Uganda - Integrated Water Management and Development Project : Additional Financing

Overview & Synopsis

The objectives of the Additional Financing of the Integrated Water Management and Development Project for Uganda aims to improve access to water supply and sanitation services, integrate water resources management, and enhance the operational performance of water and sanitation service providers in the project areas. The AF will be used to finance a cost overrun resulting from costs that are higher than estimated during project preparation, contract price adjustments, and exchange rate losses. No new activities, other than those already planned at appraisal, will be undertaken. No additional safeguard policies are triggered, and there are no new safeguard risks. The cost overrun was caused mainly by (i) exchange rate losses which reduced the US Dollar value of the financing by about 20 million dollars since the appraisal of the original financing, and (ii) cost escalation of materials and services from the resulting post-COVID-19 pandemic effects on the global economy, which contributed to higher than estimated costs and price adjustments to ongoing contracts. The AF will enable the project to achieve its PDO. The activities to be financed are part of the original project design, and the Project Components and PDO Indicators remain unchanged.