Parliament has approved government’s request to borrow up to €168,976,354 from the United Kingdom Export Finance and Citi Bank for the expansion of the Solar Powered Irrigation Systems Project Phase II, despite renewed calls from the Opposition to first assess the performance of Phase I.
The motion was adopted with amendments after a detailed debate on loan terms, debt implications, and the expected benefits of expanding irrigation infrastructure, particularly for agricultural production such as coffee farming.
The approval gives government authority to proceed with financing arrangements aimed at scaling up solar-powered irrigation systems intended to improve water access for farmers, enhance productivity, and strengthen resilience against climate change.
However, the debate took a more critical turn after the Leader of the Opposition, Joel Ssenyonyi, urged Parliament to halt the approval of Phase II until a full review of Phase I is conducted.
“We are being rushed into phase two. But we are saying, why do we not take stock of phase one?” Ssenyonyi said, warning against proceeding without addressing challenges encountered in the first phase of the project.
He added that Parliament should first “take stock, deal with all the challenges there are in phase number one,” arguing that unresolved issues risk undermining the effectiveness of additional funding.
Ssenyonyi further raised concern over the scale of the allocation, stating that Parliament is being asked to approve approximately Shs735 billion, describing it as the single largest allocation within the docket under discussion. He cautioned that such a substantial investment required stricter scrutiny before approval.
Lawmakers supporting the motion, however, argued that expanding irrigation remains critical for boosting agricultural output, reducing dependence on rainfall, and supporting farmers in drought-prone regions.
They maintained that the project aligns with government’s broader agricultural modernisation agenda.
During earlier debate, MPs also examined the loan structure, performance reports from Phase I, and the long-term sustainability of increased public borrowing, particularly at a time when Uganda’s debt levels remain a subject of public and parliamentary scrutiny.
With the motion now passed, government is expected to proceed with negotiations and implementation of Phase II, while concerns raised by the Opposition are likely to shape further oversight as the project progresses.
Also Read: Karua and Lukwago Lead Defence Team to Review Evidence in Besigye Treason Case at Luzira
