks to strengthen the whole PMA
framework while channelling resources to the priority areas of NAADS, NARS and feeder
roads. This programmatic approach is also reflected in the revised financing proposal scheduled
for the November 2004 EDF Committee. The success of this programme is closely linked to
restructuring of MAAIF and the phasing out of donor driven project support, and both the NAO
and the EC Delegation will raise these concerns to MAAIF and relevant donors. This should be
accompanied by the further development of MAAIF investment strategy and monitoring and
evaluation systems.
¾ For the governance sector, the apparent lack of flexibility of EuropeAid Cooperation office on
the issue of basket funding is noted and efforts will be made to re-examine this matter which
represents for GoU a preferred aid modality compared to traditional project approach. In the
mean time, in order to move forward programme implementation, NAO and Delegation will
develop the related financing proposals following EDF9 (Programme estimates) modalities.
¾ In the roads sector, NAO shall shortly transmit to the EC Delegation a detailed road map on the
road authority in accordance to the AIDCO request with a view to ‘unblock’ the KampalaMbarara Financing Agreement. The setting up of the road authority and substantial policy
reforms are not however expected in the short term. Institutional and capacity constraints in the
transport sector are recognised by the NAO and should be part and parcel of the EDF 10
dialogue. In this context, there will be a need for the EC to revisit its response when considering
any future support to the road sector. On the other EDF 9 road programmes (feeder roads and
road pavements), it should be noted that this sector does not have the monitoring and evaluation
mechanisms and capacity to move towards sector budget support and a ‘project approach’
would hence be more suited.
¾ A new EUR 92 million General Budget Support Programme in support to the PEAP (PABS 5)
has been finalised and submitted to EC HQ in November 2004. This is the largest EDF
programme to be funded in Uganda and a reflection of the trust and partnership which is central
to GoU/EC Cooperation. It is understood GoU will safeguard and strengthen PAF resources and
adhere to the agreed principles enshrined in the Cotonou Agreement.
¾ An updated chronogramme of activities for EDF 9 programmes is presented in Annex. Whereas,
the focal sectors remain unchanged, NAO and Delegation have taken steps to manage
effectively all resources available and certain EDF 9 NIP programmes (MTCS, Regional
integration etc) have been funded through remaining STABEX resources. It should be noted
that GoU has opted where possible to utilise Stabex resources in view of the restrictive
interpretation and burden of EDF 9 procedures.
29
6.6
Perspectives for EDF 10 programming
¾ In 2005, a thorough operational and strategic review should be undertaken with a view to
commence preparations for EDF 10; this should involve taking into account the lessons learnt in
EDF 9, responding to the revised PEAP and launching related sector studies where required
(e.g. Study to develop a programmatic donor framework for the North).
¾ EC has noted GoUs preference for Budget support as a preferred aid modality and will be
closely monitoring the effectiveness and lessons learnt of the EDF 9 BS operations when
considering any future BS. It will be critical when undertaking GBS to strengthen and build on
the entrenched existing dialogue of GoU’s sector wide approaches – particularly Education and
Health and the maturing PMA support programme.
¾ EC is appreciative of the new pillar III of the revised PEAP on ‘Security, Conflict Resolution
and Disaster Management’, the governance agenda in the PEAP and the development of GoU’s
recovery programme and would be prepared to respond to the evolving political and security
environment, particularly in conflict regions.
¾ Any future support to the roads sector should be strongly supportive to institutional
strengthening and capacity building.
¾ Both GoU and EC shall pursue a policy based approach in development cooperation and seek in
the future Country Strategy to work through and strengthen GoU’s sector development
programmes following wherever possible a basket funding or budget support modality.
6.7
Concluding remarks
Three significant financing decisions are expected by the end of 2004: GBS, PMA and MbararaKampala road (around 90% of the A envelope). GoU and EC shall transmit the remaining EDF 9
financing proposals by March 2004 (including rehabilitation programme for the North) with the
exception of ‘Replacement of Driving surfaces programme’.
Needs and performance shall have to accordingly be revisited in the end of term review that will
take place in 2006. The qualitative aspects of EC-GoU cooperation should be noted: strongly
framed around PEAP priorities, robust sector frameworks and management processes and best
practices in cooperation with NSAs and decentralised cooperation.
In 2005, the operational review will provide the opportunity to launch the preparation of the EDF
10 CSP. Early preparation of both financing proposals and tender documents should take into
account the delays experienced under EDF9.
The continued willingness of the EC to provide budget support will depend on the credibility of the
budget process.
30
Annex
EDF 9 Chronogramme of activities: CSP programming
9th EDF
Amount
M€
Macroeconomic support and economic reform
101
Macroeconomic support
Identification
Appraisal
Financing
Decision
84
Apr-2003
Dec-03
June-04
Support to MTCS
9
Jan-02
June-02
Jan-03
Support regional integration
4
Jan-02
June-02
Jan-03
Capacity building finance, planning
4
Feb02
Oct-02
Jan-03
InfrastructureTransport
101
Kampala-Kabale Road
81
Dec-01
Dec-02
July-03
Maintenance and Institutional support
20
Oct-02
May-03
Oct-03
Support to PMA
40
June-02
Dec-03
Dec-04
Capacity building for good governance
17
Decentralisation
10
June-02
Jan-03
June-03
Rule of law and governance
5
March-02
Nov-02
June-03
Human Rights
2
May-03
Dec-03
June-04
Institutional support to NSAs
8
Jun-01
Sept-03
Dec-03
Identification
Appraisal
Financing
Decision
267
Comments over-programming of A envelope: EUR 21 million
EDF 9 Chronogramme of activities: Current programming
9th EDF
Amount
M€
Macroeconomic support and economic reform
95.8
Macroeconomic support including capacity building
92
June-2003
Nov-04
Febr-05
TCF*
3.8
Apr-03
May-03
July-03
InfrastructureTransport
100.0
Kampala-Mbabara Road
87
Dec-01
Dec-03
Dec-04
Replacement of driving surface
13
Oct-02
Jan-05
Oct-05
Support to PMA
28.7
PMA Support programme: NAADS/NARS
17.5
March-04
Oct-04
Dec-04
PMA Feeder roads programme
11.2
Jan-03
Nov-04
April-05
Capacity building for good governance
17.0
Decentralisation
10
June-02
Nov-04
April-05
Human rights and governance
7
March-02
Nov-04
April-05
Institutional support to NSAs
8
Jun-01
Sept-03
Dec-03
A Envelope programmed
249.5
A Envelope: Carry over previous EDFs
7.905
Suffice II (private sector support)
3.55
Febr-02
Febr-03
Jul-03
31
Commercial justice
1.95
May-02
June-03
March-04
TA to RAFU
2
Dec-03
Feb-04
March-04
Study on road construction
0.2
June-03
Oct-03
Dec-03
Kampala city roads
0.205
June-03
Oct-03
Dec-03
B Envelope: Rehabilitation/recovery programme
20
Dec-04
Febr-05
June-05
* Replacing capacity building component
•
•
•
•
Support to MTCS and regional integration no longer NIP but STABEX funded and PMA
has been broken down in two sub-programmes.
Approximately EUR 4 million in over programmed
Consolidation of macro/institutional capacity building and human rights/governance seen as
positive
Rehabilitation of roads pavement currently is delayed
32
ANNEXES
33
1
1.1
INTERVENTION FRAMEWORK INCLUDING AN OVERVIEW OF POLICY MEASURES AND INDICATORS
(UPDATES)
Transport
Target/objectives/ Performance
results
Indicators
Long-term
targets:
Sources of
Verification
Status 2003
Targets 2004
Targets Longer Assumptions/Risks
Term
To sustain
- Gross Domestic - Government
5.3 % (2001/02)
economic growth, product (GDP)
statistics
reduce poverty - Gross
-MoAIF statistics
and promote
Agricultural
regional and
Product (GAP)
national
integration
EC-intervention
objectives:
6.2 % (2002/03) 7 % (2017)
To provide a safe Passenger fares
and sustainable Freight rates
transport network
reducing transport Freight and
costs and
passenger
improving access movement
to rural areas
- Vehicle
operating costs
36.5 Ush/Km
152 Ush/T-Km
No Change
No Change
12% growth on
annual basis
(estimate)
10% growth on
annual basis
Government
statistics
and
MoWHC/RAFU
records
Data collected, but No projection
available yet
no analysis
available yet
Fatalities and
injuries in road
accidents
- Uganda Police
statistics
Adequate Road
maintenance
funding
- MoFPED/WHC 18.41 BUSh
records
Data collected, but No projection
available yet
no analysis
available yet
Expected results:
23.59 BUSh
25% reduction
30% reduction
International and
regional regulations
and agreements in
10% growth on operation between
annual basis
Uganda and
neighbouring
countries
No projection
Other national
available yet
sector policies (rural
development, social
policies etc)
No projection
implemented
available yet
efficiently
Other transport
modes operate
107 Billion Ush regularly and
(50.9 M€)
efficiently (air,
railway)
Routine and
periodic
maintenance on the
NCR continue
efficiently
Contribution on
road maintenance
increased and
private sector
involvement in road
works enhanced
-
- Improved
Priority sections Acceptance
national network in the Kampala- certificate of works
Kabale main road
rehabilitated
Improved district Maintenance
MoWHC/RAFU Backlog only
road network
backlog on the
reports and road marginally
national network conditions surveys reduced
reduced to two
years by 2006
Backlog
increasing
Road Users
Percentage of
conforming to
national network
traffic regulations, in good to fair
especially axle
condition
loading
Percentage of the
districts road
network in good
to fair condition
MoWHC/RAFU 29.6% Good
reports and road 52.3% Fair
conditions surveys 18.1% Poor/bad
30% Good
55% Fair
15% Poor/bad
65% Good
35% Fair
0% Poor/bad
District reports and Estimate:
MoWHC/RAFU 20% Good
surveys
30% Fair
50% Poor/bad
20% Good
40% Fair
40% Poor/bad
60% Good
30% Fair
10% Poor/bad
Control number of - URA statistic and Data collected, but No projection
overloaded
available yet
MoWHC/RAFU no analysis
vehicles and
axle load surveys available yet
overloading.
reduced from
widespread to
marginal for
over-loading
34
Political and
economic stability
Decentralisation and
sector policy
reforms enforced
and implemented at
district level
Regulation on axle
load control
enforced
1.2
Rural development
Target/
objectives/
results
Long-term targets
Performance
Indicators
Status
(Year )
Directly increasing the Overall indicators of
ability of the poor to
income poverty:
raise incomes and the
quality of their life
%of rural population 43% (2002/3)
below the poverty line
Average
income/expenditure
UGS 139,300
(2002/3)
Target
(Year)
Target Longer Sources of Assumptions/Risks
Term (Year) Verification
Stable macroeconomic
environment
N/A
10% (2017)
UNHS
Continuous GDP
growth
N/A
UGS 200,000
Good Security and
governance
Income/expenditure UGS 65,000
of bottom 20%
(2002/3)
poorest
N/A
incidence of poverty 39% (2002/3)
31%
(2004/5)
UGS 110,000
Enabling socioeconomic
environment
10% (2017)
UNHS
Effective
decentralisation
EC-intervention
objectives:
1. Increase incomes &
quality of life of poor
through increased
productivity and
increased share of
marketed production.
GDP growth in
4.9% (2002/03)
monetary agriculture
% of household who 16.6% (2000)
sell over 50% of
their production to
earn income
7% (2017)
Statistical
Abstract,
2002-
Stable macroeconomic
environment
100% (2017)
NSDS
Continuous GDP
growth
Good Security and
Governance
2. Improve household
food security through
the market rather than
self-sufficiency.
% of households
62.3% (2000)
selling their produce
at farm gate
N/A
% of food crop
production marketed
3. Provide gainful
Employment rate
employment through
secondary benefits of
PMA implementation
such as commercial
farms, agro-processing
factories and rural
services.
66.1% (2002/3)
4. Promote sustainable Land use policy in
use and management of place.
natural resources by
developing a land use
and management policy
and promotion of
environ-mentally
friendly technologies.
Draft in place
(2003)
Preparations
5. Improving access to Develop a 10-year
began (2002)
rural areas
district road
investment Program
% of district road
network in good to
fair condition
60%
(2004)
10% (2017)
N/A
N/A
50%
NSDS
Effective
Decentralisation
Statistical
Abstract,
2002
MWLE
Policy in
place
(2004/5)
Implementation MWLE
(2003/04)
Completed
(2003)
50% (2002)
55% (2006)
35
Enabling socioeconomic
environment
MWLE
Target/
objectives/
results
Performance
Indicators
Status
(Year )
Target
(Year)
Target Longer Sources of Assumptions/Risks
Term (Year) Verification
Expected results
1. Productivity increased
and household food
security improved
through appropriate
technologies and skills
64 (1999-2002)
Number of
technologies derived
from RTD
organisations
NARO
Average yield rate of Maize: 1.23
Beans:0.66
food crops (mt/ha)
Bananas:17.26
2. Share of marketed
production and incomes
of the poor increased
through better transport,
market access, market
information,
infrastructure, agroprocessing, storage,
agric. inputs, rural
finance
3. Gainful employment
opportunities increased
through the
development of
commercial farms, agroprocessing factories and
rural services. (Agric.
education, rural finance,
infrastructure, agroprocessing and
marketing)
Km. of feeder roads 19,044 (2002)
rehabilitated,
maintained or
opened
27.6 (2002)
% of communities
with access to market
information
Km. of feeder roads 19,044 (2002)
rehabilitated,
maintained or
opened
20,127
(2003)
8.0
3.0
35.0
NARO
All (2017)
Annual
Reports of
MWHC
Political willingness
to enforce the land
act
Sector policy
reforms enforced and
at local Government
level
30%
(2003)
100% (2017)
UNHS
Roads policy and
strategy
complemented and
implemented at
central and district
levels
20,127
(2003)
All (2017)
Annual
Reports of
MWHC
Effective monitoring
and evaluation
systems in place
MWLE
MIS services and
policy in place and
functioning at central
and district level
Employment rates
Preparations beginDraft in Implemented
4. Sustainable use and National land use
(2004/05)
management of Natural policy and national (2002)
place
land policy developed
Resources improved
(2003)
through appropriate land
Number of districts
use and management
implementing
policy and through
environmental
19(2001)
56 (2007)
adoption of
26
environmentally friendly concerns in their
(2003/04)
development plans &
technologies.
programmes
36
NEMA
1.3
Macroeconomic support and economic reform
Targets/
Performance IndicatorsSources of Verification Status
objectives/
2003
results
Long-term
targets:
Sustainable
Number of Ugandans National Household 38% (2003)
poverty
living below the
survey
reduction in all poverty line
the country
Discrepancies between National Household 5.22
(1999/2000)
rural and urban areas survey
in household
consumption
EUintervention
objectives:
Macro
economic
stability
Targets
2004/05
Targets
Longer term
Assumptions / Risks
31%
10% (2017)
PEAP remains the
political framework in
Uganda
GDP growth rate
IMF PRGF
5.0% (2002/03)4.9% (2003/04) 7.0% (2017)
Domestic revenue
contribution to the
MTEF
PER
13.8%
(2002/03)
International donor
community continues to
14.4% (2003/04) 18% (2004/05) provide external
support
N/A
N/A
Efficient and Average budget
PER
equitable use deviation
of public funds Weighted average of
the absolute percentage
deviation between
budget and outturns
Poverty related sector PER
shares of the budget:
- PAF (% budget)
- PAF (% execution)
Spending on defence
will remain affordable
37.9%
35.2% (2002/3)37.3% (2003/4) (2004/05)
96% (02/03) 98% (03/04)
100%
An enabling Private investment
environment share of GDP
for rapid and
sustainable
economic
growth and
structural
transformation
BoU economic reviews 15.0%
Outward
Export of goods and
oriented trade service in value
policies
MoFPED/UBOS
15.5%
USD 600
million
sub-Saharan GoU remains
average (2005) committed to market
oriented economy and
privatisation of state
owned enterprises
USD 800 million USD 1 billion GoU remains
(2006)
committed to the peace
process and regional
integration process
Expected
results:
Improve
Service
Delivery
through crosscutting reforms
Improved
quality of
education
PEAP priorities remains
established
Implementation of the
public service reform
Primary school net
enrolment
National Household
survey
86% (2002/3) 98% (2003/4)
P7 net enrolment
UDHS
20% (2003)
Gender equality
National Household
survey
99% (2003)
37
100% (MDG)
30% (2004)
100% (2005)
Targets/
objectives/
results
Improved
quality of
health care
Performance IndicatorsSources of Verification Status
2003
Targets
2004/05
Targets
Longer term
Infant Mortality rate
72 (2002/03)
68 (2005)
31 (MDG 15)
UDHS & UN
88 (2000/01)
Under 5 mortality rates UDHS & UN
127 (2000/01) N/A
103 (2005)
56 (MDG 15)
Maternal mortality
505 (2000/01) N/A
354 (2005)
131 (MDG 15)
20.3% (2002/3)35% (2003/04)
45% (2005)
90% (MDG
15)
UDHS & UN
Proportion of births
UDHS & MoH
supervised by skilled
health worker
Access to safe Rural access to safe
water and
water
sanitation
DWD, MoWLE
Increase of the Real annual per capita IMF
incomes
growth rate GDP at
market prices
Real annual per capita IMF/WB
growth rate Private
consumption
58% (2003)
61% (2004)
65% (2005)
100% (GoU
2015)
N/A
N/A
2.8% (2005)
1.4%
2.1%
2.4% (2005)
38
Assumptions / Risks
Implementation of the
MTCS & PMA
1.4
Capacity building for good governance
Targets/objectives/results
Performance Indicators
Sources of Verification
Assumptions/Risks
Long term targets:
Improving service delivery and Perception of the level of corruption AHS, business community
decentralisation, reducing
improved among the population and surveys (by EAA)
corruption ensuring law and
business community
order.
Timely comprehensive reporting on
the use of public resources at all
Reports by the OAG
levels of public services
Constitutional review confirms
the importance of the
decentralisation process.
GoU improves its commitment
towards 0 level of corruption
EU interventions objectives
Decentralisation
Strong and reliable
MOFPED, MOLG and line ministriesMOFPED, MOLG, Line
accountability for decentralised ensure that mandatory public notices Ministries
public spending
on transfers have been extended to all
basic services at facility, district and
sub-county level respectively.
Central and local government adopt
District and sector plans
and implement the harmonised
MoLG reviews, Community
adequately reflect community framework and MoLG completes a perceptions
priorities, while participatory review of its implementation
approaches are coordinated.
Service delivered in a satisfactory
Quality and quantity of service way. Volume of service delivery
Technical, M & E, Evaluation
delivery and facilities as
increased by 20-30%annually.
and Stakeholder satisfaction
identified by the local
reports (gender differentiated).
communities increased.
Rule of Law
NGO policy and code of conduct
Increased transparency and
OPM, NGO reports
accountability of both NGO andadopted and OPM and NGOs
establish channels of feedback from
government service delivery
civil society to monitor service
entities.
delivery in districts and sub-counties.
JLOS makes the sector-wide
approach and criminal justice reform JLOS
Increased capacity of the
programme fully operational.
criminal justice systems to
Institutions, reports, monitoring
process cases effectively and IGG has published its semi-annual
reports
efficiently.
IGG proposes a stronger follow-up IGG reviews
Corrupt acts exposed and
mechanism for its reports and GOU
sanctioned effectively.
initiates its implementation.
IGG reviews implementation
Minister of Ethics and Integrity has
gazetted and tabled Leadership Code
Bill 2000 and Inspectorate of
Official Journal
Government 2000 Bill in Parliament.
MEI and donors have initiated a
process to develop quantitative
monitoring indicators to assess
progress in fighting corruption.
IGG and MEI ensure that monitoring
of corruption becomes part of
harmonized M&E.
The MOLG reinforces its
coordination and supervision
roles
Key positions are filled and
maintained at district and subcounty level
A better operational
environment for GOU-NGO
partnership and self-monitoring
by NGOs.
Increased collaboration among
agencies, more effective
detection, investigation and
prosecution, and higher public
awareness.
Political willingness exists to
sanction high corruption cases
Human Rights
Government committed to
Increased protection of human Increased reporting to the UHRC
UHRC and AIN reports,
democratisation human rights
rights.
(thematically and geographically)
UHRC, AIN reports
Media, Parliamentary debates, Local
level
Support more comprehensive Greater public debate and advocacy Published results of the surveys
monitoring and analysis of the campaigns on HR
situations.
Baseline surveys of public and
elected officials (national and local)
Increased demand for HR, rule awareness
Reports by NGO on the
No increase in political
39
Targets/objectives/results
Performance Indicators
Sources of Verification
of law and good governance
through civic education and
support to civil society.
Assumptions/Risks
Increased awareness by Ugandans: awareness campaigns
instability or increased arm
- of their Human Rights
conflicts
- of the Constitution
- of the roles and responsibilities
- of local councils
Statistics on the prison population
Support Community Service as - of Parliament and of MPs
an alternative to prison.
Reduced overcrowding in Ugandan by MIA.
Community service is accepted
prison
by the public and stakeholders.
Less incidence of inhuman &
degrading treatment in prisons
40
1.5
Capacity building for Non-State Actors
Targets/objectives/results
Long-term targets:
Increased role of NSAs the
development process
Performance Indicators
Sources of Verification
- No. of national negotiation
- Government reports (e.g.
meetings held with active
Biennial National Integrity
participation of non-state actors
Surveys)
- Amount of media coverage given to - Media surveys (newspapers /
non-state actors related to advocacy radio / local television channels)
EU-intervention objectives:
- To enhance the capacity of
- Increased and improved
NSAs to be involved within
involvement of NSAs in policy
focal and / or non-focal sectors dialogue and the sector review and
and to monitor and be part of evaluation processes
the implementation
- To enhance the advocacy
capacity of non-state actors
Expected results:
- Improved ability of individual - Qualitative assessments of relevant
CSOs to represent grassroots information available at grassroots
interests at district and central level
level
- Qualitative assessments of NSA
- Increased capacity of private networks ability to advocate
sector to rep. interests of privategrassroots needs
sector groupings
- No. of Government projects
- Enhanced ability of NSA
implemented by PS or CSOs
networks to access and deliver
appropriate info. to members
- Increased negotiation,
advocacy and mobilisation
capacity of NSAs
- Improved capacity of NSAs
to ensure involvement in
implementation of national
service delivery
- Enhanced ability of CS to
advocate national CS interests
at international level related to
e.g. trade, poverty, gender
- Sector review and evaluation
reports
Assumptions / Risks
Government will accept inputs
and criticism from non-state
actors
Increased knowledge and
capacity will be used for actual
advancement of NSA interests
CSO act as legitimate
representatives of grassroots
EC will be able to identify
- CSO reports (e.g. Deniva,
NGO-Forum etc.)
appropriate entry-points for
- Independent evaluation reports capacity-building interventions
- Government / district reports
41
2
CHRONOGRAM OF ACTIVITIES
CHRONOGRAM OF ACTIVITIES
Amounts
(million Ū)
9th EDF
Macroeconomic support & Economic reform
Macroeconomic support including M&E capacity building
Identification
Appraisal
Financing Decision
115.575
99
Jun-03
Jun-04
Nov-04
TCF
3.8
Apr-03
Sep-03
Mar-04
SUFFICE II
3.55
Feb-02
Feb-03
Jul-03
Support to NAO
0.225
Apr-03
May-03
Jul-03
9
Dec-03
Jun-04
Nov-04
Support to the MTCS
102.405
Infrastructure - Transport
Kampala-Katuna Road
87
Dec-01
Dec-03
Mar-04
TA to RAFU
2
Dec-03
Feb-04
Mar-04
0.2
Jun-03
Sep-03
Dec-03
0.205
Jun-03
Oct-03
Dec-03
13
Oct-02
Sep-04
Jan-05
40
Jun-02
Dec-03
Dec-04
PMA - NAADS & NARS
17.5
Mar-04
Apr-04
Sep-04
PMA Š Feeder roads
22.5
Jan-03
Apr-04
Sep-04
Study on road construction
Kampala city roads
Replacement of driving surfaces
Support to the PMA
19.95
Capacity-Building for Good Governance
Decentralization
Commercial Justice
Rule of law and governance
Institutional support to non-state actors
Total 9th EDF (including balances previous EDFs) - A
10
Jun-02
Jun-04
Sep-04
1.95
May-02
Jun-03
Mar-04
8
Mar-02
Nov-03
Jun-04
8
Jun-01
Sep-03
Dec-03
285.93
Humanatarian AID
8
Apr-03
Apr-03
Jun-03
Conflict resolution
2
Jan-04
May-04
Aug-04
Recovery programme for the North
50
Jan-03
Sep-04
Jan-05
Total 9th EDF (including balances previous EDFs) - B
60
42
3
INDICATIVE TIMETABLE FOR COMMITMENTS AND DISBURSEMENTS (UPDATED)
INDICATIVE TIMETABLE FOR COMMITMENTS (UPDATED)
9th EDF
(million Ū)
Macroeconomic support & Economic reform
Macroeconomic support including M&E capacity building
2002
0
2003
3.775
TCF
Primary Commitments Timetable
2004
2005
2006
111.8
0
0
2007
0
Total
115.575
99
99
3.8
3.8
9
SUFFICE II
3.55
3.55
Support to NAO
0.225
0.225
9
Support to the MTCS
0
Infrastructure - Transport
0.205
89.2
13
0
0
102.405
Kampala-Katuna Road
87
TA to RAFU
2
2
0.2
0.2
Study on road construction
0.205
Kampala city roads
Replacement of driving surfaces
Support to the PMA
0
0
40
0
0
0
17.5
22.5
PMA Š Feeder roads
0
0
Decentralization
19.95
10
0
3.98
8
268.95
0
0
0
13
0
0
285.93
8
2
2
Recovery programme for the North
19.95
10
1.95
8
8
8
Conflict resolution
40
17.5
22.5
1.95
8
Commercial Justice
Rule of law and governance
Institutional support to non-state actors
Total 9th EDF (including balances previous EDFs) - A
Humanatarian AID
0.205
13
13
PMA - NAADS & NARS
Capacity-Building for Good Governance
87
50
50
INDICATIVE TIMETABLE FOR DISBURSEMENTS (UPDATED)
9th EDF
(million Ū)
Macroeconomic support & Economic reform
Macroeconomic support including M&E capacity building
2002
0
2003
0
TCF
SUFFICE II
2004
2.625
0
33
33
1.2
1.4
1.2
1.2
1.15
3.55
3
29.5
3
30.5
0.225
9
102.405
0
87
12.905
3
29.5
12
25
25
25
TA to RAFU
0.5
0.5
0.5
0.5
Study on road construction
0.2
0
Support to the PMA
0
4
14
4
13
5
13
0.205
13
40
6.5
7.5
5.5
7.5
5.5
7.5
17.5
22.5
9.975
1
5.475
4.5
4.5
4.5
0
19.95
10
0.975
8
0.975
0
PMA - NAADS & NARS
PMA Š Feeder roads
0
Capacity-Building for Good Governance
0
Decentralization
Commercial Justice
Rule of law and governance
0
3.98
8
268.95
13
1.95
8
8
0
0
8
Conflict resolution
8
43
2
285.93
8
2
2
Recovery programme for the North
0
2
0.2
0.205
Kampala city roads
99
3.8
Kampala-Katuna Road
Replacement of driving surfaces
Total 9th EDF (including balances previous EDFs) - B
33
Total
115.575
1.2
Support to the MTCS
Institutional support to non-state actors
Total 9th EDF (including balances previous EDFs) - A
Humanatarian AID
2007
36
0.225
Support to NAO
Infrastructure - Transport
Disbursement Timetable
2005
2006
38.4
38.55
50
50
50
0
0
60
4
FINANCIAL SITUATION FOR THE 6TH, 7TH AND 8TH EDF, THE REGIONAL PROJECTS AND EIB
PROJECTS
44
5
PRESENTATION OF ONGOING PROJECTS PER SECTOR (SORTED ON OECD-DAC)
45
6
LIST OF ACRONYMS
ACE
ARVs
ASARECA
BoU
CS
CSOs
CSSC
DRC
DUCAR
EAC
EACU
EFAG
EIB
ESA
ESIP
FITCA
FMP
GoU
HSSP
IARCs
IBAR
ICT
IDPs
IFMS
JLOS
LDUs
LGDP
LRA
LVFO
LVFRMP
M&E
MAAIF
MAPS
MFI
MoES
MoFPED
MoH
MoTTI
MoWHC
MSEs
MTBF
MTCS
MTEF
NAADS
NAO
NARIs
NARO
NARS
NEMA
NIMES
NPPs
NSA
OAU
OPM
PABS
PACE
PAF
PBR
PCR
PEAP
PMA
PMES
PPA
PRSP
PSFU
PSR
PTR
ROM
RSDP
RSU
SEP
SME
SUFFICE
Agricultural Commodity Exchange
Anti-Retroviral
Association for Strengthening Agricultural Research in Eastern and Central Africa
Bank of Uganda
Civil society
Civil society organisation
Civil Society Steering Committee
Democratic Republic of Congo
District, urban and community access roads
East African Community
East African Customs Union
Education Funding Agencies Group
European Investment Bank
Eastern and Southern Africa
Education Strategic Investment Plan
Farming in Tsetse Controlled Areas
Fisheries Management Plan
Government of Uganda
Health Sector Strategic Plan
International Agricultural Research Institutes
Inter-African Bureau for Animal Resources
Information and communications technologies
Internally Displaced People
Integrated Financial Management System
Justice Law and Order Sector
Local Defence Units
Local Government Development Programme
Lord Revolution Army
Lake Victoria Fisheries Organization
Lake Victoria Fisheries Research and Management Plan
Monitoring and evaluation
Ministry of Agriculture, Animal Industry and Fisheries
Marketing and Agro-Processing Strategy
Micro Finance Institutions
Ministry of Education and Sports
Ministry of Finance, Planning and Economic Development
Ministry of Health
Ministry of Trade, Tourism and Industry
Ministry of Works, Housing and Communications
Micro and small-scale enterprises
Medium Term Budget Framework
Medium Term Competitive Strategy
Medium-Term Expenditure Framework
National Agricultures Advisory Services
National Authorising Officer
National Agriculture Research Institutes
National Agricultural Research Organisation
National Agriculture Research System
National Environment Management Agency
National Information and Evaluation System
Networks, Programme and Projects
Non-State Actors
Organisation of African Unity
Office of the Prime Minister
Poverty Alleviation Budget Support
Pan African Programme for the Control of Epizootics
Poverty Action Fund
Pupil: core textbook ratio
Pupil: classroom ratio
Poverty Eradication Action Plan
Plan for Modernisation of Agriculture
Poverty Monitoring and Evaluation Strategy
Participatory Poverty Assessment
Poverty Reduction Strategy Paper
Private Sector Foundation Uganda
Poverty Status Report
Pupil: teacher ratio
Results-Oriented Budgeting system
Road Sector Development Programme
Regional Support Unit
Strategic Exports Programme
Small and Medium Enterprises
Support to Feasible Financial Institutions and Capacity building Efforts
46
T-Bills
TPD
UBOS
UCBL
UCDA
UG-STDP
UNRF II
UPDF
UPE
UPTOP
URA
UVA
WRS
Treasury Bills
Tax Policy Department
Uganda Bureau of Statistics
Uganda Commercial Bank Limited
Uganda Coffee Development Authority
Uganda Sustainable Tourism Development Programme
Uganda National Rescue Front II
Uganda Peoples’ Defence Forces
Universal Primary Education
Uganda Programme for Trade Opportunities and Policy
Uganda Revenue Authority
Uganda Veterinary Association
Warehouse Receipts System
47