Uganda’s Parliament is today expected to debate five major loan requests totaling Shs 8.287 trillion (about USD 2.1 billion) as the government moves to secure funding for key road, agricultural, and refugee support projects across the country.

According to the Order Paper for today’s sitting, the Ministry of Finance, Planning and Economic Development will seek Parliament’s approval to borrow from the World Bank’s International Development Association (IDA), Citi Bank, and Standard Chartered Bank.

The loans are meant to boost infrastructure and social development, particularly in areas that play a central role in the economy such as agriculture, oil production, and refugee resettlement.

Among the projects lined up is the Jinja–Mbulamuti–Kamuli–Bukungu Road (127 km) and Jinja City Roads (10 km), which are expected to ease transport in eastern Uganda. These will be funded through a EUR 230.4 million loan from Citi Bank.

Another proposal seeks EUR 115.8 million from Standard Chartered Bank to finance the Critical Oil Roads Package 6B, which includes upgrading the Karugutu–Ntoroko Road (56.5 km) and connecting town roads in Ntoroko District — key links to the oil fields in the Albertine region.

The government is also seeking EUR 192.9 million from Citi Bank to support the Enhancing Agricultural Production, Quality and Standards for Market Access Project, which aims to improve productivity and market access for farmers. In addition, EUR 342.9 million from Standard Chartered Bank will fund the Karuma–Tororo double circuit transmission line and related substations, a move expected to strengthen Uganda’s power supply and reliability.

The biggest loan under consideration — USD 1.341 billion from the World Bank, along with USD 328.3 million in grants — will support programs that assist refugees and host communities in Northern Uganda, focusing on livelihood improvement, social services, and local development.

The debate comes at a time when Uganda’s public debt continues to grow. By mid-2025, the country’s total debt had reached about Shs 96 trillion, equivalent to 52% of GDP, according to the Ministry of Finance.

Government officials maintain that the borrowing remains within safe limits and argue that most of the loans are concessional — meaning they come with low interest rates and long repayment periods. They also stress that the funds are being directed toward projects expected to generate economic returns.

However, not everyone is convinced. Economists and some Members of Parliament have expressed concern about the pace of borrowing, warning that poor project implementation and weak domestic revenue performance could increase the repayment burden in the coming years.

The Parliamentary Budget Committee has previously cautioned that unless government improves project execution and revenue collection, Uganda risks sliding into a debt trap. The committee has urged the Ministry of Finance to prioritize projects that directly stimulate growth and improve accountability for borrowed funds.