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Parliament Approves Shs734 Billion Loan for Expansion of Solar-Powered Irrigation Systems

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Parliament has approved a government request to borrow Shs734 billion to finance the expansion of solar-powered irrigation infrastructure aimed at improving agricultural productivity and strengthening climate resilience across Uganda.

The funding will support Phase II of the Solar-Powered Irrigation Systems Project, under which 427 irrigation systems will be installed in selected agricultural districts across the country.

The loan, valued at approximately €168.9 million, will be secured from UK Export Finance (UKEF) and Citi Bank following parliamentary approval during a plenary session held on Wednesday.

Government officials say the project is designed to help farmers transition from reliance on rainfall to solar-powered irrigation, enabling more consistent agricultural production throughout the year.

State Minister for Finance Henry Musasizi told Parliament that the initiative builds on Phase I of the programme, which introduced solar irrigation systems in several districts and improved access to water for farming households.

He added that Phase II will focus on drought-prone areas and key agricultural value chains, with the aim of boosting both food security and rural incomes.
However, the approval followed scrutiny from Members of Parliament, who raised concerns over accountability and the performance of earlier installations.

Leader of Opposition Joel Ssenyonyi called for comprehensive audits of Phase I, questioning whether all installed systems are fully operational and delivering value for money.

Other MPs highlighted issues of maintenance gaps and underperformance in some irrigation sites, urging the government to strengthen monitoring and oversight mechanisms.

Despite the concerns, Parliament approved the borrowing request, with the government maintaining that solar-powered irrigation remains a key intervention for modernising agriculture and adapting to climate change.

Once implemented, the 427 irrigation systems are expected to benefit thousands of households across Uganda, particularly in regions frequently affected by

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