• Reference: P-UG-AAZ-001
• Approval date: 25/03/2009
• Start date: 05/02/2010
• Appraisal Date: 12/01/2009
• Status: OngoingOnGo
• Implementing Agency: MINISTRY OF LOCAL GOVERNMENT MOLG
• Location: Nationwide

11.PROJECT DESCRIPTION . Project Components: The Project comprises three major components namely:

(i) Market Infrastructure Development,

(ii) Market Management and Agricultural Trade Enhancement (including Capacity Building); and

(iii) Project Management and Coordination.

11.1 Component I: Market Infrastructure Development will be the biggest component with five principal sub-components including:

(i) Economic Marketing Infrastructure (These include lockups for general merchandise, saloons, seamstresses/secretariats services etc., warehousing and wholesale facilities especially for some of the bulky goods; restaurants; stalls with lockers for foodstuffs, groceries, and clothes (especially second-hand)/shoes; stalls for fish (especially fresh) and meat with water points, terrazzo-finish worktops, lockers, resilient cutting boards, and an enclosed area with trap doors and netted windows, together with cold storage rooms and fish dressing areas/rooms. The drainage system for these fish and meat facilities are to be connected to sewer lines of septic tanks. Covered open sheds/pitches including provisions for charcoal, firewood and timber, and live chicken areas would also be provided. As required, the chicken and fish sections may be constructed together with slaughter/dressing areas/rooms. Parking areas for customers/clients and for downloading and off loading goods will also be designed.

(ii) Service Infrastructure (Banking/microfinance halls, privately operated clinics/pharmacies, day care centres for babies of the significant number of nursing mothers, and offices for the market administration).

(iii) Access and Grounds (Under this sub-component, paved distributor and access roads, public parking/off loading and loading areas, and enhanced landscaping, and a combination of covered open drains/pipes to convey rain and foul water from within and the periphery of the markets to the adjacent town drainage system).

(iv) Health/Safety and Environmental (A system of fire hydrant points, fire fighting water points distributed in the marketing area and supplied from an overhead tank and portable fire extinguishers).

(v) Electricity Supply (A system of mains and distribution lines and lightening protection system would provide safe lighting and power for equipment).

11.2 Component II: The Market Management and Trade Enhancement component has two major sub-components;

(i) Management Information Systems (MIS) and Market Information (includes cost savings, revenue maximisation, budgetary control, improved planning, forecasting and decision making. At the local government level, some of the areas which currently require corrective action include: more transparency in the tendering process, improved monitoring and pricing of existing and potential sources of revenues (e.g. differential pricing for similar units in different locations), improved data collection and analysis for decision making, registration of all stallholders for improved planning, monitoring and evaluation, ad hoc studies/and or market surveys will be undertaken in the proposed urban markets at periodic intervals)

(ii) Linkages with the Agricultural Development: The project will ensure the facilitation of rural-urban marketing linkages where there are currently challenges and barriers to growth and development amongst market participants in the value chain for selected agricultural products. The overall objective is to ensure the smooth functioning and efficiency of the agricultural marketing system for a wide range of commodities produced in rural areas and sold at the markets. Some of the areas where the project envisages improvements with added impact include assisting the large number of small market traders in their associations to organize themselves according to commodity lines for purposes of joint marketing activities.

(iii) Capacity building and Development: (Tailor-made packages in Financial and Management Training; simple Accounting and bookkeeping techniques; Entrepreneurial and Business Skills Training; Value Addition and Food Processing Skills; Post harvest handling and storage; Marketing Management and Planning; Food Safety and Hygiene; Green Market Development; Management Information Systems; Monitoring and Evaluation. Environmental management will include capacity strengthening in solid waste management, air and water quality, Environmental Impact Assessment (EIA) guidelines, land use planning for urban markets, environmental standards in markets). For the sake of sustainability, capacity building will be undertaken through tailor-made Training of Trainers (TOT) packages or programmes to District Council Staff, especially, District Commercial Officers and District Community Development Officers, who will in turn at appropriate time organize and impart requisite skills to vendors and their committee members.

11.3 Component III: Project Management and Coordination: The Project will be implemented through an existing Project Facilitation Team (PFT) in the Ministry of Local Government, which oversees all donor/development partner funded Projects. The PFT is already implementing a number of Bank-funded Projects, including the AAMP, CAIIP-1 and CAIIP-2. The Head of the PFT will therefore be the overall coordinator of the Project assisted by the current staff contingent, which includes an Engineer, Financial Controller, Accountant, M&E Officer (2) and Secretary. The project will however, employ other technical staff (some of whom on temporary basis) to facilitate project implementation as the PFT may deem necessary. These include a Procurement Specialist, a Marketing Specialist on a full time basis and an Environmentalist and Gender Expert on a short time basis (for 3 months annually).

10.PROJECT OBJECTIVE: .. The overall sector goal is to contribute to poverty reduction and economic growth in Uganda through enhanced marketing of agricultural produce and other merchandise. The specific objective is to improve marketplace economic and social infrastructure thus inducing incremental production and marketing of agricultural commodities, enhancing the incomes of vendors, increasing employment and increasing customer satisfaction.

9.PROJECT RATIONALE:

The project has been necessitated by the grim and poor state of the current markets as well as an array of challenges (planning, environmental, infrastructural, legal and institutional, capacity building, finance and socio-economic) facing the markets. Some of the specific constraints include;

(i) Old dilapidated and inadequate infrastructure (lockups and stalls and associated buildings) which cannot meet the present day requirements;

(ii) Inappropriately planned and constructed temporary structures common in all auxiliary markets;

(iii) Inadequate space to accommodate the ever increasing numbers of vendors;

(iv) Poor sanitation and drainage systems;

(v) Lack of adequate water, electricity supply, and parking, loading and off loading areas;

(vi) Inadequate capacities (financial, logistical and human resources) to repair and maintain existing markets structures; and (vii) Due to the rapid growth of towns, general lack of land for development and expansion. These constraints (have made these markets to) pose health hazards to both the vendors and customers in these markets. The project will therefore Link rural markets with those in the urban conurbations as an important step towards creating synergies, value addition and gainful employment. The rural road infrastructure that has been developed under various DP projects, including the ADB, will facilitate the supply chain. The reconstructed markets will improve hygiene conditions, reduce post-harvest losses, install facilities to meet demand, for example cold storage units for fish storage, provide increased trade opportunities between rural and urban areas, and serve as wholesaling centres for intra-urban and cross-border trade, especially for agricultural commodities. These commodities constitute 40% to 50% of products traded in the markets. In Uganda about 80% of women are engaged in agriculture production and trading activities. Access to markets is a primary constraint to increasing their income and improving their livelihoods. The overall objective is to ensure the smooth functioning and efficiency of the agricultural marketing system for a wide range of commodities produced in rural areas and sold at the markets.

12.PROJECT BENEFITS:

The project will contribute significantly to poverty reduction mainly as a result of increased income generation through increased marketed agricultural commodities and traded merchandise. Besides, the project will facilitate gainful employment, especially with the increase in the number of stalls/locks as well as expansion of selling areas. The project will have far reaching social welfare benefits including better working conditions and facilities for a clean and hygienic environment leading to improved wellbeing. The markets will also contribute towards the development of sustainable food production, value addition and best practices in management, leading to improved food security, nutrition, and competitive commodity prices for consumers, improved quality of life for market traders and environmental management practices. Specifically, the project will encourage demand driven agricultural development in both rural and peri-urban areas for sustainable poverty reduction

IHEDIOHA Onyema Damian - OSAN1

Finance source	Amount
ADF	UAC 38,000,000
Government	UAC 4,224,000
Total	UAC 42,224,000