Uganda secures sh340b from France for key water project

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Uganda has secured a loan of €85m (sh340b) from France to improve water infrastructure and broader urban development in the Greater Kampala Metropolitan Area. 

This was revealed by finance minister Matia Kasaija on Wednesday.

The loan agreement was signed by Kasaija and AFD regional director Jean-François Arnal at the finance ministry offices in Kampala.

The finance minister decried the strain on Kampala's water services due to rapid urbanization and industrial growth.

Sh180b of that loan will support the second phase of the Kampala Water Lake Victoria Water and Sanitation Project. 

Under this project, water supply will be expanded, building on previous phases that upgraded the Ggaba water treatment complex and constructed a new treatment plant at Katosi.

"This funding will enable us to increase coverage of the intervention, develop the downstream part of the water supply network, and enhance access to safe water for the residents of the Greater Kampala Metropolitan Area," said Kasaija.

The remaining sh160b will fund the Greater Kampala Metropolitan Area Urban Development Programme.

It will bolster the capacity of the Ministry of Kampala Capital City and Metropolitan Affairs and the Kampala Capital City Authority to deliver coordinated infrastructure and services.

"This financing is timely, as it fits into our strategic aspirations of growing the size of our economy tenfold from the current GDP of $53b (sh194.4 trillion) to $500b (sh1,834.4 trillion) by 2040," said the finance minister.

He also pledged full accountability for the funds. 

"We will ensure that the funds are properly and exclusively utilized by the agencies for the activities earmarked through regular progress reports."

The Ugandan government has also requested further funding of €150m (sh600b) to support the expansion of clean water services.

'Water source is wealth'

Water and environment state minister, Beatrice Atim Anywar, thanked international partners for their support towards the water sector.

She added she hopes the partnership expands to other areas, including Masaka.

Anywar emphasized the need for Ugandans to protect their water sources by avoiding activities that contaminate or destroy them.

“Our water source is wealth that must be protected by all Ugandans. People should stop tampering with the catchment area of our water sources, including Lake Victoria. Let's protect our environment. It sustains the water sources,” she said.

On his part, French Ambassador to Uganda, Xavier Sticker, said the project "is a testament of the enduring and strong friendship and cooperation between our two countries".

He spoke of France's commitment to improving Uganda's water supply through key investments and French expertise.

National Water and Sewerage and Corporation (NWSC) managing director, Eng. Dr Silver Mugisha, said the project will address water supply challenges.

"When we finish Katosi, Sonde, and Naguru, we will have the capacity to produce sufficient water and bring it to the reservoirs," he said.

"We need to increase production to 240 million litres per day, as the intake is 240 million litres per day, but the treatment plant can only handle 160 million litres."