Local govts given one month to close USMID projects

The State Minister for Urban Development, Mr Obiga Kania, has directed all Local Governments with pending work under the Uganda Support to Municipal Infrastructure Development (USMID) programme to finalise and close them during this month (July).

The $150m World Bank-funded project, which has been implemented under the Ministry of Lands, Housing and Urban Development (MLHUD), started in the 2013/2014 financial year, and officially closed on June 30.

“I want to direct all Local Governments with works that are not yet fully completed to use this month of July to finalise and close these projects,” Mr Kania said during a two-day Programme Technical Committee (PTC) meeting which ended in Jinja City on Friday.

He added: The project initially closed on December 31, 2023, and by the grace of the World Bank, June 30, 2024, was the extension, so how many more extensions are you asking for? I am now giving you a one-month extension.

“Our engagement with the World Bank has indicated that any projects not completed by June 30, when the programme officially closes, will pose significant challenges when the new programme starts; we have been forewarned (and) now it is our responsibility to act.”

Mr Kania says the government is already negotiating with the World Bank for a continuity of another project called the Uganda Cities and Municipalities Infrastructure Development (UCMID), which he said will more or less have the same activities, but at a deeper level.

“For the next phase, we request them to expedite the processes because as Government we are ready to commence immediately.”

Jinja City Mayor, Mr Peter Okocha Kasolo, said Jinja City initially received Shs16b for works on Busoga Avenue, Bell Avenue East and West, Clive Road East, and all roads are complete, including drainage system and laying of asphalt.

According to him, works are at 99.5 percent, although after the first designs were approved, some components like street lights were removed, but later reinstated and are expected to be functional in under two months.

He added that the project faced challenges, including late completion of design reviews due to errors which consumed a lot of time, and heavy rains which delayed works, among others.

Kabale Municipality Mayor, Mr Emmanuel Byamugisha Sentaro, on Saturday, said he doesn’t think they will complete all pending works on Rushoroza, Bwankosa and Bushekwire Roads within the new one-month deadline. Some of the pending works, he said, include putting walkways, streetlights and covering manholes.

However, the Adjumani District LC5 chairman, Mr Ben Anyama, said because the project ended at the close of the last financial year, most monies were returned to the consolidated fund.

“I ask the Permanent Secretary and Secretary to the Treasury in the Ministry of Finance, Planning and Economic Development to release it (money) and they do the work, otherwise contractors will have excuses, saying there is no money,” Mr Anyama said.

Mr Kania, however, said currently, the law says that by June 30, any funds that haven’t been spent must be returned to the consolidated fund, but added that he thinks there is need to review that law because projects over spill the financial year, with some going beyond June 30.

He said: “In my view personally, there is a need for the cabinet to look at that law and make a proposal specifically for projects; it is not only USMID which has been affected, but the Office of the Prime Minister dealing with infrastructure, including roads, has been affected negatively.”

According to Mr Kania, during the ten-year period, Uganda has achieved almost all its targets, and not received many serious reports of fraud and corruption, except for a few instances of misgivings and doubts about the costs of our works and general project expenses.

“One of the things I have observed is that some of our contractors leave a lot to be desired. We need to improve our procurement practices to ensure we select individuals and companies with good records and extensive experience to undertake such government work,” said Mr Kania.

Makerere University Associate Professor, Charles Nuwagaba, whose firm carried out occupational safety and health (OSH) audit for 41 contactors in all 22 units of Local Governments, described as “very good” the contractors’ compliance.

According to him, their compliance accounted for 80 percent, 72 percent of them had an insurance policy, although expired, and 95.1 percent kept attendance records for regular safety.

He added: “Seventy-five-point six (75.6) percent had sufficient fire extinguishers, 78 percent had first aid rooms, 85.4 percent provided gender segregated sanitary facilities, while 12.2 percent had their equipment inspected, among others.”

The Permanent Secretary in the MLHUD, Ms Dorcas Okalany, said overall, the project has been a “resounding success”, adding that she is confident that our future interactions will be even more successful, as we have learned a great deal over the years.

“In project implementation, there are endless ups and downs. Since we started in 2013, we have continued to face both persistent and new challenges as the environment evolved; but despite these obstacles, we have persevered and successfully concluded this project on a high note.

The Project

Since its inception, the MLHUD, under her directorate of Physical Planning and Urban Development, has been responsible for ensuring that the USMID programme gets implemented in accordance with the Financing Agreement signed between the funders and the Ministry of Finance, Planning and Economic Development on behalf of the Ugandan government.

During its implementation, 33 local governments, including 10 cities, 22 municipalities, and 11 refugee hosting districts, were charged with procuring services, implementing their respective infrastructure projects and contract management.

Under the programme, municipalities, with the exception of Moroto, prioritised roads with their attendant features, including rehabilitation of the road carriage way, provision of all auxiliary works such as pedestrian walkways, cyclist lanes, street parking with street lighting using solar lights, trash bins, greening and beautification in some areas.