Gov't unveils new program to replace USMID

By Hakim Kanyere | Wednesday, November 29, 2023
Gov't unveils new program to replace USMID
Minister Obiga Kania.

In a strategic move to continue the transformative momentum in urban development, the Ugandan government has introduced the Uganda Cities and Municipalities Infrastructure Development (UCMID) program, poised to replace the concluding Uganda Support to Municipal Infrastructure Development (USMID) by the end of this year.

Obiga Kania, the Minister of State for Urban Development, disclosed  government's ongoing negotiations with the World Bank for a substantial $750 million to fund the UCMID project.

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In the event of any potential suspension of World Bank support for Ugandan projects, Minister Kania assured that alternative funding sources would be explored.

"We are in talks with the World Bank to fund the USMID-2, considering what USMID and USMID-AF have done in our urban areas," stated Minister Kania during the inauguration of the new leadership of the Uganda National Urban Forum, a crucial platform acting as a think tank for urban areas.

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Highlighting the importance of diversifying funding sources, Minister Kania affirmed, "If the second USMID doesn't come from the World Bank, we can look for other funders since World Bank is not the only source of funding." He expressed optimism that the World Bank would continue its support, possibly increasing the funds.

The UCMID project encompasses various components, including the creation of new roads in annexed rural areas as new cities emerge.

Dr. Isaac Mutenyo, the Project Coordinator, emphasized the focus on extending infrastructural developments like markets to enhance urban growth.

Walter Joseph Pade Pade, the Commissioner in charge of Urban Development at the Ministry of Lands, emphasized the need for urban authorities to leverage the newly constructed infrastructure to expand their local revenue collection base. He urged cities to learn to utilize the infrastructure provided to generate revenue.

Members of the Uganda National Urban Forum proposed key areas for development enhancement, advocating for specific laws tailored for urban areas rather than relying solely on the Local Government Act.

They also called for legislation preventing utility services from damaging roads without subsequent repairs.

Over the past decade, the World Bank has played a pivotal role in funding urban infrastructural development in Uganda through projects like USMID (2014-2019) and USMID

 

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