Parliament greenlights €212.8 million water loan despite opposition’s red flag warnings
The funding package includes Euro 183,309,847.16 to be sourced from the Standard Chartered Bank and an additional UGX 120,395,249,259 (approximately Euro 29,572,296) to be raised from the domestic market through 6-month Treasury bills.
Parliament on Wednesday authorised government to borrow a substantial sum totaling approximately Euro 212.8 million to finance the Strategic Towns Water Supply And Sanitation Project – Phase II across the country.
The approval, which came at the tail-end of today’s plenary sitting, concluded a contentious two-day debate marked by strong opposition from the Leader of Opposition and other Members of Parliament.
The funding package includes Euro 183,309,847.16 to be sourced from the Standard Chartered Bank and an additional UGX 120,395,249,259 (approximately Euro 29,572,296) to be raised from the domestic market through 6-month Treasury bills.
The decision followed a dramatic halt on Tuesday, September 16th, 2025, when Leader of Opposition Joel Ssenyonyi and Shadow Minister for Constitutional Affairs Jonathan Odur effectively blocked the government’s initial request for approval.
The duo pointed to “red flags” raised in the report authored by the Committee on National Economy on the proposed loan, and also cited a noticeable shortage of quorum in Parliament during Tuesday’s plenary debate.
Concerns about the loan’s terms had been vocalized earlier by Milton Muwuma Kalulu (Kigulu South), who highlighted the contradictory nature of the National Economy Committee’s report.
Muwuma expressed confusion, stating, “I am a little confused with the conclusion of the committee’s report because they helped us raise red flags at different points, recommending reviews. The need to review the cost of this, need to look at the toilets and then all over a sudden, they are saying we approve. I am imagining after approving, at what point we shall review.”
Jonathan Odur (Erute South) echoed these sentiments, demanding that Parliament adhere strictly to the committee’s recommendations for a renegotiation of the loan. Leader of Opposition Joel Ssenyonyi further bolstered this call, insisting that the loan should be halted until the Ministry of Finance rectified the “glitches” highlighted in the Committee’s report.
“You see now, you are running away from the boxes we must tick on the procedural issues to do with this loan. You also want to run away from our House procedures, why? What exactly are we in a hurry to try and do? Why not follow the law, if you want to get these loans approved?” Ssenyonyi questioned during the Tuesday session.
Consequently, Deputy Speaker Thomas Tayebwa adjourned Tuesday’s plenary to Wednesday, September 17th, 2025, due to the insufficient number of MPs present. Upon reconvening on Wednesday, Parliament proceeded to process and ultimately approve the controversial loan request, paving the way for the implementation of the Strategic Towns Water Supply And Sanitation Project – Phase II.
