PAC Demands Full Accountability for US$510 Million USMID Loan

Members of the Public Accounts Committee (PAC-Central Government) have pressed the Ministry of Lands, Housing and Urban Development for a thorough explanation regarding the significant US$510 million loan secured from the World Bank under the Uganda Support to Municipal Infrastructure Development (USMID) program. The committee, led by Chairperson Hon. Patrick Oshabe, halted its review of the Auditor General’s Report for the Financial Year 2024/2025 due to inadequate responses from ministry representatives.

A delegation from the ministry, headed by Under Secretary Dorcas Olalany, appeared before the committee on September 30, 2026, to address audit findings. Olalany outlined that the initial phase of USMID received US$150 million, benefiting 14 municipalities, with an additional US$360 million allocated for program expansion. This funding has been used for infrastructure projects such as roads and markets.

However, MPs raised concerns about project specifics, including the cost per kilometer of road construction, the current status of various projects, and the overall expenditure of the borrowed funds. Questions were specifically raised about the quality of roads constructed in the second phase compared to the first, and the unresolved issue of incomplete road projects leading to contractor lawsuits.

Further scrutiny was directed towards the non-completion of other planned projects, such as abattoirs and the beautification of mayors’ gardens. The committee also sought clarity on the loan repayment schedule and its potential impact on public finances, emphasizing the importance of accountability given that the government has since secured an additional US$540 million for urban development.

The Ministry officials were subsequently directed to return with precise financial figures, supporting documentation, and satisfactory answers to all outstanding audit queries.

Source: Parliament of Uganda