According to the Bank’s website, the PDO is to enhance the institutional performance of selected urban local governments and ministries for urban planning and management and improve access to climate smart infrastructure, services and jobs for urban residents and displaced populations in refugee-hosting areas.

The Uganda Cities and Municipalities Infrastructure Development (UCMID) Program aims to enhance the institutional performance of urban local governments and relevant ministries for urban planning and management. It seeks to increase access to climate-smart infrastructure, services, and local economic opportunities, benefiting both urban residents and displaced populations in refugee-hosting areas. The program will address challenges such as rapid urbanization, inadequate transport infrastructure, lack of integrated urban planning, limited technical and financial resources, climate change impacts, and issues in refugee host districts. UCMID is a follow-on operation to the USMID and USMID-AF programs aiming to build on the progress and successes under both initiatives.

UCMID is urban and nationwide and will be implemented in two Ministries Departments and Agencies (Ministry of Lands, Housing and Urban Development - Coordinating Ministry and Ministry of Local Government), 10 secondary cities (Jinja, Mbarara, Gulu, Arua, Masaka, Hoima, Mbale, Soroti, Lira, Fort Portal), 11 municipalities (Kabale, Moroto, Tororo, Kitgum, Kasese, Kamuli, Mubende, Busia, Ntungamo, Apac, Lugazi, Entebbe) supported under the previous USMID Program, 15 new municipalities (Masindi, Rukungiri, Bushenyi-Ishaka, Mityana, Kumi, Nebbi, Koboko, Kisoro, Kapchorwa, Ibanda, Iganga, Njeru, Bugiri, Sheema, Kotido), and 11 districts hosting refugees (Arua , Isingiro, Kamwenge, Kiryandongo, Lamwo, Maddi-Okollo, Moyo, Obongi, Terego, Yumbe).

The program has two main components: Component 1 (PforR) focuses on urban development performance and investments, financing resilient infrastructure and services, and promoting peaceful coexistence in refugee-hosting areas. This component seeks to achieve results in three Result Areas (RAs): (i) RA1: Enhanced local and national level government institutional capacity and performance for sustainable urban management, (ii) RA2: Increased access to climate smart urban infrastructure, services and local economic development, and (iii) RA3: Integrated climate smart infrastructure, services and local economic development for the host communities and refugees. The IPF component is designed to directly support the achievement of the Program Development Objectives and Disbursement-Linked Indicators (DLIs) by financing upstream activities that enable effective implementation and results delivery under the PforR. It will focus on strengthening national systems for urban development, program coordination, and technical capacity at both central and local government levels. Specifically, the IPF will finance: (i) overall program management specified in the Program Operations Manual (POM), including operational coordination, monitoring and evaluation, ESHS risk management, enforcement and supervision, and the engagement of an Independent Verification Agent (IVA) to conduct the Annual Performance Assessments (APA) and verify results against the DLI matrix; (ii) the development and rollout of key policy, regulatory, and planning tools, such as the urban data platforms, GIS-based systems and digital innovations, and national frameworks for climate-smart and inclusive urban infrastructure; and (iii) technical assistance and targeted capacity building for national and local institutions in areas such as fiduciary systems, land use management, occupational health and safety (OSH), community health and safety, labor and working conditions and climate-resilient planning. The IPF will also support the conceptualization and piloting of a corridor-based approach to urban investment planning. This includes the development of national corridor design guidelines and investment packaging tools that will help structure integrated infrastructure projects--linking roads, drainage, markets, and utility networks--along strategic urban corridors. The IPF component will dedicate US20 million to support ESHS systems improvements and capacity strengthening of key MDAs (MLHUD, MGLSD, NEMA), implementing entities, and Contractors. Activities will include (I) Professionalization and accreditation of OHS professionals through the Learning Centre on E&S Standards at Makerere University, (II) upgrading and integration of OHS and Labor Management Information Systems to enhance incident management, reporting and compensation, (III) development of socio-economic assessments, (IV) development of land acquisition protocols and/or resettlement plans-- including livelihood restoration; and (V) finance land acquisition and resettlement expenditures; (VI) develop a communication and stakeholder engagement strategy for the Program; and (VII) strengthening grievance management systems including worker GRMs.UCMID will also benefit from an Enhanced Implementation Support and Monitoring (EISM) firm hired directly by the World Bank to support the Project Implementation Support Team (PIST) and the World Bank following the enactment of the Anti-Homosexuality Act 2023 in Uganda. The firm will work with NGO/CSOs and country-based development partners since knowledge of the country context and culture are key considerations to be taken onto account. The EISM will: (i) establish an effective and confidential mechanism to receive, manage, refer, and monitor grievances related to discrimination of Sexual and Gender Minorities (SGM). (ii) support outreach and sensitization to Program beneficiaries and communities. (iii) provide capacity strengthening and technical support to the PIST and (iv) regularly monitor and evaluate the implementation of measures to mitigate the risk of discrimination in all WB's financed operations in Uganda including UCMID.

The environmental risk rating for the IPF component is assessed to be Moderate. The IPF Component will mainly support technical assistance with minimal or no direct physical works. It will also not support preparation of feasibility studies and designs of investments financed by the PforR. However, it will support the conceptualization and piloting of a corridor-based approach to urban investment planning, including the development of national corridor design guidelines and investment packaging tools that will help structure integrated infrastructure projects—linking roads, drainage, markets, and utility networks—along strategic urban corridors; however, there will be no construction under this component. The Social Risk Rating is substantial. As infrastructure investments/civil works are not envisaged under the IPF component, the substantial risk rating does not cover risks relating to those activities – which are envisaged under the PforR. There could be risks relating to stakeholder engagement and social inclusion (e.g., exclusion of vulnerable groups in policy development). Risks of discrimination and exclusion may be exacerbated in the context of the Anti-Homosexuality Act, 2023 and require enhanced implementation support and monitoring.

Total Project Cost: US$ 540.00 million
IDA Credit: US$ 429.00 million
IDA Grant: US$ 80.00 million
IDA Shorter Maturity Loan (SML): US$ 31.00 million

CONTACT POINT - World Bank

Task Team Leader: Stephen John Ajalu
Title: Senior Urban Development Specialist
Email: sajalu@worldbank.org

TTL Contact: Phan Thi Phuong Huyen
Job Title: Senior Urban Specialist
Email: hphan5@worldbank.org

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