Parliament clears Shs139bn French loan for Mbarara Cancer Centre
The parliamentary approval clears a major legislative hurdle for the financing, although implementation will depend on government meeting the conditions attached to the approval and completing the necessary project arrangements.
Parliament has approved a government request to borrow up to €31.98 million (approximately Shs139 billion) from the French Republic to construct and equip the Uganda Cancer Institute (UCI) Mbarara Regional Oncology Centre.
The approval followed consideration of a report by the Committee on National Economy, chaired by Jane Pacutho, which recommended that the loan be approved subject to several conditions precedent.
Finance Minister Henry Musasizi had moved the motion seeking Parliament’s authorisation for the borrowing, arguing that expanding specialised cancer services to regional centres would reduce the burden on patients travelling to Kampala for treatment.
Musasizi said the Mbarara facility would bring cancer diagnosis and treatment closer to communities in western Uganda, reducing long journeys, accommodation expenses and congestion at the Uganda Cancer Institute in Mulago.
The proposed centre is also expected to improve access to early diagnosis and specialised treatment for patients who currently face significant challenges accessing cancer services.
MPs raise concerns over government projects
The loan request attracted questions from MPs about government’s record in implementing projects financed through borrowing.
Solomon Silwany, the MP for Bukooli County Central, questioned whether Parliament should continue approving loans without first assessing the implementation of previously financed projects.
“Are we proceeding well, Right Honourable Speaker, for us to keep approving these loans without doing an assessment on the loans?” Silwany asked.
He recalled supporting the promissory note for Lubowa Specialised Hospital and also cited the Kampala–Jinja Expressway, challenging Parliament to consider the progress of earlier projects before approving additional borrowing.
Speaker Jacob Oboth-Oboth described Silwany’s intervention as “expressing fatigue” and asked MPs to first consider the report of the Committee on National Economy before debating and deciding on the loan request.
The committee subsequently presented its findings and recommended approval, subject to conditions intended to guide the implementation of the project.
Expanding regional cancer services
The Mbarara centre forms part of government’s broader efforts to decentralise specialised cancer services, which are heavily concentrated at the Uganda Cancer Institute in Kampala.
The proposed project is expected to provide specialised diagnostic and treatment facilities, reducing the need for patients from western Uganda to travel to the capital for services.
The project is estimated to cost €33.58 million, comprising the €31.98 million French loan and €1.6 million in counterpart funding from the Ugandan government. The proposed loan terms include a 25-year repayment period, a 10-year grace period and an annual interest rate of 0.347 per cent.
The parliamentary approval clears a major legislative hurdle for the financing, although implementation will depend on government meeting the conditions attached to the approval and completing the necessary project arrangements.
