Government will proceed to access loan funding for critical national projects, after getting a nod from Parliament on the financing for several infrastructure and agricultural plans.
During the sitting on Wednesday, 29 October 2025, chaired by Deputy Speaker Thomas Tayebwa, legislators approved borrowing worth US$1.341 billion which had previously been stayed owing to concerns on a financing agreement negotiated with the World Bank.
During the sitting, the State Minister for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, laid the agreement before the House that will support funding for the Uganda Cities and Municipal Councils Infrastructure Development (UCMID) programme. Parliament had a day earlier stayed the consideration and approval of this request demanding that the Minister presents the agreement.
The loan facility that will be secured from the International Development Association (IDA) of the World Bank, together with a grant worth US$328.3 million, will also support four other key programs and projects.
These include US$250 million for the Northern Uganda Social Action Fund (NUSAF IV) that seeks to strengthen adaptive social protection systems in Uganda, and US$180.5 million for the Development Response to Displacement Impacts Project (DRDIP) which seeks to expand economic opportunities for host communities and refugees.
The loan also provides US$210 million for the Uganda Learning Acceleration Program (ULEARN) that aims at improving learning environments in target schools.
To strengthen government efficiency, accountability and sustainability of public investment and asset management, US$200 million will be availed under the Uganda Strengthening Public Investment and Asset Management for Growth and Resilience Programme (PIMPLUS).
The House also approved a loan facility from Standard Chartered Bank worth Euros115.8 million, meant for construction of critical oil roads.
These include the 56.5 kilometre Karugutu-Ntoroko road that links to Rwebisengo via 8.2 kilometres, as well as 3.3 kilometres of town roads in Ntoroko District.
The Committee on National Economy, however, observed that key infrastructure was not included in the project, including the River Semuliki bridge connection to Democratic Republic of Congo, and critical oil roads in Bunyoro sub-region.
“The Committee recommends that the Ministry of Works and Transport fast-tracks the construction of these roads, in order to improve the livelihoods of the people in these areas,” said Hon. John Bosco Ikojo, the committee chairperson.
In a dissenting view, Hon. Hassan Kirumira (NUP, Katikamu County South) raised concerns over the expensive nature of the loan and urged the Minister for Finance to always negotiate for better loan terms.
Musasizi explained that the Ministry of Finance engaged a number of financing institutions on the project, where Standard Chartered Bank offered the most favorable terms after negotiations.
Legislators also gave the green light to government to borrow Euros192.9 million from Citi Bank to finance phase one of the Enhancing Agricultural Production, Quality and Standards for Market Access Project.
The project will promote an inclusive competitive agricultural sector through the establishment of systems and infrastructure to enhance the volume, safety and quality of agricultural projects on the market.
Deputy Chairperson of the National Economy Committee, Hon. Robert Migadde, said the project will be implemented across 69 districts in 13 agro-ecological zones of Uganda, including seven districts specifically hosting refugee communities.
“The beneficiaries are agro-processors and Makerere University students in the School of Food Technology, Nutrition and Bio-engineering. The project trains agro-processors to meet quality standards and helps students develop skills to support the agro-processing industry,” Migadde noted.
