The Senegal - Urban Development andDecentralization Program provided a credit of $75 millionand was implemented over the years 1998-2004. It had 4development objectives: (i) improve the financial andorganizational management of municipalities; (ii) improvethe programming of priority urban investments; (iii)rationalize and simplify the financing of urban investments;and (iv) upgrade basic infrastructure in urban and somerural communities. The project addressed the gap between thecapacity of local governments and the expectations of thenew regulatory and institutional framework. It covered allthe country's municipalities and became the backbone ofSenegal's decentralization program. At theproject's outset, the financial and organizationalmanagement of the Senegalese municipalities was known to beweak, but little information existed about the situation ineach municipality. No investment programming had beencarried out to reflect their priority needs and capacity tofinance them. The project also recognized that fundingallocations were not being made fairly or transparently. Allfour development objectives were fully achievedcost-effectively and sustainably.