USMID-AF comes to close as govt seeks new financing
Dec 04, 2023
We encourage the benefitting communities to support our contractors to speed up by working day and night to push works to a conclusion before December 31, 2023," Kania said.
A section of main street road which was worked on in USMID. (Photos by Doreen Musingo)
Doreen Musingo
Journalist @New Vision
_________________________ Minister Obiga Kania who asked communities embrace sustainability of USMID projects which is closing
Benefitting cities and municipalities under USMID-AF have been urged to embrace the sustainability of the projects as the Government negotiates the second phase from the World Bank.
Uganda Municipal Support Infrastructure Development (USMID) Phase One Additional Funding (USMID-AF) worth $360m (about sh1.3 trillion), which started in 2019 where the Government received 94% of the funds with the balance of six percent is closing on December 31, 2023.
Urban development state minister Mario Obiga Kania says well as USMID 1 AF is ending, a lot of infrastructure development has been achieved in the 10 cities, municipalities, and refugee-hosting districts which should be sustained.
Kania said despite its coming to an end, the Government is in discussions with the World Bank to secure more funding for USMID II which will even cover a wider area than before.
Kania made the remarks while officiating at the inauguration of the executive committee of the executive committee of the Uganda National Urban Forum (UNUF) on Wednesday at the Source of Nile Hotel in Jinja City.
“Everybody has seen the positive results of infrastructure development under USMID-AF, despite the few mistakes faced with implementation. We encourage the benefitting communities to support our contractors to speed up by working day and night to push works to conclusion before December 31, 2023," he said.
Funding worries allayed
He added that once the period elapses the remaining works will be handled through the defect period where he called for quality works. He cautioned them not to worry over the World Bank's alleged suspension over funding of new projects saying that under USMID-AF the funds were already secured and are on the district accounts.
The minister urged them not to get worried saying that in case the World Bank doesn’t consent to the second phase, the Government has noted the beauty of USMID and will secure other funders from partner countries that are ready to support.
“As the ministry we are still optimistic the World Bank knows how well their money has helped and been put to good use, I'm confident they will come back, but in case they fail then the Government will secure funding from other countries which are ready to help,” he noted.
Extension of one year sought
USMID national coordinator Dr Isaac Mutenyo said the project delays were encountered during the COVID-19 era, which has affected works in the cities, municipalities, and refugee-hosting districts.
Mutenyo explained that 94% of the funds were released to handle the ongoing projects and in recognition of this, the Government, through the finance ministry, has written to the World Bank requesting an extension of one year and the balance of 6% which will be used to handle the remaining works.
“Currently as we are working to hit the deadline of 31st/December towards achieving substantial completion of all infrastructure projects if we don’t receive a response from the World Bank, it will be a hard target but the remaining works will be completed by closure of the financial year in June 2024,” he said.
He said projects under USMID-AF which started in 2019, 53km of urban roads and 76km of rural roads are expected to be completed. Other projects that will be affected in case Work Bank delays the extension funds are the Busia district taxi park, markets in refugee hosting districts including Mubende, and works in Mbarara, Ntungamo, and Kabale where the contractor didn’t start on time.
However, Mutenyo said the Governement has also initiated a new programme of Uganda cities and municipalities infrastructure development which has been approved by the development committees of the finance ministry to supplement USMID works by supporting newly created cities, town councils, and municipalities where boundaries were extended in rural areas.
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