The Ministry of Lands ,Housing and Urban Development has prepared an Operation Implementation Manual (OIM) satisfactory to the World Bank team who are in the country to over see Uganda Cities and Municipalities Infrastructure Development) project is  a $540 million initiative backed by government of uganda and the World Bank

lands Minister Judith Nabakooba says as the successor to the USMID program, aims to modernize urban centers, stimulate job creation, and construct climate-resilient infrastructure across Uganda

“The OIM has been prepared together with the World Bank team and a final draft incorporating World Bank comments was submitted to the World Bank on 16th June 2026. We expect this to be cleared for final print in a week’s time,” Nabakooba stated .

The Uganda Cities & Municipalities Infrastructure Development (UCMID) Program is a six-year, $540 million (UGX 2.1 trillion) initiative funded by the Government of Uganda and the World Bank. Serving as the second phase of the successful USMID program, UCMID is designed to transform Uganda’s urban landscape by enhancing institutional performance and delivering climate-smart infrastructure.

According UCMID Project Coordinator Pade Walter UCMID will objective is to improve urban planning and management, increase access to climate-resilient services, and stimulate job creation for urban residents and displaced populations within refugee-hosting areas and span from FY 2026/27 to 2030/31 across 10 Cities: Jinja, Mbarara, Gulu, Arua, Masaka, Hoima, Mbale, Soroti, Lira, and Fort Portal.

It will be implemented in 26 Municipalities: twelve existing from USMID (Tororo, Moroto, Kabale, Kasese, Apac, Kamuli, Lugazi, Mubende, Ntungamo, Kitgum, and Busia) plus fifteen new (Mityana, Iganga, Masindi, Rukungiri, Bushenyi-Ishaka, Kumi, Nebbi, Koboko, Kisoro, Kapchorwa, Ibanda, Njeru, Bugiri, Sheema, and Kotido) and also be implemented in 13 Refugee-Hosting Districts: Adjumani, Yumbe, Madi-Okollo, Terego, Isingiro, Kiryandongo, Kamwenge, Lamwo, Obongi, Moyo, Arua District, Kikuube, and Kyegegwa

Expected Impact

Pade said UCMID aims to benefit 5.6 million people directly, fostering a supportive environment for MSMEs, youth, and women while positioning regional cities as engines of economic growth to realize Uganda Vision 2040 and NDPIV.

Lands Ministertold the World Bank officials that her ministry has prepared, adopted and disclosed the Stakeholder Engagement Plan (SEP) in a manner and substance satisfactory to the World Bank.
“The SEP was prepared with support from the World Bank team and was cleared on 9th June 2026. It was subsequently disclosed on the MLHUD website. This condition has therefore been met,” she added.
The high level meeting was attended by other Ugandan officials led by the ministry ‘s Under Secretary in Charge of Finance and Administration , dr. Emmanuel Freddie Mugunga .
Nabakooba reported that the World Bank is satisfied that the government has an adequate refugee protection framework. “This framework exists and a copy is domiciled under the OPM and the UNHCR. This condition has therefore been met,” she stressed.
The meeting follows World Bank’s approval of significant funding packages for Uganda, including a $540 million (approx. Shs2.03 trillion) for the much awaited Uganda Cities and Municipalities infrastructure Development Program (UCMID) program and new financing exceeding $2 billion to support development, infrastructure, and refugee-hosting areas.
This anticipated transformative program is expected to commence on August 1st , 2026.
 This funding aims to boost urban development, infrastructure, and job creation.
The six-year, $540 million (Shs2.03 trillion) project will facilitate the construction of modern infrastructure in at least 10 cities that will include Jinja, Mbarara, Gulu, Arua, Masaka, Hoima, Mbale, Soroti, Lira, Fort Portal.
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