AFD signs 270 million € credit facilities with Uganda to support access to clean water and sanitation

These two projects will be implemented by National Water and Sewerage Corporation and are in line with Uganda Vision 2040 and the National Development Plan (NDP).

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On January 25th 2019, two financing agreements totaling 270 million euros were signed between the Government of Uganda and the Agence Française de Développement - AFD to support access to water and sanitation in the Greater Kampala and in the South Western of Uganda.

The agreements were signed on behalf of Uganda government by Hon. Mati Kasaija, Minister of Finance and Economic Development and by Stéphanie Rivoal, Ambassador of France to Uganda, and Ms. Virginie Leroy, AFD Director in Uganda.

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These two projects will be implemented by National Water and Sewerage Corporation and are in line with Uganda Vision 2040 and the National Development Plan (NDP).

A first IMF compliant concessional loan of 150 million euros will be dedicated to increase the volume of clean water as well as the network needed to meet the demand of the growing population of the Greater Kampala.

The second loan of 120 million euros will focus on upgrading the water and sanitation infrastructures of Masaka and Mbarara towns but also prepare for a new source of water in the transboundary river of Kagera enabling to plan to supply rural districts like Isingiro district.

The preparation of such projects reflects the consistency of commitments from both France and Uganda with positive impact on social inclusiveness and climate change, symbolized by AFD’s slogan “a world in common”.

Ambassador Rivoal underscored the socioeconomic and ecological importance of this type of infrastructure in improving the quality of life and social inclusion of the most vulnerable people.

“There is a great need to ensure that the resources required to achieve these objectives are secured and efficiently utilized because, girls and women are often the one fetching the water. Access to clean water will enable these girls to go to school and these women to invest in small businesses,” she emphasised.

The French Ambassador revealed that France has defined water and the environment as a major priority and has steadily increased its financing to the sector all over the world over the years reaching 1Bn Euros in 2017, mostly through the Agence Française de Développement (AFD) with a special focus on sub Saharan Africa which concentrates half of its financing.

In Uganda, AFD has reached 1 billion euros of commitments over the last 20 years, more than half of this during the past two years. All projects support a more resilient and more inclusive development with a focus on:

  • infrastructure including water, sanitation, energy and urban development, including urban transport;
  • preserving the environment and enhance adaptation to climate change;
  • supporting job creation, access to finance as well as social and environmental good practices in the private sector.

AFD - Agence Française de Développement - is a public financial institution whose mission is to alleviate poverty and promote sustainable development. Historical commitments of 11 billion Euros have been achieved in 2018 – among which 5.5 billion Euros have direct impact on climate change; and AFD intends to reach 14 billion Euros yearly commitments by 2022 to reach the French Government engagements along the COP 21 Paris Climate Change Agreement and along the path towards a green and inclusive economy.

Dernière modification : 13/03/2019

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