44000-P163452 World Bank The Program Development Objective (PDO) is to enhance the institutional performance of participating Urban Local Government (ULGs)to develop and sustain urban infrastructure, services, and local economic development. The development objective of the Urban Institutional and Infrastructure Development Program Project for Ethiopia is to enhance the institutional performance of participating urban local governments to develop and sustain urban infrastructure, services, and local economic development. The proposed Urban Institutional and Infrastructure Development Program (UIIDP or Operation) will support the objectives of the WB's Ethiopia Country Partnership Framework (CPF) (2018–22). The CPF for Ethiopia, discussed by the Board on June 27, 2017, has three strategic focus areas: (a) promoting structural and economic transformation through increased productivity, (b) building resilience and inclusiveness, and (c) supporting institutional accountability and confronting corruption. The proposed UIIDP supports all three focus areas. The UIIDP's fundamental objectives and funding directly target the strengthening of urban governance and management systems, participatory strategic and spatial planning, improved transparency and accountability enhanced citizen engagement in decision-making of urban governments (including of women), public private dialogue, and directly financing urban infrastructure and services. By assisting to create well-functioning and productive urban centers, the UIIDP contributes to the WB's twin goals of ending extreme poverty and boosting shared prosperity.The proposed Operation will be financed through a hybrid of Investment Project Financing (IPF) and Program-for-Results (PforR) instruments. Most of the Operation is financed through the PforR instrument, which has proven to be the optimal and effective mechanism for providing conditional grants to regional states and ULGs, as demonstrated in the ULGDP II. There are four primary reasons for this. First, the UIIDP directly supports the government program and forms a core part of the existing intergovernmental fiscal architecture. Second, the basic goal of the UIIDP is to leverage the improved institutional performance of the local governments it supports to more effectively deliver infrastructure and service delivery, and ensure meeting of broader objectives and maximizing of development impact. Due to the direct relationship between the institutional results and the Program disbursements, the PforR instrument allows for a directly incentive-driven approach to achieve the Program Development Objective (PDO). Through the use of disbursement linked indicators (DLIs), the UIIDP will ensure that incentives of the regional and local levels of government are effectively aligned around the goals of the Program. Third, the Program will use, improve, and integrate GoE and local government systems, including public FM, social and environmental systems management and procurement systems. Fourth, the PforR instrument has proven as an effective and efficient tool in the implementation of the ULGDP II and this modality is critical to the success of the program. The government's new UIIDP (2018–23) envisions that all cities will gradually generate increasing levels of municipal own-source revenues, with which to finance investments in infrastructure and deliver services. However, this will be a long-term process. FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA International Bank for Reconstruction and Development International Bank for Reconstruction and Development International Development Association International Development Association Ministry of Urban and Infrastructure(MUI) Ministry of Urban and Infrastructure(MUI) Actual end date of the activity Actual start date of the activity Planned end date of the activity Planned start date of the activity The World Bank Martin Onyach-Olaa pic@worldbank.org The World Bank, 1818 H Street, NW, Washington, DC 20433 USA ETHIOPIA Addis Ababa 9.02497 38.746891 Climate change FY17 - Sub-National Government Gender Gender Job Creation Jobs Jobs Mitigation Municipal Finance Municipal Institution Building Public Administration Public Expenditure Management Public Finance Management Urban Development Urban Infrastructure and Service Delivery 0 0 0 0 0 610800 0 2540400 0 1521600 0 3541200 0 4181400 0 2320200 0 5096400 0 2802600 0 6196800 0 3367800 0 7171800 0 3762600 0 7846800 0 4117800 0 8635200 0 4478400 0 9212400 0 4734600 0 9759600 0 5035200 0 7301897.96 0 5373600 0 7856483.15 0 5806200 0 8449417.33 0 6198600 0 8885584.26 0 9127477.8 0 6754800 0 9760868.04 0 7036800 0 9837144.57 0 6946200 0 9961041.26 0 7206600 0 14322600 0 7023600 0 9710719.37 0 6916800 0 9688384.26 0 6842400 0 9474304.26 0 6616200 0 9176362.21 0 6471000 0 9002738.27 0 6339600 0 8770115.91 0 6150600 0 8517265.52 0 8360498.27 0 5863200 0 8136725.67 0 5731200 0 7949194.96 0 5569800 0 7685809.14 0 5387400 0 7465407.88 0 5245200 0 7263548.98 0 5087400 0 7029240.95 0 4903200 0 9624000 0 4745400 0 9449400 0 4720800 0 9360000 0 4627200 0 9162000 0 4539000 0 9005400 0 8910600 0 4416600 0 7446000 0 3591000 0 0 -2971849 Total Commitment Cancellations in October Month of 2025 IDA Credit 127000000 Total Commitment in March Month of 2018 IDA Credit 200000000 Total Commitment in March Month of 2018 IDA Credit 273000000 Total Commitment in March Month of 2018 IDA Credit 3382401 Total Disbursement in April Month of 2021 IDA Credit 677199 Total Disbursement in April Month of 2022 IDA Credit 35222256 Total Disbursement in August Month of 2022 IDA Credit 40992311 Total Disbursement in August Month of 2022 IDA Credit 348617 Total Disbursement in August Month of 2024 IDA Credit 4644309 Total Disbursement in December Month of 2018 IDA Credit 2067381 Total Disbursement in December Month of 2019 IDA Credit 455118 Total Disbursement in February Month of 2024 IDA Credit 820392 Total Disbursement in January Month of 2022 IDA Credit 10097543 Total Disbursement in January Month of 2023 IDA Credit 4644059 Total Disbursement in January Month of 2023 IDA Credit 28941698 Total Disbursement in July Month of 2019 IDA Credit 30212569 Total Disbursement in July Month of 2019 IDA Credit 43354156 Total Disbursement in July Month of 2019 IDA Credit 2178184 Total Disbursement in July Month of 2021 IDA Credit -153687 Total Disbursement in July Month of 2025 IDA Credit 500000 Total Disbursement in June Month of 2018 IDA Credit 62951040 Total Disbursement in June Month of 2018 IDA Credit 43398406 Total Disbursement in June Month of 2020 IDA Credit 52613853 Total Disbursement in June Month of 2020 IDA Credit 56429144 Total Disbursement in June Month of 2020 IDA Credit 42783387 Total Disbursement in June Month of 2021 IDA Credit 43058367 Total Disbursement in June Month of 2021 IDA Credit 67221917 Total Disbursement in June Month of 2021 IDA Credit 1114215 Total Disbursement in June Month of 2022 IDA Credit 986956 Total Disbursement in June Month of 2023 IDA Credit 500000 Total Disbursement in March Month of 2020 IDA Credit 2385469 Total Disbursement in March Month of 2024 IDA Credit 2091800 Total Disbursement in October Month of 2021 IDA Credit 174555 Total Disbursement in October Month of 2024 IDA Credit 2586922 Total Disbursement in September Month of 2020 IDA Credit -259056 Total Interest Repayment in April Month of 2019 IDA Credit -107440 Total Interest Repayment in April Month of 2020 IDA Credit -767696 Total Interest Repayment in April Month of 2020 IDA Credit -313745 Total Interest Repayment in April Month of 2021 IDA Credit -920265 Total Interest Repayment in April Month of 2021 IDA Credit -1352343 Total Interest Repayment in April Month of 2022 IDA Credit -461737 Total Interest Repayment in April Month of 2022 IDA Credit -451499 Total Interest Repayment in April Month of 2023 IDA Credit -5828373 Total Interest Repayment in April Month of 2023 IDA Credit -442771 Total Interest Repayment in April Month of 2024 IDA Credit -7407043 Total Interest Repayment in April Month of 2024 IDA Credit -396295 Total Interest Repayment in April Month of 2025 IDA Credit -6522664 Total Interest Repayment in April Month of 2025 IDA Credit -459551 Total Interest Repayment in April Month of 2026 IDA Credit -5863257 Total Interest Repayment in April Month of 2026 IDA Credit -500000 Total Interest Repayment in June Month of 2018 IDA Credit -190831 Total Interest Repayment in October Month of 2018 IDA Credit -48805 Total Interest Repayment in October Month of 2019 IDA Credit -535052 Total Interest Repayment in October Month of 2019 IDA Credit -220624 Total Interest Repayment in October Month of 2020 IDA Credit -983398 Total Interest Repayment in October Month of 2020 IDA Credit -1158537 Total Interest Repayment in October Month of 2021 IDA Credit -395088 Total Interest Repayment in October Month of 2021 IDA Credit -2376476 Total Interest Repayment in October Month of 2022 IDA Credit -428120 Total Interest Repayment in October Month of 2022 IDA Credit -438765 Total Interest Repayment in October Month of 2023 IDA Credit -6882833 Total Interest Repayment in October Month of 2023 IDA Credit -416930 Total Interest Repayment in October Month of 2024 IDA Credit -7448977 Total Interest Repayment in October Month of 2024 IDA Credit -468936 Total Interest Repayment in October Month of 2025 IDA Credit -6415114 Total Interest Repayment in October Month of 2025 IDA Credit -1844879 Total Loan Repayment in April Month of 2024 IDA Credit -1867193 Total Loan Repayment in April Month of 2025 IDA Credit -1901117 Total Loan Repayment in April Month of 2026 IDA Credit -1867265 Total Loan Repayment in October Month of 2024 IDA Credit -1910859 Total Loan Repayment in October Month of 2025 IDA Credit Finance Agreement :Execution of the Grant agreement Schedule 2 Section IV, B 1 a and b for PforR | Description :Withdrawals up toan aggregate amount not to exceed SDR 44,760,000 may be made for DLR#10 achieved on or after February 21, 2017; and no withdrawalshall be made for any DLR until and unless the Recipient has furnished evidence satisfactory to the WB that said DLR has beenachieved, including verification reports from the Verification Agent, based on reports prepared by the Recipient certifying theachievement of the DLRs in accordance with the Verification Protocol. | Due Date : Finance Agreement :Final draft of first Annual Performance Assessment | Description :Furnish the final draft of the first annualperformance assessment to the WB for its review | Due Date :29-Apr-2019 Finance Agreement :Final draft of first Annual Performance Assessment | Description :Furnish the final draft of the first annualperformance assessment to the WB for its review | Due Date :29-Apr-2019 The program successfully constructed or rehabilitated 1,139.52 kilometers of gravel roads, exceeding the target of 900 kilometers set for June 2023. This achievement represents 127% of the target, contributing to improved urban mobility and access to services. The Program achieved 1,180.46 kilometers, which is 79% of the target, for drains built or rehabilitated. Despite falling short of the goal, this effort has contributed to improved urban infrastructure and resilience against flooding and other water-related issues. The program successfully constructed or rehabilitated 1,628.95 kilometers of cobblestone roads, surpassing the target of 1,600 kilometers set for June 2023. This achievement represents 102% of the target, contributing to enhanced urban mobility and improved access to services for urban populations. The development of these roads has played a crucial role in boosting the local economy, creating jobs, and improving the overall quality of life for residents in the participating cities. Over the period, there was a notable positive trend in the number of ULGs meeting the target of implementing at least 80 percent of the budget presented in their annual capacity building plans. In 2012, 35 ULGs achieved this target, and by 2019, the number had increased to 101 ULGs, surpassing the target of 90 and achieving 112% of the goal. This improvement highlights the effectiveness of the program's incentive mechanism, which successfully motivated ULGs to prioritize and enhance their capacity building efforts. The program significantly exceeded its target, with 103 ULGs achieving an increase of at least 10 percent in own-source municipal revenue over the previous year, against a target of 80. This high level of achievement reflects the program's effectiveness in enhancing the financial capacity of ULGs, ensuring sustainable urban development, and supporting infrastructure investments. 105 ULGs successfully established emergency response units and prepared emergency response plans. This achievement represents 90% of the target, which was set at 117 ULGs. The shortfall was primarily due to the exclusion of 12 ULGs from the Tigray region, which were not included in the 3rd and 4th APA due to conflict and inaccessibility. except 12 ULGs from Tigray The program provided 2,707.04 hectares of serviced land, which, although short of the target of 3,000 hectares set for June 2023, represents a significant achievement. This serviced land has been instrumental in boosting industrial and MSE development, leading to the employment of 237,035 people in firms with serviced land and MSE sheds. The UIIDP significantly exceeded its targets for employment in firms provided with serviced land and MSE sheds. A total of 237,035 people were employed, surpassing the initial target of 151,875 by 156%. This achievement underscores the program's success in boosting industrial and MSE development. The Program aimed to build or rehabilitate 300 hectares of public parks and greenery. The program exceeded this target by achieving 329.96 hectares, which is approximately 110% of the goal. This achievement has significantly enhanced urban living conditions by providing more green spaces and recreational areas, contributing to the overall well-being and quality of life for urban residents. Under the UIIDP, 79 Urban Local Governments (ULGs) implemented at least 80 percent of the budget presented in their annual gender development plans. This achievement represents 88% of the target, which was set at 90 ULGs. The shortfall was primarily due to the exclusion of 12 ULGs from the Tigray region, which were not included in the 3rd and 4th APA due to conflict and inaccessibility. It is updated using the annual progress report EFY 2015(2023) The program achieved this target with 87 ULGs, which is 87% of the goal. The shortfall is partly due to the 12 ULGs from the Tigray region not being assessed because of conflict and inaccessibility. Program aimed to create 800,000 temporary jobs through infrastructure works. The program exceeded this target by creating 915,285 temporary jobs, achieving 114% of the goal. The Program has achieved significant success in improving the financial management and accountability of ULGs by ensuring a high number of clean (unqualified) audits. Starting from a baseline of 13 ULGs in June 2018, the program set a target of 35 ULGs to achieve clean audits by June 2023. The actual achievement far exceeded this target, with 94 ULGs receiving clean audits by July 2024. This represents a 269% achievement, indicating a substantial improvement in the financial transparency and accuracy of financial statements across participating ULGs. The program's success in this area underscores its effectiveness in enhancing governance and financial management practices. The Program has significantly enhanced the financial accountability and governance of ULGs by achieving a remarkable increase in the number of timely audits. Starting from a baseline of 13 ULGs in June 2018, the program set a target of 35 ULGs to achieve timely audits by June 2023. However, the actual achievement far exceeded expectations, with 94 ULGs completing timely audits by July 2024. This represents a 269% achievement, underscoring the program's effectiveness in improving financial management practices and ensuring accurate and timely financial reporting across participating ULGs. It is updated using the annual progress report EFY 2015(2023) The Program aimed to improve the livability, sustainability, and management of cities. The program targeted 117 cities but achieved improvements in 105 cities, reaching 90% of its goal. The shortfall was primarily due to the conflict and inaccessibility in the Tigray region, which affected the assessment of 12 Urban Local Governments (ULGs). Despite this, the program made significant progress in enhancing urban governance, infrastructure, and service delivery in the assessed cities. The composite institutional performance of participating Urban Local Governments (ULGs), averaged across all cities, achieved a score of 94.25 against a target of 85. This indicates that the program exceeded its goal, achieving 111% of the target. This performance score reflects significant improvements in governance, financial management, and institutional capacity across the participating ULGs. The composite performance for the achievement of urban infrastructure and service targets, maintenance performance, and VfM in investments by ULGs demonstrates the program's success in not only meeting but exceeding its goals. This high level of achievement reflects the program's effectiveness in enhancing urban infrastructure, ensuring sustainable service delivery, and promoting efficient use of resources across all participating cities. The composite performance for the achievement of LED, urban resilience, and gender targets by ULGs demonstrates the program's success in not only meeting but exceeding its goals. This high level of achievement reflects the program's effectiveness in promoting local economic development, enhancing urban resilience, and achieving gender-related objectives across all participating cities. The Program provided improved urban living conditions to 6.6 million people. This achievement was realized through strategic investments in infrastructure, including roads, drainage systems, and public parks, which significantly enhanced the quality of life for urban residents.