The World Bank is pleased with the implementation of the Uganda Intergovernmental Fiscal Transfer (UGIFT) Programme managed through the Ministry of Finance, Planning and Economic Development.
The government of Uganda has constructed 144 Seed Secondary Schools and upgraded 371 Health Centres II to Health Centres III under the programme that commenced in 2017.
The World Bank-funded UGIFT is a programme aimed at ensuring equitable allocation of resources to reduce disparities in different areas, and is implemented at local government level, targeting selected social services like health, education, water and agriculture sectors.
The World Bank Mission team together with Government focal officers supporting the implementation of UGIFT programme in selected districts have assessed the progress of sub-projects among other activities under the programme.
The World Bank team leader, Barbara Magezi Ndamira, Senior Public Sector Specialist, said after restructuring, the program has made satisfactory progress towards achieving its development objectives. She noted that 25 out of 31 (81 percent) targets were met and 23 out of 34 (68 percent) intermediate indicators achieved.
She also highlighted the improvement in timelines of release of resources to local governments and enhanced adequacy of financing with 111 overall growth between financial years 2017/18 and 2023/24.
According to reports available, UGIFT programme outcomes include; Increased enrolment in seed schools from 27,967 in 2022 to 62,690 learners enrolled by April 2024.
Also on record is more than 25,639 deliveries made in the upgraded health centres, while at least 871,000 people now have access to clean water.
In line with the restructured program, about 13,509 staff (primary and secondary school teachers, school inspectors, health workers) as well as water and environment officers have been recruited and also accessed the government payroll.
Under the UGIFT Programme, Government planned to construct 259 Seed Secondary Schools, upgraded 371 Health Centres II to Health Centres III, and construct and equip blood banks for Arua, Hoima, and Soroti Regional Referral Hospitals.
Records at the Ministry of Finance show that already, 144 out of 259 Seed Schools have been completed and operationalized.
A total of 316 out of 371 health facilities have been upgraded from HC II to HC III, which the ministry said is commendable.
UGIFT Programme is scheduled to close in June, 2025 and, therefore, the ministry is urging Local Governments to expedite all the pending civil works before June 2025.
Local Governments are also expected to identify and address challenges to completing the construction of all UGIFT projects and strengthen monitoring and supervision of works to ensure adherence to all contractual obligations.
“Local governments are expected to operationalize all the Seed Secondary Schools and the upgraded/constructed Health Centre IIIs,” the ministry states.
To operationalize, they will have to hire the staff, equip the facility and budget for the operational funds and medicine.
The objective of the UGIFT Project for Uganda is to improve the adequacy and equity of fiscal transfers and improve fiscal management of resources by local governments for health and education services, according to the World Bank.
The Programme is based on the ground that improved local government financing of selected services is necessary for good outcomes, but it needs to be complemented with sustained policy improvements and investment in health and educations sectors.
Funding levels for social services in most local governments are said to be too low to achieve the needed outcomes.
Specifically, the program addresses three constraints that have a major adverse impact on service delivery;
(a) The large-scale horizontal inequities in the per capita amounts of transfers received by the local governments
(b) The inadequate level of per capita social expenditures in poorer Local governments
(c) The poor fiscal management of resources by local governments.