Parliament is tomorrow expected to consider a government request to authorize the borrowing of €168,976,354 (approximately Shs720 billion) from UK Export Finance (UKEF) and Citi Bank to finance the Development of Solar Powered Irrigation and Water Supply Systems – Phase II, a project aimed at expanding irrigation infrastructure and access to clean water across Uganda.
According to the Order Paper for June 10, 2026, published on Parliament’s official X account, the motion seeking parliamentary approval for the loan is among the main items on the day’s business. Tomorrows sitting precedes the budget speech scheduled for June 11, at Kololo Ceremonial Grounds.
The proposed financing comes as the government seeks to build on the gains of the first phase of the programme, which was designed to reduce Uganda’s dependence on rain-fed agriculture while improving access to water through solar-powered technology.
If approved, the funds will finance the expansion of solar-powered irrigation schemes and water supply systems in additional districts as part of the government’s strategy to strengthen climate resilience, boost agricultural production and improve rural livelihoods.
The proposed borrowing follows the implementation of Phase I, a project financed through UK Export Finance with counterpart funding from the Government of Uganda at a cost of more than €111 million (about Shs483 billion). The first phase targeted the construction of 687 solar-powered irrigation and water supply systems across the country, including irrigation schemes as well as rural and urban water supply installations.
Implementation of the first phase experienced delays during its early stages due to site verification, land acquisition, engineering designs and procurement processes. However, construction later gathered pace, with a number of schemes commissioned in different districts while many others progressed through various stages of completion, according to reports from the Ministry of Water and Environment.
According to the project’s objectives, the investment seeks to reduce dependence on rain-fed agriculture by providing reliable solar-powered irrigation while expanding access to safe water in underserved communities through renewable energy-powered systems. Previous project assessments also indicate that the initiative is expected to benefit thousands of smallholder farmers while extending water services to rural communities and urban growth centres.
The anticipated parliamentary debate is also expected to revive discussions over Uganda’s growing public debt and the need to ensure that externally financed infrastructure projects deliver measurable economic returns.
The Phase II financing is expected to significantly expand Uganda’s solar-powered irrigation network, complementing the government’s agricultural commercialization agenda and the Parish Development Model by enabling farmers to undertake year-round production rather than relying on increasingly unpredictable rainfall patterns.
The loan request will be among the first major financial matters to be handled by the 12th Parliament, following the conclusion of the 11th Parliament, whose final sittings approved Supplementary Expenditure Schedule No. 5 for FY2025/26 worth Shs1.1 trillion to finance Local Council elections, preparations for the 2027 Africa Cup of Nations (AFCON), the presidential swearing-in ceremony, wage shortfalls across government votes and other government priorities-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
