The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Uganda has secured €641.1 million (about Shs2.75 trillion) in external financing for three major infrastructure projects after signing financing agreements with Standard Chartered Bank, in a move the government says will accelerate its long-term growth ambitions.
The agreements were signed by the Minister of Finance, Planning and Economic Development, 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 financing will support projects in the power, water and roads sectors, aligning with the government’s Ten-Fold Growth Strategy, which targets expansion of the economy from about USD 53 billion to USD 500 billion by 2040.
Under the arrangement, Standard Chartered will both arrange and co-fund the three projects, with backing from international export credit agencies to secure competitive pricing and long repayment tenors.
The largest facility, a €342.5 million (about Shs1.4 trillion) loan, will 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, supply key load centres such as Tororo Industrial Park, and strengthen regional power trade.
“These projects will support evacuation of power from Karuma and help avoid losses arising from unutilised or deemed energy,” Kasaija said, adding that improved transmission would support industrial growth and job creation.
The power project is backed by the Swedish Export Credit Agency (EKN) and the Swedish Export Credit Corporation (SEK), marking EKN’s first transaction in Uganda.
A second facility of €182.8 million (Shs754.5 billion) will finance Phase II of the Strategic Towns Water Supply and Sanitation Project, covering Nakasongola and clusters in Kamuli, Mayuge, Bugweri and Alebtong districts.
The project targets access to clean water and sanitation services for about 740,000 people by 2030. The water financing is supported by China’s export credit insurer, Sinosure.
The third loan, worth €115.8 million (Shs486 billion), will fund construction of critical oil roads in the Albertine region, including the Karugutu–Ntoroko road, Rwebisengo link and Ntoroko town roads.
The upgrades are expected to support oil sector development, cross-border trade with the Democratic Republic of Congo and tourism around Lake Albert.
This facility is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICEIC). Standard Chartered Africa CEO Dalu Ajene said the deal demonstrated how governments and international financiers can structure complex, long-term financing to deliver projects with lasting economic and social impact.
The signing ceremony was witnessed by senior cabinet ministers, permanent secretaries, diplomatic representatives, Standard Chartered executives, and contractors for the three projects.
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