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close this bookUganda's Water Sector Development: Towards Sustainable Systems (SKAT, 1996)
View the document(introduction...)
View the documentForeword
View the documentPreface
View the document1. Introduction
close this folder2. Roller-Coaster Ride
View the document(introduction...)
View the documentLaunched into the abyss
View the documentTurning around the corner
View the documentHeading in the right direction
close this folder3. Driving Forces
View the document(introduction...)
View the documentThe physical environment
View the documentState of existing infrastructure
View the documentPressing financial shortages
View the documentNeed for legislative reforms
View the documentInstitutional requirements
close this folder4. Establishing Sectoral Policies
View the document(introduction...)
View the documentEarly investigations
View the documentProcess of development
View the documentEmerging national policy framework
View the documentNew framework documents
close this folder5. Implementation Strategies
View the document(introduction...)
View the documentCreating an enabling environment
View the documentCreating the institutional framework
View the documentEstablishing the required management procedures and tools
View the documentGeneral strategies for domestic water supply
close this folder6. Moving Forward in the Rural Water Sector
View the document(introduction...)
View the documentRural water supply and sanitation programmes
View the documentArea-based centrally implemented programmes
View the documentDecentralised rural water development
View the documentRural towns water and sanitation programme
View the documentFeatures of the implementation strategy
close this folder7. Potential FOR success
View the document(introduction...)
View the documentKeeping up the momentum
View the documentConstraints on progress
View the document8. Towards 2000

Pressing financial shortages

The NRM Government inherited a financial nightmare. Virtually none of the country's administrative functions were self-supporting. Few Government departments had the funds to cover their operating requirements. Many could not afford to pay their staff.

In the water sector, revenues covered less than one per cent of the inadequate budget. The inability of the Government to provide subsidy hampered operations, yet the Government's administrative controls dissuaded the MWMD from raising its charges. Inefficient use of the limited capital that was available perpetuated the downward spiral.

The Government's meagre finances could not support the major investments required to rehabilitate and extend the rural water supply systems but it faced a dilemma. It needed external funds to rebuild the rural water supply sector. In particular, it needed donor agency funds. However, donors were wary of Uganda — most would only support the restoration efforts on a contingent basis. The Government needed to demonstrate that it was capable of dealing with the funds in a responsible and productive manner. As a matter of urgency, it had to improve its legislative framework by enshrining proper safeguards in the law. It also needed to rebuild its public institutions so that they could disburse funds in an effective and efficient way. The issue of Government as provider and owner of facilities with minimal or no 'user participation' also required re-thinking and new strategies.