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Activity Name: OBA in Water Supply in Uganda's Small Towns and Rural Growth Centers
Country (and Region):  Uganda (AFR)
Water and Sanitation
Activity Objectives: The objective of the Project is to increase access to sustainable water supply services to the poor living in selected small towns and rural growth centers. Water supply services will be provided through increased participation of local private operators who will be selected on a competitive basis. The Project consists of selection the following parts:

• Extension of existing water supply systems in 6 small towns to serve those not.

• Construction of green-field water supply systems in 4 rural growth centers to provide the inhabitants with piped water supply.
Development Impact: The project is expected to result in at least 1,982 new connections mostly in the form of yard taps serving about three families each, but also including at least 36 public water points that serve several hundred people each. The project is expected to provide improved water access to about 45,000 people.
GPOBA's role: GPOBA has a mandate to fund pro-poor output-based subsidies in the water sector, with special emphasis on the world’s poorest countries. This project anticipates increased innovation and efficiency in the sector by reducing the role of the government in system design, competitive tendering for the OBA contracts, and increasing the potential market of operators/investors in the sector – including participation of local banks in financing water sector operations.
Activity Type:
Emerging Lessons/Best Practice
Funding OBA Payments
Project Design and Development
Total Project Cost: US$3,614,000
GPOBA Technical Assistance: US$414,000
GPOBA Grant: US$3.2m
Subsidy Co-financing: US$0
Grant Recipient: Uganda's Directorate of Water Development
Environmental/Social Categorization: "B" for EIA see: http://go.worldbank.org/39ARCACZU0
Approval date: 01/2006
Task Manager: Yogita Mumssen
Project Update: A Grant Agreement was signed on February 12, 2007.
Status: Active
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