Eronda
JF-Expert Member
- Dec 16, 2025
- 881
- 493
The National Water and Sewerage Corporation (NWSC) is seeking Shs650 billion to increase water production and supply in 50 towns across the country under the 50 town water supply improvement project.
NWSC Managing Director Eng Silver Mugisha said the project responds to rising strain on NWSC networks, where capacity utilisation now averages 85 percent, the level at which customers begin to feel shortages.
According to Eng Mugisha, the corporation will seek a Shs500 billion loan at 2 percent annual interest, with a two-year grace period and a 20-year repayment window, and Shs150 billion would come as a revenue grant.
The money would be released in five equal annual tranches of Shs130 billion across the 2027/28 to 2031/32 financial years.
"The argument as we discussed is this is the money that was not supposed to be given by the government, but we are saying give it to us since we are a commercial enterprise, we shall pay it back, but at an interest of 2 percent," Eng Mugisha said.
He explained that the 50 towns are drawn from all four NWSC regions: 14 in the Central region at Shs202 billion, 14 in the Eastern region at Shs78 billion, eight in the Northern region at Shs90 billion and 14 in the Western and South-Western region at Shs180 billion.
He said the investment is necessary because water demand is increasingly outstripping supply.
"Once you start reaching that level, you start now getting issues of availability of water to the customers," Eng Mugisha said.
He noted that the corporation's board had reviewed and approved the concept, with some amendments, and it would soon be submitted to the Ministry of Water and Environment.
During his visit to the corporation's offices in Kampala, the Minister for Water and Environment Gen Kahinda Otafiire challenged the corporation to ensure every Ugandan has access to safe, clean, adequate and affordable water.
"You should be to provide water to every Ugandan, you may not serve them today, but you should imagine that 20 years from today, you'll be serving those urban centers, peri-urban, semi-urban, and urban centers," Gen Otafiire said.
He said Uganda's growing population and urbanisation mean the corporation must anticipate future demand rather than wait for communities to become fully developed.
The minister also challenged the corporation to become more innovative and promote local manufacturing of equipment currently imported, including pipes, joints, pumps and meters.
"You have the capacity to make these things, why don't we help you to make them? In fact, I want to help you to make pipes so that you don't have to buy pipes anymore. That's what you should be working toward," Gen Otafiire said.
According to the corporation, it has grown from 23 towns in 2013 to 293 as at 30 June 2026, serving more than 22 million people, with connections rising from 300,000 to over one million, turnover from Shs120 billion to Shs680 billion and assets from Shs580 billion to Shs5 trillion.
Source: Daily Monitor
NWSC Managing Director Eng Silver Mugisha said the project responds to rising strain on NWSC networks, where capacity utilisation now averages 85 percent, the level at which customers begin to feel shortages.
According to Eng Mugisha, the corporation will seek a Shs500 billion loan at 2 percent annual interest, with a two-year grace period and a 20-year repayment window, and Shs150 billion would come as a revenue grant.
The money would be released in five equal annual tranches of Shs130 billion across the 2027/28 to 2031/32 financial years.
"The argument as we discussed is this is the money that was not supposed to be given by the government, but we are saying give it to us since we are a commercial enterprise, we shall pay it back, but at an interest of 2 percent," Eng Mugisha said.
He explained that the 50 towns are drawn from all four NWSC regions: 14 in the Central region at Shs202 billion, 14 in the Eastern region at Shs78 billion, eight in the Northern region at Shs90 billion and 14 in the Western and South-Western region at Shs180 billion.
He said the investment is necessary because water demand is increasingly outstripping supply.
"Once you start reaching that level, you start now getting issues of availability of water to the customers," Eng Mugisha said.
He noted that the corporation's board had reviewed and approved the concept, with some amendments, and it would soon be submitted to the Ministry of Water and Environment.
During his visit to the corporation's offices in Kampala, the Minister for Water and Environment Gen Kahinda Otafiire challenged the corporation to ensure every Ugandan has access to safe, clean, adequate and affordable water.
"You should be to provide water to every Ugandan, you may not serve them today, but you should imagine that 20 years from today, you'll be serving those urban centers, peri-urban, semi-urban, and urban centers," Gen Otafiire said.
He said Uganda's growing population and urbanisation mean the corporation must anticipate future demand rather than wait for communities to become fully developed.
The minister also challenged the corporation to become more innovative and promote local manufacturing of equipment currently imported, including pipes, joints, pumps and meters.
"You have the capacity to make these things, why don't we help you to make them? In fact, I want to help you to make pipes so that you don't have to buy pipes anymore. That's what you should be working toward," Gen Otafiire said.
According to the corporation, it has grown from 23 towns in 2013 to 293 as at 30 June 2026, serving more than 22 million people, with connections rising from 300,000 to over one million, turnover from Shs120 billion to Shs680 billion and assets from Shs580 billion to Shs5 trillion.
Source: Daily Monitor
