- Reference: P-UG-AB0-003
- Approval date: 03/05/2011
- Start date: 22/02/2012
- Appraisal Date: 16/12/2010
- Status: OngoingOnGo
- Implementing Agency: MINISTRY OF LOCAL GOVERNMENT MOLG
- Location: SELECTED DISTRICTS
CAIIP-3 will consist of two field components and one service component, namely:
(i) Rural Infrastructure Improvements
(ii) Community Mobilization and
(iii) Project Management. It will cover 68 sub-counties across 31 districts in the Western, Central, Northern and Eastern regions of Uganda. Operations are expected to commence in 2011 and run for 5 years, and the total project cost, not including taxes and duties, is estimated at UA40 million, of which the Bank will finance 100%.
Rural Infrastructure Improvements
The project will construct 3060 km of Community access roads (45 km per sub-county) to connect to District roads, main roads, production areas and commercial centers. Community access roads will be selected based on the priorities of selected Sub-Counties. Project roads will be all-weather gravel and in line with Class III specifications and designed in accordance with the standards of the Ministry of Works and Transport (MoWT).
The Project will improve or construct one marketplace per sub-county for a total of 68 rural market places. Market placement and size decisions will be guided by production levels, trade volumes, existing infrastructure, numbers of vendors, land availability and revenue potential and based on consultation with key stakeholders.
The project will provide one agro-processing or value addition facility per sub-county for a total of 68 facilities. Where feasible, these facilities and their housings will be incorporated into designs and construction of the rural markets to ensure integrated marketing and processing in a single market unit where farmers can simultaneously deliver, sell, store and add value to commodities. The menu of agro-processing options includes but is not limited to rice hullers/millers, maize mills, fruit and grain millers, peanut cracker and peanut paste machines, cassava chipping equipment, honey extractors and milk coolers.
The project will provide a reliable, affordable and sustainable electricity supply for basic services in the 68 marketplaces and related agro-processing facilities. This rural electrification will primarily be provided in the form of grid extensions and diesel generators.
The project will finance community mobilization activities, such as trainings and seminars for prioritization of works and project sensitization workshops, to make small rural farm holders, interest groups and communities aware of the programme. Trainings for relevant district officers will also be conducted to strengthen their capacity for working in partnership with local communities and managing infrastructure developed under the project. This will enable them to participate actively in the inventorization, prioritization, selection and implementation of their choice of local area infrastructure interventions. This will also assist to establish the necessary structures that will ensure the maintenance and sustainability of their investments. Mobilization will target farmers groups, women groups, Parish development committees and community appointed road maintenance gangs (of which at least 50% will be women).
To ensure appropriate mainstreaming of gender and other cross cutting social concerns in project implementation, the PFT includes dedicated Community Development Officers (CDOs) with expertise in gender related issues at both the national and regional levels. As is the case with the CAIIP-1 and CAIIP-2, the CDOs will ensure that at least 30% of the beneficiaries of community outreach and mobilization activities are women.
The Project will provide resources for management and coordination, including project and district coordination equipment, training, monitoring and evaluation, supervision, preparation of audit and progress reports and studies.
The project's specific objectives are to enhance farmers' access to markets, attract competitive prices and increase incomes through improvements in rural infrastructure and infrastructure management by well mobilized communities.
The Bank's added value in the CAIIP-3 intervention is derived from its accumulated experience in the sector through its existing agricultural portfolio in Uganda and its strong record of financing infrastructure-related agricultural projects in Uganda with positive impact at the grassroots level. The project is well aligned with the Bank's Agriculture Sector Strategy and the Medium Term Strategy, as well as the recently approved Country Strategy Paper (CSP) for Uganda for 2011 -2015 which lists Infrastructure Development as Pillar 1 of the Bank's strategy with the goal of increasing agricultural productivity through the "upgrading of community access roads as well as other infrastructure to support the agricultural sector." The project is also aligned with the Bank's Framework Paper: Programme for the Reduction of Post-Harvest Losses in Africa 2010-2014 (PHLP) and the Bank's response to address food crisis risk in Africa in the medium term, through the enhancement of agricultural production and productivity. High marks on past performance, namely, recognition of CAIIP in November 2010 as the best managed project in Africa among projects receiving partial funding from IFAD, further strengthen the rationale for the Bank's continued involvement.
Project activities are also consistent with the overall sector goals of the Government of Uganda, the Uganda National Development Plan (NDP) 2010 and the Agricultural Sector Investment Plan - 2010 (DSIP) and will lend support to the Uganda National Agricultural Advisory Services (NAADS) Plan for Zonal Agricultural Production, Agro-Processing and Marketing.
Interventions under CAIIP-3 are expected to yield direct financial benefits in project areas including:
(i)an increase in average farming household income of 20% stemming from higher prices reaching farmers as a result of reduced transport costs, improved access for buyers and improved access to value addition options; and
(ii)an increase in marketed production of 20% and a 15% reduction in PHL both stemming from improved access to markets and agro-processing opportunities.
The project is also expected to lead to a sharp increase in the number of people who can access all weather roads in project areas and yield a number of significant but non-quantifiable benefits including reduced commuter time and improved access to education, health care and other social services as a result of road improvements.
NUWAGIRA Asaph - RDGE4
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