Uganda - Cities and Municipalities Infrastructure Development (UCMID) Operation

Overview & Synopsis

The development objective of the Cities and Municipalities Infrastructure Development (UCMID) Operation for Uganda is to enhance the institutional performance of selected urban local governments and ministries for urban planning and management and improve access to climate smart infrastructure, services and jobs for urban residents and displaced populations in refugee-hosting areas. UCMID represents the next phase of Uganda’s urban reform agenda, positioning cities and municipalities at the heart of job creation, productivity gains, and economic transformation. UCMID will consolidate climate adaptation and mitigation into a single strategy, supporting investments in drainage, green infrastructure, nature-based solutions, and low-carbon mobility. At least 60% of program-financed investments will deliver measurable climate co-benefits. Linking fiscal transfers with strengthened public finance management (PFM), procurement, and safeguard systems will enhance accountability and ensure urban investments are climate-resilient, inclusive, and sustainable. The Program will also strengthen urban resilience and inclusion, primarily by mitigating the impacts of refugee inflows and advancing inclusive local economic development through expanded access to social services, markets, goods, and job opportunities for both refugees and host communities. Through these reforms, UCMID will: (i) generate immediate construction jobs and create sustainable employment in urban services and operations, (ii) stimulate local economies and entrepreneurship - especially for youth, women, and MSMEs, and (iii) foster inclusion and skills development for Uganda’s next generation of urban workers.