Implementation of the Cities and Infrastructure for Growth Uganda program

Cities and Infrastructure for Growth
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Situation

The FCDO funded Cities and Infrastructure for Growth (CIG) Program was a five-year, £165 million, multi-country project with the goal of enhancing low carbon economic growth, job creation, and poverty reduction. The program supported poverty reduction principally by promoting inclusive economic development and structural transformation by building an enabling environment for investment in urban, energy, and infrastructure sectors. The assistance aimed to strengthen the management of urban and energy sectors and boost investment in infrastructure.

As a consortium partner in implementing the CIG Uganda program, ORI delivered critical interventions to achieve the program’s outcomes. Broadly, ORI’s interventions were in the areas of power and energy, climate change and low carbon development, gender equality and social inclusion, manufacturing sector support, data collection and analysis, and post-Covid-19 economic recovery and growth strategy support to the Ministry of Finance, Planning and Economic Development (MoFPED).

The program provided demand-driven technical assistance to address constraints hindering urban development in the Greater Kampala Metropolitan Area (GKMA). This metropolitan area is one of the fastest-growing urban centers in the world and accounts for more than 60% of Uganda’s GDP.

Industries
Strategy, Data & Insights
Public Policy
Implementation Services
Program Design & Business Development
Cities & Infrastructure
Climate Action
Electric Power & Clean Energy
Gender Equity & Inclusion
Finance & Investment
Engagement

In delivering our implementation responsibilities, ORI:

  • Evaluated the performance of Uganda’s electricity access program (Electricity Connection Policy) on demand growth, system losses, and reliability performance and developed trade-off options based on various investment scenarios.
  • Provided inputs in the preparation of a detailed energy sector-wide resource plan aimed at enhancing the adoption of accountable transformational roadmaps to support the growth of businesses through increased access to reliable and green energy supply.
  • Supported government ministries and agencies in mainstreaming and embedding gender equality and social inclusion while ensuring safeguarding commitments in all interventions.
  • Helped the Uganda Manufacturers Association (UMA) formulate the Post-Covid-19 Manufacturing Sector Recovery and Growth Strategy and MoFPED's buy-in. The Strategy was a key input in MoFPED’s allocation of an enhanced stimulus package to the manufacturing sector, resulting in the successful navigation of the negative impacts on the sector’s performance and jobs arising from the pandemic.
  • Provided technical assistance to strengthen UMA’s policy department to improve its capacity for fact-based policy analysis and enhance its capacity for structured engagement with GoU.
  • Provided technical assistance in the development of modern and inclusive industrial parks in the GKMA.
Outcomes
  • Overall, the CIG Uganda program mobilized a cumulative amount of GBP £1,123 million, comprising of (i) Kampala Capital City Authority (KCCA) Strategic Plan developed by CIG and funded by central government fiscal transfers and KCCA's own source revenues; (ii) bankability of the Public Private Partnership (PPP) for the Kampala-Jinja-Expressway due to adoption of key safeguards during the Relocation Action Plan (RAP) implementation; (iii) bankability of the Kiteezi landfill closure and Ddundu landfill PPP from the completed Environmental and Social Impact Assessments (ESIAs) financed by the International Finance Corporation (IFC) and the European Union (EU); (iv) pre-feasibility study and masterplan for Jinja Industrial Park to be financed by UKEF; and (v) Kampala Market Infrastructure - 3 feasibility studies completed for climate resilient market infrastructure at three markets in Kampala with implementation to be financed by AfDB.

Additional outcomes were:

  • Umeme, Uganda’s major power utility, has seen significant improvements in its electricity connection processes thanks to the findings and recommendations of the CIG Uganda program. The immediate results have been a reduction in the number of waiting days for new connections and a notable decrease in customer complaints. Our analysis has empowered the utility to enhance its trade-off options between tariffs, connection targets, losses, and quality of service, leading to a more efficient and customer-centric approach.
  • Uganda’s Minister of Energy and Mineral Development launched the roadmap. The Roadmap is a vital tool for the Ministry in helping embed and improve sector coordination based on agreed performance indicators and accountabilities. The outcome has been reliable power to consumers and industries, enhancing job creation and broad-based economic growth.
  • Developed a Toolkit for Mainstreaming Gender Equality and Social Inclusion Into Interventions—see Resources/Publications section of this website. The toolkit helped the energy sector MDAs to champion GESI approaches in their operations.
  • The GoU proceeded to allocate the stimulus package accurately by prioritized sectors. Moreover, the GoU was able to effectively target firms requiring support and the most vulnerable population segments, including women living in informal settlements, refugees, and people living with disabilities. This strategic allocation, coupled with the identification of channels for delivering the stimulus package, enabled the GoU to achieve its objectives and ensure that no one was left behind.
  • The GoU was able to target better and prioritize manufacturers to receive stimulus support from the Uganda Development Bank while ensuring effective monitoring of the stimulus by MoFPED.
  • Improved policy outcomes for manufacturers, for example, opening up opportunities for local transformers and electric cable manufacturers to supply the Electricity Supply Industry.