The National Water and Sewerage Corporation (NWSC) is seeking Shs 650 billion in financing to expand water production and improve supply in 50 towns across Uganda.The proposed package includes a Shs 500 billion concessionary loan from government at an annual interest rate of 2 percent. NWSC would receive a two-year grace period before beginning repayment, with the loan expected to be cleared over 20 years.The corporation is also seeking Shs 150 billion in revenue support, bringing the total proposed financing to Shs 650 billion.The funds would be released in five equal annual tranches of Shs 130 billion between the 2027/28 and 2031/32 financial years.The proposal was presented by NWSC Managing Director Dr Silver Mugisha during a meeting with Water and Environment Minister Gen. Kahinda Otafiire at the corporation’s International Resource Centre in Bugolobi.Gen. Otafiire, who took charge of the ministry in May, pledged government support towards the corporation’s plans to increase access to reliable water services.
The minister urged NWSC to adopt long-term planning, saying the corporation should develop strategies covering at least 20 years to meet Uganda’s growing water needs.He also commended NWSC management for what he described as strong leadership, while calling for the retention and motivation of employees with specialised skills.Gen. Otafiire said government was also willing to support NWSC in establishing local assembly plants for water-sector materials such as pipes and meters.He said the disruptions caused by conflicts around the world had demonstrated the need for Uganda to strengthen local production and reduce dependence on imported supplies.The minister also addressed concerns raised through whistle-blower complaints against NWSC, saying legitimate grievances should be investigated and addressed.He argued that criticism can help institutions improve, comparing opposition to a mirror that allows an organisation to identify its weaknesses.Dr Mugisha told the meeting that the proposed 50 Towns Water Supply Improvement Project had already been considered by the NWSC board and approved with amendments.The project will be submitted to the Ministry of Water and Environment for consideration before implementation.NWSC says the investment is needed because its existing water networks are facing increasing pressure from rising demand.The corporation’s average network capacity utilisation currently stands at 85 percent, a level at which water shortages can begin to affect customers.
The proposed project covers towns in all four NWSC regions.Fourteen towns in the Central region are expected to receive investments worth about Shs 202 billion, while 14 towns in the Eastern region have been allocated approximately Shs 178 billion.Eight towns in the Northern region will receive about Shs 90 billion, while 14 towns in the Western and South-Western regions are expected to benefit from investments worth approximately Shs 180 billion.Funding for individual towns will range from Shs 10 billion for smaller systems to Shs 30 billion for larger systems such as Gomba and Tororo.The planned works include expansion of water production systems, installation of electro-mechanical equipment, construction of transmission mains and storage reservoirs, expansion of distribution networks and strengthening of water-quality monitoring.NWSC says it will rely on its internal technical teams for design and direct supervision of the projects.The works will be divided into regional and technical lots to create opportunities for domestic and regional contractors, while critical equipment will be purchased directly from manufacturers.The corporation has also proposed several measures to safeguard the funds, including maintaining a dedicated project ledger, preparing annual investment plans, conducting internal audits, strengthening procurement controls and publishing quarterly reports.
Measures to reduce non-revenue water will also form part of the project implementation strategy.Dr Mugisha said NWSC currently has an investment financing gap estimated at Shs 1.436 trillion.He said the corporation has experienced significant growth since 2013, when it was responsible for water services in only 23 towns.By June 30, 2026, NWSC was serving 293 towns and more than 22 million people.The number of water connections has increased from about 300,000 to more than one million, while turnover has grown from Shs 120 billion to Shs 680 billion.The value of NWSC assets has also risen from about Shs 580 billion to Shs 5 trillion.Dr Mugisha attributed the growth to efforts to lower operating costs and develop systems and expertise within the corporation.He appealed to the minister to allow public institutions to utilise locally developed expertise instead of being forced to adopt external systems when suitable capacity already exists within Uganda.Johnson Amayo, in a separate presentation, said NWSC’s pipeline network had grown to about 24,000 kilometres, while customer satisfaction had reached 82 percent.He also reported that the Katosi water treatment plant had reached a capacity of 240 million litres.NWSC is in discussions with the Ministry of Finance for an additional 80 million euros to support further expansion of water intake and evacuation infrastructure at Katosi.Amayo also highlighted the Service Coverage Acceleration Project, which is being implemented under a State House directive and allocates Shs 30 billion annually towards establishing a water point in every village.Dr Mugisha further called for government support to solarise NWSC’s power systems in an effort to lower energy costs.
He also urged authorities to promote local production of materials currently imported by NWSC, including soda ash, polymers, water meters and generators.NWSC Board Chairman Prof. Henry Alinaitwe assured management of continued strategic guidance and oversight.On the whistle-blower complaints, he said the board had commissioned an audit and that preliminary findings indicated that initiatives such as the corporation’s insurance company were contributing to cost savings.Representing the Permanent Secretary of the Ministry of Water and Environment, John Mary Vianne Twinomujuni pledged continued ministry support.She described NWSC as one of the ministry’s best-performing institutions and said officials would guide the corporation through the required processes to ensure the 50 towns project is properly implemented.
