The government has unveiled plans to borrow a total of Sh8.7 trillion (€651.44 million and $1.36 billion) to finance major infrastructure, agriculture, energy, health, and social development projects.
Finance Minister Matia Kasaija presented the loan proposals to Parliament’s Committee on National Economy, chaired by John Bosco Ikojo (Bukedea County).
The funds are expected to support interventions under the Ministries of Works and Transport, Agriculture, Energy, Health, Lands, and Education, as well as programmes under the Office of the Prime Minister.
Ministry of Works and Transport
The Ministry of Works and Transport is seeking funding for three critical road projects totaling Sh1.46 trillion.
The first involves borrowing €115.9 million (Sh463.6 billion) from Standard Chartered Bank to implement Oil Roads Package 6B, covering the Karugutu–Ntoroko (56.5 km), Rwebisengo (8.2 km), and Ntoroko town roads (3.3 km) about 68 kilometres in total.
Additionally, the ministry plans to borrow $20 million (Sh74 billion) from the Arab Bank for Economic Development in Africa (BADEA) to finance the Nebbi–Goli road (16 km), a key trade route supporting cross-border connectivity in northwestern Uganda.
A further €230.4 million (Sh924.2 billion) will be borrowed from Citibank to fund the design and construction of the Jinja–Mbulamuti–Kamuli–Bukungu road (127 km) and 10 kilometres of Jinja City roads.
According the minister of works and transport, Gen. Katumba Wamala, these projects are part of the government’s wider effort to improve national road infrastructure, promote trade, and facilitate access to oil development zones and productive agricultural areas.
Ministry of Agriculture
The Ministry of Agriculture, Animal Industry and Fisheries is seeking to borrow €192.95 million (Sh771.8 billion) from Citibank to implement the first phase of the Enhancing Agricultural Production Quality and Standards for Market Access Project.
The initiative is designed to boost Uganda’s agricultural exports, strengthen food safety, and enhance import substitution through improved quality control and certification systems.
Bright Rwamirama, the Minister of State for Animal Industry, said the financing will support infrastructure, equipment, and operations for value addition and quality assurance at multiple levels.
“This financing will cover infrastructure and equipment for quality assurance, value addition, and operations, with facilities established at national, zonal, district, and farm levels,” he said.
The project will establish National Agricultural Diagnostic and Food Laboratories in Entebbe, Zonal Research Laboratories and Compliance Centres in Mubende, Regional Diagnostic Laboratories in selected districts, and Mineral Laboratories for Livestock and Fisheries in Kabale, Kayunga, Hoima, Busia, and Lira.
Other facilities include Veterinary Medical Stores in Entebbe, Land Border Export Inspection Stations, and modern export support infrastructure such as pack houses, pre-coolers, and irradiation facilities at Entebbe.
Rwamirama added that the government will maintain oversight to ensure sustainability.
“The government will oversee registration and certification, while the private sector manages logistics. Continual audits, staff training, preventive maintenance, and operational oversight will guarantee long-term efficiency and effectiveness,” he said.
Ministry of Energy
The Ministry of Energy and Mineral Development intends to borrow €342.59 million (Sh1.37 trillion) from Standard Chartered Bank to construct the 400kV Karuma–Tororo double circuit transmission line, associated substations, and the 132/33kV Ntinda substation project.
The investment will strengthen Uganda’s electricity transmission capacity, improve grid reliability, and facilitate power evacuation from the Karuma Hydropower Plant to industrial zones and major consumption centres in the east and central regions.
World Bank-Supported Programmes
In addition to the sector-specific loans, the government plans to borrow $1.341 billion (Sh4.96 trillion) from the International Development Association (IDA) of the World Bank Group, alongside grants worth $328.3 million (Sh1.21 trillion) to support multiple national programmes.
These will finance initiatives such as the Northern Uganda Social Action Fund (NUSAF 4), the Development Response to Displacement Impacts Project (DRDIP 2), the Uganda Learning Acceleration Program (ULEARN), the Uganda Cities and Municipalities Infrastructure Development (UCMID), and the Uganda Strengthening Public Investment and Asset Management for Growth and Resilience Program (PIMPLUS).
Lillian Aber, Kitgum Woman MP and Minister of State for Relief, Disaster Preparedness and Refugees, said the new financing would extend across 83 districts, seven cities, 14 municipalities, and 6,631 parishes.
“The project will focus on sustainable livelihood enhancement, resilience to shocks, human development, and strengthening project delivery systems. This is a friendly loan coming in with a grant component and a long grace period, which we believe will support our people effectively,” Aber said.
On DRDIP 2, she noted: “This project is inclusive, covering host communities, local leaders, and refugees. With the refugee population now at 1.9 million and humanitarian funding decreasing, this funding will help alleviate tensions and support locally led procurement and implementation.”
John Muyingo, the Minister of State for Higher Education, said the ULEARN program will help address learning losses caused by COVID-19.
“The program targets teacher effectiveness, foundational literacy and numeracy, rehabilitation of 121 secondary schools, 29 teacher training institutions, and 66 special needs education institutions,” he said.
He also appealed for flexibility regarding land title requirements to ensure timely implementation. “One of the challenges is land title requirements, particularly for schools on customary or church land. We request parliamentary approval to temporarily waive these requirements to allow timely rehabilitation,” Muyingo said.
Sam Mayanja, the Minister of State for Lands, presented the UCMID program, covering 10 cities, 26 municipalities, and refugee-hosting districts of Kikuube and Kyegegwa.
“The program focuses on climate-resilient urban infrastructure, job creation, local economic infrastructure, and solid waste management,” Mayanja told MPs. “All technical, institutional, fiduciary, environmental, and social assessments have been completed, and a program management team is ready for implementation within the current financial year.”
MPs Call for Careful Scrutiny
Members of the Committee on National Economy called for sufficient time to review the proposals before approval.
Alex Byarugaba (Isingiro County South) said, “We need sufficient time to understand these proposals, especially projects affecting refugee-hosting communities. Isingiro district itself is a beneficiary, so all MPs must digest the documents.”
Wilson Kajwengye (Nyabushozi County) warned, “Approving loans without full knowledge could be disastrous.”
Geoffrey Macho (Busia Municipality) added, “Some loans, particularly PIMPLUS ($200 million / Sh740 billion), should not be rushed and need guidance from the President before parliamentary approval.”
Committee chair John Bosco Ikojo acknowledged the complexity of the documents, saying:
“While these loans are urgent, proper review is necessary. We will coordinate with project coordinators to ensure timely parliamentary engagement, maintaining oversight to safeguard government operations.”
In a separate session, MPs on the same committee cleared the government’s plan to borrow funds for the construction of two regional cancer treatment centres in Arua and Mbale bringing specialized services closer to patients outside Kampala.
Henry Musasizi, the Minister of State for Finance (General Duties), sought approval to borrow up to €9.4 million (Sh37.6 billion) from UniCredit Bank Austria for the Mbale Oncology Centre and $36.5 million (Sh135.1 billion) from the Islamic Development Bank for the Arua Oncology Centre and radiotherapy equipment for Mbale.
Musasizi said the aim is to reduce Uganda’s rising cancer burden. “Cancer is undermining the productivity and social well-being of families across the country. The Uganda Cancer Institute in Kampala remains the primary facility for treatment, yet it is overwhelmed by the growing number of patients,” he said.
The Arua Oncology Centre will feature consultation rooms, theatres, chemotherapy units, an 80-bed inpatient ward, imaging, intensive care, and radiotherapy bunkers. The Mbale Oncology Centre and radiotherapy unit will include Linear Accelerator (LINAC) bunkers, a brachytherapy suite, and modern treatment facilities.
The Islamic Development Bank financing will run for up to 25 years, with a service fee not exceeding 1.5% annually, while the Austrian loan will be repaid over 23 years at an interest rate of 0.3%.
Committee chair Ikojo said MPs were united in support of the plan. “We are supposed to enable the government to operate, and as you heard, members are saying we need this loan. We needed it yesterday, not today. This shows how positive members are about it because it will directly help our fellow Ugandans,” he said.
