Parliament recently approved governments additional request to borrow and also receive a grant of all totaling to over US$600 million [about Shs 2.2 trillion], to finance the Greater Kampala Metropolitan Area Urban Development Programme.
The approval follows a motion moved by the state minister for Finance Henry Musasizi during the sitting of the House chaired by Deputy Speaker, Thomas Tayebwa on 22 January 2025.
Musasizi said that the programme aims to strengthen the capacity of the Ministry of Kampala Capital City Authority (KCCA), and eight local governments with in the Greater Kampala Metropolitan Area (GKMA) to deliver coordinated infrastructure and services.
“The programme will contribute to the National Development Plan IV and specific objectives include enhancing economic infrastructure, conserving environmental assets, supporting the informal sector, promoting tourism and improving service delivery by local government, “he explained.
The loan terms have a 25- year maturity period, including a seven-year gross period.
The chairperson of the committee on National Economy, John Bosco Ikojo said there is steady progress on the project which began after parliament approved the borrowing in May 2024.
“By the end of the quarter one, flagship roads project covering 29.74 kilometers were underway in Kira and Mukono municipalities. Thirteen additional road projects totaling 81.25 kilometers spanning six entities Wakiso, Mpigi, Kampala, Makindye-Ssebagabo, Nansana and Entebbe, have also been advertised, “he said.
He noted that consultancy fees for civil works, environmental impact assessments and social safe guards were in place. Ikojo however added that delays in loan approval processes and fluctuating interest rate from multinational lenders posed challenges.
The committee recommended that the Ministry of Finance expedite loans negotiation to mitigate interest rate risks and minimize delays.
The Leader of opposition, Joel Ssenyonyi urged the government to ensure timely completion of the projects and value for money.
“As an MP from Kampala, this initiative should excite me. However, frequent delays, inflated costs and inadequate over sight are worrying, I hope for better appraisal and accountability at the project’s conclusion, “he said.
Tayebwa addressed concerns about KCCAs performance noting that despite receiving over Shs 3 trillion since 2018 implementation on the ground remained lacking.
“The perception that the government is not funding Kampala is misleading. The real issue is poor implementation, “he said.
