The Parliament of Uganda has cleared the government to borrow €183.3 million from Standard Chartered Bank, alongside UGX 120.4 billion from domestic markets, to finance Phase II of the Strategic Towns Water Supply and Sanitation Project.
The decision was approved during a plenary session on Wednesday, 17th September, 2025, chaired by Deputy Speaker Thomas Tayebwa.
The project seeks to expand water and sanitation infrastructure across 51 towns in multiple districts, including Nakasongola, Kamuli, Mayuge, Bugweri, and Alebtong.
Hon. Henry Musasizi, Minister of State for Finance, emphasized the importance of the project, highlighting its role in providing safe water and improved sanitation for Uganda’s urban population.
“As part of the government’s wider development agenda, this initiative is vital for ensuring sustainable access to safe water and proper sanitation for urban communities by 2030,” Musasizi said.
Beyond improving access to water, Musasizi highlighted additional benefits, noting that the project will enhance public health, boost productivity, generate employment during the construction phase, and empower women and youths through skills development.
By 2030, the initiative is expected to directly serve about 740,000 people, with coverage projected to reach one million by 2050.
It will also support local industries, including a cassava processing plant in Nakasongola and a proposed industrial park in Kakooge.
However, the approval was not without controversy. A minority report from the Committee on National Economy recommended rejecting or deferring the loan, urging the government to negotiate more favorable terms amid concerns over Uganda’s rising debt levels.
Leader of the Opposition, Joel Ssenyonyi, and Shadow Minister for Constitutional Affairs, Jonathan Odur, expressed reservations during the session, citing procedural lapses and red flags in the committee report.
Hon. Milton Muwuma Kalulu the Kigulu South MP, also highlighted the committee’s cautionary recommendation, emphasizing the delicate balance between urgent developmental needs and responsible spending.
Despite these objections, Parliament passed the motion, enabling the government to proceed with financing the project. Counterpart funding for recurrent costs, land acquisition, and monitoring will be released starting in the 2025/26 financial year.
Parliament’s approval paves the way for Phase II of the Strategic Towns Water Supply and Sanitation Project, bringing Uganda closer to universal urban water access and improved sanitation.
Although there are concerns over rising debt, the project is set to improve public health, generate employment, and support local industries, marking a significant achievement in the government’s 2030 development agenda.
