The International Development Association of the World Bank has approved $150m (about sh540b) for constructing new secondary schools in sub-counties without public secondary schools. 

While appearing before Parliament’s national economy committee on Tuesday, the state minister for finance (in charge of general duties), Henry Musasizi, explained that $90m will be a loan component and $60m will be a grant. 

The minister elaborated that the loan component of the money from the World Bank will be at an annual service charge of 0.75% and annual commitment fees of 0.5%. The loan repayment period is 38 years with a grace period of 6 years. 

Explaining that Uganda’s debt to GDP ratio is at 49.8% of June 2021, Musasizi explained that Uganda’s rate of public debt ($17.5b) is still sustainable for the country to continue borrowing. 

Musasizi explained that as one of the countries with the youngest populations and fastest-growing populations in the world, it is very important for the government to continue investing in education infrastructure. 

The state minister for finance Dr John C. Muyingo told the committee that in recent years funding to the education sector in the national budget has plummeted from 15% to only 10% of the national budget. 

“The funding has reduced below the minimum recommended 15% as specified in the agreement with the Global Partnership for education. The reduction in the share of public expenditure has strained the education sector’s ability to keep pace with the demand for public secondary education created by rapid growth in the school-aged population,” Dr Muyingo stated. 

The minister explained that out of the sh540b, a total of 116 secondary schools will be constructed and that this would leave only 8 Sub Counties out of the current 116 Sub Counties without a government secondary school. 

Dr Muyingo explained that whereas the project will have schools constructed in 12 districts hosting refugees, schools will also be constructed in 84 other non-refugee hosting districts. 

“In total 70,300 new spaces will be established. Out of the 116 schools, approximately, 32 new schools will be located in refugee and host communities and 84 schools will be in other targeted Sub Counties of districts meeting the selection criteria,” Dr Muyingo explained. 

Kimanya-Kabonera MP Dr Abed Bwanika “It is important for us to get the status of secondary schools per district and per Sub County in the whole country including the populations in those places. We want information on the teacher-student ratio for the various districts.  For two years, students not getting to school. Over 30% are likely to drop out. It would be important that you plan for vocational education for such dropouts.”  

Bukholi County North MP Bakka Steven Mugabi said, “One of my Sub Counties is a beneficiary in the loan. This is one of the loans where the value out of it is so high.”  

Kyamuswa County MP Moses Kabuusu said, “I appreciate the fact that for all Sub Counties in Kalangala without secondary schools, I have to persuade refugees to come to them so they can also benefit from such projects.” 

Kitgum woman MP Lillian Aber said, “I just want the minister for finance to give us confidence. The economy is grappling and revenue collections have gone down. Is it the right time for us to seek more loans?” 

Upper Madi MP Isaac Etuka said, “Similar projects in the past have taken long to be completed. Tell us what you will do differently for timely completion.” 

Nyabushozi County MP Wilson Kajwengye wondered why the government is bothering to get loans for education when schools have been unnecessarily kept closed for so long.

Buliisa County MP Allan Atugonza said, “Buliisa has many refugees who are using our social services but you have classified us as a non-refugee hosting district. We have only one district with an advanced level in the entire district. Value for money issues makes us look bad as political leaders. We need to ensure value for money in these projects. In the past some schools constructed had their costs inflated.” 

Mukono South Fred Kayondo said, “When the situation is abnormal and you behave normal, then you are abnormal. We are battling COVID-19 and we are seeking loans.