Govt to borrow additional sh600b for water projects in Kampala, Mbarara

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The government is set to borrow a total of €150m (about sh599b) from the French Development Agency (AFD) for the development of water and sanitation projects in Western Uganda and Greater Kampala.

Dr Silver Mugisha, the managing director of National Water and Sewerage Corporation (NWSC), said the request has already been made by the government to AFD and that the request is awaiting approval.

He said they are currently producing a total of 160 million litres of water at Katosi in Mukono, but that this has to increase to about 240 million to meet the rising demand.

He said currently, the water intake from the station is 140 million litres of water per day but that the treatment plant capacity is 160 million.

"We need to build another line there to raise the capacity to 240 million and then build more capacity within the network to reach more people. That is why we requested AFD to provide an extra €150m, " he said.

He explained that €80m of the requested funds will go towards project works in Kampala, adding that Masaka will receive €30m and Mbarara will receive €40m.

"I am told you (AFD) responded positively, and we are now waiting for H.E, the President, to give it a no objection so that the technical process can start, " he said on Wednesday, March 12, 2025.

This was during the signing of an €85m (about sh350b) project to boost water and road infrastructure in Kampala. 

Presided over by Finance Minister Matia Kasaija, the signing event was attended by Arnal Jean-François, the AFD regional director, and the French ambassador to Uganda, Xavier Sticker.

Other attendees included Kampala minister Hajjati Minsa Kabanda and the state minister of water and environment Beatrice Anywar.

Also present were technical staff from the Kampala ministry including the Under Secretary of the Ministry, Monica Edemachu.