Uganda - Credit for Institutional and Engineering Support to the Road Sector

Report No. PIC4653 Project Name Uganda-Credit for Institutional and ... Engineering Support to the Road Sector Region Africa Sector Technical Assistance Project ID UGPA49543 Borrower Republic of Uganda Implementing Agency Ministry of Works, Transport and Communications (MOWTC) Kampala, Uganda Date the PID Prepared December 27, 1996 Projected Appraisal Date March 19, 1997 Projected Board Date September 16, 1997 Background 1. With a per capita income of about US$300 (FY96), Uganda today is one of the poorest countries in the World. But it has also been since 1987, one of the fastest growing economies in Africa. To a large extent, this has been the result of appropriate stabilization efforts, and of the implementation of a series of structural and institutional reforms. Since the late 1980s, the Government has embarked in a major privatization program; in a wide ranging civil service reform; in a comprehensive rationalization of public expenditure management, including both the recurrent and development budgets; and is initiating a major decentralization process. These elements of the Government+s reform program provide the background for the design of the proposed Project. 2. As part of a strategy to promote growth and poverty alleviation, the Government has prepared a 10-year Road Sector Development Program (RSDP). Consistent with the goals of its reform program, the RSDP pursues important institutional reform objectives, including the corporatization of road management and the restructuring of the Ministry of Works, Transport and Communications (MOWTC) towards a regulatory role, including consumer protection in safety and environmental matters. Furthermore, a US$1.5 billion road expenditure program has been identified in support of market integration and export facilitation. The proposed project has been designed in order to support the institutional reform objectives of the Government in the road sector, and to facilitate the implementation of the investment components of the RSDP. Project Objectives 3. The project+s objectives are to (i) strengthen road sector management capability through spinning off of road administration and execution activities under the Ministry of Works, Transport and Communications (MOWTC) and the creation of an autonomous performance- based Road Agency; (ii) improve sector policy and management through the  redefinition of the role of MOWTC towards a regulatory and planning body; and (iii) prepare physical infrastructure components to be included in the proposed First Road Sector Project which will support domestic market integration, and thus contribute to economic growth and poverty alleviation and to improved access to social services. Project Description 4. The project will consist of the following components: (i) Infrastructure Preparation Studies - this component would cover engineering design, economic feasibility, and environmental impact studies for the paving of 554 km of gravel roads and for the strengthening of about 155 km of paved roads. It would also cover pre-feasibility studies for the identification of about 1,000 km of feeder roads, including basic environmental impact assessment. (ii) Sector Policy Management Studies - this component would include sector assessments of road safety and of network management. (iii) Institutional Development and Capacity Building - this component would include technical assistance and consultant services to strengthen road administration, and capacity building for a new Environmental Liaison Unit within MOWTC. Environmental Aspects 5. Environmental Impact Classification C. The proposed project consists of technical assistance, studies and capacity building and therefore is not expected to have any negative environmental consequences. Project Implementation 6. MOWTC, initially though its relevant line Departments, would have overall responsibility for the project. The feasibility studies for the physical components would be directly implemented by MOWTC+s Directorate of Engineering, through the Planning and Design and Documentation Unit. The Road Safety Audit and the Road Network Management Policy Studies would be carried out by MOWTC+s Directorate of Transport and Communications, through the Road and Rail Unit. The Institutional Development and Capacity Building would be implemented by the Office of MOWTC+s Permanent Secretary. Assistance would be provided to three Road Management Units, which will be created as a transitional institutional set up until the establishment of the Road Agency- Road Development and Management Unit (RDMU), Road Maintenance Management Unit (RMMU) and the Office of the RSDP Coordinator. The Units would be established outside the present institutional set of MOWTC but would be accountable to the Permanent Secretary, who will also be entrusted with the overall coordination of the Project. Once established, the Road Management Units will take over direct responsibility for implementing the RSDP, including the Project components. Project Costs and Financing -2-  7. The proposed Credit would finance technical assistance, studies and capacity building in the amount of US$33.0 million equivalent. Project Sustainability 8. It is anticipated that by involving, right from the start, key stakeholders, including direct beneficiaries, law and opinion-makers, and the civil society, the Project would assist in the sustained mobilization of Government commitment to the envisaged reforms. Another key element for sustainability is that benefits from the institution strengthening measures by quickly realized by producers and road users, through improved accessibility and infrastructure condition. Poverty Category 9. Not applicable Lessons Learned from Previous IDA Involvement 10. Previous experience with transport projects in Uganda holds a number of useful lessons: (i) strengthen the implementing agency