The Uganda Local Government DevelopmentProgram, with a credit equivalent to US$80.9 million, wasimplemented by the government over the period 2000-2004. Theproject was designed to scale up an earlier UN CapitalDevelopment Fund pilot to 30 districts (out of 56) so thatpolicies and principles could be tested (and costed) on alarger scale and lessons learned used to develop nationalpolicy formulation within a sound fiscal framework. It had 4objectives : (1) Test the feasibility of implementingconstitutional and legal mandates with respect todecentralized service provision and devolution of thedevelopment budget through the provision of investment fundsto the Local Governments; (2) Build the capacity of theMinistry of Local Government, the Local Government FinanceCommission Secretariat, and a sub-set of the localgovernments for improved service delivery, accountabilityand transparency; (3) Test and institute alternative servicedelivery mechanisms through the private sector, beneficiarycommunities and other stakeholders in the Kampala CityCouncil; (4) Monitor and evaluate project implementation foractual experience and good practices for formulating anappropriate strategy, implementation modalities, and phasingfor eventual scaling-up, nationally, over time.