Parliament Approves Shs734 Billion Loan for Solar Irrigation Expansion

KAMPALA, Uganda — Parliament has approved a government request to borrow Shs734 billion to finance the expansion of solar-powered irrigation systems aimed at boosting agricultural productivity and strengthening climate resilience across Uganda.

The funding will support Phase II of the Solar-Powered Irrigation Systems Project, under which 427 irrigation systems are expected to be constructed in selected farming regions across the country.

The loan, equivalent to approximately €168.9 million, will be sourced from UK Export Finance (UKEF) and Citi Bank following approval by Parliament during a plenary sitting on Wednesday.

Government officials said the project is intended to promote sustainable agriculture by enabling farmers to move away from reliance on rainfall and adopt solar-powered irrigation systems that allow year-round farming and improved productivity.

State Minister for Finance (General Duties), Henry Musasizi, told Parliament that the initiative builds on Phase I of the project, which introduced solar irrigation infrastructure in several districts and improved access to water for farming communities.

He said Phase II will prioritise drought-prone areas and strategic agricultural value chains, including food crops and export-oriented production.

However, during debate, Members of Parliament raised concerns about accountability and the performance of the first phase of the programme.

Leader of the Opposition Joel Ssenyonyi questioned whether all previously installed systems are fully operational, calling for comprehensive audits before further expansion of the project.

Other legislators echoed similar concerns, pointing to maintenance challenges and cases of underutilised irrigation facilities. They urged government to strengthen supervision, monitoring, and evaluation mechanisms to ensure value for money.

Despite the concerns, Parliament approved the loan, with government maintaining that the project is a critical intervention for improving food security, increasing rural household incomes, and enhancing resilience to climate change.

Once implemented, the 427 solar-powered irrigation systems are expected to benefit thousands of farming households across the country, supporting efforts to modernise agriculture and improve national productivity.

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