PRESENTED TO PARLIAMENT FOR THE BUDGET DEBATE

Transcription

1 THE REPUBLIC OF UGANDA MINISTRY OF INFORMATION AND COMMUNICATIONS TECHNOLOGY MINISTERIAL POLICY STATEMENT VOTE: 020 FINANCIAL YEAR 2007/2008 PRESENTED TO PARLIAMENT FOR THE BUDGET DEBATE JUNE 2007

2 TABLE OF CONTENTS LIST OF TABLES... IV LIST OF ANNEXES...V LIST OF ACRONYMS AND ABBREVIATIONS... VI EXECUTIVE SUMMARY... IX 1.0 BACKGROUND VISION STATEMENT MISSION STATEMENT, MANDATE AND FUNCTIONS MISSION STATEMENT MANDATE STRUCTURE AND FUNCTIONS STRUCTURE KEY FUNCTIONS OF THE MINISTRY FUNCTIONS OF DIRECTORATE OF COMMUNICATIONS AND BROADCASTING INFRASTRUCTURE FUNCTIONS OF DIRECTORATE OF INFORMATION TECHNOLOGY AND MANAGEMENT SERVICES FUNCTIONS OF FINANCE AND ADMINISTRATION FUNCTIONS OF DIVISION OF PLANNING STATEMENT OF SECTOR OBJECTIVES COMMUNICATIONS AND BROADCASTING SUB - SECTOR INFORMATION TECHNOLOGY SUB SECTOR POLICY FRAMEWORK ACHIEVEMENTS IN THE PAST FINANCIAL YEAR 2006/ COMMUNICATIONS PHYSICAL PERFORMANCE FINANCIAL PERFORMANCE INFORMATION TECHNOLOGY PHYSICAL PERFORMANCE FINANCIAL PERFORMANCE FINANCE AND ADMINISTRATION PHYSICAL PERFORMANCE FINANCIAL PERFORMANCE BUDGET RESOURCES EXPENDITURE, NON TAX REVENUE AND ARREARS FOR FY 2006/ MINSTRY STAFF NUMBERS VEHICLES AND OTHER ASSETS VEHICLES BY CAPACITY PHYSICAL PERFORMANCE DIRECTORATE OF COMMUNICATIONS AND BROADCASTING DIRECTORATE OF INFORMATION TECHNOLOGY AND MANAGEMENT SERVICES DIVISION OF PLANNING BUDGET PROPOSALS FOR FINANCIAL YEAR 2007/ RECURRENT BUDGET DEVELOPMENT BUDGET OVERALL REQUIREMENT ii

3 5.4 ON-GOING POLICIES AND PROGRAMMES NEW POLICIES AND PROGRAMMES CONCLUSION iii

4 LIST OF TABLES Table 1: Recurrent Budget Performance for FY2006/07... xiii Table 2: Development Budget Performance for FY 2006/07... xiii Table 3: Recurrent budget proposal for FY 2007/08... xvi Table 4: Development budget proposal for FY 2007/08... xvii Table 5: Sector and Ministry objective linkages... 6 Table 6: Communications Physical performance Table 7: Communications Recurrent Budget Performance for 2006/ Table 8: Information Technology Development budget for FY 2006/ Table 9: Information Technology physical performance for FY 2006/ Table 10: Information Technology Recurrent Budget Performance for 2006/ Table 11: Information technology development budget performance for FY 2006/ Table 12: Finance and Administration physical performance for FY 2006/ Table 13: Finance and Administration Recurrent Budget Performance for 2006/ Table 14: Finance and Administration development budget for FY 2006/ Table 15: Expenditure, non tax revenue and arrears for FY 2006/ Table 16: Ministry staff numbers Table 17: Ministry vehicles and other assets Table 18: Ministry vehicles by capacity Table 19: Physical performance of directorate of communications and broadcasting infrastructure Table 20: Physical performance of directorate of Information Technology and Management Services Table 21: Physical performance of Division of Planning Table 22: Recurrent budge proposals for FY 2007/ Table 23: Development budget proposals for FY 2007/ Table 24: Overall Ministry requirements for FY 2007/ Table 25: Outputs, activities and costs of programmes under existing policies Table 26: New Policies and programs for FY 2007/ iv

5 LIST OF ANNEXES Annex A: Annex B: Annex C: Annex D: Annex E: Ministry Structure and Establishment Development Project Profiles Autonomous Institutions under the Ministry Definition of Information and Communications Technology CHOGM Work plan and Budget v

6 LIST OF ACRONYMS AND ABBREVIATIONS ABB BOT BC CHOGM CBOs COMESA EAC EDGE FY GoU GPRS IDA ICT IP ISO IT ITU LAN/WAN MDGs MoFPED MoICT MoWHC MTEF MPS NDF NITA-U OOB PAF PEAP PMA PoP PPDPA PPP RCDF RCDS ROM SWG TOR UCC UPL UPU UTL VoIP Activity Based Budgeting Build-Operate-Transfer Broadcasting Council Commonwealth Heads of Governments Meeting Community Based Organizations Common Market for Eastern and Southern Africa East African Community Enhanced Data Rates for GSM Evolution Financial Year Government of Uganda General Packet Radio Services International Development Agency (of the World Bank) Information and Communications Technology Internet Protocol International Standard Organization Information Technology International Telecommunication Union Local Area Network/Wide Area Network Millennium Development Goals Ministry of Finance, Planning and Economic Development Ministry of Information and Communications Technology Ministry of Works, Housing and Communications Medium Term Expenditure Framework Ministerial Policy Statement Nordic Development Fund National Information Technology Authority Uganda Output Oriented Budgeting Poverty Action Fund Poverty Eradication Action Plan Plan for Modernization of Agriculture Point of Presence Public Procurement and Disposal of Public Assets Authority Public Private Partnership Rural Communications Development Fund Rural Communications Development Scheme Results Oriented Management Sector Working Group Terms of Reference Uganda Communications Commission Uganda Post Limited Universal Postal Union Uganda Telecom Limited Voice Over Internet Protocol vi

7 Telephone: Fax: In any correspondence on this subject please quote: No: MO/ICT/01 THE REPUBLIC OF UGANDA Ministry of Information, and Communications Technology P O Box 7817, KAMPALA, Uganda. 27 th June 2007 The Rt. Hon. Speaker of Parliament, Parliament Building, P. O. Box 7178, KAMPALA. Hon Speaker, Sir, MINISTERIAL BUDGET POLICY STATEMENT FOR THE FY 2007/2008 I am indeed pleased to present to the Parliament the Budget Policy Statement for the Ministry of Information and Communications Technology for the Financial Year 2007/2008. The Policy Statement is in fulfilment of the requirement of the Budget Act, 2001 and states the Mandate, Vision and Mission of the Ministry. It spells out the functions, strategic objectives and policy framework of the Sector. The Policy Statement also outlines the achievements in both physical and financial terms and reports on challenges encountered in the financial year 2006/2007. It also indicates the set out plans and programmes for implementation for the FY 2007/2008, putting emphasis on key outputs and targets, inline with the Result Oriented Management (ROM) and Output Oriented Budgeting (OOB), and the financial resources anticipated. Following the creation of the Ministry last year, it received limited resource allocations for the implementation of various plans, programmes and projects. During the FY 2006/2007, the Ministry achieved a physical performance of 75% while the budgetary performance for both non-wage Recurrent and Development Budgets was at 100% and 540%, respectively. The large percentage for development is due to a reallocation of Ushs. 450 Million which was used to enable the Ministry to acquire the necessary operational logistics such as furniture, office and transport equipment. The proposed resource allocations for the FY 2007/2008 will be as follows: - a) Non-wage Recurrent Expenditure - Ushs 1,700,000,000 b) Wage Recurrent - Ushs 754,281,000 c) Development Expenditure - Ushs 4,200,350,000 d) Taxes - Ushs 2,600,000,000 vii

8 This makes a total allocation amounting to UShs 9,254,631,000 for the Ministry. Honourable Speaker, Sir, I wish to point out that there has been close collaboration within Government; the Ministry of Public Service, Ministry of Finance, Planning and Economic Development and Private sector that have supported the Ministry to take off and establish itself. This has included finding a home for the Ministry and obtaining funds to cater for limited amount of furniture and equipment. However, the Ministry still needs more support in obtaining funds for both recurrent and capital development budgets to enable the Ministry establish itself firmly, implement its activities, plans, programmes and projects to fulfil its mandate. The Policy Statement is arranged as follows: Executive Summary Chapter 1: The Background, in which the Sector Vision, Mission, Mandate, Policies and Strategic Objectives are outlined; Chapter 2: The Sector achievements of the past FY 2006/07 are highlighted; Chapter 3: Planned Activities and Budget Proposals for FY 2007/08; Chapter 4: Physical performance of the Ministry; Chapter 5: Budget proposal for FY 2007/08; Chapter 6: Conclusion; Annex A: The approved Ministry Structure and Establishment; Annex B: Development Project Profiles; Annex C: Autonomous Institutions under the Ministry; Annex D: Definition of Information and Communications Technology. Annex E: CHOGM ICT work plan and Budget Honourable Speaker, Sir, I wish on behalf of my Ministry to most sincerely thank all our Development Partners, the Parliamentary Sessional Committee on Information and Communications Technology (ICT), the Standing Committee on the Economy, the Budget Committee and Members of Parliament for the support extended to the Sector. This has enabled the Sector achieve its Planned activities and to progressively contribute to the Government s PEAP. The Ministry looks forward to this continued support. I, hereby, submit the Budget Policy Statement for my Ministry comprising both Recurrent and Development Budget Estimates of UShs billion to be approved by Parliament to fund the various planned activities, programmes and projects under the Ministry in the FY 2007/2008. Dr. Ham-Mukasa Mulira MINISTER OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) viii

9 EXECUTIVE SUMMARY 1.0 INTRODUCTION Mr. Speaker, Sir, and Honourable Members of Parliament, this Ministerial Policy Statement for the Information and Communications Technology Sector focuses on sector policies, objectives, achievements and financial performance in FY 2006/2007. It also outlines the planned activities and financial proposals for the FY 2007/08. It is based on the Sector Wide Approach (SWAP). It takes into consideration the Results Oriented Management (ROM), Output Oriented Budgeting (OOB), Medium Term Expenditure Framework (MTEF) Indicative Figures from the Budget Call Circular of Ministry of Finance, Planning and Economic Development (MoFPED) and priorities identified in the revised Poverty Eradication Action Plan (PEAP). 2.0 MANDATE, VISION AND MISSION STATEMENT 2.1 MANDATE The mandate is to provide strategic and technical leadership, overall coordination, support and advocacy on all matters of policy, laws, regulations and strategy; sustainable, efficient and effective development, harnessing and utilisation of ICT in all spheres of life to enable the country achieve its national development goals. 2.2 VISION STATEMENT A knowledge-based Uganda where national development, and good governance, are sustainably enhanced and accelerated by timely and secure access to information and efficient application of ICT. 2.3 MISSION STATEMENT The Mission of the Sector is to promote the development of Information and Communications Technology infrastructure and services throughout the country. 3.0 MINISTRY STRUCTURE AND FUNCTIONS The Ministry is headed by a Minister who is assisted by one Minister of State. The chief Executive is the Permanent Secretary. There are two Directorates namely, the Directorate of Communications & Broadcasting Infrastructure and the Directorate of Information Technology & Management Services. The Directorate of Communications and Broadcasting Infrastructure comprises the Departments of Telecommunications and Posts, and the one of Broadcasting Infrastructure. The Directorate of Information ix

10 Technology & Management Services comprises the Department of Information Technology and the one of Information Management Services. In addition to the above, there is a Department of Finance and Administration and a Planning Unit which provide support services to the entire Ministry. The details of the proposed Ministry structure are given in Annex A. The affiliate bodies under the Ministry are Uganda Communications Commission (UCC), Broadcasting Council (BC) and Uganda Posts Limited (UPL). It is proposed that NITA-U be under the Ministry. 4.0 ICT SECTOR ACHIEVEMENTS FOR FY 2006/ COMMUNICATIONS AND BROADCASTING SUB-SECTOR POLICY LEVEL i) Guidelines for service and infrastructure provision under the Draft Telecommunications Policy 2005 developed and issued. This included full liberalisation of the sector; ii) National Backbone and e-government Infrastructure project initiated; iii) Pilot project for deployment of wireless Internet Protocol (IP) system in a typical rural area initiated and equipment procured; iv) Sector performance monitored and evaluated REGULATORY LEVEL i. Subsidy financing was provided to the following projects during the FY2006/07 to promote access and equitable distribution of ICT services; 771 Community Information Centres (CICs) under the World Bank projectl 23 ICT training centers and are currently operating satisfactorily. 28 Internet Cafés in the various districts and are currently operating satisfactorily; 9 Multi purpose Community based MCTs and are currently operating satisfactorily; Websites and informational portals are to be developed for the new 24 districts. The procurement processes is underway. ii. iii. iv. A baseline study on Postal Services in Uganda was undertaken whose findings shall be used for strategic intervention in the postal sector; A study to assess the impact of the tax on the uptake of services was undertaken. Findings shall be influence sector taxation policies; A new licensing regime for service and infrastructure provisioning became effective during the FY. 18 licenses have been issued for public service providers and 3 for infrastructure provisioning; x

11 v. The national numbering plan was modified; vi. A radio spectrum policy guideline was developed and adopted; vii. The Commission opened up and adjusted a range of frequency bands to accommodate more players in the market and to cater for the increased demand for wireless broadband; viii. Three fixed remote monitoring stations were installed in Kampala, Jinja and Masaka; ix. The film and music industry has been streamlined by promotion of local production and talent and monitoring the mode of operation of video/cinema halls SECTOR SERVICES Postal Services (Uganda Post Limited) i. Extension of the postal network by installing 4000 box rentals implemented; ii. 30 post offices converted into Agencies; iii. Encompassing new technologies and promoting the use of ICT by counter automation project in the major towns i.e Kampala, Arua, Masindi, Gulu, Mbarara, Mbale and Jinja rolled out; iv. Preparatory activities encompassing use of Electronic Funds Transfer (EFT) system initiated; v. Introduction of new products i.e. letter writing in schools branded Posta@schools, direct marketing and hybrid mail; vi. Fully operational Universal Postal Union (UPU) standard costing module implemented; vii. Postcode approved by Universal Postal Union (UPU); viii. Mail delivery improved nationally and internationally. (Mail delivery reduced to 1 day where post buses operate and 60% of Mail delivery to Japan and Australia at within a period of 5 days). Telecommunications services (UTL, MTN, Celtel, etc) i) Improved access to communication services was registered. 12% of population own phones fixed or mobile as compared to 7% in the previous year; ii) The number of mobile subscribers in June 2007 was 3.2 million compared to 2.1million in June 2006; iii) The number of fixed line subscribers in June 2007 was 137,000 compared to 100,000 in June 2006; iv) Geographical coverage of GSM networks is at 60%; v) There is broadband and fixed line access in close to 50 districts; vi) International bandwidth is at Mbps uplink and Mbps downlink, an annual increase of 55%; xi

12 vii) Internet PoPs are available in the original districts of the country. Installation of PoPs in the new 24 districts is in advanced stages. Broadcasting Services i. Private radio stations have increased from 143 to 153 last financial year; ii. 3 additional private Television stations have come into operation; iii. A new public broadcaster, Uganda Broadcasting Corporation (UBC), has been created as a result of a merger of Uganda Television (UTV) and Radio Uganda; iv. Coverage of radio and television services has increased across the entire country. 4.2 INFORMATION TECHNOLOGY SUB-SECTOR POLICY LEVEL i) The cyber laws which include the electronic transactions, digital signatures and computer misuse bills were developed and shall be tabled in Cabinet in to guide the usage of information technology in the country; ii) Value Added Tax (VAT) on computer equipment waived by Government as an effort to make computers affordable; iii) Principles and Objectives of the National Information Technology Authority- Uganda (NITA-U) Bill were approved by Cabinet. The Bill has been finalised by the Parliamentary Council and is due for submission to Cabinet; iv) Guidelines for use of IT issued including government websites initiated; v) Guidelines for provision of affordable low cost computers initiated REGULATORY LEVEL Traditionally Information Technology is not a heavily regulated Sector. Elements of regulation under the proposed NITA-U bill are limited to: i) To regulate the electronic signature infrastructure and other related matters as used in electronic transactions in Uganda; ii) In liaison with other relevant institutions, to regulate the IT profession in Uganda in order to ensure its effective promotion and development; iii) To act as an authentification center for information technology training in Uganda PRIVATE SECTOR i) Various programmes were initiated to supply computer equipment to schools an other public institutions; ii) Various Ministries installed Local and Wide Area Networks to improve on their efficiency and to enhance service delivery in the public sector; iii) Household ownership of computers has increased from 3.5% and 0.4% in urban and rural areas in 2005 to 6% and 0.7% respectively; xii

13 iv) 15% of people who own computers have Internet Connections. 4.3 CHOGM 2007 PREPARATIONS i. Work plans and budgets for various ICT activities developed. See annex E; ii. CHOFM ICT master pan developed; iii. CHOGM web portal developed and launched by H.E the President; iv. ICT equipment procured and distributed to various sub-committees; v. CHOGM secretariat network procured and installation to be completed by end of July 2007; vi. ICT requirement for 8WAMM fulfilled; vii. Plans for rollout of blackberry services in consultation with the private sector initiated; viii. Plans for provision of adequate bandwidth for various CHOGM venues in consultation with the private sector initiated. 5.0 FINANCIAL PERFORMANCE FOR FY 2006/ RECURRENT BUDGET The total recurrent budget performance for FY 2006/07 including wage was 79.5%. This low percentage was caused by low performance in the wage recurrent. Table 1: Recurrent Budget Performance for FY2006/07 PROGRAMME / DEPARTMENT FY 2006/2007 (000 Ushs) Budget Outturn % Wage 592, , Headquarters 250, , Communications 100, , Information Technology 150, , TOTAL 1,092, , DEVELOPMENT BUDGET The development budget performance for FY 2006/07 was 540%. This includes a supplementary release of Ushs 450million. Table 2: Development Budget Performance for FY 2006/07 CATEGORY FY 2006/2007 (000 UShs.) Budget Outturn % Strengthening MoICT 100, , ICT/E-government TOTAL 540 Note: The Ministry received a supplementary budget of Ushs 450 million to cater for purchase of furniture, office and transport equipment xiii

14 6.0 PLANNED ACTIVITIES FOR FY 2007/ PLANNED ACTIVITIES UNDER THE MINISTRY POLICY ISSUES The main thrust of the ministry in FY 2007/08 will be to create an enabling environment for all stakeholders in the ICT sector. This will entail reviewing and harmonising all ICT sector policies. In addition the ministry will develop policy strategic interventions that will enhance penetration of ICT services in all communities, such as establishment of District information centres FINANCE AND ADMINISTRATION i. Management of the Ministry s physical, human and financial resources; ii. Coordination of Procurement, distribution and utilization of logistics and other materials in the Ministry; iii. Study of Audit reports to check on any Financial irregularity; iv. Recruitment and induction of new staff especially in the Technical Departments TELECOMMUNICATIONS AND POSTS i. Review of Draft Telecommunications Policy, 2005; ii. Review of ICT Policy of 2003; iii. Harmonisation of Communications and Broadcasting sector Policies/Laws; iv. Review of Draft Postal Policy; v. Review of Rural Communication Development Policy; vi. Promotion of Postal services including use of ICT; vii. Implementation of the National Backbone and e-government Infrastructure Project; viii. Establishment of 20 district information centres; ix. Provision of nationwide basic and value added telecommunications services; x. Implementation of Nakaseke wireless IP Project BROADCASTING INFRASTRUCTURE i. Review of Broadcasting Policy; ii. Promotion of Communities broadcasting services; iii. Monitoring and evaluation of Broadcasting Services INFORMATION TECHNOLOGY i. Finalisation of NITA-U Bill and establishment of NITA-U; ii. Finalisation of Cyber laws; iii. Development of Information Technology Policy; iv. Development of E-government Implementation framework; v. Promotion of Software development and Hardware assembly. xiv

15 6.1.6 INFORMATION MANAGEMENT SYSTEMS i. Promotion of ICT Outsourcing industry; i. Promotion of e- applications and services; ii. ICT Capacity building in ICTs in Government. 6.2 PLANNED ACTIVITIES UNDER AFFILIATED INSTITUTIONS UGANDA COMMUNICATIONS COMMISSION i) Through PPPs provide strategic intervention in the extension of ICT services in educational institutions, Government health units and agricultural extension units; ii) Enable the provision of public Data Access Points of speed not less than 256kb/s within each sub county (LC111) of the Administrative districts of Uganda (2004); iii) Facilitate and support the development of a National Post code for Uganda under PPP; iv) Implement a regulatory accounting regime aimed at enabling fair competition in the market; v) Undertake an interconnection cost study for telecommunication sector; vi) Redefine the communication regulations to suit the current market and initiate legislative amendments to the Communications Act; vii) Initiate plans of migration to digital broadcasting UGANDA POSTS LIMITED i) Uganda Post Limited to build an address management system that will be used by government and other international and national organizations; ii) Expansion of services by setting up telecenters in selected towns to offer internet facilities; iii) Home delivery of mail and logistics arm of the business to be put in place; iv) Improvement in the money order systems and controls to be implemented through the automation of the processes; v) Acquisition and installation of new CCTV system with HDD to enhance mail security; vi) Acquisition of walkthrough screening machines to improve customers security; vii) Development of another 5 year strategic plan; viii) Acquisition of an x-ray machine to screen mail for dangerous items; ix) Acquisition of more four buses; x) Having timely reliable Management financial information; xi) Strictly adhering to the Approved Budget and set Financial regulations; xii) Compliance to statutory obligations; xv

16 xiii) Complete location policy by converting the 10 departmental post offices into Agencies; xiv) Extend Counter Automation to several post offices i.e Jinja, Arua, Kabale, Fortportal, Kasese, Soroti, Lira, Tororo and Hoima; xv) Launch intercity bus service in Nairobi and Tanzania; xvi) Start Electronic Funds Transfers (EFT) for domestic money orders using IFS light; xvii) More strategic alliances to be formed BROADCASTING COUNCIL i) Develop digital migration strategies; ii) Encourage broadcasters and independent producers to consider conversion of their studios, production and communication technologies from analogue to digital; iii) Establish as digital broadcasting advisory committee to produce a report on technical issues for radio and TV; iv) Review broadcasting policy in preparation for digital broadcasting to ensure harmonized transition from analogue to digital systems; v) To establish a framework that takes into account the convergence of technologies in the digital era; vi) Streamline the operations and issuing of new licences to subscription broadcasters after the removal of monopoly of Multichoice (DSTV) by ensuring that relevant guidelines are in place; vii) Facilitate the process of conversion from analogue to digital; viii) Streamline operations of the film and music industries by promoting local production and talent, and ensured that video halls are not used as hubs for criminal elements. 7.0 BUDGET PROPOSALS FOR FY 2007/ RECURRENT BUDGET Following approval of the Ministry structure, the total proposed recurrent budget for the Ministry including wage is Ushs. 2,451,281,000 as shown in table 3 below. Table 3: Recurrent budget proposal for FY 2007/08 PROG Department Wage (000 Ushs) Non-wage (000 Ushs) Total (000 Ushs) 1. Finance and Administration 320,970 1,168,535 1,489, Information Technology 131, , , Information Management Services 110, , , Broadcasting Infrastructure 99, , , Telecommunications and Posts 92, , ,473 Total 754,281 1,700,000 2,451,281 xvi

17 7.2 DEVELOPMENT BUDGET The total proposed development budget for the Ministry is Ushs. 4,200,350,000 as shown in table 4 below. Table 4: Development budget proposal for FY 2007/08 Project Amount (000 Ushs) 1. Strengthening of Ministry of ICT 1,500, National Data Transmission Backbone and e-government Infrastructure 1,900, ICT/E-government Policy Implementation 800,000 Total 4,200, KEY CHALLENGES FOR THE MEDIUM TERM The major challenge of the Ministry is fully establishing itself and obtaining financial and human resources. Though most key administrative positions have been filled there is still the challenge of recruitment of technical staff to fully operationalise the recently approved structure. Below are the sectoral challenges: 8.1 COMMUNICATIONS AND BROADCASTING SUB-SECTOR i. Implementation of the Post-Duopoly Telecommunications Policy Guidelines; ii. Integration of ICTs into the PEAP. A National strategy paper with the theme: Role of ICT in delivery of PEAP strategic objectives as an industry for economic development has been developed by NPA; iii. Provision of affordable telecommunication services countrywide; iv. Maintenance of current postal network; v. Expansion of the postal network into new districts; vi. Extension of broadcasting services to cover the whole country; and vii. Effects of unreliable power supply. 8.2 INFORMATION TECHNOLOGY SUB-SECTOR i. Development of appropriate Polices & standards for IT sector; ii. Building awareness for IT in regard to overall national socio-economic development; iii. Promotion of usage of computers in both rural & urban areas in Government service provision; iv. Making of IT equipment & services affordable; xvii

18 1.0 BACKGROUND Mr. Speaker Sir, and Honourable Members of Parliament, in accordance with the Budget Act, 2001, I hereby present the Ministerial Budget Policy Statement for the Ministry of Information and Communication Technology for the Financial year 2007/08. This Policy Statement is based on the indicative budget ceiling for FY 2007/08. It highlights the achievements of the Information and Communications Technology sector in the FY 2006/07 and details strategies and programmes for implementing critical priorities within the budget provision. The Ministry s budget is based on a work programme that includes ongoing projects and other priority programmes. The Statement has been prepared in accordance with Results Oriented Management (ROM), Output Oriented Budgeting (OOB), Activity Based Budgeting (ABB) and Sector Wide Approaches (SWAP). Efforts have been made to identify priority Sector objectives and policy actions based on Sector targets identified under the revised PEAP. The PEAP is the overall planning framework. In addition, the outputs and indicators identified will fulfil the Millennium Development Goals (MDGs) and the recently approved Infrastructure Development and Rural Development Strategies. 1.1 VISION STATEMENT A knowledge-based Uganda where national development, and good governance, are sustainably enhanced and accelerated by timely and secure access to information and efficient application of ICT 1.2 MISSION STATEMENT, MANDATE AND FUNCTIONS MISSION STATEMENT The Mission of the Sector is to promote the development of Information and Communications Technology infrastructure and services throughout the country MANDATE The mandate is to provide strategic and technical leadership, overall coordination, support and advocacy on all matters of policy, laws, regulations and strategy; sustainable, efficient and effective development, harnessing and utilisation of ICT in all spheres of life to enable the country achieve its national development goals. 1.3 STRUCTURE AND FUNCTIONS STRUCTURE The Ministry is headed by a Minister who is also the political head of the Sector. He is assisted by a Minister of State. The Permanent Secretary is the Chief Executive and Accounting Officer, responsible for the overall management of the Ministry. The recently approved Organisational Structure of the Ministry is composed of the following: 1

19 i. A Directorate of Communication & Broadcasting Infrastructure comprising the Departments of Telecommunications & Posts and of Broadcasting Infrastructure; ii. iii. iv. A Directorate of Information Technology and Information Management Services comprising the Departments of Information Technology, and Information Management Services; A Department of Finance and Administration; The Units of Procurement & Disposal, Internal Audit and Planning; v. Autonomous Institutions comprising of Uganda Communications Commission (UCC), Posta Uganda, Broadcasting Council (BC) and the Proposed National Information Technology Authority (NITA-U). The details of the approved Ministry structure is attached as Annex A and the Establishment Analysis as Annex B KEY FUNCTIONS OF THE MINISTRY i. Providing appropriate, effective and harmonized policy and regulatory framework as well as strategies, that facilitate sustainable development and application of information and communication technologies in the Country; ii. iii. iv. Promoting and ensuring the establishment of an appropriate infrastructure that promotes ICT development and at the same time fulfils universal ICT access targets, that meet the global business environment requirements and enables the country achieve its development goals; Promoting and ensuring widespread proliferation of ICT applications in the public and private sectors, in support of sustainable development; Providing ICT based professional and technical support and services to all Government Organs, Local Governments and the Private Sector; and v. Promoting sustainable investments that enhance quality and equitable delivery of information and ICT services and employment opportunities in rural/remote areas to benefit all communities including the disadvantaged, through Public/Private Partnerships FUNCTIONS OF DIRECTORATE OF COMMUNICATIONS AND BROADCASTING INFRASTRUCTURE The Directorate of Communications and Broadcasting comprises of Departments of Posts and Telecommunications, and Broadcasting Infrastructure. The following are its functions: i) Evolving policies and monitoring their implementation in Postal, Telecommunications and Broadcasting sub-sectors; ii) Putting in place a framework for building national and regional backbone infrastructure; iii) Coordinating the development of the inter-governmental network; 2

20 iv) Overseeing the performance of Posts, Telecommunications and Broadcasting service providers; v) Coordinating the implementation of the National ICT Policy and spearheading the e- vi) Government initiative; Coordinating the work of the ICT Sector Working Groups (SWG) in various Ministries and institutions of Government; vii) Providing technical assistance to various Ministries in the implementation of the ICT policy, i.e., procurement, recruitment of new staff, etc, with a view of enhancing their capacity; and viii) Coordinating, monitoring and reporting on implementation of regional and International Organizations programmes and recommendations. ix) Provision of policy guidelines in the development of national broadcasting policies, strategies and master plan. x) Identifying and advising the Government on all matters of broadcasting development. xi) Prescription of the appropriate radio-frequency spectrum engineering characteristics of broadcasting services; xii) Ensuring that signal distribution services are open and interoperable, are harmonized with the region and are able to meet international distribution standards; xiii) Monitor and evaluated technological developments and service trends in the broadcasting sector and report to the Minister from time to time; FUNCTIONS OF DIRECTORATE OF INFORMATION TECHNOLOGY AND MANAGEMENT SERVICES The Directorate of Information Technology Management Services comprises of Departments of Information Management Services and Information Technology. The following are its functions: i) Initiation and leading the development of Government and national IT Policies, Strategies and Master Plans; ii) Identification and advising Government on all matters of IT development, utilisation and deployment in such aspects as computer networking, systems development, IT security, training and support; iii) Formulation of policies on IT standards, IT procurement, implementation, delivery, support, organisation, sustenance, risk management, data protection, security, and contingency planning; iv) Promotion of proliferation of e-commerce; v) Coordination and monitoring IT initiatives in Government; and vi) Provision of policy guidance in establishing an infrastructure for information sharing in Government and related stakeholder agencies; FUNCTIONS OF FINANCE AND ADMINISTRATION i) Guiding the Ministry in human resource management matters, policies, rules, regulations, practices and procedures; ii) Coordinating the preparation and management of the Ministry s budget; iii) Responsible for safe custody, proper utilisation and accountability for public funds; iv) Documenting and keeping financial records; v) Producing financial statements; 3

21 vi) vii) viii) ix) Handling in liaison with the Solicitor General all legal matters affecting the Ministry; Managing the Ministry assets; Maintaining a Registry as a Central Databank for managing records; Recruitment and appraisal of staff FUNCTIONS OF DIVISION OF PLANNING The Division of Planning is an independent division reporting directly the Permanent Secretary. Below are its functions: i) Preparation of the Ministry Strategic Plans; ii) Carrying out policy research/studies, reviews as well as evaluation of policies implementation and performance in the Ministry; iii) Monitor, Analyse and Evaluate ROM implementation and performance; iv) Promote general research and development in the arena of ICTs; v) Prepare reports on the Ministry performance on the President s Manifesto; vi) Ensure that the Ministry prepares detailed proposals for projects/programmes for considerations by the government and donor agencies; vii) Monitor and evaluate Ministry programmes and their performance to keep track of their relevance, efficiency and effectiveness; viii) Make returns to Cabinet Secretariat on implementation of Cabinet directive/decision on the sector of ICT; 1.4 STATEMENT OF SECTOR OBJECTIVES COMMUNICATIONS AND BROADCASTING SUB - SECTOR The overarching Communications and Broadcasting sub-sector policy is to promote an environment for public and private sector actors to provide efficient, well-distributed and affordable Communications and Broadcasting services and infrastructure throughout the country. Communications and Broadcasting encompasses Telecommunication networks, Broadcasting Infrastructure as well as Postal services. Below are the Communications and Broadcasting sub-sector Policy objectives: (i) (ii) (iii) (iv) (v) (vi) (vii) Increase the geographical coverage of telecommunications services up to parish level; Have in place a balanced and coordinated national and regional communications backbone infrastructure through the putting in place of an appropriate and conducive enabling environment, licensing, regulation and standardization; Ensure special low cost Internet access for schools, universities, libraries, multipurpose community centres and public service institutions; Implementation of the Rural Communications Development Fund; Consolidate the gains of the restructuring of Uganda Post Limited with a view of ensuring its independence from government funding and its becoming a profit-making and self-sustaining company offering a wide range of modern postal services in a competitive environment; Effect liberalization of postal services in areas handling mails weighing less than 1 kg; Reinvigorate automation of Postal services; 4

22 (viii) Provide policy guidelines in the development of national broadcasting policies, strategies and master plan; (ix) Identify and advise the Government on all matters of broadcasting development; Prescribe the appropriate radio-frequency spectrum engineering characteristics of broadcasting services; (x) Ensure that signal distribution services are open and interoperable, are harmonized with the region and are able to meet international distribution standards INFORMATION TECHNOLOGY SUB SECTOR (i) Establish Government and National IT Policies, strategies and Master Plans for e- Government and e-commerce among others; (ii) Continually identify and advise Government on all matters of IT development, utilisation and deployment; (iii) Evolve polices on electronic signature infrastructure and public key infrastructure for use in electronic transactions in the country and internationally; (iv) Regularly coordinate and monitor IT initiatives in Government (v) Provide policy guidance in establishing an infrastructure for information sharing in Government and related stakeholders; (vi) Evolving policies on IT standards in procurement acquisition, implementation, delivery, support, organisation, sustenance, risk management, data protection, security, and contingency planning; (vii) Provide technical guidance and ensure the establishment of the necessary IT services in preparation for the Commonwealth Heads of Government Meeting (CHOGM 2007). 1.5 POLICY FRAMEWORK In fulfilment of its mandate, the Ministry has a framework of policy objectives to guide the Sector programmes, projects and activities. Below are the policy objectives and their corresponding policy actions and plans. a) Promote proliferation of ICT Applications throughout the country i) Promote and enable the building and establishment of an appropriate infrastructure that supports ICT development and at the same time meets universal ICT access targets; ii) Promote widespread proliferation of ICT applications in support of sustainable development, in the fields of public administration, business, education, health, employment, environment, agriculture and science, within the framework of e- strategies iii) Raise the relative priority of ICT projects in requests for international cooperation and assistance on infrastructure development, as well as investment promotion in call centre and other IT incubators 5

23 b) Promote Rural Communications Development i) Ensure equitable distribution of communication services infrastructure in rural and remote areas to at least a presence of the network in every parish; and ii) Partner with private sector to promote sustainable investment in rural communication through use of the Rural Communication Development Fund (RCDF). c) Promote efficient public and private sector operated postal services i) Ensure improved mail handling services by all licensed postal operators; ii) Ensure coordinated postal network infrastructure through regulation and standardisation; and iii) Promote provision of efficient, competitive and commercially viable customeroriented postal services. The table below shows the sector and Ministry objectives linkages Table 5: Sector and Ministry objective linkages NO SECTOR POLICY OBJECTIVES MINISTRY POLICY OBJECTIVES 1. Promote information and communication technology -Increase the geographical coverage of services throughout the country telecommunications services up to parish level; -Effect liberalization of postal services in areas handling mails weighing less than 1 kg; -Provide technical guidance and ensure the establishment of the necessary IT services. 2. Promote information and communication technology Infrastructure throughout the country -Evolve polices on electronic signature infrastructure and public key infrastructure for use in electronic transactions in the country and internationally; -Have in place a balanced and coordinated national and regional communications backbone infrastructure through the putting in place of an appropriate and conducive enabling environment, licensing, regulation and standardization; -Provide policy guidance in establishing an infrastructure for information sharing in Government and related stakeholders. 6

24 1.6 ISSUES RAISED BY THE INFORMATION AND COMMUNICATIONS TECHNOLOGY COMMITTEE OF PARLIAMENT Question 1: The Ministry structure, was it approved by the Ministry of Public Service? Issue: The Ministry Structure Response 1: The Mandate, Functions and Structure of the Ministry of Information and Communications Technology were approved by Cabinet on 25 th April, 2007 as per Minute Number 168 (CT 2007). Question 2: In view of the Ministry Mandate is there an element of establishing ICT at the District levels? (The Ministry will place some one in local Government as the IT officer and the also there 20 District information centres that the Ministry has planned for in the next financial budget) Issue: the Ministry mandate visa avis the ICT district levels Response 2: The Ministry Organisational Structure does not at the moment provide for direct deployment of ICT Officers at the districts from the Centre. However, the mandate allows the support to districts to be given when they request for it given as per the Local Government Act. This support may include among others technical support in both soft and hard ware requirements, monitoring of their IT operations and requirements, linkages between districts and the Central Government IT operations and advice on IT Training Programmes. Question 3: How will these District Information Centres function? What is the criterion for choosing these districts? Issue: District Information Centres Response 3: The National Transmission Backbone and E-Government Project took into consideration the pilot requirement for provision of 20 district information centres as a means of providing a one IT Stop Centre for provision of IT services including IT Training. These centres are to be linked on the National Transmission Backbone and equipped with Computers and Internet facilities. They will be managed by the District Administration (Office of the District Chief Administrative Officer). They will be used by the Public especially farmers and business people to get and send information, thus facilitating contact with the business community around the globe. The centres are planned to greatly enhance the Government Programmes like Plan for Modernisation of Agriculture and Bonna Baggagawale (Prosperity for all) Programme among others. The choice of the districts will depend on availability of required ICT infrastructure and capacity of the district to own and sustain the centre. This will be done in consultation with key stakeholders. 7

25 Question 4: The Huge Public Expenditure of the officers to be employed in the Ministry; Hire IT compliant officers to cut on the expenditure on secretaries, Steno Secretaries, personal assistants etc. Issue: Hiring of all round staff in ICT Ministry to reduce huge public expenditure Response 4: The Government of Uganda has minimum structures and requirements that cut across all Government Ministries. These are reviewed from time to time when there is need. At the moment, no changes have been made to accommodate all round officers to be recruited in Government Ministries and Departments as this could have many financial and other requirements not only on the side of Government but also on the staff to be employed. It is the view of the Ministry that this matter be taken further by Parliament with the Ministry responsible for Human Resource i.e. Ministry of Public Service. Question 5: The Development Budget for the Ministry strengthening and establishment of the Ministry. Issue: Development Budget for the Ministry Of ICT Response 5: The Ministry of ICT is newly established with the new mandate, structure and functions. Other than the skeleton staff in the department of Communications from the former Ministry of Works, Housing and Communications, the rest of the staff have been posted from various Government Ministries and department under the Public Service Structure and Regulations. To this effect, the Ministry has had to start literally from zero Assets and a token budget at the start of financial year 2006/07. This has only been improved by the supplementary reallocation of Ushs. 450,000,000/= from the wage bill to buy minimum furniture and vehicles for the Hon. Minister, Hon. Minister of State and Permanent Secretary. In financial year 2007/08, a budgetary provision of Ushs. 1,500,350,000/= has been included to cater for strengthening the Ministry of ICT in terms of procuring furniture, vehicles, computers, training etc building on what has been procured under the supplementary release. Question 6: How could the Ministry commit for premises yet there was no money to pay off? How could the Ministry enter agreement and not move in the premises? Issue: New Ministry Premises Response 6: The Statistics House was built as home for Uganda Bureau of Statistics, Uganda Population Secretariat, and Uganda Computer Services/NITA-U. All the staff of the above mentioned Institutions moved into the new premises when it was completed. It so happened that the former Executive Director of Uganda Computer Services, was appointed the Minister of ICT. Since the offices were in Statistics House, he kindly agreed with the staff of UCS to allow him to temporally operate from his former office as Government located other premises to house the new Ministry of ICT. However, as more staff were being posted to the new Ministry, there was an urgent need to locate the premises as all staff could not be accommodated in two rooms that had been lent on 8

26 a temporary terms. To this effect, consultations were made with Ministry of Finance, Planning & Economic Development to provide funds either through the re-allocation of part of the wage bill allocated to the Ministry and could not be wholly used. It was out of this arrangement that the Ministry of ICT identified Social Security House and followed all Government procedures to get the Tenancy Agreement signed. After signing the Agreement, as this was a newly renovated building, there was need to identify a firm to partition the offices on floor 4 for various accommodation as per the PPDA Act. When this was finally completed there was a delay in getting the funds for rent, partitioning costs, furniture and office equipments as well as vehicles for Hon. Minister, Hon. Minister of State, Permanent Secretary and other senior staff of the new Ministry. This was however partly realized after securing a supplementary funding of shs. 450,000,000/= in mid May 2007 which has enabled us to acquire furniture and office equipments hence our immediate shifting to Social Security House at the end of May We are pleased to inform you that the Ministry of ICT is now housed in its own home in Social Security House, 4 th Floor. We must mention however, that with the approved structure, mandate and functions, the Ministry will require more space to house four departments and one division that are not catered for in our new premises. Question 7: Why does the Ministry not retain the current premises at statistics House? Issue: Staying At Statistics House Response 7: As clearly explained above, the Statistics House was built for specific requirements and occupation of the Bureau of Statistics, Uganda Population Secretariat, and Uganda Computer Services. The premises are already fully utilized by the above mentioned Institutions. There was therefore no room for the new Ministry of ICT. Question 8: Interaction with MoFPED in order to streamline the budget. And clear rent, cars for the Ministers and establish the ministry. Issue: Budget Process Response 8: The Ministry wishes to express gratitude for the unwavering support of the ICT Committee of Parliament in the budget process for FY 2007/08 which resulted into the new Ministry of ICT getting a budget that covers Recurrent and Capital Development Expenditure. This process helped us to interact more closely with the Committee and Ministry of Finance, Planning and Economic Development officials in prioritizing the MTEF ceiling to cover the most urgent Ministry priorities for FY 2007/08. 9