Uganda has secured €85 million (UGX 340 billion) from France to improve water infrastructure and urban development in the Greater Kampala Metropolitan Area (GKMA), Finance Minister Matia Kasaija announced Wednesday.
The funding agreement was signed by Mr. Kasaija and AFD Regional Director Jean-François Arnal at the Ministry of Finance.
Of the total amount, €45 million (UGX 180 billion) will support the second phase of the Kampala Water Lake Victoria Water and Sanitation Project, expanding the water supply network.
This builds on previous upgrades at the Ggaba water treatment complex and the Katosi treatment plant.
The project will extend water distribution in North Kampala, benefiting an additional one million people, and install 2,600 prepaid meters in informal settlements.
The remaining €40 million (UGX 160 billion) will fund the Greater Kampala Metropolitan Area Urban Development Program, strengthening the capacity of the Ministry of Kampala Capital City and Metropolitan Affairs and the Kampala Capital City Authority (KCCA).
The focus is on climate-resilient urban infrastructure to mitigate the effects of unpredictable rainfall and flooding.
Minister Kasaija highlighted the urgency of these projects in meeting Uganda’s economic growth targets, with GKMA playing a vital role in the national economy.
He assured that the funds would be strictly managed for their intended purposes, with regular reports provided to development partners.
Beatrice Anywar Atim, Minister of State for Environment, emphasized the importance of ensuring water reaches end-users and called on Ugandans to protect water sources. “We must safeguard wetlands and avoid contaminating our water bodies,” she urged, stressing the need for responsible environmental practices.
French Ambassador to Uganda, Xavier Sticker, reaffirmed France’s commitment to supporting Uganda’s water sector, calling the project a testament to strong bilateral cooperation.
AFD Regional Director Arnal noted that this marks the first AFD loan to Uganda since 2021, with over €400 million in ongoing projects and €300 million in planned pipeline projects.
The financing will enable an increase in water production from 160 million liters to 240 million liters per day.
The National Water and Sewerage Corporation (NWSC) will implement the project, addressing water supply challenges in areas like Kawempe.
NWSC Managing Director Eng. Dr. Silver Mugisha emphasized the need to complete projects in Katosi, Sonde, and Naguru to ensure sufficient water supply.
Additional funding of €150 million has been requested to further expand clean water access. Pending presidential approval, AFD has positively considered requests for €80 million for Kampala, €34 million for Masaka, and €44 million for Bara.
The project scope includes 71km of new pipelines, three reservoirs, three booster stations, and expansion of water services to 20 informal settlements.
Construction, led by French company Sogea Satom and supervised by Artelia and Gauff Consultants Uganda Limited, will commence in February 2025 and conclude in August 2027, benefiting over three million people in areas including Kira, Kasangati, and Gayaza Road.
Since 2010, AFD has provided €270 million (UGX 1.08 trillion) in funding for Uganda’s water projects, with a focus on improving access for low-income communities.