Uganda - Agricultural Research and Training Project

C~-A& tI'-r & - / Document of The World Bank FOR OMCIAL USE ONLY MICROFICHE COPY Report No.:P- 5892 UG Type: (PM) Title: AGRICULTURAL. RESEARCH AND TRAII Author: E. QUISUMBING ReoP NM P-5892-UG Ext. :34183 Room:J10064 Dept. :AF2AE MEMORANUlM AND RECONMEATION OF THE PRESIDENT OF THE IEfRATIONL DEVELOPME ASSOCIATION TO TIE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT EQUIVALENT TO SDR 17.80 MILLION TO TrE REPUBLIC OF UGANA FOR AN AICULTURAL RESEARCH AND TRAINING PROJECT NOVEMBER 23, 1992 This document has a restricted distribution aod msy be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Uganda Shillings (USh) US$1 = USh 1,170 (June 1992) WEIGMS AND MEASURES Metric System GOVERNMENT FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS ARTP - Agricultural Research and Training Project ASAC - Agricultural Sector Adjustment Credit EFMP - Economic and Financial Management Project GOU - Government of Uganda IDA - Inteonal Development Association MAAIP - Ministy of Agriculture, Animal Industry and Fisheries MU - Makerere University NARO - National Agricultural Research Organization SAC - Structural Adjustment Credit  FOR OmCIA USE ONLY REPEBIUC OF UGANDA AGRICULLTRAL RESEARCH AND TRAIN1.'G PROJECT Credit and Project Summary Borrower: Government of Uganda (GOU) Beneficiary: National AgriculWta Research Organizaton, Maketere University a Amount: SDR 17.80 million (US$25.04 million equivalent) Terms: Standard MDA Terms with 40 years maturity Ilnandng Plan (US $ million): LoAl Foreign Total --- __________________ _ - -(US$ m illion)- IDA 12.87 1 12.17 | _25.04 Goverment of Uganda e 3.83 j 0.00 3.83 Total 16.70 12.17 28.87 at Including duties and taxes of US$1.03 million. Rate of Retur: Not applicable Staff Appraisal Report: Report No. 11238-UG dated November 23, 1992 Map No: IBRD 24111: Agricultural Research instius This document has a restricted distribution and may be used by recipients only in the perf ermanc's of their offcial duties Its contents may not otherwise be disclosed without World Bank authorization.  MEMORANDUM AND RECOM!MNDATION OF TEE PRIDENT OF THIE INTERNATIONAL DEVELO!PENT ASSOCaTICN TO THE EXEUIVE DBRECTORS ON A PROPOSED CREDrr TO THE REPULC OF UGANDA FOR AN AGICULTURAL ESEARCI AND T1ANNG PROJECT 1. I submit for your apprv the following m randum and recoeaon on a proposed development credit to the Government of Uganda of SDR 17.80 million, the equivalent of US$25.04 million. The proposed credit would be on standard IDA tem wth a maturiy of 40 years to help fince the strengtening of Ugada's agricultural reseasdh system County and Sedor Bacgound 2. ITe Ugandan economy has been dsrupted by decades of polidcal instability and civil strlife. Income per cpita was about US$220 In !990. Economic recovery is underway, and it depends heaviy on agricultul growth. In 1990, the agriculural sector accounted for 60 peet of GDP, contributed over 90 pcet of ewpors, and provided 80 percent of employment. Agricultural GDP in 1990 was distributed as follows: food crops (74 percent); livestock product (16 percat); fisheries and forestry (6 peret); and exports crops (4 percet). Only one-tid of food crW production was marketed. AgriculuWal output comes almost exclusively from smallholder farmers. Of about 2.5 million smallholder famers, 85 percent have less m 2 hectares of farmlad. warmers are poor, and they use few purchased inputs. Income per capita at maket exchange rates was about US$140 in 1990. Improved agriculWual varieties and husbandry will substantially expand the scope for a sustainable increase In production and income in the small-farmer sector. 3. IDA has supported the Govent's Economic Recovery Program through a series of stuctural adjustment opera . The currnt Stuctra Adjustmet Credi (SAC-Cr. 2314-UG) Includes measures for impoving tax revenue collecton, rediect the allocation of expedures toward development priorites (such as agricutural roe and eension), im ng the fiancial management of the Government and streamlining the administr-tion of key ministrs, including the Minstry of Agriulture, Anima ndustry and Fisheries (MAAI). The receny wroved Economic and Financial Maagement Project MP) wl swport f er impvents in the efficiency of the civl service. Ihe agriculture sector has bsen supported thrugh inct rehabilitation and ar development projects, as well as operations in the sugar, livestock and forestry subsecnors. The Agricultural Sector Adjustmem Credit (ASAC-Cr. 2190-UG), effcive in Jany 1991, suorted In liberalizing coff ee;eport Marketg, and set the stage for improving the agiculural research and exenson services of the Governmen 4. Agricultural research plays a vkal role in suppoting agricultural growth. For resource-poor smallholder farmers, technological change such as sive, higher-yielding, disease-resistant planting materials, improved chemical inputs, and more efectve husbady techniques-can provide one of the few vehicles for aing Income and output. In te expor industies, where international compeveness is detmined by firmievel efficiecy, research on methods for raising yields, reducing inputs costs, incraig disease resistace and improvig the qualty of crops are crucial elements of efforts to increase prodctivity. Research to support the profitable development of no onal agdcutural expos is also essental. 5. The effeveness of the Govment's agritural research seice is severdy consained by poor management, a lack of saff motivation, inaquae building and research facilities, insuffiien find for operations and ineffecdve lIges with the etosion service. In 1990, the Government of Ugan preprd a National Agricultura Researh Strateg and Plan to address these problems. A key element of the rearch sategy and plan called for establishing a National Agricultura Research Orgnization (NARO) to take the lead in carrg out the necea reyfrO agricultur rearch. NARO wil consolidat egt research iuitute and two resrch statio of three agricuue-ead ministries  2-2 (MAAIF; the Ministry of Watr, Minerals, Ener and Enviroent Protectin; and the Ministry of Commerce, Indust and Cooperatv) Into one organization. Project Objectives 6. Mm project would support the Gvenment's strate for improving productivity and diversification in the agricultural sector through the development and trasfer of improved technology. The broad obJective of the proJect is to develop an orgaonal framework and Institutional processes for agricul:ural research which are sustinable and efficient as well as responsive to the production constraints facing farmers in Ugmda. The specific objectives of the project are threefold: (a) launch and support the key activities of NAlRO, including high priority research; (b) stenhen the lnkages and coordlnatioa among the research system, the extension service and the agricultural faculties of the university; and (c) improve agricultural education and traning capacity. Project Description 7. The projec would provide finnci assistance to support four broad sets of activities. First, the project would support the suatioa, deelopmen of Oe Naotiol Agdadtwl Reseorc System (US$7.02 millo) by financing the activiies of the NARO Board and Secretariat, improving management systems for research programs, and impoving administrative and financia procedures. Moreover, it would upgrade the capacity of researchers to implement the priority research programs, and it would support efforts to design the Foresty Research Institute and NARO headquarters office, constuct the first phase of the NARO headquarters office, undertake studies on geneating funds for research, and perform a midterm review of progress. Second, the project would support the re n of research Isi_tes (-JS$4.20 million) at Setere, Tororo, Jinja and Kifu. k would also provide necessary vehicles and research equipment. TIr, the project would support the execution of high-pri researh program (UJS$12.34 million) by financing incremental recurren operating cost, including salaries and allowances under the newly introduced Terms and Conditions of Service for Research. Fourth the project would support t ea the a d edton and enin capacity (US$5.31 million) of Makerere University, by suppordng the tain progms, upgrading of staff qualifications and improving facilities and equipme at three faculties-Agrlture and Forestry, Veterinary Medicine, and Science. The curricula at the Colleges of MAA1F would also be improved with assistance from Makerere. ProJect F_n ing 8. The proposed IDA Credit of US$25.04 million would finance 90 percent of total project costs, nea of taxes. The Credit would finance 100 percent of foreign-exchange costs and between 80 and 85 percent of icmenta opeating costs and salaries. A breakdown of costs and the financing plan are shown in Schedule A. Amount and methods of proWCUrement and of disbursements, and the disbursement scheue, are shown in Schedule B. A timetable of key processing events and the status of Bank Group opeation in Uganda are given in Schedule C and D, respectively. More detailed information on the project is provided in the Staff AppraiW Report No. 11238-UG. To ease the financing of local costs in the early years of the project, IDA would finance 100 percent of selected local-cost expendit (incrementl salaries, aRlowances and opeating costs) for the fir two years of the project. IDA financing would be reduced to 70 percent of staff emoluments and 70 percent of operating oosts thereafter. This funding arrgemet is designed to provide some lead time to enable the Government to implement its civil service budgetary and revenue collection reform programs supported by the SAC and EFMP, and to enable NARO to develop improved financial management systems that can respond efficienty to changes in funding flows.  -3- Project Jmpleutatlo 9. The Board of NARO would oversee project implementation. The Board, through its Secretariat, would coordinate project activities, monior and review the progress of projecs, prepare semianmual reports for the Bank, coordinate with Makerere University on such mattets as training and contract research, prepare required financial reports, and submit disbursement applicatios to IDA. NARO would be establ.-shed as an autonomous agency, with responsibility for managing its own finmcial and human resources. A Subsidiary Agreement would be entered ito betweea the Government and NARO to make available the proceeds of the Credit to NARO. High-priority research programs would be executed by each institut, within the framework of the rolling Five Yw Strategic Plan and the Aimual Work Plan. Implementation of the education and traing component would be coordinated by a Training Committee responsible to the NARO Board, which shall be chaired by the Dean of the Makerere University (MU) Faculty of Agriculture and Forestry. Institutional twinning and mentoring arrangements would be set up between MU and a foreign agriculural education institution to support the development of training and research capacity at MU. ProJec Sustaimbility 10. The availability and continuity of funding to support ongoing research activities is the greatest threat to project sustainability. This potentW risk has been explicitly taken into account in project design. In order to minimize funding ruiremen only essent facilities and equipment would be rehabilitated and selected key staff would be trained. No new research facilities would be built. Alternative funding sources would be explored. The Government has allocated a portion of the cess on coffee exports to fund coffee research. The same approach is being discussed for the cotton and tea sub-secors. The project would also finawc a study on the feasibility and modalities of an Agricultural Research Trust Fund and othe mechanisnr for generating funds for research. At the midterm review Government's performance in generating revenues as well as NARO's ability to obtain funding for its research programs would be evaluated. A decision would then be taken on the need for a follow-on project to provide contned SUpport for strengthening agricultural research in Uganda. Leons from Put Experiec 11. Project performance in Uganda has been adverely affected by indequate and tardy countepart funding, inadequate salaries, weak management and financial systems, and overly complex designs. Ihe expected beneft of other Bak-funded research projects did not materWiaz because the research was not relevant to the needs of farmers. Ihese issues would be addressed both by IDA's adjusent agenda and under this project. A series of measures under SAC, EFMP and ASAC (para 3) seek to improve the availability of funding and the efficiency of the civil service. Specifically witiin the project, streamlined finacial and managerial arrangements would Improve project management and the flow of funds. The scheme of service, designed specifically for NARO would provide incentives to generate quality work and reward results relevant to etension and farmer needs. 12. A review of the implemeion experience in arcult resech and extension ME) in Africa, Asia and Latin America has also provided usefl lessons. In these regions, the more successful research o cganizatos displayed some combination of the following caactetcs: (a) a strong central organizaion, with overall responsibility for nost aspects of national research and the funding control to back it up; (b) a degree of autonomy from the r utine bureaucratic structure of the Ministry of Agriculture; (c) solid links to ngional planners and policymaers, despite the semi-autonomous or autonomous status of the organiztion; (d) the decetralization of regional research; and (e) the active  -4- paicipadon of fmrs, the extension servie and other clients In applying and o micating researct result to users. The deig of to project hs attempted to incorporate these charactedstics. Ratioae for tDA lvement 13. The proposed project supports the Country Asistance Strat approved by the Board in March 15, 1991. IDA has suppored GOU's economic recwovery program and under ASAC is assisting in the deepen and broadening of the agriculture sector reform program. This project will fiufll the need for smaller, more foced investment project to restore the effectiveness of key agriculbtu support services as a meam to promoto rowth. Support is necessary to strengthen sctora mangement, refurbish the research and extension services, and to accderate and tinalize manpower training. The success of the IDA-supported adjustwmt process depends on rapid growth in the arictura sector. Resarch has an importan role to play in promotag agricultal growth. IDA's direct involvement in this project Is essental for: (a) ensuring continuity in efforts to restruce management of agricutural research; (b) promotng strong linkages among r h insttutes, etenion and farmers; (c) Improving the availabity of local funding for agcultuirl research; and (d) enhancing effective coordination among donors. The project would also augment the impact of its recenty approved companion project in the agricultural extnsion area. Ach as and M As 14. The pposed organ ational nges in research arnmgem have evolved from in-depth discussion among al relevan parties. Conseu has been reached and acton has been Intated on all major areas. NARO has been legaly established by an Act of Parliamen In order to ewas ba4y bpkaeatadea, conteud W efidb*wr include the appointmet of NARO's Board, the appohinent of the NARO's Director Genral and Deputy Director General, and the apprval of a new Tem and Conditions of Sevice for AgricultWr Rech. In order So bU ldtio*eal c4packy ad cat an enabin eaJw .at jmr ueA, aursan were obtained that: (a) spealists in research management, prou-remet and financial with qualifications satisfactory to IDA will be recruited priof to credit effectveness; (b) satisfactory system would be established for financial, accountig, ptoceme and other admnisaive procedur; (c) staff wil be trained to operate the systems within the first two years of the project; and (d) the newly Introduced Terms and Conditions of Service for research staff will be Implmented sadsfactorily to IDA. 15. In order to ensure that the &dlin prgmws ar developed adequately and Implemented expedWouay, It was agreed during negotiations that Maklr Univesity enter into 'a twInnig arngement satis try to IDA, with an Itnalonay renownd university, which would prvide asisncein varims nia fidds (agiuturaleension eduato, agricutural eonomics, agriculrd engineering, food scince and thology) and in ttution lopm . To incease cost effectives, the project wod give prority to training in Eat African universides (Kenya, Tanzania and Zmabwe) and to other countries li bdia, Malaysia and the Philippines. h _ fronme Assal 16. The project, classified as Category B, is expcted to have a benign effect on the e n Research proposas would be sdected and evaluated according to environental impact creda. Potenti environmeal problems asociated with intesification, such as soil erosion or the Incresod use of chemical frtilizers ad chemicals, would be addressed by reseah. Resrch on soil management prces, crop rotion, integratd pes management ad other crop and livestock husbany pract  would reduce the potentaiY degrading ffect of cultvation and grzing on soU and water resources, and enhnce tie susaility of cultivaton paices. Ptm Objecve Categries 17. Ihe project would address the 1m1pw,y issue directly by improving the productivity of small farmers. Ihe increase in productivity would also benefit rural women, who comprise 68 and 53 pece of the labor for food cop and cash crep production, respectively. 'he education and trainn component would seek to increase the awunr and ftcas of woemn in emnswon ant reseach, thus impwving cOm ction between these services and their client female farmers. More fale reswcers and extension workers would be vilable to work with women's groups to conduct on-farm trials that would verify the effc*dlwe et reowwe qf ew tedmelosga, as well as to demonstrate the superrity of these new technologies over existing pices. Project Benefits 18. The techological advanes reuting from a strengthened agricultural research service would improve the productivity and profitability of crop and livestock husbandry practices among small farmers. Farmers would increase their income. Ariculttral outu would be enhW -ed and diversified, thus expanding food supplies and expois. The sustanability of agricuhural growth would be enhanced futher by the education and ting component, which would focus on improving the quality ad availability of local. trained raseachers and technicians. 19. The uncertainty associated with depending on fin from the Govement budget, ad potenal weakns with project managemen, are the prmary ntrai on nalizing the objectives of the project. Elemen of IDAWs effots to mimize fning problems by implemeng mea at the macro-ecomic and proje tlevel have been described in paras 3, 8, 10 and l1. These measures include enhancing revenue collection, shifting budgetay priorities, improving the efficiency of the financial managemnent of the Government, diversifying the sources for reseach fu , and front-loading the IDA conttion to the project. Manageral effectiveness would be enhanced with training, technical assistance, and iwroved moniaring ad conrol systems. A midterm review would be held prior to the end of year 3, to asse difficulties, if any, ad adjust the deign of the project, if necary. Recmedatton 20. 1 am satisfied that the proposed credit would comply with the Articles of Agreement of the Association ndt reo d that the Excutiv Directors approve it. Lewis T. Preston Presidet Wahinton D.C. November 23, 1992  -6- &chedule A REIPULIC OF UGANDA AGRICULTURAL RESEARCH AND TRAINING PROJECT Ploject Cost Suunay CIonent Local Foreign Total Foreign % Total (US $ Million) Exchange Basn Cost A. hitutional Developnient 2.22 4.07 6.30 65 25 B. Rehablim of Rsearch 0.86 2.59 3.44 75 14 I nstitute _ C. I mpr Pory 9.95 0.96 1.0.91 9 43 Researh_ D. Agricultal Ed}ation/ 1.65 3.04 4.69 65 19 T aiinmg ___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Tota Baseline Costs 14.68 10.66 25.34 42 100 Physica Cantigancies 0.20 0.46 0.67 69 3 PMee ConigeIs 1.81 1.05 2.86 37 11 Totalr liQject Costs 16.69 12.17 28.87 42 113 Puneng Plan: (US $million) ___________ ~Local Foreign Taxes Total IDA 12.17 12.87 0.00 25.04 GOU __ 2.80 1.03 3.83 Total 12.17 15.67 1.03 28.87 .  Schedue B Page 1 of 2 Sumnary of Propose Procurment Arrngemens (US$ ilmon) ProJect Elements P ement Method ICB LCB Others A/ Total I 1. Works 2.98 2.98 (2.38) (2.38) 2. Goods 2.95 (2.77) 2.1 Eq utpmWtfloosFurntu 1.41 0.22 0.10 Audio Visua/Computs (1.41) (0.08) (0.06) 2.2 Vehicles & Spares 1.12 0.10 _______________________________________ (1.12) (0.09) 3. C _ and laining fr 8.63 (8.63) 3.1 Capacity Building 2.56 .__________________________________ ________ ________ (2.56) ________25 3.2 Project Peparation and 1.37 ,Imipleentatlon Support (1.37) 3.3 Trainbg, study tours 4.71 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (4 .7 1 ) 4. s 14.31 (11.26) 4.1 Incremental Recurrent Costs 3.96 (3.18) 4.2 Incremental Salaries & Allowances 10.35 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (8 .0 8 ) TOt 2.53 3.20 23.15 28.87 ,_______________________________ _ ,(2.53) (2.46) (20.05) (25.04) Nd.e Figres in parathes are th respectwi amounts to be finacd by the proposed IDA crdt. (a) Includes US$1.5 milion financed under the PPF. (b) Servies will be prcd in acordance with Wodd Bank Guidelines: Use of Consutants by World Bank Bonowr and by the World Dank as Excung Agoncy (Washigon D.C.: World Bank, AuFst 1981).  Sdhedule B Page 2 of 2 S_mmry IDisbursemet Schedule Category Amount of Crit % of Expenditure to be F -anced _________ _ (US$ milinon) Civil works 2.09 100% of foreig and 70% of local Vehicles and Equipmete 2.45 100% of foreign and 50% of local Technical Assistance 3.20 100% Trainin 4.15 100% Studies 0.25 100% hiementW Recurrent Costs: _ _ _ _ _ _ _ _ _ _ _ _ _ _ (a) Salaries & 7.10 100% of expenditures up to December 31, Allowances 1995, and 70% thereafer (b) Field Operations 2.80 100% of forelgn 100% of local up to December 31, 1995 and 70% of local 1i _____________ ___________ thereafter Reund of PPF Advance 1.50 Amount due Sub-totl 23.54 Unallocated 1.50 .. Total 25.04 Estmated MA Disbursemen: (US millon) IDA Iscal Year 93 94 9S 96 97 98 99 00 Anual 0.20 0.97 4.53 6.28 5.03 3.57 2.76 1.70 Cumuative 0.20 , 1.17 5.70 11.98 17.01 20.58 23.34 25.04  -9.- Schede C REPUBLIC OF UGANDA AGRICULTURAL 1RESEARCH AND TRAINING PROJECT Timetable Of Key Project Poessing Events Actity (a) Time takn to prepare the project: January 1990 to July 1992 (b) Prepared by: Ministry of Agriculture, Animal Industry and Fisheries and Bank Staff (c) First project preparation mson: 1/ January 1991 (d) Appraisal mision departre: June 1992 2/ (e) Date of negotiations: November 9-11, 1992 (f) Plamed date of effectiveness: April 1993 List of relevant PCRs: World Bank Assistance to Agriculur Higher Education 1964-1960, June 1992 Strengthening Agriculual Reseah and Extension: The World Bank Experience, September 1983 11 The project was orignly combined with the Agricultural Extension Project. I Key staff involved were as follows: Messrs. E. Quisumbing, (Agrutist and Task Manager), J. Coates (Sr. Financial Analyst), S. Bhattacdwya (Sr. Procurement Speciaist), T. Eisemon (Education Specialist), and C. Balina (Civil Engineer, consultant). Ihe lead adviser was A. Spurling (Prin;pal Agriculftrist), and peer reviewers were N. Collta (Sr. Csn. EFfiuat!tn Specialist) and C. Pattnayak (Sr. Agriculturst).  - 10 - Schedule O Page l of 3 STATUS OF BANK GROUP OPERATIONS IN UGNA ......... .................. _...... A. STATEMENT OF AK LOANS AND IDA CREDITS (as of Septenber 30, 1992) ......US$ Million...... AMOwt(LesS Cancellat)ons). Loan or Fiscal Undis- Credit so. Yeor Borrower Purpose Bank tOA bursed ......... .... ... ...... One (1) Loan and twenty-five (25) fully disbursed, 8.40 525.45 Of which SECALs, SALs and Program Loans/Credits a/ Cr. 03400 1988 Uganda Economic Recovery Credit/SAF 24.00 Cr. 18441 1989 Uganda Economfc Recovery Credit 0.00 1.70 Cr. 12520 1982 Uganda Reconstruction Credit II 0.00 70.00 Cr. 14740 1984 Uganda Reconstruction III 0.00 50.00 Cr. 18440 1988 Uganda Economic Recovery Credit 0.00 65.00 Cr. 18443 1990 Uganda Economic Recovery Credit 0.00 1.50 Cr. 20871 1991 Uganda Economic Recovery Cred1t II 0.00 2.00 Cr. A0341 1990 Usanda Economic Recovery Credit 0.00 12.80 Cr. 18442 1989 Uganda Economic Recovery Credit 0.00 25.00 ...... ........ ...... ..... ... 0.00 252.00 Cr.13280 190 Uganda Agricultural Rehabilitation 70.00 4.93 Cr.14450 1984 Uganda Third Highway 58.00 7.71 Cr.15390 1985 Uganda Agricultural Devetopment 10.00 4.10 Cr.15600 1985 Uganda Second Power 28.80 8.83 Cr.15610 1985 Uganda Petroleum Exploration Prom 5.10 3.67 Cr.18030 1987 Uganda Fourth Highway 18.00 2.41 Cr.18240 1987 Uganda forestry Rehabilitation .j.00 4.44 Cr.18690 1988 Uganda South West A. Rehab. 10.00 7.52 Cr.18930 1988 Uganda Sugar Rehabilitation 24.90 14.89 Cr.19340 1988 Uganda Health Roc. 42.50 22.04 Cr.19510 1988 Uganda Tech. Asst. 1II 18.00 5.08 Cr.19620 1989 Uganda Public Enterprises 15.00 7.80 Cr.19650 1989 Uganda Education IV 22.00 7.07 Cr.19860 1989 Uganda Railways I 7.00 4.65 Cr.19910 1989 Uganda Telecm II 52.30 24.49 Cr.20870 bJ 1990 Ugua Economic Recovery Credit 125.00 0.45 Cr.20880 1990 Uganda Poverty & Sos. Costs 28.00 21.12 Cr.21240 1990 Uganda Water Supply It 60.00 63.21 Cr.21760 1991 Uganda Livestock 21.00 21.58 Cr.21900 b/ 1991 Uganda Ag. Sector AdJ. Credit 100.00 52.89 Cr.22060 1991 Uganda Urban 1 28.70 28.36 Cr.22680 1991 Uganda Power III 125.00 126.10 Cr.20872 b/ 1992 Uganda Econ. Recovery II 1.60 1.74 Cr.23140 b/ 1992 Uganda SAC I 125.00 77.38 Cr.231S0 1992 Uganda Enterprise Dewtopinnt 65.60 71.54 Cr.23620 c/ 1992 Uganda Northern Recontruct. 71.20 75.31 Cr.24180 c/ 1993 Uganda Econ. & Financial Ngemnt 29.00 30.76 Cr.24240 1993 Ugna Agric. Extension Prog. 15.79 15.96 .... ..... ..... Total 8.40 171S.94 716.03 of which repaid 8.40 29.96 ..... ........... Totat held by 8ank & IDA 0.00 1685.98 Amount sold 8.32 of which rosid 8.32 TOTAL Undisbursad 716.03 asmm ........................................... o/ Apovee after FY80 b/ SAL, SECAL or Prorm Loan/Credit c/ Not yet effective.  - 11 - Schedule 0 Page 2 of 3 B. STATEMErT OF IFC ItVESTHENTS IN UGANDA (as of Sept.etr 30, 1992) Amount in USS Nfllion Fiscat Year Oblitor Typ of Business Loan Equ1ty Total -----*.......... ....... . .... ..................... ..... .... ....... ...... ..... .. 1985 DFCU Development Finance CoMpanies 0.00 0.38 0.38 1965 NULCO Spinning Weaing & Finishing 4.32 0.71 5.03 1984 TAITECO food Products 1.62 0.00 1.62 1972 TPS Tourism Servie s 1.11 0.00 1.11 1984 Uanda Sugar Cocos Chocolates, Sugpr 8.00 0.00 8.00 1985 Uganda Tea Food Products NEC 2.81 0.00 2.81 Total gross cami tments 17.86 1.09 18.95 Loss: Repayments, cancellatfons, exchano adjustments, terminations nd sales 8.31 0.71 9.03 Total Commitments now held by IFC: 9.SS 0.38 9.92 Total afdisbursed 0.00 0.00 0.00 Total Outstanding IFC 9.55 0.38 9.92 ug2qdt.wki 10-16-92 .1  -12- Schedule D Page 3 of 3 UGANDA: DISBURSET ISSIES 1. Overall disbursements on the 28 investment projects in the U8anda portfolio are satisfactoy as compaed to the country's disbursement proffle, although there has been a marked slow-down in the growth of disbursement compaed to that of commitments. Three projects in the portfolio, all approved In 1985, were slow disbursing: Cr. 1539-UG, Agricultu Development; Cr. 1560-UG, Second Power; and Cr. 1561-UG, Petroleum Exploradon. In all three projects the civil war and subsequent tumoil and lack of security delayed the strt implementaton by about two years. The start of the Agricultural Development Project was particularly slow, since unrest pess in the north untl about two years ago. R was restructured in March 1991, and implementation has considerably improved since then. Implemention of the Second Power Project and the Petroleum Exploration Project was delayed by about two years becamse of the civil war (ack of access to the field was a serious problem for the petroleum project), but the rate of implementation for both is now satisfactory. Ptogress on PAPSCA (Project for Alleviation of Poverty and the Social Costs of Adjustment, Cr. 2088-UG) was intially slow. The project's various component had first to be sub-contracted to several NOOs who, in urn, had to become familiar with Bank procurement procedures and required time to establish appropriate field implementation units to reach the widely dispersed beneficiaries. Implemation is now satisfactory. 2. In the agricultura portfolio, disb in two other projects are behind appraisal esmates. The South West Regon Agricultral Rehabiliton Project (Cr.1869-UG, approved in FY88) was delayed because of istiutional problems in the implementation of the feeder road component which accuns for about half of project costs. These problems have been receny resolved and disbun are expected to accelerate. The Sugar Rehabilitation Project (Cr 1893-UG, approved FY88) is being succsly implementd under prate management. Disbursemeots have been slower than appraisal esmates because the management has r-hased the rebabilitation program in order to maximize profitability. Major procuremnt activities are underway or planmed and the project is expected to be fully disbursed on schedule. 3. At a Country Imle ton Review, joindy organized by Government and the Bank, the main recommendations for continued good implementation performance focussed on measures to ensue: adequa and timely release of counterart funds; timely procurement of goods and services; adequate use of Speela Account hinds and prompt dibursement processing; improved financial management, budgetary controls, and compliance with audit covenants; expeditious credit effectiveness; and effecdve project management and coordination.  MAP SECTION  IBMD 241 1 3 32e 34 SUDAN UGANDA AGRICULTURAL RESEARCH AND TRAINING PROJECT Reseorch Institutes C t <JT G Mf * KAWANDA AGICULTURAL ' NAMULONGE AGRICULTURAL AND _ AN~~~~~KCD~ IMAL PRODUCTION -,- kI_ RTHERN K * SERERE AGRICULTURAL AND T. AM9 \ \> ANVAL PRODUCTION / 7\ >,V > \ } 4> ~~~~~~~~~~~~~~~~~~~~~FORESTRY at Kihu ( MOROTO *~~~~~~~~~~~l LIVESTOCK HEALTH at Tororo ZAIRE FNEBIA, w. W>XK t - ---- e lSHERIES at Jinjo FOOD SaENCE AND TECHNOLOGY / 8~~~~~a oKompala F * ~) /T; \ 9; ) ,4 \ } @ MUARIK at Kabanyolo - PRIMARY BITUMEN ROADS K/J aS7ROTI- WI W J PRIPMARY GRAVEL ROADS ,S4/ H7< _; \ 0 \ t _ 4 / o SELECTED TOWNS AND VIUAGES a DISTRICT CAPITALS J NATIONAL CAPiTAL T lASE ) QUJWEIt , . ~ J DISTRICT BOUNDARIES IUGb .' t ^#/ REGION BOUNDARIES - 'f INTERNATIONAL BOUNDARIES D Dtt _ dnamecomddewidd WA aimh w / cptaron: Fort Pota rshewDiofr lwKabore OWk. CENTw <~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Z KENYA I i ~~~~~~~~~~~lt LAK V 1 CwOR-A RWANDA ~~~~~ TAN4ZANIA NOVEMBER 1992