Parliament Approves Shs772 Bn Loan to Tackle Water Crisis in Four Districts

The Parliamentary Committee on the National Economy has approved a government request to borrow Shs772 billion to address long-standing water supply challenges in four Ugandan districts.

The funds will finance the Strategic Town Water Supply and Sanitation Project in Kayunga, Mayuge, Kamuli, and Nakasongola—areas that have struggled for years with limited access to clean and safe water.

The approved financing package includes a USD 183 million (approximately Shs641 billion) loan from Standard Chartered Bank Uganda, and an additional Shs120 billion to be raised domestically through the sale of treasury bonds and bills by the Bank of Uganda.

According to the government’s plan, Kamuli, Kayunga, and Nakasongola will see upgrades and expansion of existing water systems, while Mayuge will benefit from the construction of a completely new water supply system to resolve chronic shortages.

Parliament, which had been in recess, was recalled to handle urgent matters, including this loan approval. The water project is among several major infrastructure plans being financed through external borrowing.

Later today, the government is expected to present an additional loan request of Shs423 billion from the African Development Fund to construct a power transmission line to South Sudan.

Another request for Shs70 billion from the Arab Bank for Development in Africa (BADEA) is also under consideration to finance the construction of the 16-kilometre Nebbi–Goli road.

According to the latest report from the Ministry of Finance, Uganda’s total national debt has now reached Shs116.2 trillion.