Xavier Sticker (left)The French Ambassador to Uganda, and Dr. Aisha Kabanda (right), the minister for Kampala looks on as Jean- Francois Arnal (second left) the Regional Director for French Development Agency, exchange copies of the signed agreement
HABARI DAILY I Kampala, Uganda I The Uganda Government and its French counterpart, through its development arm – the Agence Française de Développement (AFD) have signed a new € 45 million soft loan, to go towards the rehabilitation and extension of the water distribution network in the North of Kampala.
The funds will supplement ongoing support to the government provided by the World Bank under the Greater Kampala Metropolitan Area Urban Development Project (GKMA-UD), and go towards installation of 2,600 prepaid meters in informal areas within the GKMA.
Matia Kasaija, the finance minister signed on behalf of the Uganda Government, while Xavier Sticker, the French ambassador to Uganda signed on behalf of his country.
He said the funding will increase the impact of the New Katosi System by developing its downstream part, including the distribution network.
“This will enhance access to safe water for the residents of the GKMA and improve reliability to existing consumers,” he said.
He further noted that the financing was timely as it fits into Uganda’s strategic aspirations of growing the size of our economy 10-fold from the current GDP of $53 billion to $ 500 billion by year 2040.
“Currently, 65 percent of Uganda’s manufacturing GDP and 30 percent of the national GDP is mobilized from the GKMA. Therefore, the projects that we are signing today are key enablers in our growth strategy,” he said.
This partnership started back in 2010 with a first €75 million soft loan, followed in 2017 by a second €150 million soft loan. These two funding facilities financed the upgrading of the existing Ggaba Water treatment plant and the construction of the Katosi water treatment plant with capacity of 160 million litres per day which was commissioned in 2021.
The GKMA-UD will benefit eight urban areas in the GKMA which include Kampala, Wakiso, Entebbe, Kira, Makindye-Ssabagabo, Mukono, Mpigi and Nansana municipalities.
Arnal Jean-François, the AFD regional director, said the Kampala Water and Sanitation (WATSAN) project will improve access to drinking water for more than 3 million inhabitants in the GKMA within 5 years.
It also aims at improving the institutional capacity in the GKMA for coordination and management, and to improve access to infrastructure and services including urban mobility and accessibility, create jobs and enhance climate change resilience and environmental sustainability.
Xavier Sticker, the French ambassador to Uganda said the AFD’s involvement in Uganda is aimed at supporting the country to achieve her strategic economic goals including the 2040 vision.
It will also include road rehabilitation, water drainage, markets and development of green parks. The AFD is providing €40 million loan, which is complimentary to the World Bank financing in form a loan of $518 million and a grant of $48 million.
He said AFD and other European donors have contributed up to Euro 270m (sh1 trillion) in soft sovereign loans since 2010.
The GKMA covers a total area of approximately 4.6 million inhabitants, and 1,000 sq.km, is a loose agglomeration of local authorities within and surrounding Kampala city and these include the three District Local Governments of Mukono, Mpigi and Wakiso. It also includes five Municipal Local Governments of Kira, Nansana, Mukono, Entebbe and Makindye-Ssabagabo and the Kampala Capital City Authority.
