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Govt Seeks €45m Loan to Solve Kampala’s Water Crisis Amid Rising Urban Demand

Minister of Finance (General Duties), Henry Musasizi. Courtesy Photo
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Summary:

  • Minister Musasizi explained that Kampala’s water supply system has been severely strained by rapid urbanization, industrial growth, and an expanding service area.

KAMPALA: The Minister of State for Finance, Henry Musasizi, has defended the government’s proposal to secure an additional loan of €45 million (approximately Shs171.5 billion) from the French Development Agency (AFD) to tackle water and sanitation challenges in the Greater Kampala Metropolitan Area.

Addressing Parliament’s National Economy Committee, Musasizi stressed the significance of the funds in addressing the region’s pressing water supply and sanitation issues.

The loan is part of the ongoing Kampala Water and Sanitation Project, managed by the National Water and Sewerage Corporation (NWSC), which aims to upgrade water infrastructure for the rapidly growing urban population.

Minister Musasizi explained that Kampala’s water supply system has been severely strained by rapid urbanization, industrial growth, and an expanding service area. These pressures are exacerbated by the aging Gaba water treatment plants, which are struggling to meet the rising demand.

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He noted that pollution and inadequate environmental management are further complicating the situation. Increased pollution in Kampala, coupled with the diminished treatment capacities of the Nakivubo and Kinawataka swamps, has contributed to significant contamination of the inner Murchison Bay, impacting the city’s water quality and availability.

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Minister Musasizi highlighted projections showing a sharp increase in water demand in the region, with daily usage expected to exceed 40 million liters by 2030 and reach 53 million liters by 2040.

He emphasized that building new infrastructure is critical to meeting this demand and ensuring sufficient water supply for Kampala and its neighboring areas.

“This project, implemented by NWSC, aims to serve over 4.5 million people by 2025 and 7.4 million people by 2040 in the greater Kampala region,” Musasizi said.

Minister Musasizi also detailed the project’s funding history. He explained that the government had already secured €222 million (Shs846.1 billion) from partners including KfW Development Bank, the European Investment Bank, AFD, and the European Union, with Uganda contributing €34 million (Shs129.6 billion) in counterpart funding.

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However, a 2015 feasibility study revealed that the project required additional financing. As a result, NWSC requested an extra €195 million in 2017, which was approved by the Ministry of Finance.

Of this amount, €150 million was secured in 2019, leaving a balance of €45 million. According to Minister Musasizi, this final tranche is essential for completing downstream infrastructure, such as secondary and primary pipe networks, and ensuring water from the Katosi Water Supply system can adequately serve the greater Kampala area.

Several MPs voiced their support for the proposal. Simone Peter Wokorach (Aswa County) underscored the urgency of addressing Kampala’s water crisis.

“I was ready yesterday to sign the document because I know the importance of this loan to the metropolitan areas in Kampala. I urge the Ministry of Works to also address road issues to ensure the region is safe for everyone,” he said.

Mary Kitutu, former Minister of Karamoja Affairs, echoed these sentiments, noting that northern Kampala is particularly water-stressed due to poor groundwater conditions.

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She emphasized the critical need for bulk water supplies from Lake Victoria to serve these areas.

The Committee meeting, however, began with tensions. MPs Jonathan Ebwalu (Soroti West) and Maurice Kibalya (Bugabula South) criticized the absence of Kampala Metropolitan Ministers and Kampala Capital City Authority (KCCA) officials during discussions about previous loans, particularly one related to Kampala roads.

Kibalya expressed frustration, stating that the Ministry of Finance should not procure loans without the participation of the relevant implementing agencies.

In response, John Bosco Ikojo, Chairperson of the National Economy Committee, assured MPs that KCCA officials were being contacted and would join the discussions later.

“When processing these loans, it’s crucial to have both the Minister of Finance and the implementing minister present. We are ensuring that the Kampala Ministers participate,” Ikojo said.

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