Uganda - Alleviation of Poverty and the Social Costs of Adjustment Project (PAPSCA)

Document of The World Bank FOR OFCIAL USE ONLY C B ,. 2 O?g#' 4~'4, Report No. 8179-UG STAFF APPRAISAL REPORT THE REPUBLIC OF UGANDA ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT JANUARY 10, 1990 Country Operations Division Eastern Africa Department Thbis document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Worh Bank authorization.  REPUBLIC OF UGANDA ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT CURUNCY EQUIVALENTS Currency Unit - Uganda Shillings (USh) US$1 - USh 200 11 USh 1 - US$ 0.005 SDR 1 - US$ 0.78411 21 US$1 - SDR 1.27533 21 WEIGHTS AND MEASURES )QTRIC SYSTEM GOVERNMENT FISCAL YEAR July 1 - June 30 1/ June 1989 2/ November 1989.  FOR OMCIL USE ONLY REPUBLIC OF UGANDA ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT ABBREVIATIONS AND ACRONYMS AIDS - Acquired Immune Deficiency Syndrome CHW - Community Health Workers DANIDA - Danish International Development Agency DDC - District Development Committee DEO - District Education Officer EEC - European Economic Community ERP - Economic Recovery Program GDP - Gross Domestic Product ICB - International Competivie Bidding IDA - International Development Association ILO - International Labour Organization KCC - Kampala City Council LWF - Lutheran World Federation LIB - Limited International Bidding LCB - Local Competitive Bidding MOE - Ministry of Education MOH - Ministry of Health MOHUD - Ministry of Housing and Urban Development MLG - Ministry of Local Government MOWD - Ministry of Women in Development MPED - Ministry of Planning and Economic Development NGO - Non-Governmental Organi-ation NORAD - Norwegian Aid Agency N1RM - National Resistance Movement NWSC - National Water and Sewage Corporation ODA - Overseas Development Administration (British) PAPSCA - Program for the Alleviation of Poverty and the Social Costs of Adjustment PCMU - Project Coordination and Monitoring Unit PHS - Priority Household Surveys PIU - Project Implementation Unit PPF - Project Preparation Facility PTA - Parent/Teacher Association RC - Resistance Committee SDA - Social Dimensions of Adjustment SIDA - Swedish International Agency for Development SSIC - Small Scale Infrastructure Component TBA - Traditional Birth Attendants UNDP - United Nations Development Program UNICEF - United Nations Children Fund USAID - United States Agency for International Development UWWF - Uganda War Widows Foundation VHC - Village Health Committees VIP - Ventilated Improved Pit Latrine WDD - Water Development Department WHO - World Health Program This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  UGANDA THE ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT Table of Contents Page No. BASIC DATA . . . . . . . . . . CREDIT AND PROJECT SUMMARY. . . . ....... . .. .. PROJECT DATA . . . . . . . . . . . . . . . . . . . . * . iv 1. BACKGROUND . . . . . .. . . . . . . . . . . 1 A. Introduction . . . . . . . . . . . . . . . . . . . . 1 B. Economic Overview .9.9.9.9.9.9.9.9. .. . . . . . . 1 C. Economic Recovery Program . . . . . . . . . . . . . 2 D. Economic and Social Impact of ERP . . . . . . . . . 4 II. THE PROGRAM FOR THE ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT . . . . ....... 5 A. Overview ... . . . . . . . . . . . . . . . . ... 5 B. The Vulnerable Groups . . . . . . . . . . . . . . . 5 C. The PAPSCA Initiatives . . 9 . . . . . . . . . . . . 9 Da Program Implementation . . . . . . . . . . . . . . . 12 E. Program Administration . . . . . . . . . . . . . . . 13 F. Bank Strategy . . . . . . . . . . . . . . . . . . 14 III. THE PROJECT . . . . . . . . . . . . . 9 . . . . . . . 16 A. Rationale and Objectives . . . . . . . . . . . . . . 16 B. Detailed Description by Componen. . . . . . . . . . 16 IV. PROJECT COST AND FINANCING PLAN . . . . . . . . . . . . 34 A. Project Cost . . . . . . . . . . .. . . 34 B. Financial Plan . . . . . . . . . . . . . . . . . . . 35 V. PROJECT ADMINISTRATIO.............. .. 36 A. Implementation . 36 B. Procurement . . . . . . . . . . . . . . . . . 37 C. Disbursement.. . . . . . .38 D. Special Account ..39 E. Auditing . .. . . 41 VI. ENVIRONMENTAL ASPECTS.......... 41 VII. BENEFITS AND RISKS .................. 41 A. Benefits . . ... . . . . . . 41 B. Risks . . . . . . . . . . . . . . . . . . . . . . . 42 Vill. AGREEMENTS REACHED AND RECO B NDATIONS . . . . . . . . . 43  ANNHES 1 PAPSCA Initiatives 2 Administration of Small Scale Infrastructure Rehabilitation 3 Administration of Education Component 4 Social Dimension of Adjustment 5 PAPSCA Coordination and Monitoring Unit Responsibilities 6 Small Scale Infrastructure Rehabilitation - Estimated Project Cost 7 Education - PAPSCA - Estimated Costs of the Rehabilitation of 4,200 Classrooms 8 Urban Infrastructure - PAPSCA - Low Cost Sanitation Project Cost Estimates 9 Health Cost Estimates 10 Cost Estimates Social Dimensions of Adjustment 11 Program Administration 12 Summary of Professional Level Technical Assistance 13 Estimated Schedule of Disbursements 14 Implementation Schedules 15 Documents in Project File MAP IBRD 21751  REPUBLIC OF UGANDA ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT BASIC DATA (1985 unless otherwise indicated) General Land Area (Total) 236,000 km2 Population (Total - 1988 estimate) 15.7 - Rural Population as a percent of 92Z total - Population Density 66 per km2 - Crude Birth Rate 50/1000 population - Crude Death Rate 17/1000 population - Rate of Growth 3.2Z - Infant Mortality 120/200 per 1000 live births - Maternal Mortality 3 per 1000 live births GNP Per Capita (1989) US$230  ii REPUBLIC OF UGANDA ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT CREDIT AND PROJECT SUMMARY Borrowers Republic of Uganda Amounts SDR 22.0 million (US$28.0 million equivalent) Beneficiariest Ministries of Local Government, Education, Health, and Planning and Economic Development Terms: Standard IDA Terms with 40 years maturity. Proiect Obiectives and The project's overall objective is to DescriPtion: immediately address some of the most pressing social concerns of Uganda's most vulnerable groups. In the medium term, the project aims to strengthen the institutional capacity of the Government to identify, formulate and maintain interventions for assisting the country's most vulnerable groups. Included would be assistance for (a) small-scale village infrastructure improvements on a self-help basis; (b) primary education rehabilitation (about 4,200 classrooms) in 12 of the poorest districts; (c) urban infrastructure improvements in water supply and sanitation affecting some 47,000 people; (d) cormunity based health services for disadvantaged residents of a selected district and programs of assistance for orphans and widows; (e) strengthening the Government's capacity for improved social planning including formulation and implementation of policies to alleviate the social costs of adjustment; and (f) program administration. Benefits: The project would enhance the productivity, and help to restore the income earning capacity of some of the most vulnerable groups iin Uganda by improving their access to some basic social services. The project would leave the beneficiary communities with the managerial and technical skills necessary to design and implement future self-help projects on their own. The project would also strengthen the Government's capacity for incorporating concerns for the poor into the design of macro-economic and social policies. Risks: In general, risks involve the implementation capacity of the Government, which includes the  iii use of the Resistance Council system, and the extent of local community participation in the Small-Scale Infrastructure Rehabilitation, Primary Education and Low Cost Sanitadion components. Implementation risks have been minimized, for example, by the use of qualified Non-Governmental Organizations, the Ministry of Education's Project Implementation Unit, and the Kampala City Council, all experienced in implementing similar projects. In every case stated above, technical assistance and training have been included in the project. Information and advertising campaigns are also key elements of the investment components; nevertheless the limits of community participation to provide funds and in-kind contributions would be monitored carefully as work proceeds. In the case of the Social Dimensions of Adjustment component, coordination of work to be carried out without duplication and repetition of similar work would be minimized by the use of experience staff and short term consultants in the Ministry of Planning and Economic Development which presently coordinates such work.  iv REPUBLIC OF UGANDA ALLEVIATION OF P(.AflSRTY AND THE SOCIAL COSTS OF ADJUSTMENT PROJECT PROJECT DATA US$ Million A. Estimated Costss Local Foreign Total Components 1. Small Scale Infrastructure 1.32 2.87 4.19 2. Primary Education 5.01 7.64 12.65 3. Low Cost Sanitation 1.87 1.01 2.88 4. Health 3.39 4.39 7.78 5. Social Dimensions (SDA) 1.51 3.55 5.06 6. Program Administration 0.13 0.62 0.75 Base Cost (12/89) 13.24 20.Q7 33.31 7. Contingencies 1.47 2.22 3.69 Physical (52) 0.54 0.82 1.36 Price (82) 0.93 1.40 2.33 Total Proiect 14.70 22.30 37.00 1/ B. Financing Plant USS Millions Local Foreign Total Government of Uganda 2.81 - 2.81 IDA 6.37 21.63 28.00 NGO 1.54 0.67 2.21 Totals 10.72 22.30 33.02 Government "In-kind" 3.98 - 3.98 Total Proiect 14.70 22.30 37.00 1/ Net of taxes and duties. Includes NGOs' contributions and Government's 'in-kind' contribution.  v C. Estimated IDA Disbursements, IDA Fiscal Year 1990 1991 1992 1993 1994 1995 Annual 3.5 4.5 6.0 7.5 6.0 0.5 Cumulative 3.5 8.0 14.0 21.5 27.5 28.0 D. Economic Rate of Return: Not Applicable E. HAPs I8RD No. 21751  1 REPUBLIC OF UGANDA ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTSENT PROJECT I. BACKGROUND A. Introduction 1.01 The Government of Uganda has submitted for donor funding a Program for the Alleviation of Poverty and the Social Costs of Adjustment (PAPSCA). The program is meant to address the urgent social needs of some of Uganda's most vulnerable groups during the next three to four years; a crucial period because the Government's limited resources will be fully conceutrated on the implementation of its complex, though essential, Economic Recovery Program (ERP). The Government's concern is that unless a special initiative is undertaken, the needs of Uganda's most vulnerable population are not likely to be adequately addressed in the near future, and that their precarious cordition is likely to deteriorate. The Program, which consists of nineteen targeted initiatives, was prepared by the Government with the assistance of the Bank Group, ILO, ODA, SIDA, UNDP, UNICEF, USAID, and several NGOs, and will cost roughly $106 million. The proposed IDA project would provide $28 million for the financing of six components of the Program and for strengthening the Government's capacity for social policy planning. B. Economic Overview 1.02 The political turmoil and economic decline of the past 15 years have had a severe adverse impact on the living standards of the vast majority of Ugandans. At independence, Uganda was the envy of its neighbors, with one of the strongest, most promising economies in Sub-Saharan Africa. Favored with a good climate and fertile soil, the agricultural sector was self- sufficient and also generated adequate foreign exchange, The industrial sector, though small, supplied the economy with basic inputs and consumer goods, and contributed foreign exchange through exports of textiles and copper. Uganda's transport system was regarded as one of the best in Sub- Saharan Africa and included access to an effective network of railway, port and airline facilities. With an established network and infrastructure, Uganda's health service had developed into one of Africa's best. School enrollment was still low, but the country had developed a reputation for quality education at all levels. The years after independence demonstrated the country's economic potential. Real GDP grew 5.8 percent from 1962 to 1970, with per capita GDP increasing at least 3 percent a year. 1.03 The decade and a half of political unrest that started in 1970 radically reversed the economic and social progress attained to that point. Skilled personnel fled the country, the parastatal sector grew bloated with abandoned or confiscated industries, and professional standards within the public service eroded. Recession in the OECD in 1973/74 induced a reduction of exports and declines of the terms of trade. The breakup of the East  2 African Community in 1977 accelerated Uganda's economic decline, since the Comuunity bad provided a thriving market for Uganda's industrial exports and a reliable access route to foreign trade. Further damage was caused by the destruction and looting that occurred during the 1978-79 War. 1.04 'When the National Resistance Movement (NRM) Government assumed power in Kampala in January 1986, it inherited a nation torn by ethnic and religious conflicts, and an economy shattered by years of civil war, political instability and physical insecurity. Severe macro-economic imbalances fuelled inflation and contributed to an acute foreign exchange scarcity. Real GDP had declined by a cumulative 14 percent in the preceding 15 years, a greater part of the nation's major trunk roais and vehicle fleet had been destroyed, and industrial enterprises lay abandoned. Even the remarkably resilient agricultural sector had been disrupted in some areas as farmers fled their farms in search of refuge. The total external debt service scheduled for 1986 laid claim to more than half of the 1984/85 export earnings and at the end of 1985 the stock of arrears on medium and long-term debt amounted to close to US$ 60 million. 1.05 Uganda's once impressive social infrastructure also lay devastated by var and lack of maintenance. By 1985, Government expenditure on Education and Health, in real terms, amounted to 27Z and 9S respectively of 1970's levels. This resulted in a massive disruption to the provision of essential services with predictable consequences: outbreaks of waterborne and water- related diseases accelerated as a result of the lack of maintenance of boreholes - the major protected source of water in the rural areas - and other sources, including springs and shallow wells; various programs in Environmental Health were discontinued with a resulting decline in sanitation levels; measles became the leading cause of child deaths in hospitals and death from other preventable diseases such as whooping cough more than doubled. The worsening health situation was aggravated even further by the discovery of AIDS in the Rakai district in 1984. In education, although school enrollment continued to grow throughout the period of economic decline, educational facilities deteriorated substantially, and as a result, child illiteracy rates increased. 1.06 The years of political instibility and economic decline also caused the total disruption of the public service. Successive Governments destabilized the Civil Service, undermining its credibility and capacity. During this period, centralized control over entry into the civil service collapsed, permitting large numbers of individuals, some of whom may not have been qualified, as well as non-existent individuals, commonly referred to as Ighostse, to be added to the payroll. Nevertheless, while the numbers in the civil service increased substanLially, the real per capita wages of civil servants declined precipitously. This resulted in a civil service where personal survival took precedent over public service, and where the capacity to perform was severely constrained. C. Economic Recovery Program 1.07 The NIH's first priority was to restore law and order and civil liberties, overcome remaining insurgencies in the North and East, and begin once again the long and difficult task of nation building. With the  3 assistance of donors, the new Government developed in 1987 a comprehensive program of reforms under its ERP. In view of the severity of the imbalances in the economy, the ERP accorded high priority to stabilization measures including the devaluation of the shilling by 77 percent, and a reduction by Ushl.9 billion in the Government's indebtedness to the banking system. In addition, the ERP also included structural reforms to improve 1-4centives for productrs, increase capacity utilization in industrial enterprises, improve the mobilization and allocation of public resources, and restore discipline and efficiency in public administration. Measures to rehabilitate infrastructure also figured predominantly but were to be financed by expected inflows of external resources. 1.08 While there was encouraging progress in many areas within the first twelve months of the ERP, the stabilization goals proved elusive. This was due to a number of factors, including the unanticipated decline in world coffee prices, a slower than anticipated response from external donors, an overestimation of the speed with which the country would return to normalcy, and monitoring and implementation difficulties, all of which contributed to the substantial deviation from the fiscal and monetary targets. 1.09 Reflecting a strong commitment to the reforms, and drawing on the lessons learned from the first year's experience, a number of corrective actions were taken in 1988 as part of a revised medium-term ERP. These included further devaluations of the shilling, increases in the interest rate, and tighter control over recurrent expenditure. In addition, the Government also commenced allocating foreign exchange at the official exchange rate under the Special Import Program for a wide range of imports on a first-come first- served basis. These imports included agricultural and manufacturing inputs, spare parts and consumer goods. By allocating foreign exchange on a first- comp first-served basis, the SIP ensured speedier utilization of import support and, by providing access to foreign exchange to any importer in a wide range of sectors, it had the effect of liberalizing the foreign exchange allocation system furthe: 1.10 By December 1988, these measures had began to yield the desired benefits. After an initial increase of about 22 percent in July 1988, reflecting the one-time impact of the July devaluation of 60 percent and accompanying changes in administered prices, the consumer price index rose by only seven percent in the subsequent six months. 1.11 Unfortunately, inflation accelerated between February and June 1989, averaging around eight percent a month, with a year-end rate of 86 percent partly as a result of credit expansion for crop financing, a shortfall in coffee revenues, and the expansion of private sector credit. 1.12 The basic thrust of the ERP over the next few years will be to regain the momentum for overall economic recovery. In the immediate future, policy actions which enable financial stabilization to be achieved and maintained will remain of the highest priority. These include further adjustments to the exchange rate, the establishment and the adoption of principles for a comprehensive reform of the indirect tax system, budgetary reform, further liberalization of imports and the coffee subsector, and the containment of credit for crop financing so as to ensure consistency with the program's stabilization objectives. Over the medium term, the intention is to  4 continue the reconstruction and rehabilitation of productive facilities. and of the physical and institutional infrastructure. D. Economic and Social Imract of ERP 1.13 With the assistance of IDA and other donors, the implementation of various components of an overall social action program has already begun. Major projects in Education, Health and Infrastructure rehabilitation, all geared toward poverty alleviation, are either ongoing or planned. The full implementation of these programs and of the policy measures under the ERP, will be to the benefit of the majority of Ugandans in the medium term. With the assistance of donors, more resources are expected to become available to rehabilitate basic social services such as primary health, education, and water supply; also, rural smallholders will benefit from improved producer pricing, and employment opportunities in urban areas will be enhanced as industrial capacity utilization begins to improve, and as labor-intensive donor financed programs for urban infrastructure rehabilitation are implemented. 1.14 In addition, since a pervasive system of price controls and subsidies on essential commodities, such as that found in several developing countries, did not exist in Uganda, the ERP is not accompanied by the widespread liberalization of controlled prices or removal of subsidies - measures which may be expected to have an adverse impact on tha poor. In fact, the central impact of the ERP is the projected decline in inflation following the full implementation of the program's stabilization measures. Hence with an improved economic climate, the enlarged inflow of foreign exchange, and policies designed to stimulate a supply response in the economy, higher levels of per capita consumption, and enhanced social welfare, are projected for the medium term. 1.15 Nevertheless there is concern that in the short run, the urgent needs of some of the worse victims of the period of civil unrest and economic decline will not be addressed. These include victims of the wars - widows, orphans, and the disabled; AIDS orphans; and children and other residents of disadvantaged districts including those living in dangerously unhealthy urban slum areas. These groups are unable to participate in the recovery program, and unless their needs are addressed, their economic and social conditions will continue to deteriorate. They will requi:e special assistance if they are to eventually respond to policy measures under the ERP, increase their productivity and restore their income earning capacity. 1.16 Furthermore, the Government's ability to respond to the needs of these vulnerable groups is constrained by the complexity of Uganda's economic and political situation. In addition to managing the ERP, the Government attaches high priority to sustaining the relative peace and stability recently attained throughout most of Uganda; tasks which will require the concentration of the limited resources available to the Government. 1.17 To address these concerns, the Government has prepared a program for the alleviation of poverty and the social costs of adjustment (PAPSCA) which aims to address the needs of those who are in precarious economic and social conditions while recognizing that the implementation of the EP will  5 place immediate ani heavy demands on the Government's limited resources. Hence PAPSCA attachb4 priority to the involvement of local communities and NGOs in the program's implementation. As a by-product, the Program is expected to enhance the sustainability and acceptability of the ERP by increasing the level of participation in the recovery efforts. For the medium term, the Program provides for the strengthening of social policy planning in order to incorporate concerns for the poor and the most vulnerable in the design of the Government's economic policy initiatives. IT. THE PROGRAM FOR THE ALLEVIATION OF POVERTY AND THE SOCIAL COSTS OF ADJUSTMENT A. Overview 2.01 PAPSCA is designed to address some of Uganda's most pressing short- term social concerns so that the benefits of the ERP are widely spread. In order to address the urgent needs of the most vulnerable groups, the Program will rely heavily on local communities and NGOs for its implementation. To ensure consistency with the ERP, PAPSCA also builds upon and complements ongoing and planned initiatives in the key social sectors and in employment- generating infrastructure rehabilitation. 2.02 The formulation of PAPSCA was entrusted to a task force headed by the Ministry of Planning and Economic Development (MPED) and consisting of representatives of Ministries, the World Bank, UNICEF, USAID, NGOs and Makerere University. The task force focussed its attention on the identification of PAPSCA's target groups and possible PAPSCA initiatives. In order to ensure that projects in the action program were targeted, cost- effective, sustainable and easily implemented, all project proposals were reviewed against the following criteria: (a) a strong poverty focus; (b) high economic and social rates of return, or cost effectiveness; (c) modest institutional requirements to ensure ease and speed in implementation; (d) sustainability either through donor funding, cost recovery or through the budget over the project's lifetime; (e) visibility in sensitive areas, to enhance confidence in and sustainability of the ERP. In addition efforts were made to avoid duplication and ensure consistency with ongoing initiatives, and where feasible, to exploit the implementation arrangements installed for ongoing projects. B. The Vulnerable Grouns 2.03 The fifteen years of economic decline have had a severe adverse impact on the living standards of the vast majority of the population. There are also specific regions which were devastated by war and violence. Among those worst affected appear to be the poorer groups among the rural population in various parts of the country, and the urban poor in the informal sector. Deteriorating health, including the devastating impact of AIDS, and the high costs of primary education are significant problems confronting these groups.  6 2.04 The extent of the country's devastation created the two largest problems for the task force: the need to focus on Uganda's most pressing social concerns as opposed to addressing all of the socio-economic problems associated with the past decline, and the need to target PAPSCA's initiatives to the country's most vulnerable, as opposed to the majority of Ugandans who undoubtedly are also worse off as a result of events of the past two decades. The task force concluded that the ERP including its medium-term public sector investment program, was the appropriate instrument for addressing the larger problems. It also concluded that although PAPSCA should be viewed as a short term and temporary initiative, the aim would be to incorporate PAPSCA's concerns and processes into the normal planning process. 2.05 Using information made available by the Government, UNICEF and other bilateral agencies, the task force concluded that unlike many other African countries, poverty in Uganda is better described in terms of inadequate access to essential social services such as primary education and health, than in terms of malnutrition on a large scale. 2/ About half of Uganda (i.e. excluding the northern districts which account for only 202 of the population) consist of fertile soils and experience abundant rainfall, the two factors that can be expected to rupport the essentially subsistence nature of Uganda's food crop production. In addition, as the infrastructure supporting export crop production deteriorated during the period of unrest and economic decline, some farmers switched to food crops. Also, urban dwellers turned to subsistence farming, producing some of their food requirements on their own garden plots. As a result, food consumption and production held up reasonably well during the period. 2.06 Lack of access to essential services stems in some cases from inadequate incomes to purchase the service (this is especially true in education), or the unavailability of the service (health). In both urban and rural areas, household expenditures on education and health are low. A survey conducted in Kampala by the Bank of Uganda indicated that less than 22 of household expenditures are spent on education, with low income households spending about 4Z. Health expenditures are in the order of 3Z of total expenditures in both surveys. In rur' areas, a pilot survey undertaken by the Statistics Department of the MPED revealed expenditure shares of 12 and 1.6Z for education and health respectively. This, coupled with low public expenditures, suggest that educational and health services are costly and/or unavailable. 2.07 Under the Social Dimensions of Adjustment (SDA) component of the proposed IDA project (paras 3.65 - 3.76), studies would be undertaken to formulate a better understanding of the nature of poverty, and the impact of economic policy measures on the vulnerable groups, including those civil servants likely to be retrenched. However this process will require considerable effort and time, and is not expected to yield results in the immediate future. In the interim, given the urgent needs of the target groups and the Government's limited capabilities, the strategy adopted calls for the provision of resources directly to local communities to enable them to cater 2/ Some of the northern districts are an exception. These districts are still insecure but nevertheless are the beneficiaries of ongoing relief efforts.  7 to the needs of the most vulnerable since, in many instances, community initiatives already have substituted for unavailable Government services. Based on the limited data which exist, the task force was able to identify the following as of highest priority to the vulnerable groups in Uganda. Children - Health Status and Access to Education 2.08 In Health, the leading causes of mortality for all ages in Uganda, according to a 1981 World Health Organization (WHO) survey weret measles (24Z), respiratory tract infections (17Z), gastroenteritis (112), anemia (6Z) and malaria (52). The three leading causes alone account for 52Z of mortality -- easily preventable by simple low-cost preventive measures. Recent data shows that 1-5 year child mortality has risen as high as 24 and 40 per 1,000 in Karamoja and Lira districts, respectively. The leading causes of mortality among children are measles, gastroenteritis, malaria and respiratory tract infections. Health workers observe that the prevalence of malaria and of tuberculosis appears to have risen significantly. Malaria prevalence rates are unknown but hospitals in Kampala report that falciparum malaria, the most severe type, is common. 2.09 In Education, school enrollment has continued to grow throughout the economic decline. But this growth in enrollment has been in spite of declining facilities and the lack of trained teachers. Many schools lack essential school articles such as textbooks, chalk, stationary, etc. Increasingly, parents have had to foot the cost of rehabilitating, maintaining and equipping schools: for example, between 1969 and 1979, about 2,200 primary schools were constructed and furnished with the entire capital cost borne by parents through the Parent Teachers Associations (PTAs). Efforts to keep the fee structure affordable to the majority have resulted in lower standards of quality and growing illiteracy. In addition, many parents are finding it more and more difficult to pay OPTA contributions' and cases of school dropouts due to failure to pay school fees have been increasing, especially in rural areas. Orphans 2.10 No good data exist on the number of orphans created by civil war and AIDS, but according to one rough estimate, the total number of war orphans alone may exceed half a million. Conflict continues in Gulu District in the north, but, in general, the number of war orphans has stabilized. The same is not true of AIDS orphans. At some not too distant date, the number of AIDS orphans in the country is likely to exceed those created by war. Unlike war orphans, who form (roughly) a ten-year cohort that with peace will move through ch''dhood and out, the population of AIDS orphans will continue to grow rapidly for the forseeable future, as large numbers of HIV-positive parents become symptomatic and die. 2.11 Currently there are approximately 70 children's homes in Uganda catering for about 2,500 children, a very small percentage of orphaned children. Furthermore, it is estimated that only about one quarter of the children in them have actually lost both parents. The homes are low- standard, costly, short of resources, and open to abuse and therefore do not constitute a viable solution for the massive orphan problem in Uganda.  8 2.12 Orphans in Uganda have traditionally been cared for within the extended family system, but this system is now under great strain in many districts due to the many orphans, the general impoverishment of the population, and the breakdown of community education and health services. Women 2.13 Women also have been particularly hard hit by the period of conflict and economic decline. As sources of cash income have shrunk or disappeared, they have relied increasingly on subsistence farming to provide for themselves and their families. This is particularly true for women who have been widowed by war or by AIDS, and for whom traditional mechanisms of family support have disintegrated. In addition, means to provide basic medical care, potable water, housing, and other services for their families have declined significantly. The deterioration of their situation over the past two decades is reflected in some of the health and fertility indicators. A high fertility rate of around 6.9 births per woman, coupled with the decline in the quality and coverage of health services contribute to high rates of infar. and maternal mortality. In Kampala, hospital maternal mortality ratios almost quadrupled between 1972 and 1986, increasing from 1.12 deaths per 1000 deliveries to 3.91. The increase is likely to be higher in rural areas where services are less accessible. Data on abortion shows the additional impact of the breakdown in the social infrastructure; the number of abortions increased by 182 between 1980 and 1986 alone, and the abortion death rate increased by 412. 2.14 Given women's caretaking responsibilities, their poverty and poor health have a direct impact not only on their well-being but also on that of other family members, particularly children and the elderly. Improving their bealth increases their ability to engage in productive work; expanding their resources and income-generating opportunities increases their output. Programs to achieve these goals are therefore likely to be of direct and immediate benefit to the poorest elements of society. The Disabled 2.15 Estimates reveal that there may be roughly one million Ugandans who are unable to lead a normal life due to a mental or physical difrability. The problem stems mainly from the years of war and instability, and the continuing conflict in parts of the north, which plunged institutions of all kinds into serious disarray and also reduced their capacity to recover. Conditions at the Mulago National Hospital in Kampala and at the vocational rehabilitation centers have severely deteriorated and have resulted in a severe reduction in the provision of full institutional care and support to the increased number of disabled persons. Given the severe resource constraints, these institutions have not been of relevance to the disabled in rural areas. The Urban Poor  9 2.16 The years of civil unrest have contributed to a serious dislocation of the socioeconomic and physical fabric of Uganda's major urban areas. This has resulted in the rapid deterioration of infrastructure, the existing housing stock, services, and community facilities in urban areas. In Kampala, the majority of the city's population lives in unplanned, medium-density slum settlements. Official estimates are that 500,000 out of a population of 800,000 in Kampala are slum dwellers, that there are an average number of six people per unit (typically in one room), and that more than 302 of slum households are headed by women. Poor environmental conditions in these settlements constitute an extremely serious health hazard, particularly to children. For example, pit latrines for excreta disposal are widely used, and in waterlogged areas, the pits can hardly go deeper than one meter before striking the water table. In addition, the majority of the housing units, as noted, are shared by many and are poorly maintained. C. The PAPSCA Initiatives 2.17 The identification of projects for inclusion in PAPSCA was driven by the Government's objective of addressing the immediate needs of those vulnerable groups described above. Importantly, the decision was taken by the task force to avoid the introduction of well-intended distortions (e.g food subsidies for the urban poor) during a period when economic stabilization was of highest priority to the Government. The discussion of the vulnerable groups above also suggest that their needs are multi-sectoral; consequently, PAPSCA consists of initiatives in education, health, and infrastructure rehabilitation. 2.18 In an attempt to arrest the deteriorating quality of primary education in the most disadvantaged districts, PAPSCA includes a Primary Education Emergency Improvement Program. The program consists of the provision of exercise books, and the rehabilitation and furnishing of primary schools in the twelve most disadvantaged districts. It is expected to cost roughly US$12 million, and would address the needs of the poorer districts by supplying scarce resources to help meet their requirements for schooling facilities and materials. Simultaneously, the rehabilitation and furnishing of classrooms would respond to ongoing local initiatives by requiring contributions of labor, transportation, and some locally available construction materials by the communities. Overall implementation of the program would be the responsibility of the Project Implementation Unit of the Ministry of Eaucation (MOE), while implementation at the district level would be supervised by the district authorities with the assistance of NGOs where necessary. 2.19 The initiatives identified within the Health sector aim to improve the health status of targeted groups, especially women and children, within selected disadvantaged districts. The Masindi Income and Health Proiect (US$2.0 million) would assist Resistance Councils and village health committees to rebuild and refine the bottom-up system of health rooms, community health workers and traditional birth attendants. The Proaram for the Revitalization of Primary Health Care includes three projectss The Rehabilitation of PrimarY Health Care Facilities (US$4.0 million) would renovate over 160 health units in thirteen disadvantaged districts; Primary Health Care Services (US$1.0 million) would provide technical and material  10 assistance and training to develop the implementation capacity of the Ministry of Health's and district authorities' primary health care staff; aud Community Based Health Care (US$1.3 million) would fund the revolving fund program of the Uganda Community Based Health Care Association which provides medical supplies to primary health clinics. The Essential Drugs project (US$12 million) would alleviate the short run financing problems of the Health sector by supplementing the ongoing Uganda Essential Drugs Management Programme with the resources required to identify and address the short run financing needs. Among other things, the project would provide essential drugs for hospital in- patient use, and medical sundries. 2.20 The Government recognizes the impracticality and undesirability of institutional solutions to the fostering of orphans in most cases. Hence the strategy is to help families cope by mobilizing community resources to help them. The Assistance to Orphans programme (US$10.1 million) aims to assist orphans and their foster families in a number of the most war ravaged and AIDS affected districts by reinforcing community based mechanisms for their support and by distributing limited commodity and financial resources. The program consists of three projects: Social Services for Orphans (US$3.7 million) which would be implemented with the assistance of Save the Children Fund and would entail social work in Masaka, Rakai and two other districts to be selected from Gulu, Soroti, and the Luwero Triangle; Schooling Support for Children of AIDS Affected Families (US$3.2 million) which would provide school fees for needy orphans; and Community and Family Based Orphans Care (US$5.3 million) which would be implemented with the assistance of World Vision and would finance the establishment of community education savings schemes, vocationallrural training centers, and community based health care programs in Masaka, Rakai, Gulu and Lira. 2.21 Local-level women's groups are an opportune vehicle for development in rural Uganda because of women's key role in agriculture, and because of the high motivation associated with effectiv,e group involvement in economic and community activities. The civil disruption arrested the organization of women's groups. The strategy of the task force is to encourage the settled and systematic rehabilitation in secure northern districts such as Lira and Apac, as well as in other disadvantaged districts, in part by fostering the growth of women's groups in those areas, and by providing the resources required to satisfy their basic but small-scale infrastructure requirements. Assistance to Women's NGOs (US$0.8 million) would provide technical assistance, training and credit to productive enterprises organized by local women's NGOs. Women in Agricultural Development (US$0.5 million) would assist women in selected areas of the Lango region to improve their agricultural skills and output by providing direct training and services, and by coordinating Government and NGO services for women and agriculture. The Assistance to War Widows project (US$1.5 million) aims to improve the health status of widows by establishing community based health care programs (control of diarrheal diseases, immunizations, and health education) for widows and their households. Widows would also be taught trade skills and would be provided with small amounts of credit for the establishment of income generating activities. 2.22 The Government's strategy for addressing the needs of the disabled recognizes the severe institutional limitations which exist. Therefore the aim, in part, is to strengthen outreach programs for the provision of support  11 services in their local environment. The strategy also entails strengthening training programs for the handicapped. The hope is that these projects will ultimately enable their full integration into the community and improve their access to economic opportunities. The provision of assistance to the disabled consists of: Community Based Rehabilitation of the Disabled (US$ 1.5 million) which, among other things, would establish a referral, delivery and follow-up system to provide the necessary medical and equipment support to the disabled through home visits; TraininR for the Handicapped (US$4.5 million) wbich will provide support to teacher training programmes in special education, and for the establishment of training facilities (mainly as part of regular schools) for the disabled; and a Prosthetics ProRramme (US$2.0 million) which would train orthopedic personnel and refurbish the central orthopedic workshop. 2.23 The infrastructure projects are designed to complement ongoing rehabilitation efforts in the more disadvantaged districts, and emphasize the participation of local communities in project design and implementation. This is in recognition that the harnessing of community initiatives constitutes a powerful mechanism for channeling benefits to the poor in remote areas, and for broad-based, decentralized development. Small Scale Infrastructure Rehabilitaticn (US$3.6 million in each of three districts) would complement ongoing community initiatives by creating a mechanism for the funding of the materials, tools and labour required for the rehabilitation of small scale infrastructutal facilities by local communities (a pilot savings and credit scheme would be included in one of the districts). Access to the fund would be restricted to the following types of projects: springs protection and the construction of wells, rehabilitation of schools and health centers, and the rehabilitation and maintenance of minor community access roads. The project would be implemented in three of the more disadvantaged districts. Water Help and Self HelD (US$0.5 million) would develop sustainable community based water-centered health protection systems in 150 communities in Arua and Nebbi. The project would also enhance the reliability of community based borehole maintenance systems, and would strengthen the Water Development Department's borehole maintenance unit. Similarly, the Water Umbrella Project (US$11.8 million) would help communities in eleven districts (not including Arua and Nebbi) protect and rehabilitate their water sources. The project would replace old hand pumps, clear boreholes and protect springs and wells, provide latrine slabs, and provide training in pump mechanics and pump and spring maintenance. Health education to promote household sanitation would also be provided. 2.24 Rural Housing Materials (US$5.0 million) also aims to provide sustainable technical support to village and community initiatives for improvements to the quality of housing by emphasizing training and skills transference to the village level. 2.25 The Reeds of the urban poor would be addressed in part through a Low Cost Sanitation Project ($2.9 million) which would entail water quality improvements, and the provision and upgrading of ventilated improved pit latrines in two slum areas in Kampala; and the provision of Sites and Services for Low Cost Housing in two low-income areas. The Low Cost Sanitation project has acquired a degree of urgency due to an outbreak of cholera in the targeted areas.  12 2.26 The Program of Assistance for Retrenched Civil Servants (US$15 million) would provide credit, business advisory serviceG and other forms of assistance to facilitate the transition of affected civil servants to private employment. The more specific formulation of the program will be undertaken after the further development of ongoing exercises to reform the civil service. 2.27 The PAPSCA projects, classified by target groups, are listed in Annex 1. 2.28 Social Policy Planning. One of PAPSCA's main objectives is to strengthen the Government's ability to design programs and policies which protect Uganda's economically vulnerable groups from the negative impact of adjustment, and facilitates their participation in the program of economic recovery. Attainment of this objective would lay the basis for the refined targeting of vulnerable groups, and for the development of a comprehensive social policy consistent with efficient growth-oriented policies. 2.29 The rehabilitation of the Statistics Department and the strengthening of the institutions in charge of the formulation of policies and programs are ongoing. However there is a need to explicitly incorporate the issues of poverty alleviation and the social impact of adjustment into the institution building process without overburdening the Government's work program. Hence a Social Dimensions of Adjustment project aimed at enhancing social policy planning is envisaged. The project will provide in the short term: (a) technical support to strengthen in social policy planning; (b) a statistical data base on the level and evolution of household living conditions; and (c) experience in designing and implementing actions that would address the basic needs of Uganda's most disadvantaged groups. D. Proaram Implementation 2.30 An examination of ongoing investment projects was also undertaken with a view to avoiding duplication and to supplementing them where feasible. This was in recognition that the revitalization of various sectors is ongoing with significant assistance already provided by the donor community. However a common view expressed by donors was that the task of rehabilitation is severely constrained by the Government's very limited implementation capacity. Therefore the strategy recommended by the task force envisages alter-ative channels for the delivery of basic services while the Government's implementation capacity is rehabilitated under the ERP. The obvious channel consists of NGOs, working with local authorities (primarily Resistance Councils and Committees - see below), who have demonstrated an ability for reaching the target groups; these include CARE, Save the Children Fund, the Lutheran World Federation, Action Aid, Experiment in International Living, Accord, and World Vision. 2.31 In 1986 the Government introduced a new system of local political representation into Uganda based upon a hierarchical structure of Resistance Councils and Committees (RCs). At the village level the assembled adult population constitute a village council (RC1) which then elects nine of its members to form their RC1 Committee. The committee consists of a Chairman, Vice Chairman, Secretary, and Secretaries for, among other activities, Youth,  13 Women, Education, and Finance. The covmittee also must have at least one female member. This committee as well as other committees in the parish (a parish is a grouping of a selected number of villages) then each select two of their members to form the RC2 Council which also then elects a Committee of nine. The process is repeated at the county (i.e a group of parishes) through to the district or RCS level which is the apex of the local level system. A similar system operates in the urban areas, the number of levels depending on the size of unit. In February 1989 elections were held throughout the system and the RC5 Councils' were then used as electoral colleges to select members of the National Resistance Council, the final law-making body under the interim Constitution. 2.32 The RCs were originally established as mechanisms for fostering contacts between governing officials and the population. Subsequently, the RC5 or District/City Councils were given Corporate legal status, while legislation is about to be signed giving the same status to the RC3s. This enables them to engage in economic as well as political activities. The system is therefore seen as having a developmental role, and the RCs are being increasingly used by NGOs engaged in developmental work as implementing agencies. Thus UNICEF is using them for pump maintenance in the Southwest, and LVF for the same purpose in Moyo and Moroto, Oxfam for food distribution in Kitgum, and Save the Children Fund for the enumeration of orphans in Rakai and Masaka. In addition. they have been instrumental in the settlement of domestic and land disputes, and the implementation of community access road improvement schemes, school rehabilitation, and local security and law and order. 2.33 These experiences led the task force to conclude that the RC system, in conjunction with a facilitating NGO presence or an effective ministerial project implementation unit, should be the primary mode of community mobilization for service delivery in PAPSCA. While the experience of the RCs as implementing agencies on the whole has been satisfactory, they have been seriously hampered by a lack of financial resources, professional technical assistance and experience. PAPSCA seeks to overcome these problems by providing, in addition to funding, sufficient technical back-up to the communities implementing projects. Also, NGOs would be identified to work together with the RC structure to administer the procurement and distribution of materials as well as to assist the RCs in the design and implementation of projects. In the education sector, this role will be performed by the Ministry of Education's Project Implementation Unit which, under a previous IDA financed project, has demonstrated an ability for service delivery to remote areas. E. PAPSCA Administration 2.34 The program envisages a small unit which would be established to carry out overall planning, inter-sectoral coordination and monitoring and evaluation of PAPSCA's components. The unit would consist of two program officers and necessary support staff and logistics. 2.35 At the technical level, the unit would carry out its coordinating responsibilities through the PAPSCA Steering Committee which would replace the task force, and would consist of the representatives of Ministries, other  14 Government agencies, donors, and NGOs involved in the implementation of PAPSCA. The Steering Committee, which would be chaired by the Chief Government Planning Economist, would meet regularly (initially once a month) to review the progress of PAPSCA and to resolve any technical or administrative issues which require inter-ministerial coordination for their resolution. F. Bank Strategy 2.36 The Bank's overall country assistance strategy for Uganda aims to support the implementation of the Government's Economic Recovery Program. In the short-term, the focus will be first and foremost on stabilization, but also on the creation of an environment conducive. to the implementation of the ERP. For the medium-term, the emphasis will be on the key growth sectors of agriculture and industry, while continuing to support the transport and power sectors which have a direct impact on the efficiency of the productive sectors. The prospects for sustained long term growth in Uganda are critically dependent upon the elimination of the underlying constraints to development. Thus, support for human capital development and institutional reforms are also key elements of our assistance strategy. 2.37 Recent and proposed Bank lending operations to Uganda provide the basis for sustained economic development and the alleviation of poverty. These include projects for infrastructure rehabilitation, agriculture development, and programs in health and education. The Third and Fourth Highway Projects (Credit Nos. 1445 & 1803) support the rehabilitation and maintenance of roads, and the development of the local construction industry. Two proposed projects, the Second Water Supply and the First Urban, would provide funding for the expansion of water supply and sewerage facilities in seven towns, a rural water supply demonstration project, the rehabilitation of refuse services, and the upgrading of urban markets. 2.38 In agriculture, the objective of the ongoing Agricultural Development Project (Credit No. 1539) is to increase food production and family income in some of the poorer districts of northern Uganda. Also, a Rural Enterprise project being prepared will provide credit to small rural enterprises. 2.39 The Third and Fourth Education Projects (Credit Nos. 1329 & 1965) have two principal objectives: to maintain the momentum of the Government's educational rehabilitation efforts and ensure their sustainability; and to help prepare a sector credit to implement the Government's emerging education strategy. The former provided essential educational materials for primary and secondary schools, while the Fourth Education Project includes the provision of textbooks and instructional materials for primary schools excluded from the Third Education Project as well as for some destroyed and looted during the 1984-86 civil war. The objectives of the First Health Project (Credit No. 1934) are to rehabilitate a selected number of hospitals and health centers, to strengthen preventive health programs, and to ensure the long-term sustainability and viability of the health care delivery systems. 2.40 These projects are evidence that there are ongoing attempts by IDA to address poverty alleviation in a sustainable manner. In some cases  15 however, their impact is not yet visible because they are at an early stage of implementation. In addition, the severity of the devastation caused by war, the resource constraints at this early stage of the economic recovery, and the urgent need to ensure that the most vulnerable groups are in a position to participate fully in the Economic Recovery Program point to the need for shorter term action programs to complement and supplement the medium to long term sector investments. PAPSCA is an attempt to satisfy this need in that it consists of technically simple and easily implementable projects which complement ongoing efforts. 2.41 The PAPSCA projects proposed for IDA funding aret (a) the provision of material and equipment for small-scale infrastructure rehabilitation in a selected district; (b) the rehabilitation and refurbishing of primary school buildings in disadvantaged districts; (c) low-cost sanitation improvements in a low income area of Kampala; (d) a health component which consists of programs for orphans and widows, and of a pilot community based health program in Masindi district; and (e) improvements to social policy planning in the Central Government; this would include the preparation of a program of assistance for retrenched civil servants. 2.42 IDA's assistance is also proposed for the operations of the monitoring unit. A detailed description of the IDA project is provided in the next section. 2.43 The projects were selected because they complement ongoing and planned IDA assistance in the key social sectors. This was important because of the urgency attached to addressing the socio-economic needs of some of Uganda's most vulnerable groups. In order to ensure ease of implementation, the projects would be administered by either existing and proven project implementation units, or by NGOs who have demonstrated a capability for reaching the poor. 2.44 The components proposed for IDA funding require the mobilization and involvement of local communities in their implementation. Thus they represent unique opportunities for maximizing participation in the recovery efforts and for enhancing the sustainability of the ERP. Together with the SDA component, they are consistent with IDA's strategy of strengthening institutional capacities, at both local and centralized levels, for identifying and implementing targeted poverty initiatives.  16 III. THE PROJECT A. Rationale and Obiectives 3.01 Proiect History. The October 1988 Consultative Group meeting for Uganda praised the country for its commitment to economic reform. However it was felt that there was a need to ensure that scarce resources were directed effectively and efficiently to the poorer strata of the population during the implementation of the Economic Recovery Program. At that time, the Government requested that the donor community, under the Bank's lead, provide assistance in identifying and financing a program for the alleviation of poverty and the social costs of adjustment. The program would address the most urgent social concerns of Uganda's poorest and strengthen the Government's capacity in social planning. In February 1989, at the request of the Government, IDA along with ILO, UNICEF and USAID, assisted the Government with the preparation of the project. In May and September 1989, appraisal and post appraisal missions were carried out with the cooperation of ODA, SIDA and UNDP. 3.02 Proiect Obiectives. The project's overall objective is to address some of the most urgent social concerns of Uganda's most vulnerable groups. In the medium term, the project aims to strengthen the institutional capacity of the Government to identify, formulate and maintain interventions for assisting these groups. B. Detailed Descriotion by Component 3.03 The proposed project, which represents about 30 percent of the total PAPSCA Program, would support five PAPSCA project components and a PAPSCA Coordination and Monitoring Unit which would have oversight responsibility for the implementation of the program. The project would include the followings (a) the provision of financial and technical resources to local communities of a selected district for the undertaking of small scale infrastructure projects; (b) the rehabilitation of primary school classrooms in 12 of the poorest districts; (c) low cost water and sanitation improvements in two low income areas in the Rubaga district in Kampala; (d) health and training programs for orphans and war widows, and a pilot community based health care scheme in a selected district; (e) the strengthening of the Government's capabilities in social planning including, inter alia, the undertaking of priority household surveys, and (f) program administration. Small Scale Infrastructure Rehabilitation (S4.19 million) 3.04 Obiectives. This component would improve the living standards and working conditions of some of the poorest communities by providing additional resources for the rehabilitation of necessary infrastructure directly to part of the most vulnerable seSments of the population. The component would provide both technica! sand project management training directly to the beneficiary communitie.i, and would aim to develop a capacity in development planning, coordination and monitoring at the District level.  17 3.05 Background and Rationale. Service delivery to especially poor districts is a primary concern of the Government since it is in these areas that deprivation has been most extreme. However, this has been difficult because of the problems of creating effective institutional arrangements to deliver services to dispersed and poor populations living in rural areas. Centralized qtructures - agricultural extension agencies, water departments etc. - are themselves in need of rehabilitation, and when used for this purpose, have often generated high overheads while reaching only a small minority of the community. Hence community initiatives are viewed as a major vehicle for resource and service delivery, and as one of the best ways of attempting to overcome this problem. 3.06 Because the RC system is the largest and most active organizational structure in the rural areas (the system as a whole probably contains almost 400,000 representatives at all levels from village to DLstrict), many NGOs and some donor agencies have already utilized them as channels for the delivery of essential services to local communities, and for comnunity mobilization. Despite the short period of time that the system has been operational, there are indications that this structure is already able to handle important local activities and has the capacity for more. The major problems which are confronted at the local level are the extreme paucity of resources at the disposal of the RCs; they have therefore been entirely dependent on raising their own resources through contributions of cash, in-kind labor and materials, or from fees for the performance of their adjudication function. The fact that they have been able to accomplish as much, based on such meager resources, demonstrates their potential for low cost service provision. 3.07 Prolect Component Descrintion. The component would complement ongoing community initiatives by creating a mechanism for the provision of imported construction materials, tools and labor required for the rehabilitation of small scale infrastructural facilities by local communities in the Kamuli district. Access would be restricted to the following types of projects: springs protection and the construction of wells, rehabilitation of primary schools and health centers, and the rehabilitation and maintenance of minor community access roads. 3.08 Implementation. Since the RC system is relatively new and the village level RCs have limited experience in the design and implementation of projects, the component would be implemented with the assistance of an experienced NGO. The NGO would assist the RCs, acting on behalf of villages, with the preparation of their proposals. These would then be submitted to the District Development Committee (re: para 3.09) for approval and funding. If successful, it is expected that this initiative could be easily expanded both geographically and with respect to the projects undertaken by the communities themselves. 3.09 Overall responsibility for the formulation of development proposals at the district level rests with the District Development Committee .(DDC) which consists of the District Administrator (who is appointed by the President), district representatives of Government ministries, and representatives of the district level Resistance Council (RC5). Consequently, the DDC, through a sub-committee and with the inclusion of a representative of the participating NCO, would oordinate and monitor the operations of the project. The Sub-committee's specific tasks would be to:  18 (a) integrate and coordinate all development activities of the project with the overall District development plans; (b) coordinate the activities of the RCs, line Ministries and Government departments as relevant to the implementation of the project; (c) undertake an informationladvertising campaign in the District to familiarize the RCs with the nature of the project and the resources which are to be made available. The campaign would involve the communication of project criteria and the amounts available for specific types of projects. (d) prepare and monitor the component's implementation plan; (e) evaluate proposals submitted for approval; (f) review progress reports submitted by the RCs; and (g) report regularly on progress to the DDC. 3,10 The NGO selected by the Government is Action Aid - an organization which works to alleviate poverty at the village level, in close cooperation with local government. It was selected on the basis of their ongoing activities in Uganda (including integrated rural development projects in Mityana, Busujju and Buwekula counties) some of which are very similar to those envisaged for this component of the project. Their specific role would be in the following areas: (a) Institution Buildina. They would assist the sub-committee (SC) of the DDC with the establishment of a coordination and monitoring process, and would work to develop the local administrative capacity to continue the scheme without external assistance. This would involve assisting the SC with the design of a three year development plan, detailing the distribution of infrastructure projects to be undertaken within the District and the corresponding budget. They would also assist the DDC in improving its capacity to appraise, monitor and evaluate future projects undertaken by the RCs. (b) Training. Action Aid would assist the respective RCs with the preparation, design and presentation of their proposals thereby transferring the necessary skills for future project preparation. Particular emphasis will be placed on the preparation of a maintenance plan for the rehabilitation undertaken. Throughout the course of the project, Action Aid would also provide technical training directly to the beneficiary communities. Technical experts and skilled laborers provided by the NGO would work closely with local counterparts.  19 (c) Administration. Action Aid would arrange for the administration of funds, procurement of inputs (in accordance with Bank procurement guidelines), technical advice where required and the monitoring and evaluation of the proposals. It would establish a system of procurement and distribution of materials for specific projects within this component - in particular community access roads, school rehabilitation, and water development (wells and spring protection). They would also prepare and submit progress reports to the SC and to the PAPSCA Monitoring Unit (para 3.77). Annex 2 contains additional information regarding the implementation of this component. 3.11 During negotiations, the Government confirmed the above arrangements and designated Kamuli as the district to be assisted under this component. The Government has also provided, to the Association, an acceptable draft contract for the specialist services financed under this component. As a Condition of Disbursement against this component, the Government would enter into an agreement, satisfactory to the Association, with the selected NGO. Primary Education Rehabilitation ($12.65 million) 3.12 Obiectives. This component would improve the quality of primary education in 12 of the poorer districts by rehabilitating primary school classroom facilities. It would address the needs of the poor by supplying scarce resources to help meet their requirements for educational opportunities. At the same time it would respond to ongoing local initiatives for the rehabilitation and furnishing of classrooms by requiring contributions of labor and locally available construction materials by the communities. Hence the component would be a model for an approach to school rehabilitation and maintenance that could be replicated country wide. 3.13 Background and Rationale. As a result of nearly two decades of political turmoil and economic decline, the education system has fallen into a state of extreme disrepair. School buildings are dilapidated, textbooks and other instructional materials are in short supply, and teacher morale and productivity are low. Nevertheless the education system has continued to operate, though at a much lower level of quality than previously provided, and primary education enrolments have expanded throughout the last decade, a reflection of the very high importance placed on education by Ugandans. 3.14 The remarkable capacity of the communities, through the Parents/Teacher Association (PTA), to support the education of their children has prevented the collapse of the system. While the MOE pays teacher's salaries, the parents, through the PTAs, pay fees to cover the costs of books and teaching materials, school maintenance and rehabilitation, and supplements to teachers' salaries. However, in most districts, efforts to keep the fee structure afFordable to the majority have resulted in lower standards of quality; and!in some instances, those parents unable to afford the fee payments have had no recourse but to withdraw their children from school. 3.15 Revitalization of the system requires a combination of measures including: (a) improvement of quality; (b) greater cost effectiveness; and (c)  20 improved staff morale. These are being discussed within the context of the Bank's ongoing dialogue in the sector. The Bank's strategy in the sector envisages an extensive sector operation, upon the completion of Government policy studies, that would assist system-wide improvements in support of the Government's sectoral policy objectives. The Third and Fourth Education projects - the most recent IDA credits in Education - were bridging operations aimed at maintaining the momentum of the Government's educational rehabilitation efforts and at ensuring their sustainability. The Third Education Project (Credit 1329-UG) financed the rehabilitation of some school buildings and the provision of essential educational materials such as textbooks, instructional materials, and equipment for primary, secondary, and teacher training and vocational institutions. The Fourth Education Project (Credit 1965-UG) financed the setting up of a pilot textbook revolving fund and the strengthening of the MOE's Project Implementation Unit. 3.16 In an attempt to address the deteriorating quality of education, the PAPSCA task force proposes a Primary Education Emergency Improvement program in the disadvantaged districts which would consist of the provision of non-textbook educational materials, and the rehabilitation of those primary schools excluded from the Third Education Project. In addition, some schools previously rehabilitated were damaged during the latest period of civil unrest and are in need of repair. DANIDA has pledged to assist with the provision of educational materials, and IDA would provide assistance for school rehabilitation. 3.17 Proiect Component Description. The component proposed for IDA financing would include provisions for the rehabilitation of about 4,200 primary school classrooms (210,000 students places in 12 selected Districts). Funds would be provided for imported construction materials (roofing sheets, cement, timber, etc); appropriate intermediate technology equipment (brick making machines and simple hand tools), and local skilled labor where required. Materials would be provided to selected village schools with local labor and materials to be provided by their communities on an "in-kind' basis. Construction would be undertaken utilizing self-help labor intensive methods. 3.18 Implementation. This component would be a4ministered and implemented by the MOE's Project Implementation Unit (PIU). Proposals by local communities to undertake rehabilitation of school buildings and furnishings would be sent to the District Education Officer (DEO) in response to information earlier made public by the DEO. These proposals would specify the scope of work to be done, and the materials and other support needed. They would also indicate the contribution (e.g., labor, materials, transport funds) to be provided by the executing community, the proposed benefits, and the approximate expected timing of the operation. Technical assistance would be available to assist communities with the preparation of such project proposals. 3.19 A committee at the District level would evaluate the proposals and send those which are approved to the MOE in Kampala for final action. 3.20 Twelve Districts have been selected on the basis of poverty, war damage and other criteria of need. They are listed below together with the estimated number of primary schools and pupils in 1986.  21 District Schools Pupils Average School Size Apac 219 69,100 316 Arua 242 94,600 391 Gulu 174 48,200 277 Kabarole 189 82,300 435 Kitgum 212 59,800 282 Kumi 113 47,200 417 Lira 230 61,100 266 Moyo 55 19,000 345 Mubende 202 48,100 238 Nebbi 150 46,400 309 Rakai 263 89,700 341 Soroti 278 73.600 265 Total 2.327 739.100 318 3.21 Three of these districts (Gulu, Kuni and Soroti) presently suffer from uncertain security conditions. Activities in these would begin only after security has improved. As noted previously, due to implementation constraints and limited funds, only about 30 percent of the schools will receive assistance under this component. Should security conditions not improve in those above mentioned districts within about 12 months after Credit Effectiveness, the Government would submit to the Association, for review. alternative districts/locations. 3.22 The component would be carried out with no augmentation of personnel at the district level. The resources of the DEO, the RC5, the district works supervisor, the district inspectors of schools and the district headmasters' associations would be drawn upon. 3.23 At the MOE, funds for technical assistance would be provided for a total of about four staff years of expatriate technical assistance and about 12 staff years for local staff (building engineers) for services in the procurement and distribution of materials, supervision and evaluation. Included would be funds for incremental operating costs. The component would be carried out under the responsibility of the existing PIU with the advice, collaboration and assistance of representatives from the primary school inspectorate and the Ministry of Local Go--:rnment, acting with guidance from the operational committee to be set up at the Central Government level. 3.24 These arrangements were confirmed during negotiations, and the Government has provided to the Associations (a) an acceptable draft contract for the specialist services, to be financed under the project; and (b) a satisfactory plan for the administration of the component. A Condition of Disbursement against this component would be the signing of a contract, satisfactory to the Association, for the required technical assistance and related services. 3.25 Successful execution of this component at the local level would strengthen the capacity of the participating communities to carry out future  22 self-help activities. The procedures developed for evaluation would provide information useful to the design and implementation of similar activities elsewhere in the country. Finally, the tools and equipment to be provided would be of the type which would be expected to continue in use for future construction and rehabilitation activities. 3.26 A sequence of activities and other stipulations regarding the process and procedures in administering this component are contained in Annex 3. Low Cost Sanitation Improvements ($2.88 million) 3.27 Obiectives. The main objectives of this component are to improve the access of those urban residents living in hazardous environmental conditions to adequate water supply and sanitation facilities. The immediate objectives are: (a) to alleviate the unsatisfactory water supply and sanitation status of a representative low-income peri-urban group through implementation of low-cost water supply systems and sanitation supported by health education programs; (b) to develop and demonstrate a viable community-based approach towards the integration of water supply, sanitation and health education replicable in other similar peri-urban areas; and (c) to demonstrate the increased efficiency of sector investments through active user contribution either in-kind or as funds. 3.28 Background and Rationale. During the past two decades there has been a serious dislocation of the socio-economic and physical fabric of Uganda's major urban areas. This has resulted in the rapid deterioration of infrastructure, the existing housing stock, services, and community facilities. Tn Kampala, the majority of the city's population lives in unplanned, medium-density slum settlements. Official estimates are that 500,000 out of a population of 800,000 in Kampala are slum dwellers, that there are an average number of six people per unit (typically in one room), and that more than 302 of slum households are headed by women. Poor environmental conditions in these settlements constitute an extremely serious health hazard, particularly to children. 3.29 Rubaga Division, one of the five administrative sub-districts of Kampala, has been identified as one such area and would receive assistance under this proposed IDA project. The Division consists of thirteen parishes and is located to the Southwest of the City Center. The population of Rubaga Division as obtained from the 1980 census was about 104,000. With an assumed five percent annual growth rate the existing and projected population figures for Rubaga and the other Divisions and Kampala as a whole are given in the following tables  23 POPULATION FIGURES. KAMPALA Division 1980 1989 1992 Rubaga 103,746 161,000 186,000 Xawempe 82,885 128,000 149,000 Central 76,655 119,000 138,000 Makindye 113,304 176,000 203,000 Nakawa 81.913 127.000 147.000 TOTAL: 458,503 711,000 823,000 3.30 Analysis of demographic data for Kampala carried out recently by various study groups indicates that about 20 percent of the population is in the middle to high income group. This is probably also true of Rubaga. The low income group lives in high density areas with some permanent or semi- permanent housing as well as in low density areas which are mainly farm lands (shamba) areas. It is this low income group which is the target group for this component. 3.31 Most of the residents of Rubaga use pit latrines for excreta disposal. These are the ordinary pit latrines constructed to a depth of some five meters where the soil is good and the water table is low. However, in the waterlogged areas the pits can hardly go deeper than one meter before striking the water table. These pit latrines are generally far from satisfactory. 3.32 Two previous IDA Credits (Cr. lllO-UG and Cr. 1510-UG) were partially used for urban communal latrines and health education demonstration programs, though it counted for less than one percent of the total Credits. As part of these projects, demonstration ventilated improved pit (VIP) latrines were built in the peri-urban areas of Kampala. In addition, materials for private latrine construction activities were supplied. The experience gained, shows that a dry on-site disposal system is the practical type for the majority of the population in these peri-urban settings. Upgrading to VIP latrines would overcome most of the several unsatisfactory features of the present simple latrine at relatively low cost, and without requiring any change in user habits. The demonstration VIP latrines have proven that such units do actually work. This proposed component would provide for further developing this type of latrine for mass replication. 3.33 The EEC has recently initiated funding of the implementation of a pilot on-site sanitation and healt'h education project in the peri-urban Rawempe Division of Kampala. The methodologies developed as part of the pilot project coupled with the promotional procedures to enhance community participation would be used in formulating the implementation strategy of this proposed component. 3.34 Many of the peri-urban areas presently outside the reach of centralized piped water supplies rely on water from spring sources. In the heavily inhabited locations the water quality from these springs can be very unsatisfactory. Over the last five years a program for spring protection has  24 been ongoing with assistance from UNICEFt an activity which is to continue as a part of the PAPSCA. 3.35 This proposed component would complement UNICEF's activities and would utilize a recent baseline survey and study entitled 'Low-Cost Water Supply, Sanitation and Health Education Demonstration Project in Rubaga Division, Kampala*. 3.36 Over 90 springs exist in Rubaga Division, a number of them have been protected over the last 5-6 years by the Kampala City Council (KCC) with UNICEF's assistance. Still many springs remain unprotected. The quality of water from these springs in the sparsely populated part of the Division is quite good; however, those springs located in the heavily built-up poorer areas are of very unsatisfactory quality. 3.37 There are a number of natural drains/streams in Rubaga Division draining the area. KCC is responsible for the maintenance of many of these drains classifying them as anti-malarial drains. Maintenance of these drains due to lack of funding for labour, tools and equipment, has not been carried out for many years. The drains are to a large extent silted up and covered with thick bushes. Natural drainage of the low lying zones of the Division has been seriously affecteA and flooding/vaterlogging occur frequently during rainy periods. This component would also assist in improvements to selected drains and streams. 3.38 M.ajor factors which hamper the development in the water and sanitation sector are financial and are related to the inadequacy of tariffs and taxes. Therefore, necessary equipment and materials for maintenance could not be provided. Also extremely low salaries led to shortage of qualified and experienced staff, and made the country dependent on technical assistance. Under the ongoing IDA financed Water Supply and Sanitation Rehabilitation Project (Cr. 1510-UG) considerable progress has been made in strengthening the National Water and Sewage Corporation (NWSC) by organizational restructuring, training and improving its revenue base. The assistance to NWSC is to be continued under the proposed IDA financed Second Water Supply Project and extended to KCC and the Water Development Department (WDD). The Government is aware of the problems, but relieving tAose constraints will take time, effort and resources. However, in this low income peri-urban district, Government subsidies are to be minimized by the active involvement of communities in construction and maintenance; either through 'in-kind' contributions, or as funds administered by the community itself under the supervision of Resistance Committees. 3.39 Proiect Com6onent Description. The component would consist oft (a) water quality improvement through the protection of 50 springs and the installation of l00 standpipes; (b) construction of 2,500 new ventilated improved pit (VIP) latrines, and the upgrading of 1,000; (c) sullage disposal and surface water drainage improvements; and (d) a health education program. I  25 3.40 By the completion, roughly 252 of the population of Rubaga, or 47,000 people are expected to have benefitted from the improvements. 3.41 Another important element in an integrated primary health care strategy is an improvement in refuse elimination and/or collection. This aspect, however, will be addressed generally for Kampala in the proposed Urban Water Supply Project. 3.42 Implementation. The component would be implemented by existing institutions and the local administrative structure with the assistance of the RCs. Before implementation of the various sanitary improvements included In this component can begin, there will have to be an agreed upon proposal in relation to cost recovery for the proposed enginee.ing interventions. In order to mobilize residents in each of the communities, the exact conditions for participation will be detailed to the eventual recipients. As implementation proceeds and more information becomes available, the cost- recovery/community participation methodology would be reassessed if necessary. The experience gained in community mobilization as part of the newly started EEC financed integrated low-cost sanitation and health education pilot project in Ravembe Division, Kampala, would be utilized as found relevant. 3.43 Much of the impetus for the movement towards community participation stems from the failure of conventional service delivery mechanisms to reach their targets. Hence the efficient receipt of these services in the short run will require some amount of self reliance on the part of the target beneficiaries. The most strategically placed institution for mobilizing community participation is the Resistance Committee structure. During the preparatory phase of this project the RCs in the various parishes in Rubaga were consulted and they all showed willingness and were indeed very eager to participate in the proposed project. 3.44 Health Education. An important element of this component is Health Education which is needed to promote a change in behavioral practices necessary to improved community health. The Kampala City Council's Public Health Department will be a critical resource in this aspect and will require a great deal of manpower inputs. Project funds would be available to recruit some retired Health Inspectors on a short term basis. Funds for workshops, films, videos and printed materials also are included. 3.45 Administration. The Kampala City Council's Project Implementation Unit (PIU) would oversee overall implementation of the project with the assistance of the Resistance Councils in the district and a consulting firm to be employed by MLG. The role of the consulting firm would be to supplement the limited resources of the PIU. The PIU's tasks would be to: (a) carry out overall project planning, supervision, and monitoring; (b) organize regular seminars/workshops at Division and parish levels; (c) together with local RCs determine sites for water supply facilities and VIP latrine construction;  26 (d) certify the completion of each activity: (e) carry out health/education programmes for schools, women groups. youth groups, RC rallies: (f) engage local area contractors; and (g) receive and distribute materials and equipment purchased from Project funds. 3.46 The PIU along with the consulting firm would coordinate activities between various agencies and oversee procurement and disbursement arrangements and would undertake the following tasks: (a) coordinate between donor agency (IDA) and client (KCC); (b) control the budget and project accounts and prepare reports to the donor agency; (c) prepare documents for procurement of materials and equipment for the project and evaluate bids; and id) prepare contract documents. 3.47 The RCs would be required to: (a) take part in the detailed planning of project implementation through seminars/workshops organized by the Project Unit; (b) play a leading role in community mobilization to facilitate collection of community contributions related to construction and maintenance activities; (c) enforce observance of the KCC by-laws which require every landlord/house-owner to provide sanitary facilities; and (d) help establish parish committees which will be responsible for the maintenance of various components, i.e. public standpipes, public multiple-units VIPs and protected springs and surface water drains. 3.48 The above arrangements were confirmed during negotiations. The Government has provided to the Association an acceptable draft contract for the specialists services financed under this component. A condition of disbursement against this component would be the signing of a contract, acceptable to the Association, for these services. 3.49 During the initial stages of implementation an action plan would be formulated and would include: parish selection, the number of facilities in each parish, the location of facilities, detailed materials and cost estimates, and a detailed implementation schedule.  27 Health ($7.78 million) 3.50 Obiectives. The overall objective of this component is to improve the health status of two particularly vulnerable and disadvantaged groups- war widows and orphans; and to test a community based health care scheme as a means of providing basic health care services to poor areas. 3.51 Background and Rationale. Throughout the 19608 and early 708, Uganda's health service was one of the most effective and efficient in Africa. The events of the past two decades resulted in a near total collapse of the health sector. Health facilities were destroyed and equipment and supplies looted. Staff were often unpaid for long periods and the supply of drugs became very irregular. As a result, the health status of Ugandans. particularly women and children, deteriorated dramatically. NGOs and private practitioners, though subject to the same difficult environment, were nevertheless able to maintain a reasonable provision of services. With the return of peace and security to most of the country, the Government is now faced with the formidable task of providing health services at a time when there is a resurgence of diseases of public health importance and in spite of a severe economic crisis. 3.52 Data on mortality and morbidity are extremely poor and limited. The epidemiological reporting system broke down during the 1970s and has yet to be reestablished. It is therefore difficult to undertake an accurate epidemiological analysis of the health status of Ugandans. Nevertheless the limited evidence available points to a deterioration of health status over the past 20 years. The 1969 census estimated a crude death rate of 19 per 1,000 population and an infant mortality rate of 120 per 1,000 live births, reflecting a steady decline in mortality rates over the previous decades. The loss of the 1980 census data and the breakdown of the health-reporting system makes it difficult to estimate trends. While a further decline in mortality rates in the early 19709 is plausible, most health observers believe that these levelled off by the late 1970s and then began to increase with the deterioration in health services. Some reports suggest that the infant mortality rate is between 120-20011,000 live births and that the maternal mortality rate is more than five per 1,000 pregnancies. Until 1969 the level of mortality approximated that of other East African countries. At present the level of mortality in Uganda is significantly higher than in Kenya, Tanzania and Zimbabwe. 3.53 An already bleak health situation has been further complicated by the spread of the AIDS epidemic. In Uganda, AIDS was first discovered, in the Rakai district. Since then it has spread throughout the country, first along the major truck routes and later through other routes. Consequently all districts in Uganda have reported AIDS cases. It is difficult to get an accurate estimate of the number of AIDS cases; as of December 31, 1988 the number of reported cases of AIDS according to the National AIDS Control Program were 6,772 but these figures are acknowledged to be a gross underrestimate due to the difficulties of diagnosis and reporting. Of those reported cases, nearly 21Z were reported from Masaka, 63Z from Gulu and about 6S from Rakai districts.  28 3.54 A direct result of the growing AIDS problem is the dramatic increase in the incidence of orphans. According to the Ministry of Health the number of orphans from AIDS in Uganda in 1988 were about 8,000. The number is expected to be about 20,000 in 1989 based on official projections. The actual numbers are likely to be much higher. Nearly 66S of orphans are of school age and are more likely than other children to drop out of school for economic reasons. While the Government is seriously concerned about the growing problem it has been unable to launch a major initiative for lack of skilled personnel and resources. Hence a number of NGO efforts in this area have been initiated, including schemes developed by the Uganda Women's Efforts to Save the Orphans. These efforts are being supported through the IDA assisted First Health Project. Other NG00 such as Save the Children Fund and World Vision also have been active in the area of orphan support. 3.55 Some estimates suggest that there are currently around 200,000 widows in Uganda mainly as a result of the long period of civil strife. Widowhood's effects in Uganda are harshly visible in infants and young children. The need to seek employment - often away from their homes - results in child neglect, increased malnutrition in young children, and increased infant mortality. War widows have also been more susceptible to chronic ill health. The Government has attached high priority to improving the health of children and widows through education, preventive health care and support for income generating activities. 3.56 This proposed health component is designed to improve the health status of orphans and widows, and to develop a pilot community based health care scheme. Due to the deteriorating health situation and the inability of the Government to immediately satisfy the growing demand for basic health services, the Government has actively encouraged the participation of NGOs. Bence the component would be implemented by NGOs in close collaboration with the Ministries of Health and Local Government and the local RCs. Proiect Comnonent Description 3.57 Orphans (S4.95 million). The proposed orphans sub-component which would test new approaches to a rapidly growing problem, would be implemented in Rakai, Masaka and Gulu districts. In Rakai and Masaka districts the AIDS problem has reached epidemic proportions. A larger percentage of children in Gulu have been orphaned by the war, but the number of AIDS orphans is increasing rapidly. Basic health care, basic education, nutrition and job skills would be provided. 3.58 Included would be the financing of scholarships and limited rehabilitation of six vocational/rural training centers which would train 4,500 orphans in appropriate skills such as tailoring, carpentry, and brickmaking. Community-based health care programs would be established in the project districts, and roughly 180 community-based and supported parish development workers will be trained to counsel orphans and foster families. Provisions are also included for shelter for 750 community health workers and district health and community leaders. Through these activities, the project would attempt to alleviate the suffering of orphans and to enable them to become self-sufficient.  29 3.59 Widows ($1.5 million). This subcomponent would establish a pilot community-based health care program to enable the provision of basic health care (disease control, control of diarrheal diseases, immunizations and health education) for widows and their households. Health activities would be primarily preventive in nature and would focus on teaching widows proper means of health care for young children. The subcomponent would cover about 25,000 widows and their families during the project period. 3.60 Simultaneously widows would also be taught trade skills. Some supplies would be provided to each family for the establishment of income- generating activities. These activities are designed to help rehabilitate widows and enable them to care for themselves and their children and to prevent the spread of serious diseases. 3.61 Implementation would be by a recently established local NGO, the Ugandan War Widows Foundation (UWWF), in close collaboration with the Ministries of Defense, Local Government and Health. Lists of widows in need have been prepared by a number of Government and non-government agencies. Though concentrated in Luwero district the number of widows in all other districts is also substantial. Hence, this subcomponent would have a national focus. 3.62 Health Development ($1.33 million). This subcomponent would be implemented in the district of Masindi and would proceed on two levels simultaneously. Assistance would be provided for the strengthening of district health personnel's top-down clinic-based activities. At the same time, assistance would also be provided to the RCs, Village Health Committees (VHCs), Community Health Workers (CHWs) and Traditional Birth Attendants (TEAs). More effective district centers, dispensaries and other health institutions would allow upward referrals from CHWs and TBAs and a downward flow of technical supervision and resources from district, national and international sources. 3.63 Included would be limited resources for the rehabilitation and equipping of existing Government health clinics and for training their personnel. Many of the training activities would take place in Government Institutions and would be implemented by Government staff. Specificallys (a) 502 of the non-hospital health institutions in the district would be rehabilitated and functional; (b) all of the rehabilitated institutions would have at least one person trained and equipped to do general maintenance and simple repairs; (c) prenatal and under-fives clinics would be established at all dispensaries; (d) 70Z of district health personnel would attend continuing education sessions 2-4 times per year; le) at least two persons in 7CZ of the health institutions would be given practical and relevant training in clinic management; and  30 (f) institutions would carry out their responsibilities to supervise and train CHWs and TBAs and to gather health data. 3.64 A second community-development thrust would be to stimulate communities to reestablish organized comunity health activities, improve their quality and outreach, and make them self-sustaining. The component, through the implementing NGO, would sensitize RCs and VHCs to the opportunities to undertake economic and health activities at the community level and to facilitate maximum participation in planning and implementing such activities. Where VHCs do not exist, project officers would attempt to persuade communities to form them. Once active, VHCs would have a prime role in selecting CHWs and in supervising CHWs and TBAs. Like CHWs and TBAs, members of VHCs would be able to take training courses financed under this component. VHCs would have financial and operational responsibility for service delivery and cost recovery in community health rooms. VHCs would also be encouraged to undertake preventive health measures in their communities, including reinforcing health education in the school and protecting water sources. Limited financial support would be given to them in these activities. 3.65 Implementation. Implementation of the health component would be the responsibility of World Vision (Orphans and Health Development) and UWWOF (War Widows). World Vision Uganda is a locally registered NGO which has implemented 40 community development projects in Uganda. Annual implementation plans will be developed and submitted to IDA through the PAPSCA Monitoring Unit for review and approval. Included would be, inter alia, the number of students trained or to be trained, proposed courses of study, training institutions within Uganda or abroad, and the cost of training and/or fees paid. In addition a coordinating committee would be established by the Ministry of Health and would include representatives from the Ministries of Defense and Local Government and the NGOs concerned. 3.66 During negotiations, the Government provided to the Association details regarding the establishment of the coordinating committee. The Government also provided to the Association an acceptable draft contract between the Government and the NGOs administering the Health component. A Condition of Disbursement against this component would be: (a) that the Government enters lnto an agreement with the selected NGOs, satisfactory to the Association, for implementation of those activities; and (b) the satisfactory establishment and staffing of the coordinating committee. Social Dimensions of Adiustment (SDA) ($5.06 million) 3.67 Obiectives. The objective of this component is to create the basis for the refined targeting of vulnerable groups, and for the development of a comprehensive social policy consistent with efficient growth-oriented strategies. 3.68 Backaround and Rationale. There are ongoing attempts to rehabilitate the Government's statistical apparatus and to strengthen the institutions in charge of the formulation of policies and programs. The UNDP technical assistance project executed by the World Bank, for example, aims to strengthen the Ministry of Planning, and an IDA financed Technical Assistance Project (Credit No. 1951) is supporting the strengthening of the Ministry of I i  31 Finance and the Statistics Department of the Ministry of Planning. Given its concern about poverty alleviation and the social impact of adjustment, the Government requested the Bank's assistance in designing a project aimed at enhancing its capabilities in social policy planning. 3.69 Proiect Description. The component would provides (a) technical support to strengthen the Government's capabilities .n designing social action programs and policies; (b) resources, through a Study Fund, for the support of the institutions in charge of carrying out socioecononic studies5 and (c) technical support and resources for the development of a statistical data base on the level and evolution of household living conditions. 3.70 Technical support to strengthen the Government's capabilities in designing social action programs and policies would consist of a socio- economist, short-term consultants and administrative staff. Among their duties would be to ensure that the results of socioeconomic studies and surveys would be used to inform the formulation of social policies and programs. Technical assistance and resources for the design of social projects and policies would also be provided to the Planning and Development Unit of the Ministry of Education, the Makerere Institute of Social Research, and the Social Services and Macro Economic Planning Departments of the MPED. 3.71 The preparation of programs and policies would be facilitated through the creation of a Study Fund. The fund would provide a facility for the preparation, review, financing, and monitoring of socio-economic studies which would be used to inform national social policy and strategy. They would also include in-depth analyses of the results of the Intensive Household Survey. 3.72 The fund would be managed by the socio-economist and would finance short term international and local consultants to conduct the studies. All the studies would be undertaken with the participation of civil servant counterparts. The terms of reference for the studies and the selection of consultants would be the responsibility of the socio-economist. 3.73 The following five themes have been defined in collaboration with Bank staff, although the precise work program would be defined on a yearly basis and discussed with the PAPSCA Steering Committee and the Association: (a) characteristics of vulnerable groups and a poverty profile; (b) impact of macroeconomic changes on the poor; (c) access to education for the poor; (d) preparation of a strategy to support income generating activities for future retrenched civil servants (see below); (e) economic opportunities and poverty. More detailed information on the themes is contained in Annex 4. Two of the proposals which have already been reviewed by Bank staff ares i) access to credit for women in rural areas as part of the general theme of economic opportunities and poverty; and ii) an evaluation of the ongoing survey on  32 primary education facilities as part of the broader them of access to education for the poor. 3.74 In order to establish a statistical data base on the evolution of household living conditions, the undertaking of Priority Household Surveys (PHS) are proposed. The PH8 is designed to collect priority information on different household groups so as to monitor the impact of the ERP including the impact of initiatives in the social sectors. It would be managed by the Department of Statistics in the MPED with the assistance of a long term consultant and statisticians. The surveys would be based on a prototype questionnaire including modules on demography, employment, incomes, consumption, savings, housing, education, health and nutrition. The adaptation of the questionnaire to the Ugandan context would be the responsibility of the Steering Comnittee and the socio-economist. 3.75 umolementation. The general orientation of the work under this component would be determined by the PAPSCA Steering Committee chaired by the MPED and consisting of representatives of Ministries, donors and NGOs. The Committee would review the semi-annual work program, and the results of the surveys, studies and analyses. The Steering Committee could also propose studies to be undertaken that are not in the work program, if they are needed to inform policy decisions. The Committee would also resolve any technical or administrative issues which require inter-ministerial coordination for their resolution. 3.76 The component would provide funding for the recruitment of a socio- economist who would report directly to the Permanent Secretary of MPED, a Statistician, administrative staff, short term consultants, and equipment. In addition at least four staff of the MPED would be seconded to assist in the work. Short term training in and outside the country would be provided for local staff of the ministerial departments which would be engaged in executing the studies financed under the component. The training would be in the fields of surveys, statistical analysis, socioeconomic studies and formulation of social policy. The technical assistance and equipment required for the survey and studies, as well as micro-computers, vehicles, small office equipment, and operating costs for carrying out the survey, the socioeconomic studies and analyses would be included. Provision also has been made for the organization of working groups and seminars to discuss the results of the SDA work program and PAPSCA. 3.77 During negotiations, the Government confirmed the above arrangements. The Government also provided to the Association the names of candidates for the post of socio-economist. As a Condition of Disbursement against this component, the socio-economist and the required support staff would be appointed. PAPSCA Administration ($0.75 million) 3.78 This component would support the operations of the proposed PAPSCA Coordination and Monitoring Unit (PCMU). The main responsibilities of the Unit are detailed in Annex 5.  33 3.79 The Coordinator of the PAPSCA Monitoring Unit would be responsible for ensuring that the Unit fulfills the responsibilities as set out in Annex 5. The Coordinator would be appointed for a period of about four years and would be assisted by a Program Officer. Their work would be divided as follows: (a) The Unit Coordinator would focus on monitoring the implementation of various sub-projects and produce periodic reports for submission to IDA. The incumbent would maintain close working relationships and daily contact with the sub- project implementing agencies. The incumbent would also deal with the public relations and public information aspects of PAPSCA. The Coordinator would also be responsible for the management of the Special Account. (b) The Program Officer would focas on the financial aspects of PAPSCA and would collect data from the project implementing agencies. 3.80 The Unit would submit progress reports to IDA semi-annually. 3.81 During negotiations the Government confirmed the above arrangements. The Government also provided to the Association, the names and qualifications of candidates for the post of Unit Coordinator. 3.82 A Condition of Credit Effectiveness would be that the PAPSCA Coordination and Monitoring Unit would be fully operational.  34 IV. PROJECT COST AND FINANCING PLAN A. Proiect Cost 4.01 The total cost of the project is estimated at US$37.0 million equivalent, net of taxes and custom duties, and US$33.0 million net of "in- kindw contributions. The estimated costs and foreign exchange component are given in Annex 6 - 11, and are summarized as follows: USS Million Estimated Costes Local Foreian Total Components 1. Small Scale Infrastructure 1.32 2.87 4.19 2. Primary Education 5.01 7.64 12.65 3. Low Cost Sanitation 1.87 1.01 2.88 4. Health 3.39 4.39 7.78 5. Social Dimensions (SDA) 1.51 3.55 5.06 6. Program Administration 0.13 0.62 0.75 Total (12/89) 13.24 20.07 33.31 7. Contingencies Physical (5?) 0.54 0.82 1.36 Price (8X) 0.93 1.40 2.33 Sub-total 1.47 2.22 3.69 Total Prolect 14.70 22.30 37.00 3/ 4.02 Cost estimates for civil works (construction materials and local labour costs), furniture, equipment and vehicles have been derived from contracts awarded for similar items in both IDA financed and other donor agencies' ongoing projects. The proposed physical facilities and other work included would be austere and appropriate for the objectives of the project. Where construction is involved, the bulk of the work would be carried out by labor-intensive methods with unskilled labor and local materials provided on an 'in-kind basis by the involved communities. Skilled labor where required would be financed under the project. Cost of expatriate technical assistance is based on the prevailing UNDP rates and would be all inclusive (salary, housing, travel, allowances, etc). A summary of technical assistance included in the project is contained in Annex 12. 4.03 Contintency Allowances. For physical contingencies an average of 5 percent has been added to the base cost. The domestic and international inflation rates have been calculated in terms of US Dollars at 4.1 percent p.a. This annual rate of price increase has been reviewed by Bank Group staff 3J Includes PPF of US$0.52 million.  35 and has been found satisfactory. The total price increase is estimated at about eight percent of base cost plus contingencies. 4.04 Foreign Exchange Component. Imported construction materials such as cement, reinforcing steel bars, roofing sheets, etc. and other items such as equipment, technical assistance are costed at 100 percent foreign exchange or 1002 C.I.F. Kampala. Including contingencies, the foreign exchange component is estimated at US$22.3 millien or about 60 percent of the total project cost. B. Financial Plan 4.05 The total project cost of US$37.0 million would be financed as follows: USS Million COMPONENT 41 NGO GOV'T IDA TOTAL Small-Scale Infr. Reh. 0.59 0.64 2.96 4.19 Primary Education 0.00 4.37 8.28 12.65 Low Cost Sanitation 0.00 0.23 2.65 2.88 Health a) Orphans 1.29 0.40 3.26 4.95 b) Widows 0.00 0.12 1.38 1.50 c) Health Development 0.33 0.11 0.89 1.33 Sub-Total 1.62 0.63 5.53 7.78 Social Dim. of AdJ. 0.00 0.40 4.66 5.06 PAPSCA Administration 0.00 0.06 0.69 0.75 Sub-Total 2.21 6.33 24.77 33.31 Contingencies 0.00 0.46 3.32 3.69 TOTAL 2.21 6.79 28.00 37.00 4.06 Excluding expected "in-kind" contributions by local communities, the Credit would finance about 85 percent of the project cost, and the NGOs 7Z ($2.2 million). The Government would be expected to contribute about US$2.8 million (8 percent of the project costs) equivalent over the four and one-half years implementation period or about US$0.6 million on average p.a. Recurrent costs generated by the project would be minimal since the bulk of the work is rehabilitation (i.e. teachers are existing for the education component, etc). Any additional recurrent cost generated would be the responsibility of the local communities involved and would be a consideration in the selection of both proposed tasks and the ability of participating comunnities to provide such recurrent cost. 4/ Government's financing includes $0.33 million in "in-kind' contributions for Small-Scale Infrastructure Rehabilitation and $3.65 million in 'in- kind, contributions for Primary Education.  36 V. PROJECT ADMINISTRATION PROJECT IMPLEMENTATION. PROCUREMENT. DISBURSEMENT. AND AUDITING A. Implementation 5.01 Schedule. The project would be implemented over a period of four and one-half years including six months for completion of payments and submission of withdrawal applications (Annex 13). The project is scheduled to be completed by March 31, 1994 with a Credit Closing Date of September 30, 1994. 5.02 Administration. For overall program/project coordination, the PAPSCA Monitoring Unit (Para. 3.77) would be established within MPED. Its responsibility would be to carry out overall planning, inter-sectoral coordination, sonitoring and evaluation of the PAPSCA program including this proposed project. Each sector in the project would however, have its own implementing agency as followss (a) Small Scale Infrastructuze - This component would be administered by Action Aid (para. 3.10); (b) Primary Education - This component would be administered by the MOE's existing PIU (para. 3.18); (c) Low Cost Sanitation - The Kampala City Council would be responsible for administering this component (para. 3.45); sd) Health - World Vision and UWWOF under the supervision of the Ministries of Health and Local Government would administer this component (paras. 3.65); (e) Social Dimensions of Adjustment - This component would be administered by technical assistance specialists reporting to the Permanent Secretary of MPED (para. 3.76). 5.03 Proiect Preparation Facility (PPF). To advance project preparation, a PPF (No. 594-UG) in the amount of US$520,000 has been provided to the Government for consultancy services including local professional salaries, equipment and initial operating costs for four sectors in the project. This will in particular allow for the advanced hiring of required specialists. 5.04 Reporting and Evaluation. Semi-annual progress reports would be submitted by each of the five sectocs involved in the project to the Association through the PCMU who would also submit an overall report on the Program as a whole. These reports would be submitted by not later than August 15 and February 15 following Credit Effectiveness. The format would be mutually agreed upon prior to the date of the first submission and would be  37 modified as deemed appropriate during the implementation of the program/project. In addition, an overall completion report combining the report of the various sector implementation units would be furnished to the Association by the PCMU promptly after completion of the project but in any event not later than six months after the Credit Closing Date. Included in the report would be an assessment on the execution and initial operation of the program/project. Its costs and the benefits derived or to be derived from it, the performance of the Borrower and the Association and other agencies involved, of their respective obligations and accomplishments including lessons learned. Key performances indicators are contained in Annex 14. B. Procurement 5.05 Procurement arrangements are summarized in the following table: Procurement Method (USS Millions) ITEM ICB LCB OTHER TOTAL CIVIL WORKS - 1.70 1.88 3.58 - (1.45) (1.15) (2.60) CONST. MAT./ 13.06 3.57 1.23 17.86 EQUIP. TOOLS/ (13.06) (3.19) (1.00) (17.25) VEHICLESIFURN. CONSULTANTS - - 4.30 4.30 - - (4.30) (4.30) SURVEYS/STUDIES - - 1.75 1.75 ANALYSIS/TRAIN. - - (1.15) (1.15) OPER. COST - 0.71 2.61 3.32 - (0.61) (2.09) (2.70) TOTAL 13.06 5.98 11.77 30.81* (IDA) (13.06) (5.25) ( 9.69) (28.00) ( ) - IDA Financing * excludes NGO component 5.06 International Competitive Bidding (ICB) in accordance with the Bank's Guidelines for Procurement would be used to purchase some construction materials, vehicles, furniture, equipment, and tools (value $13.1 million). A margin of preference of 15 percent, or the existing rate of import duties, whichever is lower over the C.I.F price of competing foreign supplies, for furniture, equipment and other goods would be available to qualified domestic manufacturers participating in ICB procurement. 5.07 Local Competitive Bidding (LCB) procedures would be used to purchase construction materials, equipment and tools for an estimated value of $3.19 million but costing less than $200,000 per contract, due to the  38 anticipated need to obtain a wide variety of items by small purchases for numerous types of tasks to be undertaken under the various components of the project. LCB would also be used for the civil works required under the Low Cost Sanitation component (total value $1.5 million). The LCB procedures followed would include local advertising, public bid openings, clearly specified evaluation criteria, and awards to the lowest evaluated responsive bidder. Foreign firms if interested would not be prevented from participation. 5.08 Exceptions to ICB and LCB amount to 38? of the project cost and are deemed essential for the flexibility required for efficient implementation of the project by local and scattered communities. International and local shopping procedures would be used for items costing $50,000 or less and in aggregate not exceeding $1.5 million on the basis of a minimum of three bids. Direct contracting would be allowed for operational expenses for office rent (there is an acute shortage of Government office space in Kampala), office stationery, fuel, maintenance, utilities and general operating expenses of which IDA would finance $2.1 million. Procurement of the above services would be on the basis of negotiated contracts following standard Government procedures %cceptable to IDA. Force account procedures would be used to hire local skilled labour ($1.1 million) for assistance to the self help activities in some of the components. This is necessary due to the nature of the work involved (i.e small quantities scattered in remote locations). 5.09 Standardized sketch designs for all physical facilities and/or sub- project proposals financed under the proje_t would be reviewed by the Association including master lists of cor truction materials, equipment, and vehicles indicating grouping, estimate f costs and proposed method of procurement. Items would be grouped to the extent practicable to encourage competitive bidding and to permit bulk procurement. Review of tender evaluation documents prior to award would be required only for contracts above US$50,000 equivalent for items mentioned above. Local skilled labor would be hired at rates not exceeding the area's prevailing rates. 5.10 Items financed directly (parallel financing) by the NGOs would be procured using their own procurement methods. 5.11 All specialists/consultants financed from the proceeds of the Credit would be hired on terms and conditions, including a review of their qualifications, acceptable to the Association, and in accordance with the Bank's Guidelines for Use of Consultants. The qualifications of candidates for overseas training financed under the project, along with their proposed course of study, including the costs, would be reviewed by the Association. Local administrative budgets financed under the project would also be subject to the Association's review. C. Disbursement 5.12 Disbursements would be on the basis of:  39 (a) 100 percent of foreign expenditures and a percentage for local expenditures which varies from 35 to 90 percent by sub-project since the local cost component of each differs; and (b) 100 percent of PPF funds withdrawn. 5.13 The estimated schedule of disbursements for the project is contained in Annex 15. The project is expected to be fully disbursed over the four and a half year implementation period. Since this project is the first of its type in Uganda stemming from the need to address some of the short run effects of the period of civil disruptions, a country disbursement profile is not deemed appropriate for comparison. However whenever possible, existing and experienced administrative units have been selected for the implementation of the project's components. Hence a four and a half year disbursement period is considered adequate. 5.14 All disbursements would be fully documented except for: construction labor costs which would use force account procedures; in-country seminars and training fees, and operating costs and contracts valued below US$50,000 equivalent. For those items a Statement of Expenditure (SOE) would be used, documentation of which would not be submitted to the Association but would be available for inspection by Bank staff and project auditors. D. Special Account 5.15 In order to ensure th&t funds are available for the project when needed, a Special Account administered by the PAPSCA Coordination and Monitoring Unit would be established in a commercial bank through the Bank of Uganda and operated and maintained on terms and conditions acceptable to the Association. The initial deposit of US$3.0 million would be replenished on the basis of satisfactory documentary evidence to be provided to the Association by the Unit of payments made from the account for goods and services required for the project. Each sector implementation unit would also establish and maintain separate accounts for counterpart funds to be replenished by the Government on a quarterly basis or as needed to implement the project. During nexotiations. an agreement between the Government and the Association was reached on the details of the establishment and operation of these accounts.  40 Dlbursements (USS 000) Categorl-es Aount X of Expenditure To Be Financed P.rt A (SA ll Sale, Infrestructur. Rehabilitation) of the Projet- 1 Civil Works 2,890 iX For.8 O6X LOs. 2 Equipmnt/Toola 547 1803 For., 6O1 Loc. 8 Consultants 16 160 Part Q (Primar Education) of the Projeat 4 ClGIl WorkS 5,398 100X For., 5SO Loc. 5 Equi p/Tools/ 1,818 100I For., 503 Loc. Vehitlee/Furn. O Consult nts 687 100 7 Operational Exp. 10 1003 For., 5OX Loc. Part C (Low Cost Sanitation) of the Project 8 CFviI lorks 1,479 1901 For., 853 Loc. 9 Constr. Mat. 870 100X For., 85X Loc. 10 Equip/Toole/ 6a6 1995 For., 8SX Loc. Veheloes/Furn. 11 Consultants 17 1095 12 Operational Exp. 80 1895 For., 86X Loc. Part D.1 (HeaIth - OrDhns) of the Project 18 Constr. mot. bee 10o For., 595 Loc. 14 Equlp/Tools/Agric. A 2,180 1895 For., 69X Loc. Med. Suppile /Veh. 15 Training 819 1095 For., 50X Loc. 16 Oper tlonal Exp. 240 1803 For. , 60X Loc. Part D.2 (Halth - Widows) of the Proleat 17 Eiuip/Tooios 788 100X For., 895 Loc. 18 Consultants 260 100 19 Training 290 1693 For., 895 LoC. 20 Operational Exp. 120 18o9 For:, 753 Loe. Part 0. (Masindi Health Dav*loement) of the Proact 21 Clvii Work 60 1001 For., 895 Loc. 22 Equip/Toole/ Supplies/Vehicles 890 1895 For., 895 Loc. 28 Consultants 810 1995 24 Training 140 1003 For., 80X Loc. Part E _Socal Dimensions of Adjustment) of the ProJet 2b EquIp/Furnltursl 650 100T For., 7CX Loc. Vehicales 26 Consult nts 1,764 1003 For. 27 Seminars/Training 8S0 10X For., 75X Loc. 28 Operational Exp. 1,790 1003 For., 75X Loc. Part F (Progarm AdministrBtion) of the Project iF Equlp/Vehicles 5O 100I For., 55X Loc. 89 Consultants' 6on 109 For., 55X Loc. Service 81 Operational Exp. 40 103 For., 55X Loc. 82 Refund of PPF 620 88 UnalIoc ted 8,289 MAs 2.000  41 S. Auditing 5.14 The implementation units responsible for the day-to-day administration of the various sector components financed under the project Including the PCMU, would each establish and maintain separate accounts and records for all project activities in accordance with iaternationally accepted accounting procedures. Each of the implementation units would prepare an annual audit report sunmarising the financial status of its project operations, vhich would be submitted to the PCMU for its review and further submission to the Association. Auditing would be required on the annual basis for all expenditures financed under the project with particular attention to expenditures reimbursed under Statements of Expenditures and the Special Account. 5.15 Auditing would be performed by independent auditors acceptable to the Association and the auditor's reports would be submitted to the Association within six months after the end of each Government's fiscal year. Funds are included in the project for these services. VI. ENVIRONMENTAT. ASPECTS 6.01 The project is expected to have no adverse environmental impact. Simple tile or cement block making units which may be provided under the project would be of the manually operated pressure type requiring no fuel such as firewood. The rehabilitation of the many classrooms would improve the teaching environment as well as protecting the classrooms from adverse climatic elements. A very positive improvement in the health aspects is expected from the rehabilitation of Health Centers, and the cleaning and protection of springs and wells and provision of pit latrines. VII. BENEFITS AND RISKS A. Benefits 7.01 The Small Scale Infrastructure component would provide imaediate assistance to rural poor segments of Uganda's population. It would provide the necessary inputs with which to rehabilitate essential infrastructure and would strengthen both the community level participation in project design and implementation as well as the District level planning and monitoring capacity. It is expected to leave the beneficiary communities with the managerial and technical skills necessary to design and implement future self-help projects on their own. 7.02 The Primary Education Comuonent would support rehabilitation of about 30 percent of the primary schools (about 4200 classrooms) in the designated districts and thereby contribute to a significant enhancement of the quality of education. (The total population of these districts is about 5.5 million, so some 1.2 million persons would benefit either dlrectly or through Improved educational services to one or more of their family members).  42 The component is expected to provide a more solid base for future improvements to primary education. 7.03 The Low Cost Sanitation Comnonent would contribute to improvements in health and quality of life for one of the most vulnerable groups in society - the urban poor. The immediate beneficiaries of the project would be the residents (some 47,000 people) of two slum areas in Kampala, particularly women and children. However, when the model is fully developed and demonstrated, the component could be replicated in other areas for the benefit of much larger segments of the urban low-income population. 7.04 The Health Component would provide immediate assistance to orphans, widows, and the rural poor of Hasindi. It would develop a community based approach to the provision of health services to the increasing number of orphans and the large number of war widows. It would also provide the inputs required to rehabilitate the health care system in a sustainable way at the community level in Hasindi District. 7.05 The Social Dimensions of Adiustment Component in the short term would provide, (a) technical support to strengthen the Government's capabilities in social policy planning; (b) a statistical base on the level and evolution of household living conditions; and (c) experience in designing and implementing actions that will improve the access of poor and disadvantaged groups to increased employment opportunities and basic social services. In the medium term, the Project will lay the basis for: (a) refined targeting of vulnerable groups; and (b) the development of a comprehensive social policy consistent with efficient growth-oriented policies. 7.06 The PAPSCA Coordination and Monitorina Unit established under this project is expected to ensure consistency between the PAPSCA projects and other social sector investment projects and programs implemented by those agencies. It would also provide a common channel through which donors could address and seek resolution to problems in order to expedite implementation, inter alia, of donor financed and/or proposed projects. B. Risks 7.07 In general, risks involve the implementation capacity of the Government, which includes the use of the RC system, and the extent of local community participation in the Small-Scale Infrastructure Rehabilitation, Primary Education and Low Cost Sanitation components. Implementation risks have been minimized, for example, by the use of qualified NGOs, the MOE Project Implementation Unit, and the Kampala City Council, all experienced in implementing similar projects. In every case stated above, technical assistance and training have been included in the project. Information and advertising campaigns are also key elements of the investment components; nevertheless the limits of community participation to provide funds and in- kind contributions would be monitored carefully as work proceeds. In the case of the SDA, coordination of work to be carried out without duplication and repetiticn of similar work would be minimized by the oversight responsibility of the MPED which presently coordinates such work.  43 VIII. AGREEMENTS REACHED AND RECOMMENDATION 8.01 During credit negotiations, agreement was reached with the Goverriment on the following: (a) the designation of the district of Kamuli to be assisted under the Small-Scale Infrastructure Component (SSIC) (para. 3.11), and the roles of the DDC and Action Aid in the administration of the component (para. 3.10); (b) a satisfactory plan for the administration of the Primary Education component (para 3.23); (c) a satisfactory plan for the administration of the Low Cost Sanitation component (para. 3.45); (d) arrangements for coordinating and implementing the Health componfeint (para 3.66); (e) arrangements to administer the SDA component (para. 3.77); and (f) the establishment of the PAPSCA Monitoring Unit (para 3.81); 8.02 A Condition of Credit Effectiveness, would be that the PAPSCA Monitoring Unit would be fully operational (para 3.81). 8.03 As a Condition of Disbursement against specified components, the Government would: (a) For the SSIC, have entered into an agreement, satisfactory to the Association, with Action Aid to administer the component (para. 3.10). (b) For the Primary Education component, have signed a contract, satisfactory to the Association for the required technical assistance and related services (para. 3.23). (c) For the Low Cost Sanitation component, have signed a contract, satisfactory to the Association for the required technical assistance and related services (para. 3.45). (d) For each of the Health subcomponentst (i) have entered into an agreement, satisfactory to the Association, with the selected NGOs for its implementation; and (ii) have established and staffed the Coordinating Committee (para 3.63). (e) For the SDA component, the specialist services required for the component would be employed (para. 3.76). 8.04 Recommendation. Subject to the above provisions, the proposed Project would constitute a suitable basis for an IDA Credit of SDR 22 million (US$28.0 million equivalent) to the Republic of Uganda at standard terms.  1 ANNEX 1 PAPSCA Initiatives o S MOJWT lUsMV cISThICiS DU TATION SOJ (t~~~~~~~~~~~~~~~~~rz IN lot _in;-tries Others yet id".] Primary School Rehabilitalion 1U. Ace,.Arua.Sulu,Kabnrol-.Kitge.Kuwl P0E.HI Ni O.RC IODA.MY _ dUc.tIOA.I ftper Supply g.o Lira.Hoo. Hubsnde,Nahbi.RmIsI.Sorot1 Etcutiral Paper Supply 9H wirnlFOE iAM ORPIWS Ameltenm to Orphans 12.0 Mi_Am.Rbkai .Gulu.Li'e,Lro,Sorotl 1 I SCF W, MDA.V W_M111, Aeaie#ance to I n '- NM, 0.l PVA Ku10 NTW rWomen in Aeriiaitwral v.lopmmnt 1.0 Aps..L.ra M.A CARE,I,O A -eeitan" to Var Widow 1.5 0ISSL Comnity Based RehabilitatIon of 60 Nubede utHono.Maloa.Iagna.Narar:l IMA.,NE ISDOC,CW. DAMWA. _ OlmbldITraninIg for NBndicupped/ National (training) ActnAld, Nfl i'rodteie Program 18 National ii5 OPRC.KVO. USAD DIMSMUATAE Smal I-*ml. Infrestrucure 0.0 ieteI To of ot lowini Hrot.o,Kumi M i O Mte DA.HY D0PIRCIS flthbil I Itation Program Kpchormp.Nebbi Improved Inca_ and Hrulth 2.0 Naindi m 14lAU, World NQNCowp VIl-on,. Support for Commulity bead Wealth 1.8 NIA A & Care Association e Prlmry Health Care Support 1.2 KauliIganga Jinja tOF ARE ehab. of Health Care Canter. 4.0 Various Dletrict "Ai i NV! Water. Help and Self-MHlp 1.5 Arus Wm CAE #400w. Water Wn Sanitation brell-a 11.8 Sundibweo.K4srole.lHmImalubende. WOD.NON W4CEF. SSlA.Ily ProJec plgI ,Luero,ndKl ni,Kitm,LI rn. IlUi NQ.RQ, Rural Ninua Obterial. Supply 6.0 A selected district Support for be 11-Scae Rural 1.7 Lunero Hubendw.ikutono.Jinja. Eap Intl Produtive LSnterpriwe Sean,ibakel .V4igi Llv.mNO Smel-Oromp ira l Credit 0.8 Gulu.Nbararm.Nebbl Acord URBMN PO Low-Co"t Snitatlon 2.9 .mpela MlA RC1 IDA Loi-Ct Ursban ouilng P loab 8.0 Kampl D,IILO *roJet avalnce to Reidplcd Civi 18.0 Natioal ISCl UC OB,Pin Servants bet 1ME Social Dlmenalons of Adjuatment t.0 NOtionel IW Wm WDA MTAL _ 10. 6 I * Estimates are preliminary and subject to change after further development of project proposals.  ANNEX 2 Page 1 of 6 ADMINISTRATION OF SMALL SCALE INFRASTRUCTURE REHABILITATION 1. Organizational Structure A Sub-Committee (SC) of the District Development Committee (DDC) answerable to the Department of Community Development within the Ministry of Local Government would be established to administer the scheme. This committee would be chaired by the District Administrator (DA) or his nominee and would include representatives of the relevant Ministries represented locally, a representative of the RC5 Council, a representative of the Department of Community Development and a representative of the participating NGO. This committee would meet once a month and would serve to coordinate and monitor the operation at the District level. (See Terms of Reference for SC, Attachment 1). 2. The Role of the Non-Governmental Organization (a) Institution Building The role of the NGO would be to assist the DDC and the Community Developmeri' Department of the Ministry of Local Government with the establishment of a coordination and monitoring process. The NGO would work to develop the local administrative capacity to continue the scheme without external assistance. This would involve assisting the DDC with the design of a three year development plan, detailing the distribution of infrastructure projects to be undertaken within the District and the corresponding budget. The NGO would also assist the DDC in improving its capacity to appraise, monitor and evaluate future projects undertaken by the RCs. (b) Training The NGO would assist the respective RCs in the preparation, design and presentation of the project proposal. Thereby imparting to the community the necessary skills for future project preparation and financing independent of the sponsoring NGO. Throughout the course of the project, the participating NGO would be responsible to provide technical training directly to the beneficiary communities. When the NGO would provide an outside technical expert or pay the salary of a skilled laborer, that individual should work closely with a counterpart in the beneficiary commmnity to train  2 him/her in the technical and financial management aspects of the projects' implementation. (c) Proiect Administration The NGO would arrange for the administration of funds, procurement of inputs, technical advice where required and the monitoring and evaluation of the projects. The NGO would establish a system of procurement and distribution of materials for specific components of the project - in particular community access roads, school rebuilding, and water development (boreholes, wells and spring protection). The NGO would be expected to provide resources from their own funds, in particular to cover the costs of any expatriate personnel involved, additional local staff necessary for expansion of activities and transportation within the targeted District. They would also develop a two year plan of implementation involving the rehabilitation of the Community Development Department, the distribution of infrastructure projects to be undertaken within the District and detailed operating budget. The NGO would also be responsible to meet the necessary reporting, accounting and procurement requirements. (d) Implementation Plan (1) A Sub-Committee (SC) of the District Development Committee (DDC) answerable to the Department of Community Development in the Ministry of Local Government would be established to administer the scheme. This Sub-Committee would be chaired by the DA or his nominee and would include representatives of the relevant local Ministries, a representative of the RC5 council and a representative of the participating NGO. (2) The NGO together with the SC would undertake an Information/Advertisina campaign in the District to familiarize the RCs with the nature of the project and the resources which are to be made available. This campaign would involve the communication of project criteria and the amounts available for specific types of projects. (3) The NGO would begin the Identification/Appraisal stage of the project. Together with the assistance of the NGO, the RCs (e.g. RC3 responsible for the maintenance of feeder roads, RC2 responsible for the rehabilitation of schools, and RC1 responsible for  3 water projects) will prepare project proposals and submit them to the SC for review. These project proposals will need to be signed by the respective RC chairman, the NG3 and the DA. During this stage the NGO would make short site visits as required and would provide training in project preparation to the beneficiary communities. (see sample document, Attachment 2). (4) The NGO would then establish a system of procurement and distribution of materials and equipment for specific components of the project. (5) The NGO, in addition to the local representative of the respective line ministry, would provide technical back-un service to the RCs as they embark on project implementation. (6) The NGO would provide for oroiect supervision and together with the beneficiary communities would prepare and submit progress reports to the SC. (7) The RCs would keep the tools contributed through the project and would ensure the maintenance of the rehabilitation undertaken. Proiect Criteria 3. Initiatives undertaken by the RCs would meet specific eligibility requirements which would be agreed upon by the Government, the Association and the sponsoring NGO. Those criteria would be as followst (a) All RC projects would require an in-kind contribution on the part of the beneficiary community, most likely in the form of unskilled labor or locally available materials. This contribution is expected to be about 10 percent of the projects overall cost. (b) The practical and operational feasibility of the RC project would be demonstrated. The community in conjunction with the sponsoring NGO would have management, staff and technical capability to carry out and maintain the project. (c) Every RC project would be designed and implemented in such a way as to train or impart skills to community members so that they would be able to both design and implement a similar project in the future and maintain the existing project without the assistance of the NGO. (d) RC projects would be consistent with the Sector strategies and programs of the technical ministries concerned.  4 (e) RC projects would not entail future operational expenditures beyond the capacity of the community to maintain through for example user fees. (f) In the case of school and health center rehabilitation, the beneficiary community or the Government would need to be able to provide the respective, qualified teachers or health care workers to staff the facility. (g) Projects would need to compliment or rehabilitate rather than duplicate already existing infrastructures or facilities. (h) Projects submitted need to fit into one of the following four categoriess (i) rehabilitation of schools and health centers, (ii) improvement and maintenance of feeder roads and (iii) spring protection and the construction of wells.  5 ANNEX 2 Attachment 1 Page 5 of 6 SMALL SCALE INFRASTRUCTURE REHABILITATION TERMS OF REFERENCE OF THE SUB-COMMITTEE OF THE DISTRICT DEVELOPMENT COMMITTEE There would be established a Sub-Committee (SC) of the District Development Committee (DDC) consisting of the following personss (a) The District Administrator (DA) (b) Representative of the RC5 Council (c) Representative of the Department of Community Development (d) Representative of the relevant Line Ministry (e) Representative of the participating NGO The Sub-Committee would be answerable to the Department of Conmunity Development within the Ministry of Local Government. The SC would be chaired by the DA or his nominee and -would meet once a month. Together with the participating NGO, the functions of the SC would be tot (a) prepare, monitor, implement and evaluate the development plans of the Small Scale Infrastructure Rehabilitation project; (b) to integrate and coordinate all development activities of the project with the overall District development plans; (c) to ensure the free flow of information between the line ministries, the RCs and the Government Departments: (d) to discuss and evaluate project proposals submitted to the SC for approval; (e) to review progress reports submitted to the SC by the RCs; and (f) to report regularly on the progress of the project  6 ANNEX 2 Attachment 2 Page 6 of 6 SMALL SCALE INFRASTRUCTURE REHABILITATION SAMPLE PROJECT PREPARATION FORM Date Resistance Council Target Villages Project Type Background Description Equipment, Materials & Tools Required Technical Assistance Required Nature of In-King Contribution on the part of the Community Number of Beneficiaries Maintenance Arrangements RC Chairman District Administrator Representative of NGO  ANNEX 3 Page 1 of 2 UGANDA PAPSCA ADMINISTRATION OF EDUCATION COMPONENT Sequence of Activities 1. A provisional sequence of activities leading to execution of this component is presented belows (a) Formation of an operational committee at the MOE, with the PIU acting as its secretariat; tb) Design of project details by MOE, in consultation with DEOs; (c) Hiring of technical assistance within the existing PIU; (d) Estimation of needs for equipment and materials; (e) Formation of operational committees of the District level; (f) Notification by the Districts to the local communities of the opportunities to be offered under the sub- project; 5g) Procurement of equipment and materials; (h) Receipt at District level of proposals from local communities; (i) Evaluation of proposals at District level by the operational committees; (j) Approval of proposals by the operational committee at the MOE; (k) Execution of local activities; and (1) Evaluation and final record keeping. The local proposals would generally be evaluated and acted upon in the order in which they are received, up until the time that the capacity for supervision at each District is reached, or the supply of materials or funds are exhausted. At the same time, an effort would be made to provide a balance of resources use among Districts, and to allow time for requests from poorer and more backward community groups to be received.  2 Other Stipulations 2. (a) Transportation of materials from the District Education Offices to the sites of use would be the responsibility of the local communities where the rehabilitation is taking place. (b) Ownership of all machinery, major construction tools and carpentry tools would be maintained by the MOE, for future use as it shall specify after completion of the component. (c) The MOEIPIU would prepare a detailed plan and operations, based on this summary description, for review and discussion with the Association, which when agreed upon will be the basis for operations under the component.  ANNEX 4 Page 1 of 4 UGANDA PAPSCA SOCIAL DIMENSIONS OF ADJUSTMENT FIVE SELECTED STUDY THEMES 1. Characteristics of Vulnerable trouvs in Uganda and a Poverty Profile In order to be able to implement and target social programs, a better understanding of the characteristics of vulnerable groups is needed. Studies and surveys have been undertaken on limited scale by NGOs and UNICEF. Unicef, in particular, has undertaken a survey in Mbarara (western Uganda) and conducted an analysis of the major characteristics of various socioeconomic groups. A survey of orphans is presently being undertaken by the 'Save the Children Fund'. In March 1989, the preliminary report of a Demographic and Health survey (based on a sample) of less than five thousand women was produced by the Ministry of Health under a USAID financing. Most of these studies, however, focus on specific regions or subjects, consequently a clear picture of the general characteristics of vulnerable groups in Uganda is still urgently needed. The orphans issue, for example, needs to be dealt with urgently. Th- problem is particularly acute given years of civil war. The development of AIDS in some Districts of Uganda will make the situation worse in the future. The acute orphans problem has nothing directly to do with structural adjustment, but the present economic difficulties create a situation where adoption, which is the usual way the problem is handled with, becomes an unbearable burden for some families. Additional analysis would include, among other vulnerable groups, a focus on women headed households, the landless rural worker, and refugees. The SDA component would finance two quick living standard surveys, one in 1990 and one in 1991, which will include specific questions on vulnerable groups. The analysis of vulnerable groups will also be based on exiting data generated through other studies and surveys. This analysis will also give an indication of the regional distribution of those groups. Based on this analysis, programs and mechanisms to target interventions aimed at those groups will be identified. A specific working group on vulnerable segments of the population will be established for this purpose. A separate study would be undertaken to draw a general poverty profile of the different regions of Uganda. Each District would be studies individually. The study would examine among other issues, the delivery of  2 social services, economic opportunities and the food security situation. It would base its analysis on the exiting information provided by various projects and NGOs, in particular the ongoing collection of information at the level of the Secretariat for Agriculture and the survey being undertaken by the Ministry of Education. This study would assist in the targeting of programs among various Districts. 2. Imoact of macroeconomic changes on the poor The objective of the structural adjustment program being undertaken is to build the foundation for sustained and equitable growth. The program consequently aims at restoring social progress and ensuring the participation of the poor into the development process. Given, however, the strong imbalances which prevail in the economy, the ERC program would involve measures designed to ensure more effective demand management, in order to be able to achieve the above mentioned objectives. These measures might involve heavy costs for some groups as it is probable that a policy of demand restriction will have uneven repercussions on various socioeconomic categories of the Ugandan population. In order to assess these costs and identify what portion of the population would need support to be able to cope with the changing economic environment. a study would be undertaken on this subject, focusing primarily on the impact of devaluation. This study would be based on information drawn from the household survey, the 1989 living standard survey and other existing research. 3. Access to Education for the Poor The high cost of education is seen by the Government as one of the most severe social problems facing Uganda. A substantial part of the population is deprived of education services by the financial inability to pay the various costs of sending their children to school. A number of projects, by rehabilitating infrastructure and providing textbooks, are aiming al lowering those costs. The Primary Education Improvement Program of PAPSCA in particular would provide for the rehabilitation of primary school facilities. The IDA Fourth Education Project builds upon earlier measures to provide books and other instructional inputs. It also includes studies to assist the Government to implement policy measures, some of which follow from the work of the Education Policy Review Commission. An analysis of the problem of access to education for the poor will complement the already planned studies. It would focus on the cost structure of educational services to identify policies which foster the participation of the poor. The results of the study would then provide information for the preparation of a future sector operation, as well as, identify more immediate actions where feasible.  3 4. Preparation of a Strateav to support income generating activities for future retrenched civil servants One of the most difficult challenges facing the Government is the urgent need to rehabilitate the civil service system. As part of the Structural Adjustment Program, the Government is presently preparing a program to improve the effectiveness of the civil service. This can only be started once the basic systems for management and control are restored. A permanent information system, is under preparation, encompassing a register of all approved positions and a complete staff listing in a form which permits ready comparison with payroll data. It is estimated that about one more year of work will be needed to achieve this task. The Government has appointed a Public Service Review and Reorganization Commission which will examine the size of the civil service, the function of ministries and the qualifications of staff currently employed in the public service. As a result of the Commission's work it is expected that individuals would be identified whose position will be considered redundant or who themselves are no longer considered qualified for further employment in the civil service. Therefore, SDA will help the Government to prepare a well thought out, comprehensive program for retrenched civil servants. A separate component of PAPSCA program would provide funding for this program (Res Program of Assistance for Retrenched Civil Servants). The preparation of this program would support the work of the Civil Service Review Commission, and would include the following three phases: (a) the first phase would consist of a random survey of civil servants at all levels of services, including group employees, on the basis of the already collected information and in particular the civil service census financed by UNDP. This survey would provide information on the various sources of revenue for civil servants (parallel business activity), the various activities they would like to get into, the major constraint for development of such activities and alternative sources of revenue for the household (wives or husbands revenue generating activities), and reasons why the civil servants stay in the civil service (housing for example) etc. Based on those results a socioeconomic classification of different categories of civil servants would be prepared; (b) the second phase would identify possible compensatory packages adapted to various socioeconomic categories of civil servants, defined by the survey. Possible compensatory schemes that would be examined include housing, micro enterprises, commercial activities, agricultu-al production, credit, training and other possible solutions such as severance payments; and (c) the final step would consist of the elaboration of a comprehensive set of proposals, targeted to the different categories of civil servants, and presented to the donors for financing.  4 5. Economic Opportunities and Poverty This theme would focus on the identification of programs and policies to ensure the participation of the poor in the development process. Based on the results of the living standards survey, the exiting data base, and the first results of the Agricultural census, an analysis of the major constraints on the participation of the poor in productive activity would be undertaken. This analysis would focus on among other issues; the feeder road system, and access to basic infrastructural, inputs, credit and extension services. Some pilot research action experimentation would be financed under the proposed IDA component. The first research action program would focus on credit for poor women and would adopt the Grameen Bank approach. This would start with four to six communities and would, throughout the implementation of the scheme, conduct and in-depth analysis of the major constraints on the development of credit for poor women and test various alternative approaches. A study on possible ways to use the RC system to strengthen economic development at the level of the community would also be conducted. This study would assess all the experience accumulated with the RC system and would focus in particular on the Small Scale Infrastructure of the project. A special nation wide seminar would be organized to discuss the results of the study and produce with recommendations for action.  ANNEX 5 UGANDA PAPSCA COORDINATION AND MONITORING UNIT RESPONSIBILITIES 1. .'o ensure that all PAPSCA implementing agencies are well liformed of the objectives, scope and procedures for the implementation of various components; 2. to obtain Government decisions on any matters or issues affecting the implementation of PAPSCA and to provide necessary clarifications and general guidance, where required, so that the implementation of PAPSCA may proceed smoothly and efficiently; 3. to liaise with donors at the initial stage of donors' funding decisions with a view to facilitating donors' commitment and ensuring coordination among donors, and to continue to provide the point of contact with the donors on all PAPSCA matters; 4. to maintain overall records of PAPSCA financing and project components' implementation based on periodic reports submitted by the implementing agencies and the Unit's own monitoring work; 5. to monitor progress of PAPSCA project components and make periodic progress report on them to the Government and donors; 6. to carry out trouble-shooting on specific issues and problems that may affect the implementation of PAPSCA; 7. to assist the implementing agencies in preparing disbursement requests, where required, and to manage the Special Account under the IDA credit; 8. to provide overall planning and coordination so that there is consistency and complementarity between and among various PAPSCA project components; and 9. to plan and execute feasibility studies, where required, on any components of PAPSCA with the use of consultants, and to prepare a PAPSCA completion report at the conclusion of its implementation.  tLL SCALE V IASTfVIC1M 448ILMITATUN ESTIATID tOJOCM lS7 Ihuesd equivalemb) 13 19"0 19 199 LOCAL EXGi TOIAL I. Sil Ro ScSHol muse chab I ltat)on Contructknatep4al. Siuip. A Toold. I OUN 7.000/mU 140 2g0 210 0 700 700 110/40/40/jear 1. Rurel Access Ran" Parish Level R1hab Constructeio ROt1ib1ri. wiIp. 4 Toole 1 0 UN IO01(OO/JIs 1O g0 20 0 s0 Go 10/20/O/hear 111. Sring Prat.cticAljl Is C.tructin atmernial. Eauip. & Toole 1 0 10 100 6S0o SOO 0 10 lK0 200i40/4t100 I./gear IV. Silled Lil Labor 245 246 24 715 0 la1 V. Auditin a a t 1i is Sub Total Oee Cost of Ecuipment. Tool-, SkiI led Laoer 700 11.60 1180 766 2865 1000 Piehcal Contingncis, I1 a5 so a a 112 l50 Prle Contingeniese 5.0 '90 A 4.1t O91.'92 t7 47 47 a1 92 1U2 Totl Coet of iRp.. Tools & SkiI lod Labor 772 I258 1i a04 249 8273 VI. InKind Contribution of lnefciany Co_n.its lcaI Ibtarial. A Labor 103 of ProJ. Costs 77 125 127 a2 0 au Project Cost Including In-kind ccnttibution 640 1S0 13t0 1131 2469 8600 VII. Adsinistrative Ceos to be covered by NOD (apron 205 of project ost) I Project Oflficer 70 70 70 82 160 210 2 Duvelopeent Officers, 12 12 12 86 as 2o Feld Workers 10o so 0 90 90 V&%Icloo 2 4 W OR Pick-e 60 10 10 sO sO (;nold pare Perts *eP) 4Wheel Driv 21 S a #i as (tneld spare parts e"a) 10 Motcycles 10 20 20 go 90 (inld "are parts cps) offlicCosfts 2 18 12 10 40 1O Sub Total NCo11O 16tibution -,St -,0 i 401 869 Total Prijld Cost incld. MO Contribution 1117 Ut8l 15i0 1119 2670 418  ANNEX 7 EDUCATION - ESTIMATED COSTS OF REHABILITATION OF 4,200 CLASSROOMS (US$ MILLIONS) ITEM LOCAL FOREIGN TOTAL 1. CONSTR. MATERIAL/TRANSPORT 0.29 5.56 5.85 2. EQUIP/TOOLS/VEH.iTRANSP 0.00 0.81 0.81 3. FURNITURE 0.35 0.53 0.88 4. LOCAL LABOUR 0.58 0.00 0.58 5. CONSULTANTS 0.08 0.64 0.72 6. OPERATING COSTS 0.06 0.10 0.16 BASE TOTAL 1.36 7.64 9.00 7. CONTINGENCIES 0.00 0.00 0.00 PHYSICAL PRICE TOTAL 1 - 7 1.36 7.64 9.00 8. "IN KIND" LABOR 3.65 0.00 3.65 9. TOTAL 1 - 8 5.01 7.64 12.65  ANNEX 8 LOW COST SANITATION PROJECT COST ESTIMATES US$ Millions ITEM ILOCAL I FOREIGN TOTAL WATER SUPPLIES I I I PUBLIC STANDPIPES 0.0781 0.020 0.09B SPRING PROTECTION 0.084 I 0.014 I 0.048 I SPRING REPAIRS 0.008 1 O.OO1 1 0.09 1 SUB-TOTAL I 9.119 I 9.O4 I 0.144 I ------