A World Bank–supported Operation strengthening the Government of Uganda’s efficiency, accountability, and sustainability in public investment and asset management, in line with NDP IV and the Tenfold Growth Strategy.
Public Investment Management (PIM) refers to the systems, processes, and institutions the Government uses to plan, allocate, implement, and oversee public investment projects to ensure value for money. These are typically long-term capital investments—schools, roads, hospitals, power plants, water and ICT infrastructure, among others.
In Uganda, PIM has been at the fore of Public Financial Management (PFM) reforms given its contribution to economic development. The Government recognizes the critical role of PIM in infrastructure development and the need to identify and implement projects that deliver an appropriate return on investment, with implementation monitored and lessons learned feeding into future projects.
The PIM PLUS Operation is a hybrid financing arrangement supported by the World Bank (IDA Credit 7917-UG), comprising Program-for-Results (PforR) and Investment Project Financing (IPF). Implementation is guided by the Operations Implementation Manual (OIM).
Results-based financing tied to Disbursement-Linked Indicators (DLIs). Funds are released upon achievement and independent verification of agreed results. Disbursements support institutional reforms and selected strategic public investments aligned with NDP IV and the Tenfold Growth Strategy.
Sub-component 2A ($36M): Project Preparation Facility (PPF), hosted by the National Planning Authority (NPA), financing feasibility studies, detailed engineering designs, and environmental and social assessments for priority investment projects.
Sub-component 2B ($4M): Institutional strengthening and change management, including capacity building, policy and regulatory updates, and process improvements across participating MDAs.
A comprehensive approach to managing public investments from conception to operation
Identifying strategic projects aligned with national development goals and priorities, and developing comprehensive project proposals with feasibility studies and risk assessments.
Rigorous evaluation of project viability, costs, benefits, and climate resilience.
Strategic selection based on clear criteria ensuring optimal resource allocation.
Allocating resources efficiently to support project implementation phases.
Continuous tracking of progress, impact assessment, and learning for improvement.
Final handover ensuring deliverables meet quality standards and specifications.
Sustainable asset management ensuring long-term value and functionality.
The PIM PLUS Operation is structured around four Result Areas, with Disbursement-Linked Indicators (DLIs) driving institutional reforms and strategic public investments.
Disbursement Linked Results
To strengthen efficiency, accountability, and sustainability of public investment and asset management.
Improve resource mobilization, planning and budgeting, including sustainability and climate resilience
Project readiness strengthened, including resilience and sustainability
Project execution strengthened and efficiency improved
Asset management and maintenance strengthened
Each DLI has a lead implementing MDA (vote) and supporting MDAs. Implementation is incorporated into annual work plans and monitored by MoFPED.
| DLI | Indicator / Purpose | Financing (US$ M) | Lead MDA / Vote | Supporting MDAs |
|---|---|---|---|---|
| DLI 1 | Financial commitments of approved PIM projects are budgeted for in the annual budget and MTEF ceilings, and ongoing projects are prioritized | 16.5 | MoFPED (PAP) | BPED, PPMD, ISSD, DARC |
| DLI 2 | Realistic strategies and tools in place for increasing domestic revenue mobilization | 16.5 | MoFPED (Tax Policy) | URA |
| DLI 3 | Programme and physical plans reflect environmental sustainability, climate adaptation and mitigation priorities | 12.5 | MoWE | NEMA, NPA, MoLHUD |
| DLI 4 | Percentage of new projects that have met DC appraisal and selection criteria before inclusion in the PIP | 14.5 | MoFPED (PAP) | NEMA, MoWE |
| DLI 5 | Environmental, Social, Health and Safety (ESHS) considerations in project preparation improved, including evidence of citizen engagement and gender and equity considerations | 10.0 | NEMA | MoGLSD, MoWE, MoFPED (PAP, Gender Unit) |
| DLI 6 | Percentage of medium and high-value contracts in selected programmes that are procured (up to contract signature) within cost caps and planned milestones | 15.0 | PPDA | MoFPED (PPMD) |
| DLI 7 | Overall percentage of projects that meet expected milestones and for which progress is reported on, and timely completion of selected priority projects | 24.0 | MoFPED (PAP) | MoFPED (BMAU), NPA, OAG |
| DLI 8 | Percentage of projects for which approved climate resilience and ESHS measures are monitored and reported on during implementation | 16.0 | MoWE | NEMA, MoFPED (PAP) |
| DLI 9 | Asset Registration, Valuation and Monitoring in place covering at least three MDAs’ infrastructure projects | 15.0 | MoFPED (AMD) | MoFPED (AGO, PAP) |
| DLI 10 | Increase in infrastructure maintenance efforts to enhance sustainability | 20.0 | MoWT | MoFPED, MoWE, NEMA |
Abbreviations: PAP = Project Analysis and Public Investments Department; BPED = Budget Planning and Evaluation Department; PPMD = Public Procurement and Management Department; ISSD = Infrastructure & Social Services Department; DARC = Development Assistance & Regional Corporation; BMAU = Budget Monitoring and Accountability Unit; AMD = Asset Management Department; AGO = Accountant General’s Office; NPA = National Planning Authority; NEMA = National Environment Management Authority; MoWE = Ministry of Water and Environment; MoWT = Ministry of Works and Transport; MoGLSD = Ministry of Gender, Labour and Social Development; MoLHUD = Ministry of Lands, Housing and Urban Development; PPDA = Public Procurement and Disposal of Public Assets Authority; URA = Uganda Revenue Authority; OAG = Office of the Auditor General.
The PIM PLUS Operation supports the Government of Uganda’s efforts to strengthen public investment and asset management systems for improved efficiency, quality, and sustainability of public investments.
The PDO is to strengthen the GoU's efficiency, accountability, and sustainability of public investment and asset management. Progress is measured through four PDO indicators with targets by 2031.
The Operation builds on existing PFM reform governance: PEMCOM (Public Expenditure Management Committee) provides overall policy oversight; the Operation Steering Committee (OSC), chaired by the PS/ST of MoFPED, provides strategic guidance; and the Operation Technical Committee (OTC), chaired by the Director of Budget, manages technical and operational coordination. MoFPED leads implementation through the PAP Department and the Reform Coordination Unit (RCU).
Resources earned from attainment of DLIs are prioritized for strategic investments in line with Uganda’s development agenda, including:
The OIM should be read alongside the Financing Agreement (IDA Credit 7917-UG), DFIL, PAD, ESCP, and ESSA. Documents can be accessed at finance.go.ug.
Uganda’s PIM system design is among the strongest in Sub-Saharan Africa; however, implementation challenges persisted, providing the rationale for the PIM PLUS Operation.
Key challenges include: system-wide implementation lags with cost and time overruns, arrears, and weak maintenance; fiscal and budgeting gaps (PIP entries exceeding fiscal space, over-commitment, counterpart funding shortfalls); project preparation weaknesses (many projects without quality feasibility work); environmental, social and gender gaps in preparation and ESIAs; limited climate integration in sector plans; procurement delays and contract management capacity constraints; and underfunded, unsystematic asset maintenance.
The Operation seeks to move from strong system design to more effective, results-oriented implementation across the full public investment lifecycle—planning and project preparation with climate resilience and environmental sustainability, timely implementation, and stronger post-completion asset management. The PAP Department at MoFPED supports PIM processes and coordinates the Operation with the RCU.
The Operation concentrates on strengthening resource mobilization and planning, enhancing project readiness, improving execution efficiency, and institutionalizing asset management across the PIM cycle.
Assess project viability, alignment with national priorities, and climate resilience.
Select projects based on clear criteria, prioritize them, and consider climate adaptation benefits.
Develop detailed project designs that incorporate climate resilience and stakeholder engagement.
Ensure transparent and competitive procurement processes.
Deliver projects on time, within budget, and to required quality standards.
Ensure effective operations, plan for maintenance, and incorporate climate adaptation measures.
Manage assets effectively, monitor performance, and ensure climate resilience.
Track project progress, evaluate impact, and assess climate resilience and adaptation effectiveness.
Official publications, guidelines, and resources related to the PIM PLUS Operation and the Operations Implementation Manual (OIM).
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Plot 2-8, Sir Apollo Kaggwa Road
P.O. Box 8147, Kampala, Uganda
Projects Analysis & Public Investment Department (PAP)
