KAMPALA, Uganda — Uganda’s government will proceed with accessing loan funding for critical national projects after Parliament approved financing for several infrastructure and agricultural plans.
During a sitting Wednesday chaired by Deputy Speaker Thomas Tayebwa, legislators approved borrowing worth $1.341 billion. The approval had been delayed due to concerns over a financing agreement with the World Bank.
State Minister for Finance, Planning and Economic Development Henry Musasizi laid the agreement before the House, which will support the Uganda Cities and Municipal Councils Infrastructure Development programme. Parliament had previously demanded the minister present the agreement before approval.
The loan facility from the World Bank’s International Development Association, along with a $328.3 million grant, will also support four other key programs:
- $250 million for the Northern Uganda Social Action Fund (NUSAF IV) to strengthen social protection systems.
- $180.5 million for the Development Response to Displacement Impacts Project (DRDIP) to expand economic opportunities for host communities and refugees.
- $210 million for the Uganda Learning Acceleration Program (ULEARN) to improve learning environments in target schools.
- $200 million for the Uganda Strengthening Public Investment and Asset Management for Growth and Resilience Program (PIMPLUS) to enhance government efficiency and public investment management.
The House also approved a €115.8 million loan from Standard Chartered Bank for the construction of critical oil roads. These include a 56.5-kilometer Karugutu-Ntoroko road and 3.3 kilometers of town roads in Ntoroko district.
However, the Committee on National Economy noted that key infrastructure, such as the River Semuliki bridge connection to the Democratic Republic of Congo and critical oil roads in the Bunyoro sub-region, were not included.
“The Committee recommends that the Ministry of Works and Transport fast-tracks the construction of these roads to improve the livelihoods of the people in these areas,” said Committee Chairperson John Bosco Ikojo.
In a dissenting view, lawmaker Hassan Kirumira raised concerns over the loan’s terms and urged the finance minister to negotiate for better terms. Musasizi explained that the ministry engaged several institutions and that Standard Chartered Bank offered the most favorable terms.
Legislators also approved a €192.9 million loan from Citi Bank to finance the first phase of the Enhancing Agricultural Production, Quality and Standards for Market Access Project. The project aims to promote a competitive agricultural sector by establishing systems and infrastructure to enhance the volume, safety and quality of agricultural products.
Deputy Chairperson of the National Economy Committee Robert Migadde said the project will be implemented across 69 districts in 13 agro-ecological zones, including seven districts hosting refugee communities.
“The beneficiaries are agro-processors and Makerere University students in the School of Food Technology, Nutrition and Bio-engineering,” Migadde said. “The project trains agro-processors to meet quality standards and helps students develop skills to support the agro-processing industry.”
