Uganda - Second Economic and Financial Management Project

Document of The World Bank Report No: 19843 UG PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR24.7 MILLION (US$34.0 MILLION EQUIVALENT) TO THE REPUBLIC OF UGANDA FOR THE SECOND ECONOMIC AND FINANCIAL MANAGEMENT PROJECT NOVEMBER 3, 1999 Africa Regional Office  CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 1999) Currency Unit = Uganda Shilling Uganda Shilling 1= US$ 0.000664 US$ 1 = Uganda Shilling 1505 FISCAL YEAR July June ABBREVIATIONS AND ACRONYMS BFP Budget Framework Paper DANIDA Danish Agency for International Development DDP District Development Plan DFID - UK Department for International Development - United Kingdom EFMP Economic and Financial Management Project EFMP II Second Economic and Financial Management Project FMS Fiscal Management Systems GOU Government of Uganda ICBP Institutional Capacity Building Project IDA International Development Association LGDP Local Government Development Program - Phase I LG BFP Local Government Budget Framework Paper LSP Letter of Sectoral Policy MoFPED Ministry of Finance, Planning and Economic Development MoLG Ministry of Local Government MPS Ministry of Public Service MTEF Medium-Term Expenditure Framework NDF Nordic Development Fund NSDS National Service Delivery Survey OAG Office of the Auditor General OOB Outcome Oriented Budgeting PIM Project Implementation Manual PSR Public Service Reform UBOS Uganda Bureau of Statistics UCS Uganda Computer Services UMI Uganda Management Institute UNCDF United Nations Capital Development Fund UPPAP Uganda Participatory Poverty Assessment Project VFM Value For Money Audit Vice President: Callisto Madavo Country Manager/Director: James W. Adams Sector Manager/Director: Demba Ba Task Team Leader/Task Manager: Gaiv M. Tata  UGANDA Second Economic and Financial Management Project CONTENTS A. Project Development Objective Page 1. Project development objective 3 2. Key performance indicators 3 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 3 2. Main sector issues and Government strategy 3 3. Sector issues to be addressed by the project and strategic choices 7 C. Project Description Summary 1. Project components 8 2. Key policy and institutional reformns supported by the project 9 3. Benefits and target population 10 4. Institutional and implementation arrangements 11 D. Project Rationale 1. Project altematives considered and reasons for rejection 11 2. Major related projects financed by the Bank and other development agencies 12 3. Lessons learned and reflected in proposed project design 13 4. Indications of borrower commitment and ownership 14 5. Value added of Bank support in this project 14 E. Summary Project Analyses 1. Economic 15 2. Financial 15 3. Technical 15 4. Institutional 15 5. Social 15 6. Environmental assessment 16 7. Participatory approach 16 F. Sustainability and Risks 1. Sustainability 16 2. Critical risks 16 3. Possible controversial aspects 17  G. Main Credit conditions 1. Effectiveness conditions 17 2. Other 18 H. Readiness for Implementation 18 I. Compliance with Bank Policies 19 Annexes Annex 1: Project Design Surnmary 20 Annex 2: Detailed Project Description 25 Annex 3: Estimated Project Costs 30 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 31 Annex 5: Financial Summary 32 Annex 6: Procurement and Disbursement Arrangements 33 Annex 7: Project Processing Schedule 39 Annex 8: Documents in Project File 41 Annex 9: Statement of Loans and Credits 42 Annex 10: Country at a Glance 44 Annex 11: Letter of Sectoral Policy 46  UGANDA Second Economic and Financial Management Project Project Appraisal Document Africa Regional Office AFTPS Date: November 3, 1999 Team Leader: Gaiv M. Tata Country Manager/Director: James W. Adams Sector Manager/Director: Demba Ba Project ID: P044679 Sector(s): BF - Public Financial Management, BY - Other Public Sector Management Lending Instrument: Technical Assistance Loan (TAL) Theme(s): Poverty Targeted Intervention: N Project Financing Data [II Loan 1 Credit O Grant Ol Guarantee [ Other (Specify) For Loans/Credits/Others: Amount (US$m) 34.04 Proposed Terms: O To be defined M Multicurrency El Single currency Ol Standard Variable O Fixed El LIBOR-based Grace period (years): 10 Years to maturity: 40 Commitment fee: 0.5 Service charge 0.75% Government 0.00 0.00 0.00 IBRD IDA 7.96 26.08 34.04 LOCAL CONTRIBUTION 3.01 1.10 4.11 NORDIC DEVELOPMENT FUND 0.43 3.73 4.16 Total: 11.40 30.91 42.31 Borrower: Guarantor: Not applicable Responsible agency: Other Agency(ies): Ministry of Finance, Planning and Economic Development Address: P. 0. Box 8147 Kampala, Uganda. Contact Person: Mrs. Mary Muduuli, Director Budget Tel: 256-41-344535 Fax: 256-41-250005 Email: mcmud@starcom.co.ug Uganda Bureau of Statistics Address: Entebbe Contact Person: Mr. J. Mubiru, Acting Executive Director Tel: 256-41-320741, 320165 Fax: 256-42-320147 Email: ubos