Uganda - Nakivubo Channel Rehabilitation Project

Document of The World Bank ReportNo: 19051-UG PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 16.50 MILLION (US$22.38 MILLION EQUIVALENT) TO THE REPUBLIC OF UGANDA FOR THE NAKIVUBO CHANNEL REHABILITATION PROJECT April 13, 1999 Water and Urban 1 Tanzania & Uganda Country Departnent Africa Regional Office  CURRENCY EQUIVALENTS (Exchange Rate Effective April 1997) Currency Unit = Uganda Shillings (USh) USh = US$0.001 US$ = USh 1000 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy EFMP 1 First Economic and Financial Management Project GoU Government of Uganda FUP First Urban Project ICB International Competitive Bidding ICBP Institutional Capacity Building Project IRR Economic Intemal Rate of Return IDA International Development Association KCC Kampala City Council LGDP Local Government Development Programme M&E Monitoring and Evaluation MoFPED Ministry of Finance, Planning and Economic Development MoLG Ministry of Local Government NCRP Nakivubo Channel Rehabilitation Project NGO Non Governmental Organization NPV Net Present Value O&M Operation and Maintenance SDR Special Drawing Rights SFR Strategic Framework for Reform SOE Statement of Expenditure Vice President Callisto E. Madavo Country Director James W. Adams Sector Manager Jeffrey S. Racki Task Team Leader Gautam Sengupta  REPUBLIC OF UGANDA NAKIVUBO CHANNEL REHABILITATION PROJECT TABLE OF CONTENTS Project Financing Data .......................................................i A. Project Development Objective ...................................................1 1. Project development objective and key performance indicators ...........................1 2. Key Performance Indicators ......................................................1l B. Strategic Context ......................................................1l 1. Sector-related CAS goal supported by the project ................................................. 1 2. Main sector issues and Government strategy ....................................................... 2 3. Sector issues to be addressed by the project and strategic choices .......................3 C. Project Description Summary .......................................................4 1. Project components .......................................................6 2. Key policy and institutional reforms supported by the project ...............................6 3. Benefits and target population .......................................................7 4. Institutional and implementation arrangements ......................................................8 D. Project Rationale .......................................................9 1. Project alternatives considered and reasons for rejection ......................................9 2. Major related projects financed by the Bank and/or other development agencies ...................................................... I 1 3. Lessons learned and reflected in proposed project design ..................................... 11 4. Indications of borrower commitment and ownership ...1............. .... 2.... 12 5. Value added of Bank support in this project ...................................................... 13 E. Summary Project Analyses ...................................................... 13 1. Economic ...................................................... 13 2. Financial ...................................................... 14 3. Technical ...................................................... 17 4. Institutional ...................................................... 18 5. Social ...................................................... 1.8 6. Environmental assessment ...................................................... 18 7. Participatory approach ...................................................... 19 F. Sustainability and Risks ...................................................... 2.0 1. Sustainability ...................................................... 20 2. Critical risks ...................................................... 21 3. Possible controversial aspects ......................................................2 .1  G. Main Loan Conditions ..................................................... 22 1. Effectiveness conditions ................................................ 22 2. Other ................................................ 22 H. Readiness for Implementation ..................................................... 22 I. Compliance with Bank Policies ..................................................... 23 Annexes Annex 1. Project Design Summary .24 Annex 2. Detailed Project Description .29 Annex 3. Estimated Project Costs .33 Annex 4. Cost-Benefit Analysis Summary .34 Annex 5. Financial Summary .40 Annex 6. Procurement and Disbursement Arrangements .42 Table A. Project Costs by Procurement Arrangements .......................................... 47 Table Al. Consultant Selection Arrangements ................................................ 48 Table B. Thresholds for Procurement Methods and Prior Review .. 49 Table C. Allocation of Loan Proceeds .......................................... 50 Annex 7. Project Processing Budget and Schedule .51 Annex 8. Documents in Project File .52 Annex 9. Statement of Loans and Credits .53 Annex 10. Country at a Glance .5.6 Annex 11 Procurement Strategy and Implementation Schedules .58 Maps: IBRDNo. 30199 IBRD No. 30200  -i- The Republic of Uganda Nakivubo Channel Rehabilitation Project Project Appraisal Document Africa Region - Country Department 4 Date: April 13, 1999 Team Leader: Gautam Sengupta Country Manager/Director: James W. Adams Sector Manager/Director: Jeffrey S. Racki Project ID: 59223 Sector(s): UY - Other Urban Development Lending Instrument: Specific Investment Loan (SIL) Theme(s): Urban Drainage Infrastructure Rehabilitation Poverty Targeted Intervention: No Project Financing Data Loan [ Credit [X] Grant [ ] Guarantee [] Other (Specify) [] For Loans/Credits/Others: Amount (US$m) 22.38 Proposed Terms: [X] Multicurrency [ ] Single Currency Grace period (years) 10 [ Standard Variable [ ] Fixed [ LIBOR-based Years to maturity 40 Commitment fee : 0.50% Service charge 0.75% Financing Plan: Source Local Foreign Total IDA 7.17 15.21 22.38 KCC 0.97 1.57 2.54 Total: 8.14 16.78 24.92 Borrower: Republic of Uganda Guarantor: Not Applicable Responsible agency: Kampala City Council Implementing agency(ies): Kampala City Council Address: Office of the Town Clerk, P.O. Box 7232, Kampala, Uganda Contact Person: Mr. David Kiggundu-Tamale Telephone: (256-41) 258-505/344-535 Fax: (256-41) 231-916 Email: urban@,imul.com Estimated disbursements (Bank FY/US$M): FY 2000 2001 2002 2003 Annual 10.880 11.620 1.945 0.475 Cumulative 10.880 22.500 24.445 24.920 Project implementation period: 3 years Expected effectiveness date: July 1, 1999 Expected closing date: June 30, 2002  Project Appraisal Document Page 1 Country: Uganda Project Title: Nakivubo Channel Rehabilitation Project A: PROJECT DEVELOPMENT OBJECTIVE 1. Project development objective: (see Annex 1) 1. The project's physical objective aims at making a positive impact on the drainage and road network in Kampala by alleviating the frequent and increasing incidence of flooding which has adverse effects on the road network, traffic flow, economic activity and overall living conditions in the city. The institutional objectives of the project are: (a) to encourage and enhance the Kampala City Council's (KCC) ability to plan, manage and execute complex investment decisions and programs; and (b) to establish the primacy of maintenance of key infrastructure investments. This operation, which will be the largest civil works project that the KCC has ever undertaken, would therefore serve as a testing ground to support KCC's reform program initiated under the ongoing IDA financed First Urban Project (Credit 2206-UG). 2. Key performance indicators: (see Annex 1) 2. Progress in achieving these objectives by the project closing date of June 30, 2002 will be evaluated on the basis of the following performance indicators: * on schedule, on budget completion of construction program; * initiation of a fully funded routine and periodic maintenance program by KCC; * reduced incidence of flooding;