Parliament has accepted authorities’s further request to borrow and in addition obtain a grant of all totaling to over US$600 million to finance the Greater Kampala Metropolitan Area Urban Development Programme.
The approval follows a movement moved by the State Minister for Finance, Hon. Henry Musasizi in the course of the sitting of the Housechaired by Deputy Speaker, Thomas Tayebwa on Wednesday, 22 January 2025.
Musasizi mentioned that the programme goals to strengthen the capability of the Ministry of Kampala City and Metropolitan Affairs, Kampala Capital City Authority (KCCA) and eight native governments inside the Greater Kampala Metropolitan Area (GKMA) to ship coordinated infrastructure and companies.
“The programme will contribute to the National Development Plan IV and particular goals embrace enhancing financial infrastructure, conserving environmental belongings, supporting the casual sector, selling tourism, and bettering service supply by native governments,” he defined.
The mortgage phrases have a 25-year maturity interval, together with a seven-year grace interval.
The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojosaid there issteady progress on the venture which started after Parliament accepted the borrowing in May 2024.
“By the top of quarter one,, flagship highway tasks protecting 29.74 km had been underway in Kira and Mukono municipalities. Thirteen further highway tasks totaling 81.25 km spanning six entities,Wakiso, Mpigi, Kampala, Makindye-Ssebagabo, Nansana, and Entebbe,have additionally been marketed,” he mentioned.
He famous that consultancy charges for civil works, environmental impression assessments and social safeguards had been in place. Ikojo nevertheless, added that delays in mortgage approval processes and fluctuating rates of interest from multinational lenders posed challenges.
The committee advisable that the Ministry of Finance expedite mortgage negotiations to mitigate rate of interest dangers and minimise delays.
The Leader of Opposition Hon. Joel Ssenyonyi urged the federal government to make sure well timed completion of the tasks and worth for cash.
“As an MP from Kampala, this initiative ought to excite me. However, frequent delays, inflated prices and insufficient oversight are worrying. I hope for higher appraisal and accountability on the venture’s conclusion,” he mentioned.
Deputy Speaker Tayebwa addressed issues about KCCA’s efficiency, noting that regardless of receiving over Shs3 trillion since 2018, implementation on the bottom remained missing.
“The notion that the federal government shouldn’t be funding Kampala is deceptive. The actual problem is poor implementation,” he mentioned.