NWSC seeks Shs650 billion for nationwide water supply expansion

The National Water and Sewerage Corporation (NWSC) has announced plans to secure Shs650 billion to significantly enhance water supply in 50 towns throughout Uganda. This initiative, dubbed the “50 town water supply improvement project,” is a direct response to the increasing demand that is pushing current NWSC networks to an average utilization of 85 percent, a level where water shortages become apparent.

NWSC Managing Director, Engineer Silver Mugisha, outlined the funding strategy, which includes seeking a Shs500 billion loan with a low annual interest rate of 2 percent, a two-year grace period, and a 20-year repayment term. The remaining Shs150 billion is expected to be provided as a revenue grant. This financial package is crucial for addressing the growing gap between water availability and customer needs.

The proposed investment will be disbursed over five financial years, from 2027/28 to 2031/32, with annual tranches of Shs130 billion. Eng. Mugisha emphasized that while NWSC is a commercial entity capable of repaying the loan, the favorable interest rate reflects the critical nature of the project.

The 50 targeted towns are distributed across NWSC’s four regions: 14 in the Central region (Shs202 billion), 14 in the Eastern region (Shs78 billion), eight in the Northern region (Shs90 billion), and 14 in the Western and South-Western regions (Shs180 billion).

Minister for Water and Environment, General Kahinda Otafiire, has urged NWSC to strive for universal access to safe and affordable water, looking ahead to meet the demands of Uganda’s growing population and urbanization over the next two decades. He also challenged the corporation to innovate and explore local manufacturing of essential water equipment like pipes and meters to reduce import dependency.

NWSC has demonstrated significant growth, expanding from 23 towns in 2013 to 293 by June 2026, serving over 22 million people and increasing customer connections, revenue, and asset value substantially during that period.