President Museveni approves the government’s request to borrow €183.3 million (approximately Shs751.5 billion) from Standard Chartered Bank and Shs120.4 billion from the domestic market through a six-month Treasury bill, to support the second phase of the Strategic Towns Water Supply and Sanitation Project.
The acknowledgement was done during the plenary session held on 17th Wednesday, September 2025, chaired by Deputy Speaker Thomas Tayebwa.
According to the Ministry of Finance, the funds are said to help the expansion of clean water access and sanitation services in rapidly growing towns.
The project is aligned with Uganda’s goal of ensuring universal access to safe water and improved sanitation in urban areas by 2030.
State Minister for Finance, Henry Musasizi, told MPs the project will significantly strengthen infrastructure, enhance service delivery, and improve management systems in the targeted areas.
“It will contribute to improved health and productivity, provide employment during construction, and empower women and youths through skills development,” he said.
However, the loan package has raised concerns in the House. The Committee on National Economy noted that while the principal amounts to €183.3 million, total repayment obligations will climb to €311.5 million (about Shs1.28 trillion) over a 14-year period.
Committee Chairperson John Bosco Ikojo cautioned that the debt burden would be steep, pointing to high borrowing terms.
“The loan is highly commercial, with a grant element of only seven per cent — far below the 35 per cent concessionality threshold recommended by the IMF and World Bank,” he explained.
 from Standard Chartered Bank to support the second phase of the Strategic Towns Water Supply){kind=link}