The government of Uganda has secured a significant €85 million (approximately Shs 340 billion) development loan from France, aimed at enhancing water infrastructure and urban development in the Greater Kampala Metropolitan Area (GKMA).
This funding, announced by Finance Minister Matia Kasaija on Wednesday, will be instrumental in addressing the pressing water supply challenges faced by the rapidly expanding capital region.
The loans, signed by Mr. Kasaija and (Agence Fraçaise de Développement) AFD Regional Director Jean-François Arnal at the Ministry of Finance, Planning and Economic Development, also aims to strengthen the bilateral partnership between Uganda and France.
“Water supply services in Kampala and surrounding areas have been constrained,” Kasaija said, before commending the progress by government through the National Water and Sewerage Corporation (NWSC) and other existing collaborations.
He added, “This financing is timely, as it fits into our strategic aspirations of growing the size of our economy tenfold from the current GDP of $53 billion to $500 billion by 2040,” he said, citing the GKMA’s significant contribution to the national economy.
Speaking at the same function, the NWSC Managing Director Eng. Dr. Silver Mugisha noted that the project aims to address water supply challenges.
“When we finish Katosi, Sonde, and Naguru, we will have the capacity to produce sufficient water and bring it to the reservoirs,” Dr. Mugisha said, adding, “We need to increase production to 240 million liters per day, as the intake is 240 million liters per day, but the treatment plant can only handle 160 million liters.”
Dr. Mugisha also mentioned plans for additional funding: €80 million (approximately Shs320 billion) for Kampala, €34 million (approximately Shs136 billion) for Masaka, and €44 million (approximately Shs 176 billion) for Bara, which he said will be achieved with the Agence Française de Développement’s positive response and is pending presidential approval.
Breaking Down the Funding
According to Kasaija, the €85 million loan will be allocated across two key projects:
Kampala Water Lake Victoria Water and Sanitation Project: €45 million (approximately UGX 180 billion) will support the second phase of this project, focusing on expanding the water supply network. This will build upon previous upgrades to the Ggaba water treatment complex and the construction of a new treatment plant at Katosi.
Greater Kampala Metropolitan Area Urban Development Program: The remaining €40 million (approximately UGX 160 billion) will strengthen the capacity of the Ministry of Kampala Capital City and Metropolitan Affairs and the Kampala Capital City Authority. This portion of the funding will prioritize broader urban development needs beyond water infrastructure.
Enhancing Water Access and Urban Development
The project aims to increase water production to 240 million liters per day, up from the current 160 million liters. This will be achieved through the rehabilitation and extension of the water distribution network in North Kampala, benefiting an additional 1 million people. The installation of 2,600 prepaid meters in informal areas will also be included.
According to Dr. Mugisha, this urban development program will focus on climate-resilient urban infrastructure investments, addressing the impacts of climate change in urban areas. This includes the densification and extension of the water distribution network, construction of new reservoirs, booster stations, and support facilities.
Ensuring Accountability and Transparency
Following this development, the Ugandan government has pledged full accountability for the funds, ensuring they are utilized exclusively for the earmarked activities. Kasaija noted that regular progress reports will be provided to development partners.
This significant funding injection is set to transform Kampala’s water infrastructure and urban development landscape, providing a vital boost to Uganda’s economic growth and development aspirations.