Parliament Passes Loan to Develop Solar Powered Irrigation Systems Project Phase II

Parliament has today passed the proposal to borrow up to EUR 168,976,354 from UKEF & Citi Bank for the development of Solar Powered Irrigation System Project Phase II.

Finance Minister Henry Musasizi in his brief to Parliament said the proposed project will develop 427 irrigation systems across the country, adding that the project is aimed at enhancing rural incomes through increased production and productivity arising from irrigated agriculture for coffee growing.

The goal of this project therefore is to contribute to increased yields of coffee production through provision of water for irrigation in 126 districts.

Musasizi said to date, phase 1 of the project has achieved over 99% physical completion with 434 systems developed across the country delivering verifiable economic benefits countrywide.

“Collectively, these initiatives have enhanced water security and productivity for 206,465 households and a total population of 908,447 across Uganda,” said the Minister.

To justify phase 2 of this project, Musasizi noted that the effects of climate change are continuing to escalate and the available water resources for agricultural production are constantly decreasing, adding that farmers are losing a lot of crops due to prolonged dry seasons and this in turn affects their livelihoods.

He said the project is expected to directly benefit about 2,562 households, translating to approximately 11,785 direct beneficiaries.

The project will leverage and strengthen existing extension service infrastructure at sub-county, parish, and district levels in Uganda, working through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) extension programmes and Coffee Department.