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By Julius Mugaga/ KMA Updates.
Makerere University, Kampala-Uganda: Makerere University with a grant from the United Kingdom to a tune of 1 Million USD through the World Bank with recommendation from Ministry of Finance Planning and Economic Development has put up a Public Investment Management (PIM) Centre of Excellence expected to bridge the gap in the PIM returns.
Technical person explains the functionality of the Centre of Excellence on the digitized screen at Makerere University. Photo by Julius Mugaga.
Ms Mukami Kariuki, The World Bank Country Manager for Uganda “Promoting Good Practices in Public Investment Management”, which we (the World Bank) have joined our colleagues – the Ministry of Finance, Planning and Economic Development, the United Kingdom Government through the Foreign Commonwealth Development Office, and Makerere University, to co-host.
Ms. Mukami Kariuki, The World Bank Country Manager for Uganda gives her address at the launch of Public Investment Management (PIM) Centre of Excellence at Makerere University. Photo by Julius Mugaga.
The World Bank in Uganda is currently administering a Multi-donor Trust Fund (MDTF) portfolio worth US$34 Million to support the National Development Plan
by;
o fostering improvements in economic governance, fiscal management, and service delivery, by addressing capacity gaps in operations, to accelerate implementation of programs within the public sector and/or remove constraints to implementation within the private sector
o promoting green growth through inclusive and sustainable management of natural and tourism resources, including activities aimed at combatting effects of climate change
o strengthening community (host and refugees) resilience; and
o enhancing private sector development and job creation.
Ms. Mukami Kariuki, The World Bank Country Manager for Uganda (Front), Mr. Ashaba Hannington, the Commissioner Projects Analysis and Public Investment Department at the Ministry of Finance Planning and Economic Development (Middle) and Prof. Eria Hisali, the Principal College of Business and Management Sciences (CoBAMS) Makerere University (Right) walk into the Public Investment Management (PIM) Centre of Excellence. Photo by Julius Mugaga.
Mr. Ashaba Hannington, The Commissioner Projects Analysis and Public Investment Department at the Ministry of Finance Planning and Economic Development (Front), Ms. Mukami Kariuki, The World Bank Country Manager for Uganda (Middle) and Jordan Martindale, the Growth, Prosperity and Climate team leader at British High Commission, Kampala (Right) attends to the lecture on the functionality of the (PIM) Centre of Excellence. Photo by Julius Mugaga.
The MDTF activities also support experimental, innovative, and catalytic initiatives to accelerate achievement of enhanced inclusive and sustainable growth and sustainable exit from dependence on aid.
Let me now focus on the theme of the day. This activity “Promoting Good Practices
in Public Investment “was supported by window one of the MDTF, which aims to
foster effectiveness and efficiency in utilization of public resources.
For the past ten years, the Government has increasingly prioritized capital development as one of the tools for facilitating and stimulating economic development, in line with the National Development Plans. The overarching goal of this strategy is to address the binding constraints on economic growth in the country, and in particular the significant infrastructure deficit that the country faces.
An expansionary fiscal policy that prioritizes capital development can be well justified as providing economic stimuli and enhancing the stock of public assets, even in times of crises, like the COVID19 pandemic. It may also lead to the achievement of long-term economic growth and development and hence reduce poverty.
Such a policy addresses itself to urgent needs such as low levels of electricity connectivity, poor transit and transport infrastructure, inadequate health facilities, dilapidated school structures, and limited access to safe water and sanitation facilities. These are just some of the issues that affect millions of Ugandans every day, and which will require significant investments now, and in the years to come.
Ms. Mukami Kariuki, The World Bank Country Manager for Uganda (Front), Ms. Jordan Martindale, the Growth, Prosperity and Climate team leader at British High Commission, Kampala (Middle) and Mr. Ashaba Hannington, The Commissioner Projects Analysis and Public Investment Department at the Ministry of Finance Planning and Economic Development (Right), awards certificates to the Qualified Students of Public Investment Management (PIM). Photo by Julius Mugaga.
A Group photo of Qualified Students of Public Investment Management (PIM) and Officials at the launch of Public Investment Management (PIM) Centre of Excellence. Photo by Julius Mugaga.
However, addressing these issues is not just about the level of investment. It is clear that higher levels of investment cannot yield returns if the quality of projects remains consistently poor. Issues typically arise from the poor design of projects, delays in implementation, cost escalations, time-overruns, contract disputes, abandonment of projects, substandard quality of some completed projects, and rapid depreciation of public capital stock.
Indeed, addressing these weaknesses requires attention to public investment management systems.
It is therefore important that the Government has identified the considerable implementation challenges facing Public Investment Management, which have led to resource waste and poor development outcomes. It has therefore been undertaking a series of reforms to strengthen public investment management.
The World Bank Group is fully behind the Government’s effort in addressing the PIM challenge. A key source of support to the reforms has been a Multi-donor Trust Fund to Support Implementation of the National Development Plan. MDTF funding for the PIM program is managed by the World Bank and resourced by the Foreign, Commonwealth and Development Office of the UK Government (FCDO).
A team from Uganda Revenue Authority showcases different developments within their services at the event. Photo by Julius Mugaga.
We are pleased to note that the PIM interventions presented here today, have been carried out through eight government institutions. They aim to strengthen institutions; build technical capacity of relevant government officers and develop decision making tools that will ultimately increase the returns on investments – thereby promoting more rapid growth and improving the country’s capacity to manage its debt. We commend Government for taking these bold steps. Implementing these reforms is not a small challenge given political economy dynamics and governance challenges that typically surround public investments. An event like the one we are
holding today can therefore help in achieving the following;
o Raising knowledge about the importance of strengthening public investment management across the entire project cycle, while learning from reforms that have been undertaken and practitioners elsewhere.
o Sensitizing all stakeholders from across government and the public about the program interventions that have been undertaken to strengthen public investment management
o Demonstrating the value for money/results that have been realized out of interventions
Building the momentum for the rest of the reform program, will require the Government to focus on six key areas:
- Continue the process of formalizing and strengthening independent review of new project proposals.
2. Build the capacities of Ministries, Departments and Agencies and other implementing agencies in project preparation, appraisal, approval, and monitoring.
3. Document and implement good practice operational processes, starting with project preparation and appraisal.
4. Reserve resources to facilitate feasibility studies during the pre-investment stage – in some countries this has been done by creating a technical fund.
5. Establish standard frameworks for the monitoring and evaluation of all public capital investment projects under implementation; and
6. Formulate a policy framework for public investment management. Such a policy should emphasize the importance of Transparency, particularly during project appraisal. For example in some countries, a public hearing scrutinizes projects, before they are allocated resources from the public coffers.
Pictorial of Makerere University School of Performing Arts leading the team of Officials to the Centre of Excellence at the Central Teaching Facility Two (CTF2) . Photo by Julius Mugaga.
She reaffirms the World Bank’s commitment to supporting Uganda’s development agenda. As a development partner, we appreciate the commitment and determination that the country continues to demonstrate in exploring alternative and more efficient models for development.
She hopes that these efforts yield the desired outcome – a more efficient and effective system that will maximize Uganda’s return on investment and enable sustainable development impact, particularly for those with the least access to infrastructure and services.
Jordan Martindale, the Growth, Prosperity and Climate team leader at British High Commission, Kampala addresses the congregation at the launch of Public Investment Management (PIM) Centre of Excellence at Makerere University. Photo by Julius Mugaga.
While addressing the congregation at the launch, Jordan Martindale, the Growth, Prosperity and Climate team leader at British High Commission, Kampala admits that what I am excited about is that we shall have students many more than we could ever get and this will help implement better policies for more investment.
She believes that Ugandans have required skills and believes the facility will add value to them if efficiently used.
She also requested the team on ground to work unceasingly such that the facility meets its expectations in transforming an amazing Ugandan team with required Public Investment Management Skills.
Prof. Eria Hisali, the Principal College of Business and Management Sciences (CoBAMS) Makerere University speaks to Journalists. Photo by Julius Mugaga.
Prof. Eria Hisali, the Principal College of Business and Management Sciences (CoBAMS) Makerere University expressed gratitude towards the commissioned Public Investment Management Centre of Excellence believing that this will bridge the gap that has been there in the Public Investment returns.
He says the center will also help in capacity building of public officials, research and innovation adding to provision advisory services to the government like revision of guidelines used by Ministry of Finance Planning and Economic Development for appraisals.
Ashaba Hannington, the Commissioner Projects Analysis and Public Investment Department at the Ministry of Finance Planning and Economic Development speaks after commissioning the Public Investment Management (PIM) Centre of Excellence at Makerere University. Photo by Julius Mugaga.
While he officially launched the Public Investment Management Centre of Excellence, Ashaba Hannington, the Commissioner Projects Analysis and Public Investment Department at the Ministry of Finance Planning and Economic Development admits that this will reduce Public Expenditure in training Public Investment Management Officials abroad.
He says the Government was spending about 10,000USD per officials which amount can accommodate four officials if trained here.
He also believes that the Center will aid in achieving quality curriculum and Education.
And adds that the center will be self-reliant as it will start generating its own income as officials come to get skills in management here.