Uganda and the World Bank have agreed that development projects must pass through the country’s Public Investment Management System (PIMS) before being considered for approval and financing, Finance Minister Henry Musasizi said.
The measure is intended to improve project preparation, control costs and timelines and address delays in implementing government programmes and absorbing available development funds.
Musasizi reached the agreement with Qimiao Fan, the World Bank’s Division Director for Uganda, Kenya, Somalia and Rwanda, during a meeting at Uganda’s Finance Ministry ahead of the World Bank and International Monetary Fund annual meetings in October.
“We are looking at one agenda of efficiency and effectiveness and this will greatly improve with PIMS. This will also cure the challenge of poor absorption of funds. We have to do the right job at every stage so that we see impact on the ground,” Musasizi said.
He said projects should be aligned with Uganda’s national development priorities, including the standard gauge railway, electricity generation and transmission, irrigation and value addition.
Fan said Uganda needed to streamline procedures between project preparation, government approvals, negotiations, procurement and implementation to reduce the time taken for projects to produce results.
He also highlighted the need for faster and more inclusive economic growth to create jobs for young people entering Uganda’s labour market each year.
Uganda’s Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, called for a balance between financial prudence and speed in implementing projects.
He said implementing agencies and the government’s Development Committee should ensure that projects deliver tangible and sustainable results.
The meeting also reviewed progress on a proposed $500 million Development Policy Operation aimed at supporting Uganda’s Tenfold Growth Strategy.
Officials also discussed projects in the World Bank’s International Development Association (IDA21) pipeline, including UgIFT 2.0, the revised INVITE programme and infrastructure development in Greater Kampala.
Uganda’s World Bank development portfolio is valued at about $4.62 billion, with approximately $1.48 billion disbursed, according to figures presented during a recent Country Portfolio Performance Review.
The new emphasis on PIMS comes as Uganda seeks to improve the conversion of approved development financing into completed projects and measurable economic and social outcomes.
The World Bank and Uganda are expected to further discuss development financing and project implementation during the IMF-World Bank annual meetings in October.
