Political

Hon. Tebandeke Warns Against Costly Commercial Loan for Water and Sanitation Project

Ssemaganda Moses Hope
By Ssemaganda Moses Hope


Hon. Tebandeke Warns Against Costly Commercial Loan for Water and Sanitation Project
Hon. Tebandeke Warns Against Costly Commercial Loan for Water and Sanitation Project

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Kampala – A sharp debate has emerged in Parliament over the government’s proposal to borrow for the Strategic Towns Water Supply and Sanitation Project – Phase II, with Hon. Charles Tebandeke (Bbale County) cautioning against what he termed a “costly burden” on taxpayers.


 

The sitting was presided over by Deputy Speaker Rt. Hon. Thomas Tayebwa, who guided the House through the heated deliberations.


 

Presenting the minority report, Hon. Tebandeke acknowledged that the loan’s intentions—to improve access to clean water and sanitation in targeted towns—are noble. However, he stressed that the financing mechanism must prioritize concessionality to protect future generations from unsustainable debt.


 

“While the project has good motives of enhancing service delivery, borrowing over Shs120 billion from Standard Chartered Bank on purely commercial terms will be extremely costly for Ugandan taxpayers,” he said.


 

The government is seeking to borrow €183.3 million and an additional Shs120.3 billion from the domestic market to finance the project. The Chairperson of the Committee on National Economy, Hon. John Bosco Ikojo, presented the main committee report supporting the loan request.


 

On his part, Minister of State for Finance, Planning and Economic Development, Hon. Henry Musasizi, defended the borrowing plan, arguing that the project will significantly improve the quality of water supply and sanitation facilities in the selected towns.


 

The debate, under the stewardship of Deputy Speaker Tayebwa, reflects a broader tension in Uganda’s fiscal policy—balancing urgent infrastructure and service delivery needs against the long-term risks of debt sustainability.


 

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