Parliament has approved a proposal to borrow €183.3 million from Standard Chartered Bank, UK, and Shs120.4 billion from the domestic market through a six-month Treasury Bill to finance Phase II of the Strategic Towns Water Supply and Sanitation Project.
The resolution was passed on Wednesday, 17 September 2025, during a plenary sitting chaired by Deputy Speaker Thomas Tayebwa, following a motion moved a day earlier by the Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi.
Minister Musasizi told Parliament that the project seeks to expand access to clean water and sanitation in fast-growing urban areas.
“The project will support government’s efforts to achieve sustainable provision of safe water and hygienic sanitation for the urban population by 2030,” he said.
According to the minister, the project is expected to directly benefit at least 740,000 people by 2030 and one million by 2050. It will also serve industries such as the cassava processing plant in Nakasongola District and the proposed industrial park in Kakooge.
He added that the scheme will contribute to improved health and productivity, create jobs during construction, and empower women and youth through skills development.
The project will cover four clusters: Nakasongola District, Kasambira in Kamuli District, Bugadde in Mayuge District, Idudi-Buseesa in Bugweri District, and Alebtong District. In total, it spans 51 towns across 115 parishes.
It has three components:
- Urban water supply infrastructure (including water intake and treatment plants),
- Urban sanitation facilities (such as faecal sludge treatment plants and public toilets), and
- Project management.
Counterpart funding will cover recurrent costs, land acquisition, coordination, and monitoring, starting in FY 2025/26.
Parliament had initially deferred the decision on Tuesday, 16 September 2025, after noting an insufficient number of MPs present to vote.
While the Committee on National Economy endorsed the project’s potential impact, it expressed concern about financing. A minority report signed by Hon. Charles Tebandeke (NUP, Bbale County) and Hon. Hassan Kirumira (Katikamu County South) urged Parliament to reject or delay approval until better loan terms are secured, citing Uganda’s high debt burden.
