The Government of Uganda secured financing from the International Development Association (The World Bank) to implement the Integrated Water Management and Development Project (IWMDP). The Integrated Water Management and Development Project (IWMDP) is a follow on from the Water Management and Development Project (WMDP) is being implemented by Ministry of Water and Environment, Urban Water Supply and Sewerage Department (Small Towns and Rural Growth Centres) together with National Water & Sewerage Corporation (large towns). The project will focus on; improving access to water supply and sanitation services in urban, small town and rural areas including refugee hosting communities in the country; improving water resources management; and Institutional strengthening to ensure improved service delivery and sustainable water resources management in Uganda. 

One of the beneficiaries under IWMDP is Kaliro-Namungalwe cluster towns located in Iganga & Kaliro District. The benefiting centers are; towns of Iganga and Kaliro and rural growth centers and subcounties of Nakalama, Namungalwe, Nambale and Nabitende in Iganga District, whereas the benefiting trading centres in Kaliro district include Silver ward, Kigulu village, Bugumba, Nabikote, Namungalwe, Nasuti, Nambale, Naibiri and Nabitende.

The Environment and Social Impact assessment (ESIA) has been developed for Kaliro-Namungalwe Town Water Supply and Sanitation System and explores the likely impacts of the proposed project on the biophysical and social-economic environment hence ensuring promotion of environmental and social sustainability through identifying and implementing appropriate mitigation measures proposed.