Uganda secures UGX 340 billion French funding for Kampala water, infrastructure development

KAMPALA – Uganda has secured €85 million (approximately UGX 340 billion) in development aid from France to significantly improve both water infrastructure and broader urban development in the Greater Kampala Metropolitan Area (GKMA), Finance Minister Matia Kasaija announced Wednesday.

The loans, signed by Mr. Kasaija and AFD Regional Director Jean-François Arnal at the Ministry of Finance, Planning and Economic Development, solidify the ongoing partnership between Uganda and France, addressing critical needs in the rapidly expanding capital region.

Minister Kasaija acknowledged the strain on Kampala’s water services due to rapid urbanization and industrial growth. “Water supply services in Kampala and surrounding areas have been constrained,” he stated, while highlighting progress made through existing collaborations.

Specifically, €45 million (approximately UGX 180 billion) of the total funding will support the second phase of the Kampala Water Lake Victoria Water and Sanitation Project. This will expand the water supply network, building upon previous phases that upgraded the Ggaba water treatment complex and constructed a new treatment plant at Katosi.

“This funding will enable us to increase coverage of the intervention, develop the downstream part of the water supply network, and enhance access to safe water for the residents of the Greater Kampala Metropolitan Area,” Mr. Kasaija said. He reiterated the fundamental right to clean water and Uganda’s aim to achieve 100% piped water access by 2040.

The remaining €40 million (approximately UGX 160 billion) will fund the Greater Kampala Metropolitan Area Urban Development Program, strengthening the capacity of the Ministry of Kampala Capital City and Metropolitan Affairs and the Kampala Capital City Authority to deliver coordinated infrastructure and services. This portion of the funding will focus on broader urban development needs beyond just water infrastructure.

Mr. Kasaija emphasized the timeliness of the funding, aligning with Uganda’s economic growth targets. “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.

He pledged full accountability for the funds. “We will ensure that the funds are properly and exclusively utilized by the agencies for the activities earmarked,” he assured, adding that regular progress reports would be provided to development partners.

Beatrice Anywar Atim, Minister of State for Environment, emphasized the importance of ensuring that water reaches the end-users, and the funding will support the expansion of the water network, restructuring, and rezoning. “We have water, but how do we make sure it reaches the end-users?” Minister Atim asked.

The minister also expressed gratitude to international partners for their support and looks forward to expanding the partnership to other areas, including Masaka and beyond. “We are grateful for the support, but we are also looking forward to expanding our partnership to other areas, including Masaka and beyond.”

Additionally, the Ugandan government has requested further funding of 150 million euros to support the expansion of clean water services.

Minister Atim also emphasized the need for Ugandans to protect their water sources by avoiding activities that contaminate or destroy them. “I direct Ugandans to vacate wetlands… Let’s take responsibility to make sure that we protect our water sources, that we don’t dump, that we don’t contaminate our water source. Our water source is wealth that must be protected by all Ugandans. People should stop tampering with the catchment area of our water sources, including Lake Victoria. Let’s protect our environment. It sustains the water sources,” she said.

The €45 million soft loan will specifically fund the rehabilitation and extension of the water distribution network in North Kampala, benefiting an additional 1 million people, and include the installation of 2,600 prepaid meters in informal areas.

“This project is a testament of the enduring and strong friendship and cooperation between our two countries,” said French Ambassador to Uganda, Xavier Sticker, highlighting France’s commitment to improving Uganda’s water supply through key investments and French expertise.

AFD Regional Director Jean-François Arnal emphasized the agency’s support for Uganda’s Vision 2040 and National Development Plan IV. “I am very honored, as AFD Regional Director, to come and sign the first AFD loans to the Government of Uganda since September 2021,” Arnal said, noting over €400 million in ongoing projects and €300 million in planned pipeline projects.

Arnal also highlighted the importance of the urban development project, which will prioritize climate-resilient urban infrastructure investments. “Considering Uganda’s location, the impact of climate change in urban areas are expected to manifest with an increase unpredictability of rainfall with more frequent and intense rainfall extremes that often result in floodings. The co-financing from AFD in form of €40m is prioritising urban infrastructure investments that build the resilience of the cities against these effects of climate change,” he said.

The project, financed by AFD, will increase water production to 240 million liters per day, up from the current 160 million liters. The loan will be on-granted to the National Water and Sewerage Corporation (NWSC).

NWSC Managing Director Eng. Dr. Silver Mugisha said 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,” he explained. “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 UGX 320 billion) for Kampala, €34 million (approximately UGX 136 billion) for Masaka, and €44 million (approximately UGX 176 billion) for Bara, with AFD’s positive response pending presidential approval.

He underscored the project’s significance in providing clean and sufficient water, particularly in areas like Kawempe. “This project will ensure that whoever is not getting water, especially in the north-eastern part of Kampala, will get sufficient water,” he said.

The project scope includes the densification and extension of the water distribution network by approximately 71km of pipework, the construction of three new reservoirs, three booster stations, support facilities, and the extension of water services to 20 informal settlements. It also includes the installation of 2,500 prepaid meters and 1,450 public stand posts.

Executed by Sogea Satom of France with supervision from Artelia and Gauff Consultants Uganda Limited, the project commenced on February 1, 2025, and is expected to be completed by August 1, 2027, benefiting over 3 million people in areas including Kira, Kasangati, Kanyanya, Gayaza Road, and Mutungo.

The KW-LV WATSAN project, with €270 million (approximately UGX 1.08 trillion) in total AFD funding since 2010, aims to provide a pro-poor water utility system, supplying 450,000 people in informal settlements with new standpipes, school, and public toilets.