Parliament to debate €45m loan for Kampala water project

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Parliament is on Thursday set to deliberate on the Government's proposal to secure a €45m (approximately sh171.6b) loan from the Agence Française de Développement (AFD).

The funds are intended to support the second phase of the Kampala Water-Lake Victoria Water and Sanitation Project (KW-LVWATSAN).

The project aims to address the growing water needs in the Greater Kampala Metropolitan Area (GKMA), which are projected to surge dramatically in the coming decades. Official estimates predict that water demand within the GKMA will exceed 400,000 cubic meters per day by 2030 and escalate to 530,000 cubic meters per day by 2040.

The population of the area is expected to have reached 4.5 million and 7.4 million in 2025 and 2040, respectively.

The item is number six on Thursday’s order paper.

At the moment, the proposition is before the National Economy Committee led by John Bosco Ikojo for consideration.

During a meeting that featured the state minister for finance, Henry Musasizi, and the state minister for Kampala, Kabuye Kyofatogabye, the majority of lawmakers expressed support, save for a few lingering concerns like the loan interest rates, which some want to be brought down.

“Once you accept that, then I will accept to sign the report based on the fact that the President had authorized it and I would be aligning myself to the party position to approve it,” Abdi Fadhil Kisos Chemaswet (Soi County, NRM) stated.

Simon Peter Wokorach (Aswa County, NRM) added, “I am even ready as yesterday to sign the document of this loan. Because I know the importance of this loan to the metropolitan area of Kampala… How I wish also the Ministry of Works does the same to ensure that even the issues of the roads are resolved.”

Save for Hassan Kirumira (Katikamu South, NUP), who expressed misgivings about inadequate paperwork, his colleagues Peggy Joy Wako (Elders MP, NRM) and Maurice Kibalya (Bugabula South, NRM) opine differently.

“As you know, water is life. I personally support the request for this loan and would like to urge members to approve it. Because through experience, National Water and Sewerage Corporation (NWSC) has reached most of our rural areas and their projects are usually successful,” Wako stated.

“The loan is already on the order paper, so it's approved,” Maurice Kibalya (Bugabula South, NRM) observed.

The Order Paper also includes a loan proposal to secure $15.22m (approximately sh56.3b) from the African Development Bank (AfDB) and $73.1m from the African Development Fund. The funds are earmarked for the construction of the Katuna-Muko-Kamuganguzi road in southwestern Uganda and the Laropi-Moyo-Afogi road (37km) in West Nile.

At the core, the project aims to enhance rural transport connectivity, drive socio-economic transformation, and foster regional integration.