World Bank to finance Hoima infrastructure
Uganda will begin implementing a 150 million-dollar World Bank project next month to support infrastructural development in Hoima municipality in the oil-rich Albertine region, as well as 13 other municipalities in the country.
The six-year project, dubbed Uganda Support to Municipal Infrastructure Development Program(USMID), was approved in March this year, and will be co-funded by the Uganda government which will contribute 10 million dollars from its Local Development Grant.
In addition to Hoima , the beneficiaries include the municipalities of Arua, Gulu, Lira (Northern Uganda); Soroti, Moroto, Mbale, Tororo, Jinja, (Eastern Uganda); Entebbe, Masaka (Central); Mbarara, Kabale and Fort Portal (Western Uganda).
They will receive funding for roads and associated infrastructure, liquid and solid waste management, markets and urban transport facilities like bus terminals.
“We chose these 14 municipalities to reflect regional balance, and also because 13 of them have demonstrated capacity to handle the increased investments under the program,” Martin Onyach-Olaa, a Senior Urban Specialist at the World Bank in Uganda told Oil in Uganda.
“Hoima was chosen especially because of its location in the Albertine Graben Region, potentially making it an oil city in the medium term”, he added.
Sheila Gashishiri, the World Bank Group Africa Region Communication Specialist clarified that the project will ensure rapid urbanisation of the selected municipalities, with significant service delivery. She added that the grant amount donated to each municipality would be increased over time to ensure the project achieves its objectives.
According to the World Bank, the project will be delivered under a special instrument known as the Program-for-Results, a new financing instrument for the Bank’s client countries that links the disbursement of funds directly to the delivery of defined results.
This is the third time such a program is being implemented in Africa, earlier ones being in Tanzania and Ethiopia.
Report by Flavia Nalubega