Finance Secures UGX 2.75 Trillion Financing Deals for Power, Water, and Roads

The Government of Uganda has signed financing agreements worth UGX 2.747 trillion to fund three major infrastructure projects aimed at strengthening power transmission, expanding water and sanitation services, and upgrading a key road corridor.

The projects will be financed through external funding mobilised by Standard Chartered Bank, with insurance backing from international development partners. Government officials say the investments will significantly boost Uganda’s economic and social development.

Speaking at the signing ceremony held at the Ministry of Finance headquarters on Friday, Finance Minister Matia Kasaijja said the largest share of the financing, up to UGX 1.4 trillion, will go towards the construction of the Karuma–Tororo double-circuit 400kV transmission line, including associated substations.

The transmission line is intended to evacuate electricity from the Karuma Hydropower Plant to major load centres such as Tororo Industrial Park, support regional power trade, and reduce losses arising from unutilised energy.

Kasaijja also revealed that UGX 754.5 billion has been allocated to the design and construction of water supply and sanitation systems in several towns across Alpetong, Nakasongola, Bugweri, Mayuge, and Kamuli districts.

The project is expected to improve access to clean water and sanitation services, enhance public health, and improve living standards for an estimated 740,000 people by 2030.

A third component of the financing, up to UGX 486 billion, will support the upgrade of the 56.5-kilometre Karugutu–Ntoroko road, alongside 8.2 kilometres of the Rwebisengo road and 3.3 kilometres of town roads in Ntoroko, bringing the total road works to 68 kilometres.

According to government officials, the road project will improve access to productive rural areas, promote tourism around Lake Albert, reduce transport costs, and support emerging oil and gas activities in the region.

Kasaijja commended Standard Chartered Bank for mobilising the financing and acknowledged the role of development partners, including the Government of Sweden, the Government of the People’s Republic of China, and the Islamic Corporation for the Insurance of Investment and Export Credit, for providing insurance cover that enabled Uganda to secure the funding on competitive terms.

He urged contractors, project supervisors, and implementing agencies to ensure efficient utilisation of the funds to deliver the intended development outcomes.

The projects form part of Uganda’s broader infrastructure development strategy aimed at accelerating economic growth, reducing poverty, and improving service delivery nationwide.

Standard Chartered Bank Managing Director and CEO, Sanjay Rughani, said the financing structure reflects the developmental nature of the projects, with repayment tenors ranging from seven to eighteen years.

He described the arrangements as long-term, sovereign financing tailored to support Uganda’s sustainable growth.

Meanwhile, Works and Transport Minister Gen. Katumba Wamala said significant progress has been made on strategic oil-related infrastructure, noting that most oil roads have already been completed, with only one remaining section currently under construction.

He added that supporting infrastructure, including airports and access roads, is largely in place, leaving no justification for further delays in oil production. Katumba warned contractors against project delays, saying extended timelines would not be tolerated, especially as land acquisition challenges have eased, with about 85 percent of the required land already secured.

He further noted that public demand for basic services, particularly roads, water, and energy, remains high, based on feedback gathered during recent NRM campaign activities across the country.

However, the minister raised concerns over the lack of funding for tourism roads, warning that poor road infrastructure in key tourism areas is costing Uganda significant revenue. “We are losing a lot of money from this cash cow simply because the roads are in bad shape,” Katumba said, calling for urgent financing to address the gap.