On June 21, 2012, the International Development Association (IDA), acting as administrator of the Global Partnership on Output-Based Aid (GPOBA), signed a Grant Agreement with the Government of Uganda to establish an Grid-Based OBA Fund.
In 1999, Uganda had achieved a national teledensity (fixed and mobile) of about one telephone per 100 inhabitants, slightly above the average for Sub- Saharan Africa (excluding South Africa). But with most phone lines concentrated in the Kampala area, rural teledensity was far lower. Indeed, only 380 of the 920 subcounties in Uganda were expected to have any kind of telephone service by 2001.
The OBA facility supported provision of over 105,000 grid connections for poor households (525,000 residents) in urban, peri-urban, and rural areas, representing about 10 percent of new connections country-wide from 2013–2016.
The GPOBA grant, which was fully utilized four months before the closing date of June 2017, supported about 40,000 connections.