Government will spend the pound 641.1m (about Shs2.747 trillion) loan from Standard Chartered Bank on three large-scale infrastructure projects that seek to accelerate the tenfold growth strategy.
The loan agreement, signed last Friday, targets priority investments in power transmission, strategic oil roads, and water supply, sectors government says are critical to unlocking productivity and long-term development.
Significant gaps remain in a number of infrastructure projects, particularly in electricity transmission, transport connectivity, and access to clean water.
These projects are designed to address those gaps while delivering tangible economic and social benefits.
Power transmission
The largest share of the financing, pound 342.5m (Shs1.4 trillion), will go toward construction of the 400kV Karuma-Tororo double-circuit transmission line and the Ntinda substation.
The project will strengthen evacuation of power from Karuma Hydropower Plant to key load centres, including Tororo Industrial Park, and support regional power trade.
Government says this will reduce losses from unutilised electricity, improve reliability for industries and urban areas, and create jobs.
The financing was arranged with support from the Swedish Export Credit Agency and the Swedish Export Credit Corporation, marking EKN’s first transaction in Uganda and enabling favourable pricing and long repayment tenors.
Oil roads
Standard Chartered will also provide pound 115.8m (Shs486b) to finance the construction of critical oil-related roads in the Albertine region, which include Karugutu-Ntoroko road (56.5km), Rwebisengo link road (8.2km), and Ntoroko town roads (3.3km).
The roads will support oil and gas development, improve access to tourism sites around Lake Albert, and strengthen trade links with DR Congo. The financing was arranged with support from the Islamic Corporation for Insurance of Investment and Export Credit.
Water supply
A separate pound 182.8m (Shs754.5b) loan will fund Phase II of the Strategic Towns Water Supply and Sanitation Project, covering Nakasongola and clusters in Kamuli, Mayuge, Bugweri, and Alebtong districts.
By 2030, the project is expected to serve about 740,000 people through construction of water treatment plants and sanitation facilities. The financing is supported by the Chinese Export Credit Agency, Sinosure.
Aligning infrastructure with growth
Finance Minister Matia Kasaija said the three projects directly support government’s goal of growing the economy tenfold, from about $53b to $500b by 2040.
Standard Chartered Uganda chief executive officer Sanjay Rughani said the projects to be funded will enhance resilience and promote inclusive growth.
The transaction also reflects Standard Chartered’s strategic shift away from mass retail banking toward institutional, corporate and sovereign financing across key African markets, including Uganda.
This is the second major single-arranged loan the bank has extended to the government of Uganda in less than three years, underscoring its growing role as a lead financier of large public-sector infrastructure projects.
Mr Dalu Ajene, the Standard Chartered Bank Africa chief executive officer and head of coverage, said the bank would leverage its on-the-ground presence in Uganda to support and help drive Uganda’s tenfold growth strategy.
‘This partnership demonstrates how governments and international financial institutions can work together to structure complex, long-tenor financing and deliver projects with lasting economic and social impact,’ he said.
This aligns well with Standard Chartered’s repositioning as a cross-border corporate and public-sector bank.
Works Minister Edward Katumba Wamala said timely project delivery remains a priority, noting that delays, often caused by land acquisition challenges, have previously led to cost overruns and reduced returns on public investment.
‘This is our last oil road. The rest are completed or ongoing. There is no reason for delays,’ he said, urging contractors to deliver projects on schedule.
Government says strict oversight will be applied to ensure the projects are completed on time and deliver value for money, as Uganda seeks to turn large infrastructure investments into real economic and social gains.