Strategic Investment Plan for the Water and Environment Sector, Uganda (2018-2030).

This Strategic Sector Investment Plan (SSIP) for the Water and Environment Sector (WES), which is intended to be a living plan that is updated regularly, comprehends 4 volumes dedicated, respectively to: 1- the Funding requirements to meet national 2030 targets to the water and environment sector; 2- the Consolidated Strategic Sector Investment plan (SSIP); 3- the Subsector Strategic Investment Plans; 4- the Sector Investment Model.
Volume 1 (The Funding requirements to meet national 2030 targets to the water and environment sector) covers the indicators and 2030 targets. In this funding requirements assessment, accounting for external trends such as population growth, it is estimated that the Sector will need an average annual budget which is about nine times the current funding allocated to SSIP investments. This volume describes the methods used in costing analysis and presents the results in terms of both the full sector funding requirement from 2018 to 2030 and an analysis of how the sector indicators will perform by 2030 in the business as usual budget allocation.
Volume 2 (the Consolidated Strategic Sector Investment Plan) aims at providing a bridge from policy to budgeting by identifying investment priorities that efficiently improve indicator achievements and are feasible given projected financing. Uganda have agreed to achieve certain targets in the areas of water resource development and environmental management. Given the current level of funding, limited growth in future funding and a rapidly growing population, reaching these targets will be a challenge. Volume 2 analyzes how to allocate resources within the WES given limited budgets. The volume considers three budget scenarios, all of which are considerably below what is needed to achieve 2030 indicator targets and describes spending pathways for water and environmental investments that are aligned with WES priorities. The volume further describes the structure of the components of the Strategic Sector Investment Plan. The Ministry of Water and Environment has defined nine subsectors that align with the directorates and agencies in the water and environment sector to organize the results of the SSIP. These subsectors are presented in Table 2-1 of the text (Rural Water and Sanitation; Urban Water and Sewerage; Sanitation and Hygiene; Water for Production; Water Resource Management; Wetlands Management; Forestry; Climate Change; Meteorology; Organizations Relevant for All Subsectors). It further provides indicators to measure the benefits of investment, to which the funding are distributed. Also investment planning methods are treated here.
Volume 3 (Subsector investment model - SIM) presents the subsector investment plans under three potential funding scenarios in terms of the implications for each subsector within the Water and Environment Sector of Uganda. The results show that at business as usual funding levels, very few subsectors will achieve any of the targets set for 2030. As the budget is increased, and indicator achievement becomes more prevalent across various indicators, the sector can shift funding allocation across subsectors to support indicators that have lower achievement levels. This Volume also treats the investment planning methods, aiming at two primary functions: to determine budget requirements needed to meet indicator targets, and to allocate limited funds to optimize indicator achievement. Both of these analyses incorporate assumptions on external trends.
Volume 4 (Sector Investment Model - SIM) is used to test other scenarios and to explore how changing the assumptions of the SSIP may lead to different investment priorities. The model is designed to work in two modes to accomplish its two main objectives. The first is the funding requirements mode which uses information on indicator costs and achievement gaps to estimate the total funding requirements to meet Sector goals. The second is the strategic allocation mode, in which the distribution of funding is based on both the cost of improvement in each indicator and a prioritization algorithm. Volume 4 also contains the annexes of the report, including data tables of SIM inputs and outputs. This volume presents the results of three investment planning scenarios (described in Volume 2) in terms of the implications for each subsector within the Water and Environment Sector of Uganda.