Uganda, Standard Chartered Sign Shs2.747 trillion financing deals for power, water and oil roads
Under the first agreement, Standard Chartered will provide a €342.5 million (approximately UGX 1.4 trillion) loan to finance construction of the 400kV Karuma–Tororo double-circuit transmission line and the Ntinda substation.
The Government of Uganda and Standard Chartered Bank on Friday signed three major financing agreements worth a combined €641 million (about UGX 2.6 trillion) to fund strategic infrastructure projects in power transmission, water supply and oil roads, in line with Uganda’s Ten-Fold Growth Strategy aimed at expanding the economy to USD 500 billion by 2040.
The agreements were signed at the Ministry of Finance, Planning and Economic Development by Minister Matia Kasaija, on behalf of the Government of Uganda, and Sanjay Rughani, Chief Executive Officer and Head of Coverage for Uganda at Standard Chartered Bank.
The signing ceremony was witnessed by Minister of Energy and Mineral Development Dr Ruth Nankabirwa, Minister of Water and Environment Sam Cheptoris, Permanent Secretary and Secretary to the Treasury Dr Ramathan Ggoobi, Swedish Ambassador to Uganda Maria Håkansson, senior government officials, and representatives of Standard Chartered Africa and Uganda.
Power Transmission: Karuma–Tororo Line
Under the first agreement, Standard Chartered will provide a €342.5 million (approximately UGX 1.4 trillion) loan to finance construction of the 400kV Karuma–Tororo double-circuit transmission line and the Ntinda substation.
The project is expected to enhance evacuation of power from the Karuma Hydropower Plant, improve reliability of electricity supply to industrial and urban centres, and position Uganda as a regional energy hub.
The financing was arranged with support from the Swedish Export Credit Agency (EKN) and Swedish Export Credit Corporation (SEK), marking EKN’s first transaction in Uganda.
Strategic Towns Water Project
A second loan of €182.8 million (UGX 754.5 billion) will finance Phase II of the Strategic Towns Water Supply and Sanitation Project, targeting Nakasongola District and clusters including Kamuli, Mayuge, Bugweri and Alebtong.
The project aims to serve about 740,000 people by 2030 through construction of water treatment plants and sanitation facilities, improving public health and productivity. The financing was arranged with support from China’s export credit agency, Sinosure.
Critical Oil Roads
Standard Chartered will also provide a €115.8 million (UGX 486 billion) facility to finance construction of key oil roads in the Albertine region, including the Karugutu–Ntoroko road (56.5km), Rwebisengo Link Road (8.2km) and Ntoroko Town Roads (3.3km).
The project will strengthen transport infrastructure supporting Uganda’s oil and gas sector and enhance trade and tourism links with the Democratic Republic of Congo. The financing is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), part of the Islamic Development Bank Group.
Government, Bank React
Finance Minister Matia Kasaija said the projects would significantly boost Uganda’s development trajectory.
“These projects will support evacuation of power from Karuma to key load centres like Tororo Industrial Park and facilitate regional power trade, helping avoid losses from unutilised power. The water project will improve people’s wellbeing, while the road project will support oil sector development and tourism around Lake Albert,” Kasaija said.
He noted that the investments align with government’s goal to grow the economy from USD 53 billion to USD 500 billion by 2040.
Dalu Ajene, CEO and Head of Coverage for Africa at Standard Chartered, said the partnership demonstrates how governments and international financial institutions can collaborate to deliver complex, long-tenor financing with lasting impact.
“We are pleased to leverage our on-the-ground presence and trusted partnership with the Government of Uganda to drive the Ten-Fold Growth Strategy forward,” Ajene said.
Sanjay Rughani, CEO and Head of Coverage Uganda, said the bank remains committed to financing economically viable infrastructure.
“Water security, efficient power transmission and quality roads enhance resilience and promote inclusive growth,” Rughani said.
The projects will be implemented by China Harbour Engineering Company Limited, Kalpataru Power Transmission Sweden AB, and Afcons Infrastructure.
