Government has signed an agreement to borrow EUR 641.1 million (Shs 2.747 trillion) from Standard Chartered Bank to finance key infrastructure projects across the country.
The agreement was signed by the Minister of Finance, Planning and Economic Development, Matia Kasaija, and Sanjay Rughani, the CEO and Head of Coverage, Uganda, at Standard Chartered Bank.
Of the total amount, EUR 342.5 million (approximately Shs 1.4 trillion) will finance the construction of the 400KV Karuma–Tororo double-circuit power line and the Ntinda substation, aimed at enhancing electricity transmission from the Karuma Hydropower Plant.
The investment is expected to provide reliable power to industries and urban centres, create jobs, and position Uganda as a regional energy hub in East Africa. The financing was arranged with support from the Swedish Export Credit Agency (EKN) and the Swedish Export Credit Corporation (SEK), enabling competitive pricing and long tenors. This marks EKN’s first transaction in Uganda.
A separate loan of EUR 182.8 million (Shs 754.5 billion) will finance Phase II of the Strategic Towns Water Supply and Sanitation Project, covering Nakasongola District and other clusters including Kamuli, Mayuge, Bugweri, and Alebtong.
The project aims to serve 740,000 people by 2030 through the construction of water treatment plants and sanitation facilities, improving public health and productivity. The financing was arranged with support from the Chinese Export Credit Agency, Sinosure.
Standard Chartered will also provide a EUR 115.8 million (Shs 486 billion) loan facility for the construction of the Karugutu–Ntoroko road (56.5km), Rwebisengo Link Road (8.2km), and Ntoroko Town roads (3.3km).
The road upgrades are expected to support infrastructure development in the Albertine region, a key trade corridor linking Uganda to the Democratic Republic of Congo. This financing was arranged with support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), part of the Islamic Development Bank Group.
Speaking at the signing ceremony, Finance Minister Matia Kasaija said the projects will significantly support Uganda’s development trajectory.
“These projects will support the evacuation of power from the Karuma Hydropower Plant to identified load centres such as Tororo Industrial Park and facilitate regional power trade,” Kasaija said, adding that the loan facility will help avoid losses from unutilised power.
He noted that the water project will improve access to clean water in the target areas, enhancing people’s well-being, while the road project will support oil sector development and boost tourism potential around Lake Albert.
Dalu Ajene, CEO and Head of Coverage, Africa at Standard Chartered Bank, said the partnership demonstrates how governments and international financial institutions can collaborate to deliver complex, long-tenor financing with lasting economic and social impact.
Sanjay Rughani, CEO and Head of Coverage, Uganda at Standard Chartered Bank, said the bank recognises that water security, road infrastructure, and efficient power transmission enhance resilience and promote inclusive growth.
“As Standard Chartered, we are committed to financing infrastructure projects that are economically viable and support sustainable development,” Rughani said.
