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HomeNewsGov’t Seeks Additional 171 Bn AFD Loan To Boost Kampala Metropolitan Water...

Gov’t Seeks Additional 171 Bn AFD Loan To Boost Kampala Metropolitan Water Supply Projects

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The government has proposed an additional loan of €45 million (approximately UGX171.5 billion) from the French Development Agency (AFD) to address pressing water and sanitation challenges in the Greater Kampala Metropolitan Area. Henry Musasizi, Minister of State for Finance, presented the proposal to Parliament’s National Economy Committee, emphasizing the urgent need for infrastructure improvements to meet the growing demand for clean water in the region.

The loan forms part of the broader Kampala Water and Sanitation Project, spearheaded by the National Water and Sewerage Corporation (NWSC). The initiative aims to enhance water supply infrastructure in Kampala and its rapidly urbanizing surroundings. Musasizi outlined the mounting pressure on existing facilities due to factors like population growth, industrial expansion, and increased service coverage. He pointed out that the Gaba water treatment plants, which have long been the backbone of Kampala’s water supply, are struggling to keep pace with rising demand.

Environmental challenges, including pollution and reduced capacity of wetlands like Nakivubo and Kinawataka, have further complicated the situation. These issues have led to declining water quality in Lake Victoria, particularly in the Murchison Bay area, which serves as a key water source.

Musasizi stressed the importance of scaling up infrastructure to accommodate projected increases in water demand. “By 2030, water consumption in the Kampala Metropolitan Area is expected to surpass 40 million liters per day, and by 2040, it will reach 53 million liters. This project is essential to ensuring a reliable supply for over 7 million people by 2040,” he said.

The minister explained that the government had previously secured €222 million (UGX846.1 billion) from development partners, including KfW Development Bank, the European Investment Bank, AFD, and the European Union, alongside Uganda’s contribution of €34 million (UGX129.6 billion). However, a 2015 feasibility study revealed funding gaps, prompting NWSC to request an additional €195 million in 2017 to complete the expanded project scope. Of this, €150 million was secured in 2019, leaving €45 million required to finalize critical infrastructure components.

The loan will finance the construction of secondary and primary pipeline networks needed to distribute water from the Katosi Water Treatment Plant to communities in Kampala and surrounding areas.

Several MPs voiced their support for the proposal. Simone Peter Wokorach (Aswa County) praised the initiative, emphasizing the need to resolve the water shortages plaguing the capital. “I fully support this loan because it will significantly benefit the people of Kampala and surrounding regions,” he stated.

Mary Kitutu, a former minister, highlighted the challenges faced by northern Kampala, where poor groundwater quality has exacerbated water scarcity. She urged Parliament to approve the loan to ensure bulk water supply from Lake Victoria reaches underserved areas.

Despite general support, some MPs expressed concerns over procedural issues. Jonathan Ebwalu (Soroti West) and Maurice Kibalya (Bugabula South) criticized the absence of key officials from the Kampala Capital City Authority (KCCA) and the Ministry of Works during discussions on related infrastructure loans. National Economy Committee Chairperson John Bosco Ikojo assured MPs that steps were being taken to involve all relevant stakeholders in future deliberations.

The Committee resumed discussions after addressing these concerns, focusing on securing the funding needed to complete the water and sanitation project, which is seen as crucial to improving living conditions in Kampala.

 

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