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Uganda: Bankable Investment Opportunities into Infrastructure

Uganda: Cites and Infrastructure for Growth

Challenge

The programme enhanced Uganda’s economic performance by supporting the Government of Uganda in preparing bankable investment opportunities into infrastructure projects and attracting direct foreign investment and private sector financing.

Approach

The programme provided demand-driven technical assistance to government ministries, departments, and agencies to address constraints hindering urban development in the Jinja–Kampala–Entebbe corridor with particular emphasis on the Greater Kampala Metropolitan Area. CIG-Uganda’s vision was to develop a sustainable urban environment that supports Uganda’s economic development and makes Kampala ‘fit for purpose’ as the engine of national prosperity and growth.

The programme was delivered through building institutional capacity of partner government ministries, departments, and agencies, and the private sector for improved efficiencies, private sector engagement, public-private partnerships, GESI, and climate change mainstreaming, learning, and adaptation. CIG-Uganda reduced poverty and enhanced economic growth through enhanced urban productivity, improved access to reliable and affordable power to support increased trade and private sector development, improved infrastructure services, and better asset and financial management of sustainable investment.

Goals and Results

  • CIG supported the Ministry of Energy and Mineral Development to develop a five-year roadmap for the transformation of the Ugandan power sector aimed at fostering collaboration between sector players and mobilising investment towards increasing access to reliable and affordable power in Uganda.
  • CIG supported the Kampala Capital City Authority to develop their strategic plan for 2020-2025 using the Balanced Score card method. The strategic plan mobilised £300m in fiscal transfers from the government. CIG further supported the Kampala Capital City Authority to develop a finance strategy for mobilising investment in urban infrastructure and completed feasibility studies for climate smart urban market infrastructure to be funded by AfDB at £28 million.
  • Under solid waste management, CIG supported the Kampala Capital City Authority to carry out feasibility studies and environmental and social impact assessments of the closure of the overdue Kiteezi landfill and operationalization of the proposed Ddundu Waste Treatment and Disposal facility. This support mobilised £46.75 million for the project to be undertaken as a public-private partnership led by International Finance Corporation.
  • CIG supported Uganda National Roads Authority in implementation of the Resettlement Action Plan for the proposed Kampala Jinja Expressway in line with International Finance Corporation safeguards by carrying out feasibility studies for displacement of vendors in Nakawa market and slum dwellers in Kinawataka and Kisokosoko, the hotspots in the right of way. This support mobilised £585 million for construction of the expressway.
  • Under the Climate Smart Urban Development Initiative, CIG supported the Ministry of Lands, Housing and Urban Development to carry out pre-feasibility studies for development of climate smart infrastructure with nature-based solutions in an upcoming urban area in Greater Kampala. The support mobilised investment from AfBD for implementation and guidelines were prepared for replication in development of urban infrastructure country wide.
  • CIG completed feasibility studies and developed a masterplan for the inclusive development of climate smart infrastructure at the Jinja Industrial and Business Park.
  • CIG completed preparatory studies for the development of Bus Rapid Transit and Inland Water Transport infrastructure in Uganda.
  • CIG mainstreamed climate change and Gender Equality and Social Inclusion in all the intervention areas fostering mindset change and capacity building of government partners.

Impact results

  • Cumulatively, CIG mobilised £1,123m of finance for urban infrastructure across the various interventions.
  • CIG supported the development of 4 projects to bankability.
  • CIG developed 7 investment mechanisms with approved sources of funding.
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