Uganda - Agricultural Extension Project

Document of The World Bank FOR OFCIAL USE ONLY i t ! - t4 i r L -'A ' X . - ., .Au.t.h cr: P A~. 'sFA?!T:h: >.A,. ';RepwtNo. P-5842-t.- NEORAINDUK A1lD RECaONMEIDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPIMET ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN A AMOUNT EQUIVALENT TO SDR 11.0 MIfLLION TO THE REPUBLIC OF UGANDA FOR AN AGRCULTURAL EXTENSION PROJECT SEPTEMBER 3, 1992 This document has a restricted distribution and may be used by recpients only in the performance of their official duties. Its contents may not othenise be discosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Uganda Shillings (USh) US$1 = USh 1,100 (June 1992) WEIGHTS AND MEASURES Metric System GOVERNMENT FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS AEP - Agricultural Extension Project ARTP - Agricultural Research and Training Project ASAC - Agricultural Sector Adjustment Credit DAP - District Action Plan DFI - District Farm Institute EFMP - Economic and Financial Management Project GOU - Government of Uganda IDA - International Development Association IFAD - International Fund for Agricultural Development IFC - International Finance Corporation MAAIF - Ministry of Agriculture, Animal Industry and Fisheries SAC - Structural Adjustment Credit  FOR OmCL USE ONLY REPUBLIC OF UGANDA AGRICULTURAL EXTENSION PROJECT Credit and Project Summary Borrowa': Govemment of Uganda (GOU) Beneficiary: Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) Amount: SDR 11.0 million (US$15.79 million equivalent) Termss: Standard IDA Terms with 40 years maturity Finandng Pla: Lal Foreign Total _ _ __-(US$ million) - IDA 7.27 8.52 15.79 Government of Uganda 1.96 0.0 1.96 TOTAL 9.23 8.52 17.75 ia Including duties and taxes of US$0.22 million Rate of Return: Not applicable Staff Appraial Report: Report No. 10904-UG dated September 3, 1992 Map No: IBRD 24007: Project Districts 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.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF TIE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UGANDA FOR AN AGRICULTURAL EXMNSION PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed development credit to the Government of Uganda of SDR 11 million, the equivalent of US$15.79 milion. The proposed credit would be on standard IDA terms with a maturity of 40 years to help finance improvements in the delivory and impact of agricultural extension services. Contry and Sector Background 2. 'Te Ugandan economy has been disrupted by years of political instability and civil strife. Agriculture provides 60 percent of GDP, 80 percent of employment, and 95 percent of exports. About 4.5 million hectares are cultivated by some 2.5 million small farming families, mainly for subsistence. Foodcrops account for about 74 percent of agricultural GDP, followed by livestock (16 percent) forestry and fisheries (6 percent) and cash crops (4 percent). The country has fertile soils and adequate rainfall but technology levels are low and yields in both crops and livestock are being affected by disease. Dissemination of improved technology and disease-control measures has been constrained by the macroeconomic situation and weak agricultural services. 3. Over the past five years IDA has provided substantial assistance through economic recovery and structural adju stment credits and an Agricultural Sector Adjustment Credit (ASAC). Focus is now on strengthening agricultural services as a means of promoting increased productivity and growth in the agricultural sector. Ihese services are severely constrained by infrastructural, financial and organizational problems as a result of the previous civil strife, the weak revenue base and inadequate management systems in government. The Structr Adjustment Credit (SAC) and the Economic and Financial Management Project (EFMP) include measures to improve the revenue base and the management framework. 4. Direct assistance to strengthen extension and research is now a priority. Some of the urgent disease problems can be addressed immediately by extension. Yields can also be increased through dissemination of improved husbandry practices and planting material currently being multiplied with assistance from IDA and other donors. IDA assistance in these priority areas will be through the proposed Agricultural Extension Project (AEP), and an Agricultura Research and Training Project (ARTP) which was recendy appraised. Both projects are part of a wider long-term program, financed by several donors, to strengthen the management and delivery of key services in the agricultural sector. The program was designed by Working Groups set up by GOU with funding from IDA. 5. The extension strategy supported by the proposed project emphasizes quick dissemination of available technologies to address urgent problems. Given the conditions prevailing in Uganda, the extension organization and approach need to be flexible and capable of responding to sectoral resource constraits and local conditions. Resource and capacity constaints dictate that extension should be initially ft cussed on selected districts with a gradual and phased expansion of coverage. Implementation capacity needs to be strengthened; the parent ministry, MAAIF, recently created through the merger of two ministries, has not yet been able to establish strong management and coordination systems. Financial management and program implementaion are areas of particular weakness. GOU is also involved in a major decentralization of all government services to a system of unified management at district level. The implications for the management and implementation of etension are not yet fully apparent but the project design is sufficiently flexible to adjust to  -2 - decetalized district management. Despite these constraints, the momentum and experience in extension built up by preparatory actions under ASAC provide sufficient basis for proceeding with a limited operation in extension at this time. The project was therefore designed on a modest scale focussing on the delivery of extension services in 16 districts out of a total of 38 in the country, and on Improving the supporting management services within MAAIF. Project Objectives 6. ITe project would support Government's strategy for the improvement of productivity and diversification in the agricultural sector. The broad objectives of the project are to address the urgent needs for disease control and yield improveraents ana build capacity to deliver and support effective extension services. In the 16 selected districts the project would aim to improve: (a) efficiency in the delivery of extension services; (b) skills of extension agents and farmers; and (c) adoption of improved techniques by farmers. The project would also improve efficiency in MAAIF's management services to support the delivery of extension and ensure its sustainability. The lessons and experiences of the project in implementation and impact would provide the basis for the design of country-wide extension services. Project Description 7. The project would cover the field extension operations of 16 districts as shown in IBRD Map 24007. At least two districts have been selected from each of the six agro-ecological zones of Uganda. The project would also strengthen central training and management capacity of MAAIF. Financing would be provided for: (a) Strengthening of the delivery of extension serices (US$8.1 million) through the provision of transport, equipment, rehabilitation of facilities, and incremental operating costs; (b) Inmprovements in traiing capady and sklls (US$5.1 million) through (i) provision of equipment, supplies, facilities, and transport for regular in-service training of extension staff and periodic farmer training at the District Farm Institutes (DFIs), with the involvement of research staffi (ii) rehabilitation, curriculum development and upgrading of staff capabilities at Bukalasa Agricultural College; and (iii) demonstration plots at the DFIs and farmer managed trials in their own fields; (c) Strengtheing of management sysms in MAAIF (US$0.8 million) through (i) training in management and team building for staff at headquarters and in the project districts; (Hi) staff training and consultancy services to improve financial management, procurement, and budgetary procedures; (iii) operational support for monitoring and evaluation of extension activities; and (iv) improved office equipment and facilities; and (d) Stu tes (US$0.1 million) on (i) the rationalization of the training instittes and colleges of MAAIF; (ii) the efficiency and impact of alternative technology transfer mechanisms; (iii) a Mid-Term Review and assessment; and (iv) a follow-on project. Project Finandng 8. The total cost of the project is estimated at US$17.8 million with a foreign exchange component of US$8.5 million. A breakdown of costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursements, and the disbursement schedule, are shown in Schedule B. A timetable of key processing events and the status of Bank Group operations in Uganda are given in Schedule C and D, respectively. 9. Given the current problems in Uganda in providing counterpart funding (para. 12), it is proposed, while keeping IDA's total contribution within 90 percent of project costs, to fund 100  - 3 - percent of incremental recurrent costs for field activities for the first two years and 65 percent of local costs thereafter. This finding arrangement is designed to provide some lead time for: (a) the extension service to demonstrate its Impact and win support within MAAIF and the rest of Government for gradual absorption of its recurrent costs on a guaranteed basis; (b) Government to implement its Civil Service budgetary and revenue collection reform programs supported by the SAC and EFMP; and (c) MAAIF to develop improved management systems which can respond efficiently to changes in funding flows. Project Implementation 10. The project would be implemented through MAAIP with improvements in capacity and organizational arrangements. Attention has been m.ven to absorptive capacity in MAAIF and the smooth integration of the project into the regular organizational structure of MAAIF. Management of extension services would be strengthened at headquarters and in the field with training and facilities. The programs in extension delivery, training, and farm trials/demonstrations would be gradually phased into about eight districts per year and be based on localized diagnostic surveys of farmers' problems by extension agents. Within districts, coverage would also be gradual, spreading outward from county and parish bases. Variations in extension approach, intensity of coverage, and research/extension linkages would be applied in different subsets of districts. and their comparative efficiency evaluated. Monitoring and Evaluation of the programs would be coordinated by the Planning Division of MAAIF. The strengthening of management systems in MAAIF would ensure essential back up support for financial, procurement, and disbursement procedures and for budgetary allocations. Project Sustainablilty 11. The greatest threat to project sustainability is likely to be the availability of local resources to fully maintain country-wide extension services as well as those currently being designed for research. Given the state of the Ugandan economy, GOU would need about ten to fifteen years to be able to expand its revenue base sufficiently to absorb the recurrent costs of full-fledged national services. The rate of expansion of extension services would therefore be gradual and directly linked to the availability of funding for operational costs from domestic and donor sources. Measures have also been included in project design to incresse beneficiary participation in the delivery and funding of etension through community groups and Non-Governmental Organizations. Lemons from Past Experience 12. Project implementation in Uganda has been affected by inadequate and tardy counterpart funding, inadequate salaries, and weak management and financial systems; all of which are being addressed by measures under the SAC, ASAC and EFMr Projects have also tended to be too complex, involving several agencies and thereby creating c, .dination bottlenecks. These lessons from Uganda and elsewhere are reflected in the focus of the project on one main activity, phased implementation, and limited scope. This approach is designed to build a solid foundation for a full- scale national project. Reviews of extension projects in Africa have highlighted a number of implementation issues, including a preoccupation with staffing arrangements, procurement procedures and finacial reporting to the detriment of measures of organizational improvements and impact. Project design therefore includes the identification of tangible benchmarks of improvements in management and delivery of extension, research/extension linkages, and impact at farm level. The strengthening of financial and management systems of MAAF was also included in project design to  - 4- avoid the potential problems in procurement procedures and financial reporting. Project design was also influenced by the recent extension project for Ghana and the pilot extension project for Zaire. Rationale for IDA Involvement 13. IDA has suppored GOU's economic recovery program, and under ASAC is assisting in the deepening and broadening of the agricultural sector reform program. There is now a need for smaller, more focussed investment projects to restore the effectiveness of key agricultural support services as a means to promote growth. Support is necessary to strengthen sectoral management, refurbish the research and extension services, and to accelerate and rationalize manpower training. IDA's direct involvement in this project is essential in order to: (a) encourage increased focus on efficiency and impact in the restructuring of extension; (b) promote strong linkages between research and extension; (c) transfer experience gained from extension projects in neighboring countries and elsewhere; and (d) coordinate with planned IDA involvement in the strengthening of agricultural research and other key supporting services. The project would build on the experience of previous and current donor support to agricultural research and extension and complement other ongoing and proposed IDA/lFAD operations. Actions and Main Assurances 14. The organizational changes to be supported under the project have been designed on the basis of considerable discussion within 0OU and between GOU and IDA. MAAIF has already issued a directive on the organizational arrangements necessary for the implementation of a unified extension approach and assurances were obtained that these arrangements would be continued. In order to ensure and build amplemention cpacity and intionat proceses, assurances were obtained that: (a) an Extension Adviser would be recruited under international procedures, and an Extension Training Specialist, a Financial Officer and a Procurement Specialist would be recruited under local procedures, with temrs of reference, qualifications and conditions of service satisfactory to IDA; (b) the agreed management development program would be implemented at central and district levels with assistance from the Management Training and Advisory Center; (c) the strengtening of Bukalasa Agricultural College would be implemented as agreed with assistance from Makerere University for curriculum development; (d) the training programs would be implemented as agreed and approved annually by IDA; (e) the Directors of Agriculture and Animal Resources would be members of the board of the National Research Organization; and (t) A Research-Extension Linkage Committee would be established with membership as proposed. In order to avoid delays and diluton offoeus on project objectives, assurances were obtained that: (a) the Departm of Extension would prepare for each new district a District Action Plan (DAP) based on brief diagnostic surveys of farmer problems covering also the special needs of women and young farmers in the area; (b) annual work programs and budgets based on the crop year and incorporating the DAPs and other extension activities would be submitted to IDA for review and approval by November 1 of the preceding year; (c) a monitoring system would be put in place to track elapsed time and bottlenecks in financial, budgetary and procurement procedures; (d) the implementation and impact of extension as measured by agreed key indicators would be monitored; and (e) an assessment and joint Mid-Term Review of the project would be carried out by March 31, 1995. Conditons of Effeedveness woudd be: (a) appointment of the Extension Adviser, the Procurement Specialist and the Finance Officer; (b) opening of the Project Account; and (c) submission of a satstory Anmual Work Program for the first year of operation.  -5- Environmental Assessment 15. A National Envirornental Action Plan for Uganda is being prepared with assistance from IDA. 'There are no major environmental issues; the project is classified as Category B. Potenmial issues of Increased soil erosion as a result of intensive cultivation, and of increased use of chemicai fertilizers and other chemicals would be addressed under the project. Extension messages would cover: proper husbandry and soil management practices; crop rotation; agro-forestry; education of farmers on effects of uncontrolled erosion; integrated pest management practices including use cf biological control methods combined with judicious use of chemical pesticides through the use of economic threshold level (of pests) indicators. Bank guidelines on pesticides would be followed, including clearance procedures for procurement of chemicals. Improved livestock management practices would also be promoted including zero-grazing where appropriate. Program Objectives Categories 16. The project addresses poverty directly and indirectly. It is focussed mainly on small farmers who are presently producing at subsistence levels as a result of the breakdown of the economy. Since small farmers are the major producers in the economy, their increased production would increase food availability for the urban poor, as well as export and tax revenues. The project would benefit women through the overall improvements in technology transfer mechanisms as wall as hough special emphasis on appropriate extension messages, nutrition, and income-generating activities. Attention will be paid to increasing the number of women involved in the extension services. Project Benefits 17. The improved delivery of extension services is expected to improve crop and livestock husbandry practices and technology adoption among small farmers. These improvements in turn are expected to lead to increased agrictural production and exports, and higher incomes for smaliholders. Risks 18. The project is subject to institutional, financial and macroeconomic risks. Safeguards against institutional and financial risks have been included in project design. Considerable resources would be devoted to human resource development and the strengthening of management capacity and processes. Risks of delays and dilution of focus . ould be addressed through dated action plans and regular monitoring of tangible benchmarks of operational improvements and effectiveness of research/extension linkages. Financial risks would be minimized through the phased approach, local cost financing by IDA and testing of beneficiary participation in delivery and funding of extension. Rationalization of public expenditures is being pursued through structural adjustment operations and annual public expenditure reviews. The macroeconomic risks are being addressed by the adjustment operations (SAC and ASAC) which are aimed at ensuring that unfavorable market prices, lack of inputs, and market restrictions are not constraining farmers' incentives to apply new technology.  -6 - Recommnendation 19. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve it. Lewis T. Preston President Attachments Washington D.C. September 3, 1992  Schedule A REPUBLIC OF UGANDA AGRICULTLtAL EXTENSION PROJECT Project Cost Summary Compouent Local Ford o Total % Forign * Total __(USS million) Exchange Base Cost Dolivery of axtenion 4.81 3.28 8.09 41 54 B. Exnsion Trining 2.06 3.08 5.14 60 34 C. Manat Systems 0.77 0.77 1.54 S0 10 D. Studies 0.13 0.11 0.24 45 2 TOTAL BASE COSTS 7.77 7.24 15.01 48 100 Physical Contingencies 0.83 0.80 1.63 49 11 Pr*e Contngnies 0.63 0.48 1.11 43 7 TOTAL PROJECT COSTS 9.23 8.52 17.75 48 it -1andng Plan: Local Foreign Taxes Total (US$ million) 1DA 7.27 8.52 - 15.79 GOU LB7 Q,- 1.26 TOTAL 2& L 2 17.75  3 ~ Schedule B Page I of 2 REPUBLIC OF UGANDA AGRICULTURAL EXTENSION PROJECT Procurement Methods and Disbursements (US$ million) (i) Procurement Project Elements Procurement Method ICB LCB Othes a/ Total 1. Works 2.90 0.25 3.15 (2.48) (0.16) (2.64) 2. Goods 2.18 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (2 .14 ) 2.1 Equipment/ToosFurniture 0.88 0.1 0.1 b/ 1.iX8 Audio Visual/Conputers, (0.88) (0.09) (0-09) (1.06) 2.2 Veicles &Spares 1.0 0.t b/ 1.10 (1.0) . (0.08) (1.08) 3. Cousultanes & - - . 5.53 Tralig - . . (5.40) 3.1 Technical Assistance _ 1.95 c/ 1.95 - (1.90) (1.90) 3.2 Training, Deos , 3.58 3.58 Trals, Study Tours . (3.50) (3.50) 4. MUscefaous 4.1 Incremenal Recunt 6.89 6.89 Costs . - (5.61) (5.61) TOTAL 4.78 .35 12.62 17.75 (4.36) (.2S) (11.18) (15.79) ob. Fiues in pa _n we ts e respectiw eMoi to be fnnced by the prposed Ie (a) lnludes US$0.5 million financed under PPm funding. (b) Prcurm t through UN Inter-Agency Prment Service under PPF fundig. (c) Services would be procured i accordance with World Bank Guidelin: Use of Consultants by World Bank Borrowes and by the World Bank as Executing Agency (Washington D.C., August 1981).  -9 Schedule B Page 2 of 2 (U) Disbursements Amount of % of Expenditures to be Financed Credit Allocated Category (US$ million) Civil works 2.38 100% of foreign and 60% of local Vehicles and Equipment 1.86 100% of foreign and 85% of local Technical Assistance 1.50 100% of foreign and 95% of local Training 2.48 100% of foreign and local Demonstrations and Field 0.63 100% of foreign, 100% of local up to Trials December 31,1994 and 65% of local thereafter Incremental Recurrent Costs: (a) Field Operations 4.58 100% of foreign, 100% of local up to December 31, 1994 and 65% of local thereafter (b) Non-Field Operations 0.36 100% of foreign and 65% of local Refimd of PPF Advance 0.50 Amount due Sub-totl_ 14.29 Unaliocated 1.50 _ TOTAL 15.79 Esdmated IDA Tisbursements: II)A scdal Year 93 94 95 96 97 98 US$ Millon- Annual 2.24 4.89 4.26 2.05 1.56 0.79 Cumulative 2.24 7.13 11.39 13.44 15.00 15.79  - 10- Schedule C REPUBLIC OF UGANDA AGRICULTURAL EXTENSION PROJECT Mmetable Of Key Project Processing Events Activity (a) Time taken to prepare the project: January 1990 to April 1992 (b) Prepared by: Ministry of Agriculture, Animal industry and Fisheries and Bank Staff (c) First project preparation mission:1/ October 1991 (d) Appraisal mission departure: May 1992 (e) Date of negotiations: August 21-24, 1992 (f) Board presentation: September 29, 1992 (g) Planned date of effectiveness: January 1993 List of relevant PCRs: Kenya - National Extension Project Credit 1387-KE/IFAD Loan 132-KE Uganda - Economic Recovery Project Credit 1844-UG 1/ ISe pwect wa originy combied with the Agiculura Research and Tnuning Project  _ 11 _ Schedle D Papg I of3 STATUS OF BANK GROUP OPERATIONS IN UGANDA ..... .......- .. ......... .................. A. STATEMENT OF SANK LOANS AND IDA CREDITS (as of June 30, 1992) ------US Mittion ..... Amount(Less CanceLlations) Loan or Fiscal Undis- Credit No. Year Borrower Purpose Bank IDA bursed ......... .... ...... ..... ............ .... . . ........ .... ...... .,,,* Or. (1) loan and twenty-four (24) fully disbursed, 3.40 490.45 Of which SECALs4 SALs and Program Loans/Credits a/ Cr. 03400 1988 Uganda Economic Recover-y Credit/SAf 24.00 Cr. 18441 1989 Uganda Economic Recovery Credit 0.00 1.70 Cr. 12520 1982 Uganda Reconstruction Credit 11 0.00 70.00 Cr. 14740 1984 Uganda Reconstruction tIl 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 Credit 11 0.00 2.00 Cr. A0341 1.99 Uganda Economic Recovery Credit 0.00 12.80 Cr. 18442 1989 Uganda Economic Recovery Credit 0.00 25.00 0.00 252.00 Cr.12480 1982 Uganda IDf 1 35.00 0.51 Cr.13280 1983 Uganda Agricultural Rehabilitation 70.00 5.33 Cr.14450 1984 Uganda Third Highway 58.00 7.58 Cr.15390 1985 Uganda Agricultural Development 10.00 4.58 Cr.15600 1985 Uganda Second Power 28.80 9.59 Cr.15610 1985 Uganda Petrolein Exploration Prom 5.10 3.69 Cr.18030 1987 Uganda Fourth Highway 18.00 2.61 Cr.18240 1987 Uganda Forestry Rehabilitation 13.00 4.67 Cr.18690 1988 Uganda South Uest Ag. Rehab. 10.00 7.45 Cr.18930 1988 Uganda Sugar Rehabilitation 24.90 16.58 Cr.19340 1988 Uganda Health Rec. 42.50 24.49 Cr.19510 1988 Uganda Tech. Asst. III 18.00 6.34 Cr.19620 1989 Uganda Public Enterprises 15.00 8.15 Cr.19650 1989 Uganda Education IV 22.00 7.06 Cr.19860 1989 Uganda Railways I 7.00 4.75 Cr.19910 1989 Uganda Telecom t 52.33 26.04 Cr.20870 b/ 1990 Uganda Economic Recovery Credit 125.00 0.45 Cr.20880 1990 Uganda Poverty & Sos. Costs 28.00 23.48 Cr.21240 1990 Uganda Uater Supply 11 60.00 62.72 Cr.21760 1991 Uganda Livestock 21.00 22.20 Cr.21900 b/ 1991 Uganda Ag. Sector AdJ. Credit 100.00 60.36 Cr.22060 1991 Uganda Urban 1 28.70 27.8$ Cr.22680 1991 Uganda Power ItI 125.00 123.90 Cr.20872 b/ 1992 Ugand Econ. Recovery It 1.60 1.71 Cr.23140 b/ 1992 Uganda SAC 1 125.00 89.14 Cr.23150 1992 Ugpnda Enterprise Development 65.60 70.29 Cr.23620 c/ 1992 Uganda Northern Reconstruct. 71.20 74.00 Total 8.40 1671.15 695.7 of which repaid 8.40 28.79 Total held by Bank & IDA 0.00 1642.36 Amount sold 8.32 of which repid 8.32 TOTAL Undisbursed 695.73 ....................... .................................. ......... ................... a/ Approved after FY80 bf SAL, SECAL or Program Loan/Credit c/ Not yet effective. ugledl.wki  - 12 - Scbedule D Pago 2 of 3 8. STATEMENT OF IFC INVESTMENTS IN UGANDA (as of JuLe 30. 1992) Amount in USS Mitlion Fiscal. Year Obligor Type of Business Loan Equity Total ...... ....... ................ .... ...... 198S DFCU Development Finance Companies 0.00 0.38 0.38 1965 MULCO Spinning Weaving & Finishing 4.32 0.71 5.03 1984 TANTECO Food Products 1.62 0.00 1.62 1972 TPS Tourism Services 1.11 0.00 1.11 1984 Uganda Sugar Cocoa Chocolates, Sugar 8.00 0.00 8.00 1985 Uganda Tea Food Products NEC 2.81 0.00 2.81 Total gross commitments 17.86 1.09 18.95 Less: Repayments, cancetlations, exchange adjustments, terminations and sales 7.98 0.71 8.70 Total Coomitments now held by IFC: 9.88 60.37 10.25 Total undisbursed 0.00 0.00 0.00 Total Outstanding tFC 9.88 0.37 10.25 ug2edl.wkl 07-21-92  -13 - Schedule D Page 3 of 3 UGANDA: DISBURSEMENT ISSUES 1. Overall disbursements on the 27 investment projects in the Uganda portfolio are satisfactory as compared to the disbursement profile estimated at appraisal. Three projects in the portfolio, all approved in 1985, were slow disbursing: Cr. 1539-UG, Agricultural Development; Cr. 1560-UG, Second Power; and Cr. 1561-UG, Petroleum Exploration. In all three projects the civil war and subsequent turmoil and lack of security delayed the start implementation by about two years. The start of the Agricultural Development Project was particularly slow, since unrest persisted in the north until about two years ago. It was restructured in March 1991, and implementation has considerably improved since then. Implementation of the Second Power Project and the Petroleum Exploration Project was delayed by about two years because of the civil war Oack of access to the field was a serious problem for the petroleum project), but the rate of implementation for both is now satisfactory. Progress on PAPSCA (Project for Alleviation of Poverty and the Social Costs of Adjustment, Cr. 2088-UG) was initially slow. The projectes various components had first to be sub-contracted to several NGOs who, in turn, had to become familiar with Bank procurement procedures and required time to establish appropriate field implementation units to reach the widely dispersed beneficiaries. Implementation is now satisfactory. 2. In the agricultural portfolio, disbursements in two other projects are behind appraisal estimates. The South West Region Agricultural Rehabilitation Project (Cr.1869-UG, approved in FY88) was delayed because of institutional problems in the implementation of the feeder road component which accounts for about half of project costs. These problems have been recently resolved and disbursements are expected to accelerate. The Sugar Rehabilitation Project (Cr 1893-UG, approved FY88) is being successfully implemented under private management. Disbursements have been slower than appraisal estimates because the management has re-phased the rehabilitation program in order to maximize profitability. Major procurement activities are underway or planned and the project is expected to be fully disbursed on schedule. 3. At a Country Implementation Review, jointly organized by Government and the Bank, the main recommendato for continued good implementation performance focussed on measures to ensure: adequate and timely release of counterpart funds; timely procurement of goods and services; adequate use of Special Account funds and prompt disbursement processing; improved financial management, budgetary controls, and compliance with audit covenants; expeditious credit effectiveness; and effective project management and coordination.  UGANDA SUDAN AGRICULTURAL EXTENSION PROJECT PROJECT DISTRICTS