Uganda has made substantial progress on its infrastructure agenda in recent years. The early and successful ICT reform detonated a huge expansion in mobile coverage and penetration resulting in a highly competitive market. Power sector restructuring has paved the way for a rapid doubling of power generation capacity. Uganda is doing well on the water and sanitation MDGs, and has made effective use of performance contracting to improve utility performance. However, a number of important challenges remain. Despite reforms, the power sector continues to hemorrhage resources due to under-pricing and high distribution losses, while electrification rates are still very low. Providing adequate resources for road maintenance remains a challenge, and further investment is needed to increase rural connectivity and improve road safety. Addressing Uganda's infrastructure challenges will require sustained expenditure of around .4 billion per year over the next decade, strongly skewed towards capital expenditure. Uganda already spends approximately billion per year on infrastructure, equivalent to about 11 percent of GDP. A further .3 billion a year is lost to inefficiencies, the bulk of which are associated with underpricing and distribution losses in the power sector. Uganda's annual infrastructure funding gap is about .4 billion per year, most of which is associated with irrigation as well as water and sanitation infrastructure.