Parliament has adopted a proposal to borrow €183.3 million from the Standard Chartered Bank, UK, and Shs120.4 billion from the domestic market through a six-month Treasury Bill to finance the Strategic Towns Water Supply and Sanitation Project - Phase II.
The resolution was passed during a plenary sitting chaired by the Deputy Speaker, Thomas Tayebwa, on Wednesday, 17 September 2025, following a motion by the Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi on Tuesday, 16 September 2025.
Musasizi said the project seeks to expand access to clean water and sanitation for rapidly growing urban populations.
“The project will support Government of Uganda’s efforts to achieve sustainable provision of safe water and hygienic sanitation for the urban population by 2030,” he said.
He added that the scheme will directly benefit at least 740,000 people by 2030 and one million by 2050, while also serving industries such as the cassava processing plant in Nakasongola District and the proposed industrial park in Kakooge.
“It will contribute to improved health and productivity, provide employment during construction, and empower women and youths through skills development,” Musasizi said.
The project covers four clusters: Nakasongola District, Kasambira in Kamuli District, Bugadde in Mayuge District, Idudi-Buseesa in Bugweri District, and Alebtong District, spanning 51 towns in 115 parishes. It has three components: urban water supply infrastructure, urban sanitation facilities, and project management. Planned designs include water intake and treatment plants, faecal sludge facilities, and public toilets to address growing waste management challenges.
Counterpart funds will cover recurrent costs, land acquisition, coordination, and monitoring, with allocations starting in FY 2025/26.
Parliament had on Tuesday, 16 September 2025, deferred the matter, noting that the number of MPs present was inadequate for a decision, leaving the loan’s approval in limbo.
Much as the Committee on National Economy had at the Tuesday sitting acknowledged the project’s potential, it had raised concerns over its financing.
A minority report signed by Hon. Charles Tebandeke (NUP, Bbale County) Hon. Hassan Kirumira (Katikamu County South) urged Parliament to reject or defer approval until more favourable terms are secured, emphasising fiscal prudence in a high-debt environment.
