PAC Seeks Full Disclosure on US$510 Million USMID Loan

The Public Accounts Committee (PAC-Central Government) has called on the Ministry of Lands, Housing and Urban Development to provide a complete breakdown of how a US$510 million loan from the World Bank, under the Uganda Support to Municipal Infrastructure Development (USMID) program, has been utilized.

The committee, led by Hon. Patrick Nsamba, found itself unable to proceed with reviewing the Auditor General’s Report for the Financial Year 2024/2025 due to inadequate explanations from ministry representatives.

During a session on September 30, 2026, Permanent Secretary Dorcas Okalany informed the MPs that the initial phase of USMID secured US$150 million for 14 municipalities, with an additional US$360 million released for program expansion. The initiative has funded infrastructure projects like roads and markets to enhance urban services.

However, Members of Parliament raised concerns about the cost per kilometer of road construction, the status of various projects, and the overall fund management. Questions were specifically raised about the standards of roads built in the second phase compared to the first, and the status of incomplete projects leading to contractor lawsuits.

MPs also sought clarity on the repayment schedule for the loan and its potential impact on the nation’s finances. The committee emphasized the critical need for accountability, especially as the government has secured an additional US$540 million for urban development.

Consequently, the Ministry of Lands, Housing and Urban Development officials have been instructed to return to the committee with precise financial figures, supporting documents, and clear answers to all outstanding audit questions.

Source: Parliament of Uganda