With support from World Bank, the government launched the USMID program ten years ago to boost the institutional performance of municipal councils and to improve service delivery in urban areas through infrastructural development.
The World Bank has expressed concern over the poor absorption of funds by local governments in implementing the Uganda Support to Municipal Infrastructure Development (USMID) Additional Financing project. The program has been extended to refugee districts but absorption has remained low. The government is considering extending the program beyond its expiry date but they will also have to improve contractor safety guidelines.
Local governments have been spotted for underutilised funds for infrastructural development/Soroti Road avenue
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Performance and coverage
Out of the US$5.4 billion invested in the program, only 30% of the funds have been absorbed by local governments, with an average of UGX 300 billion returned to the Consolidated Fund at the end of the financial year.
During the review meeting of USMID projects and sub-activities implemented under the refugee window on Tuesday in Arua City, Christine Kasedde, the World Bank Environmental Specialist, said this poor utilisation of disbursed funds among the local governments has been identified as one of the greatest hindrances affecting project implementation.
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Initial beneficiary local governments include Gulu, Arua, Lira, Moroto, Soroti, Tororo, Mbale, Jinja, Entebbe, Masaka, Hoima, Mbarara, Kabale, and Fort Portal. Through the Additional Financing, the project has been extended to Refugee Housing districts in the country, such as Madi Okollo, Terego, and Yumbe.
The current contract for the USMID program expires in May this year, although the government, through the Ministry of Lands, Housing, and Urban Development, is considering extending the program beyond its implementation period next year.
Challenges with contractors
Meanwhile, Charles Otim, an Environmental Specialist at the Ministry of Lands, Housing, and Urban Development has appealed to contractors to comply with the project guidelines on safety standards to prevent accidents.
It is reported that six deaths have been documented so far due to contractors’ failure to comply with project safety standards.
