Projects hung in the balance as World Bank halts funding

Authorities in regional cities, municipalities and districts are wondering what to do next after the World Bank suspended funding for projects in Uganda, citing human rights violations from the recent enactment of the anti-homosexuality law.

In a statement released on August 8, the global financial body announced that it had decided to pause the approval of any new public finance projects to the country until Ugandan authorities provide an adequate policy to protect minorities, including the lesbian, gay, bisexual, transgender, queer and others (LGBTQ+) communities.

“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a liveable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality,” the statement read in part.

It added: “This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world.”

In May, President Museveni signed into law the Anti-Homosexuality Act, providing penalties as high as a death sentence for “aggravated homosexuality”.

The law drew condemnation from rights groups and Western countries such as the United States, a key shareholder in the World Bank, who threatened sanctions.

Reactions
Leaders across the country have, however, expressed concern about the fate of the World Bank-funded projects. 

In Arua City, Mr Stephen Candia, the public relations officer for City Development Forum, says the financial institution was funding several road projects, including Market Lane, Radiology Lane, Taban Lane, Afro View, Industrial Lane, Wadrif Road up to Ociba, and Abdiri-Pajulu-Ewuata Road.
In Terego District, the bank was funding the construction of a stadium and district administration blocks, according to the Terego District vice chairperson, Ms Sunday Ayikoru.

“But if it is because of homosexuality, let them stay with their money. This is an eye-opener for us and the government to look for alternative sources of funding. Their actions are unfair. Why should the World Bank tag financing to a law?” he asks.  

Meanwhile, Mr Ashirafu Mambo, the Koboko District chairperson, says the World Bank was expected to fund several projects under Development Response for Displaced Impact Population (DRDIP) and the construction of Koboko-Moyo Road. 

“These projects are likely to be affected, although we have not received any circular from the ministries about the funding cut,” he says. 

In Yumbe, Mr Bernard Ayimani, the district engineer, says they had high expectations in the World Bank because many of the planned projects in the district were not fully funded.

He says they were optimistic that the projects would be funded in the next phase of the implementation of Uganda Support for Municipalities, Infrastructure Development (USMID) projects.
The projects include the rehabilitation of the Bidibidi-Kali Road (20kms), the construction of a bridge on River Kochi, Yoyo-Okuyo-Bangatuti Road (15km) and Barakala-East Koka Primary School Road (12kms). 

In Buikwe District, Mr Hussein Kyazze, the Njeru Municipality mayor, says ever since Njeru was granted municipality status in 2017, it has not benefited from the World Bank.

“We were actually happy to have been included among the new 15 municipalities to benefit from the World Bank projects this financial year, but we are now worried about the cutting of aid over the Anti-Homosexuality Act,” Mr Kyazze says.

The Rubanda District chairperson, Mr Stephen Ampeire Kasyaba, says the construction of two seed secondary schools in Mugyera and Ndego may be affected by the World Bank decision.
The schools were set to be constructed in the next financial year.

“We are lucky that the funding for the construction of two seed schools at Ruhija and Kibuzigye in Rubanda District was already secured,” Mr Kasyaba says.

The Kanungu Chief Administrative Officer, Mr David Tweheyo Betega, says the fate of a one-year micro-scale irrigation project, whose implementation started at the end of last financial year, is uncertain.

In Jinja, the City Council secretary for works, Mr Juma Ssozi, says they are yet to get an official communication from the government regarding the halting of the release of money from the World Bank.

He, however, says most of the major projects such as road construction have been using World Bank funds because local revenue is too low.

He adds that contractors had already been awarded contracts to work on roads and street lights with funding from the World Bank.

In Kabale District, Mr Sentaro Byamugisha, the mayor of Kabale Municipality, says: “We recently submitted a list of nine roads for design and construction to the World Bank but we are now worried that the decision by the top management of the bank halting its funding to Uganda may affect these arrangements.”

The roads include Rukonjo, Achor, Rugarama, Bugongi, Dundasi, Nyabikoni, Kiyora, Bigombe and Nyakeirima in Kabale Town.

Similarly, Mr John Bosco Aseya Ozuma, the Lugazi Municipality mayor, says 17kms of roads will not be tarmacked as a result of the World Bank suspension of funding.  

The affected roads are spread in the rural divisions of Kawolo and Najjembe.
“I appeal to the government to institute meaningful dialogue rather than portraying an ‘I don’t care’ attitude. If these projects stall, it will be the ordinary Ugandans to suffer, not those in government,” he says.  

Mr Apollo Batwine, the Kasese Municipality engineer, who doubles as the USMID project manager, says more than 8km of roads were set to benefit from the second phase of USMID.

The roads include the dual-carriage Dr Henry Bwambale Road, Bukonzo Road (2.5km), Cathedral Road (1.3km), Kaisiga Road (1.3km), Rweisamba Road (1km), Kaisiga Rise (0.2km), Mugurusi (0.25km), Lincoln Street (0.6km) and Kizungu-Mboghoyabo (0.8km) and Market Street (0.6km). 

“We are sceptical whether these roads will be worked upon. We are not worried about the roads under construction now because those are near completion, but our worry is the new roads that were supposed to be developed under Phase II,” he adds.

In Kumi, the municipality mayor, Mr Richard Ochom, says: “We are still considering that information as a rumour until the government comes out officially to tell us.”

Currently, Kumi Municipality is implementing 12.2km of road works funded by the World Bank under the USMID programme. 

However, in Soroti City, Mr John Junior Ekutelek, the chairperson of the general purpose committee, also a youth councillor, says the World Bank-funded projects are running smoothly for now.

He said they are set to start installing solar lights on an approximately 3km stretch of Soroti-Gweri Road up to Opuyo Trading Centre, and another approximately 3km stretch on Soroti-Lira Road.

“We don’t know what will follow later, but we see work going on now,” he says.In Gulu City, the authorities say the World Bank decision will not affect the ongoing projects.

Mr Alfred Okwonga, the mayor, however, says they currently have a deficit of more than Shs30b to settle payment for contractors constructing roads in the city.  

In Busia Municipality, tarmacking of roads and construction works on the taxi park are still ongoing and are estimated to be at more than 90 percent complete.

Mr Ronald Baganza, the Busia Municipal Town Clerk, says: “We have all the money for the projects which end on December 31; so, the current activities are not affected by the said halt of funding.” 

The Mbarara City speaker, Mr Bonny Tashobya Karutsya, says the World Bank projects in Mbarara are ending in November.

He said the city may not be affected by the withdrawal of funding because the money for the projects was given as a loan that would be later paid back.

In Apac, the municipality had identified projects which they hoped would be worked on under the USMID programme in the next financial year. 

“We have some of the projects like extension of Chawente Road to Amwonika Trading Centre, beautification of Apac Mayor’s Garden, the construction of micro industry and Gulu Road, are some of the projects which were planned to be funded in the next financial year,” Mr Stanislaus Mangasa, the town clerk, says.

The Minister for Kampala Affairs, Ms Minsa Kabanda, says the planned $680m (Shs2.5 trillion) Greater Kampala Metropolitan Area-Urban Development Programme (GKMA-UDP) will go on as planned since the funds had already been approved.

“Maybe additional funding will be affected but for the one we are yet to implement, all funds are available,” she says.

Tororo Municipality Mayor Kennedy Orono Nyapidi says the World Bank decision will cripple all big projects in the area. 

“In fact, as we talk, we had already planned a number of roads and other projects whose designs have been made and are awaiting funding. So, halting funding will mean that we have to suspend them because they require huge sums of money,” he says.

Other affected projects include the construction of Tororo Recreation Centre and the upgrading of Tororo Municipal Abattoir. 

Mr James Kutoosi, the public relations officer of Mbale City, says he is optimistic that government will find ways of funding projects which are being funded by the World Bank.

Govt, Usmid react
When contacted yesterday, Mr Jim Mugunga, the spokesperson of the Ministry of Finance, said the overnment is currently in negotiations with the World Bank to resolve the current standoff.

“Uganda is a member of the World Bank and we have had cordial relationship for a very long period. We can’t stop talking on any issue between us and we shall never stop,” he said. 
He added: “Even on this issue, the government is already engaging them to amicably  settle the matter.” 

Ms Sheila Naturinda, the communications officer for USMID, says: “Despite the World Bank pronouncement, ongoing projects will continue because the funds to implement the works are available.”

Ms Naturinda says the World Bank is currently supporting 33 districts, 12 municipalities, 10 cities and 11 local governments that host a large number of refugees.

Ms Naturinda says the second phase of USMID is expected to cover all the current local governments and bring on board 15 new municipalities, including Mityana, Iganga, Masindi, Rukungiri, Bushenyi-Ishaka, Kumi, Nebbi, Koboko, Kisoro, Kapchorwa, Ibanda, Njeru, Bugiri, Sheema and Kotido.

“We are moving on with plans to implement the second phase of the project because the government has not come out to tell us whether funding has been halted as pronounced by the World Bank or not,” she adds.

Compiled by Al-Mahdi Ssenkabirwa, Philip Wafula, Tausi Nakato, Abubaker Kirunda, Denis Edema, Herbert Mugagga, Robert Muhereza, Naome Biira, Julius Hafasha, Jerome Kule Bitswande, George Muron, David Awori, Felix Ainebyoona, Tobbias Jolly Owiny, Santo Ojok, Joseph Omollo, Olivier Mukaaya & Fred Wambede