World Bank unhappy over delayed takeoff of Shs750b Internet project

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World Bank unhappy over delayed takeoff of Shs750b Internet project
World Bank unhappy over delayed takeoff of Shs750b Internet project

Africa-Press – Uganda. The World Bank is irked by the National Information Technology Authority-Uganda (NITA-U)’s slow implementation of the $200m (Shs750b) project for expanding access to high-speed and affordable Internet, and strengthening digital inclusion across the country.

NITA-U is the statutory body mandated to coordinate government IT services. It is the implementing agency for the Uganda Digital Acceleration Project (UDAP), which was signed off in 2021 as; a $60m grant and $140m loan.

The agency first engaged in a turf war with its parent Ministry of ICT over supervision of the project throughout 2022. The fight was neutralised by creating project implementation subcommittees, with supervisory powers, a steering and technical committee, but with NITA-U as the implementing unit.

In the latest episode, sources told this newspaper that World Bank officials have during numerous project review meetings raised concern about NITA-U’s months-long “delays in clearance” of key contracts for the project.

Case in point, sources revealed that NITA-U officials have since last November “sat on” clearance of terms of references for two contracts worth $34m (Shs127b) for bulk Internet and National Backbone Infrastructure (NBI), which is supposed to expand fast Internet across government offices.

The Bank initially expected the process to shortlist bidders to take place by mid-March 2024, but during a review meeting a fortnight ago, sources revealed that technocrats were shocked to learn that NITA-U management was still sitting on the project documents.

World Bank’s position

“When the ToRs for every component are generated, they go through the committees for review and then shared with the World Bank and then sent back to NITA-U to initiate procurement. It is now apparent they tend to sit on bid documents and contracts,” sources intimated, citing another procurement that has remained in the in-tray since last September.

NITA-U’s Communication Manager Florence Mukankusi did not respond to our request for a comment sent on April 22. A reminder on the same went ignored.

The World Bank told this newspaper that they undertake “regular implementation support missions for all” projects and programmes they finance.

“As part of the routine Implementation Support Mission for Uganda Digital Acceleration Project (UDAP-GovNet), the Bank has been discussing the status of the implementation with project stakeholders and approaches to fast-track implementation of the UDAP-GovNet project,” the Bank said in an email response to our inquiries.

The UDAP project involves four components; expanding digital connectivity in selected areas, which seeks to bridge the digital divide by improving access to high-speed Internet in unserved and selected communities in Uganda.

The second component is the digital transformation of the government, which includes boosting the efficiency and effectiveness of digital government services and creating foundations for better resilience. The third aspect is promoting digital inclusion in the refugee hosting districts.

The project steering committee, which serves as the executive board, comprises technical officials from the ministries of ICT, Finance, Local Government, Nema, the Office of Prime Minister (OPM), and Public Procurement and Disposal of Public Assets Authority (PPDA).

The technical committee includes officials in the ICT ministry, and reviews all aspects, including ToRs and contracts, while NITA-U is charged with the bulk of project implementation.

Our sources revealed that the Bank had also raised concerns about pending bid evaluations since mid-March. In other instances, some bids had been received, but evaluation had not started at all despite earlier agreement on putting in place an evaluation committee to fast-track tenders related to the project.

Meanwhile, the Bank said it was not “aware of” the government’s proposed transfer of the National Data Transmission Backbone Infrastructure and e-Governance Infrastructure (NBI/EDI) from NITA-U to revive Uganda Telecom, now trading as Uganda Telecommunications Corporation Limited (UTCL), a joint venture with the Dubai-based ROWARD Capital Commercial Broker LLC.

“It is the Government’s decision to consider investment options,” the Bank said.

The share subscription and allotment agreement between ROWARD and UTCL, signed last December, gives ROWARD 60 percent shareholding in the joint venture company. In turn, the Emiratis would invest $25m (about Shs95b) during the 90 day-period—December 22-March 20—and stagger another $200m (Shs756b) over the next three years.

The transfer of the NBI and related infrastructure, was among the key terms the government committed to in the December 22 agreement. However, bitter fights have ensued since over the transfer sucking in senior officials and brokers with political connections.

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