2014年-世界发展银行全球_Ethiopia___Second_Urban_Local_Government_Development_Program_as_a_Program-for-Results_Operation_102页_2mb

Summary of the Second Urban Local Government Development Program (ULGDP II) as a Program-for-Results (PforR) Operation

Core Content

The Second Urban Local Government Development Program (ULGDP II) is a Program-for-Results (PforR) operation designed to expand and enhance the urban governance and infrastructure development in Ethiopia. It is a continuation and scaling-up of the first ULGDP (2008/09–2013/14), which was a performance-based grant (PBG) program jointly funded by the Government of Ethiopia (GoE) and the World Bank. The program aims to improve the capacity of urban local governments (ULGs) and support them in delivering urban infrastructure and services more effectively.

Main Objectives

• Enhance institutional performance of ULGs in planning, budgeting, financial management, procurement, accountability, and environmental and social systems management.
• Scale up the program to cover 44 major cities (from the original 18) under the Growth and Transformation Plan (GTP) and the Ethiopian Cities Prosperity Initiative (ECPI).
• Introduce a performance-based fiscal transfer system that links disbursements to the performance of ULGs and regional governments (RGs).
• Address the challenges identified in the first phase, including the timing of performance assessments, the need for stronger regional government involvement, and the integration of demand-driven capacity building.

Key Components

1. Performance-Based Investment Grants

• ULGs receive grants based on their performance in key urban governance areas.
• Grants are linked to the size of allocations and the performance of the ULGs.
• The program uses a performance-based transfer system (PBTS) to allocate funds.

2. Annual Performance Assessments (APAs)

• Independent assessments are conducted annually to evaluate the performance of ULGs.
• These assessments are used to determine the disbursement amounts and ensure that funds are used effectively.
• The assessments cover areas such as financial management, participatory planning, infrastructure operations, and transparency.

3. Capacity Building Support

• The program includes capacity building for both ULGs and regional governments.
• This includes support for planning, budgeting, procurement, and governance.
• The Ministry of Urban Development, Housing and Construction (MUDHCo) is the main implementing agency.

4. Fiscal Decentralization and Revenue Mobilization

• The program aligns with Ethiopia’s fiscal decentralization policy.
• ULGs are expected to fund municipal functions from municipal revenues, while state functions are funded through block grants from RGs.
• There is a gap between the demand for municipal services and the available revenues, necessitating the program’s support.

Program Structure

• Total Budget Envelope: US$416 million (US$300 million from the World Bank, US$116 million from the GoE).
• Funding Sources:
  • 20% matching funding from ULGs.
  • 20% matching funding from regional governments.
• Geographic Scope: Initially 18 ULGs and Addis Ababa; now expanded to 44 ULGs (including 26 new ones) and 9 regional governments.
• Funding Formula: Based on population size and performance levels.

Key Challenges and Lessons from the First Phase

• Timing of Annual Performance Assessments (APAs): The assessments were conducted too late in the year, affecting the timely use of funds.
• Regional Government Involvement: There was a need to strengthen the role of RGs in supporting ULGs.
• Demand-Driven Capacity Building: The program needed to shift from a supply-driven to a demand-driven approach to better address the specific needs of cities.
• Revenue Gaps: ULGs lacked sufficient municipal revenues to fund their growing responsibilities.
• Coordination and Monitoring: There was a need to improve intra-governmental coordination, monitoring, and evaluation.

Economic Evaluation and Impact

• The program has contributed to economic growth and urban development in Ethiopia.
• It has helped reduce poverty through improved infrastructure and services.
• Urbanization is a key driver of growth, with Ethiopia’s urban population expected to increase from 17% in 2013 to 23% by 2030.
• The program has improved service delivery in areas such as water supply, sanitation, solid waste management, and roads.

Key Performance Indicators

• Water supply coverage: 59.1%
• Sewerage and sanitation coverage: 57.3%
• Solid waste disposal collected of estimated waste: 52.0%
• Liquid waste disposal collection ratio: 1.5%
• Paved roads: 22.8% of total roads
• Roads with pedestrian walkways: 8%

Implementation Support

• The World Bank will provide technical assistance and support to the GoE in implementing the program.
• The Program Implementation Support Plan (PISP) will be developed to address the technical risks and ensure the program's success.
• The program will also strengthen the capacity of MUDHCo to perform its role effectively.

Conclusion

The ULGDP II represents a significant step in Ethiopia's urban governance and development strategy, building on the successes and lessons of the first phase. It aims to enhance the institutional capacity of ULGs and support their role in delivering essential urban services and infrastructure. The program is structured around performance-based funding, annual assessments, and comprehensive capacity building, and is expected to contribute to Ethiopia's long-term development goals, including becoming a middle-income country by 2023.