Urban Local Govt Development Project

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The development objective of the Urban Local Government Development Project (ULGDP) for Government of Ethiopia (GOE) is to support improved performance in the planning, delivery and sustained provision of priority municipal services and infrastructure by urban local governments. The outcomes of the project are: (i) effective and responsive planning to meet service delivery priorities identified by citizens (allocative efficiency participation objective); (ii) improved financial management and mobilization of own resources and more effective operations and maintenance of infrastructure assets (sustainability objective); (iii) improved dissemination to the public of budgets/plans and performance measures (accountability objective); and (iv) effective implementation of Capital Investment Plans (service delivery improvement objective). The project comprises two components, namely Performance Grants and Implementation Support. The Performance Grant will support a grant transfer mechanism in the form of a conditional specific purpose grant (SPG) filly integrated within the intergovernmental fiscal framework to Ethiopia's urban local governments. The project will initially support 19 urban local governments, which constitute about 45 percent of the total urban population. If implemented well, it will be sustained through additional finds and expanded to other regions and cities. The planning and budgeting for ULGDP at federal, regional and ULG levels will be integrated into and aligned with the existing GOE Public Investment Program financial calendar and systems.