Parliament approves additional US$600M for Kampala project

Parliament has approved government’s additional request to borrow and also receive a grant of all totaling to over US$600 million to finance the Greater Kampala Metropolitan Area Urban Development Programme.

The approval follows a motion moved by the State Minister for Finance, Hon. Henry Musasizi during the sitting of the Housechaired by Deputy Speaker, Thomas Tayebwa on Wednesday, 22 January 2025.

Musasizi said  that the programme aims to strengthen the capacity of the Ministry of Kampala City and Metropolitan Affairs, Kampala Capital City Authority (KCCA) and eight local governments within the Greater Kampala Metropolitan Area (GKMA) to deliver coordinated infrastructure and services.

“The programme will contribute to the National Development Plan IV and specific objectives include enhancing economic infrastructure, conserving environmental assets, supporting the informal sector, promoting tourism, and improving service delivery by local governments,” he explained.

The loan terms have a 25-year maturity period, including a seven-year grace period.

The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojosaid there issteady progress on the project which began after Parliament approved the borrowing in May 2024.

“By the end of quarter one,, flagship road projects covering 29.74 km were underway in Kira and Mukono municipalities. Thirteen additional road projects totaling 81.25 km spanning six entities,Wakiso, Mpigi, Kampala, Makindye-Ssebagabo, Nansana, and Entebbe,have also been advertised,” he said.

He noted that consultancy fees for civil works, environmental impact assessments and social safeguards were in place. Ikojo however, added that delays in loan approval processes and fluctuating interest rates from multinational lenders posed challenges.

The committee recommended that the Ministry of Finance expedite loan negotiations to mitigate interest rate risks and minimise delays.

The Leader of Opposition Hon. Joel Ssenyonyi urged the government to ensure timely completion of the projects and value for money.

“As an MP from Kampala, this initiative should excite me. However, frequent delays, inflated costs and inadequate oversight are worrying. I hope for better appraisal and accountability at the project’s conclusion,” he said.

Deputy Speaker Tayebwa addressed concerns about KCCA’s performance, noting that despite receiving over Shs3 trillion since 2018, implementation on the ground remained lacking.

“The perception that the government is not funding Kampala is misleading. The real issue is poor implementation,” he said.