Parliament to deliberate UGX 8.287 trillion loan bonanza for infrastructure, social projects next week

Uganda’s Parliament is poised to deliberate a colossal UGX 8.287 trillion (approximately USD 2.22 billion) in new loan proposals next week, aimed at financing critical infrastructure, agricultural development, and humanitarian projects across the country.

The five major loan requests, sourced from the World Bank, Standard Chartered Bank, and Citi Bank, are slated for consideration during the plenary sitting on Monday, October 20, 2025.

Details of the extensive borrowing plan were outlined in the Order Paper issued by Parliament on October 16, 2025, ahead of the forthcoming legislative session. The proposed funds are earmarked for diverse sectors, including the construction of vital oil roads in Ntoroko district, urban road networks in Jinja City, agricultural enhancement, and support for displaced persons and refugee resettlement initiatives in Northern Uganda.

The loan proposals, which will be laid before the House by the Minister of Finance, Planning and Economic Development, include:

World Bank Funding: A proposal to borrow up to USD 1,341 million from the International Development Association (IDA) of the World Bank Group, coupled with grants worth USD 328.3 million. These funds are intended to finance various projects and programs, potentially encompassing the displaced persons and refugee resettlement efforts.

Citi Bank for Agriculture: A request to borrow up to EURO 192,959,605.47 from Citi Bank. This is designated for Phase I of the “Enhancing Agricultural Production, Quality and Standards for Market Access Project,” critical for boosting Uganda’s agricultural sector.

Citi Bank for Jinja Roads: Another proposal to borrow up to EURO 230,454,687.23 from Citi Bank. This significant sum will finance the design and build of the 127km Jinja-Mbulamuti-Kamuli-Bukungu Road and a further 10km of key urban roads within Jinja City.

Standard Chartered for Power Transmission: A loan facility of up to EURO 342,592,806.25 from Standard Chartered Bank. This is allocated for the construction of the 400KV Karuma-Tororo Double Circuit Transmission Line and associated substations, alongside the 132/33KV Ntinda Substation Project, crucial for strengthening the national power grid.

Standard Chartered for Oil Roads: A final proposal to borrow up to EURO 115,876,831 from Standard Chartered Bank. This is specifically for Critical Oil Roads Package 6B, which involves the design and upgrade of the 56.5km Karugutu-Ntoroko Road, an 8.2km link to Rwebisengo, and 3.3km of town roads in Ntoroko, totaling 68km of strategic infrastructure essential for the country’s burgeoning oil sector.

The consideration of these extensive loan requests has already seen preliminary groundwork. Last week, Hon. Bosco Ikojo, the Chairperson of Parliament’s Committee on National Economy, convened meetings with various ministries to review several loan proposals. This proactive step followed a directive from Speaker Anita Among, who, with Parliament on recess, administratively referred the loan requests to the committee for initial scrutiny.

“I received a communication from the office of the Speaker that Cabinet had considered a number of loan proposals and they were referred to Parliament,” Ikojo explained. “But now that Parliament is still on recess, she administratively decided to write to the chairperson of the committee for us to consider this loan request pending resumption of the house. We shall have to present to them.”

Ikojo further elaborated on the committee’s role: “That is why I had to request the Minister of Finance to appear before this committee to make sure that at least we officially receive all these loans, and then we move on to scrutinize them pending the resumption of the House and honour reporting by the committee.”

The upcoming parliamentary session promises robust debate and scrutiny as legislators weigh the national benefits against the long-term implications of incurring such substantial public debt.