Uganda: Public Accounts Committee (PAC-Central Government) demands accountability for US$510 million Uganda Support to Municipal Infrastructure Development (USMID) loan

The Public Accounts Committee (PAC-Central Government) has directed the Ministry of Lands, Housing and Urban Development to provide a comprehensive account of the US$510 million World Bank loan under the Uganda Support to Municipal Infrastructure Development (USMID) programme.

The committee, chaired by Hon. Patrick Oshabe, was constrained to proceed with its consideration of the Auditor General’s Report for the Financial Year 2024/2025 after ministry officials failed to provide satisfactory responses to queries about the programme.

The ministry delegation, led by Under Secretary Dorcas Olalany, appeared before the committee on Wednesday, 30 September 2026, to respond to audit findings relating to its operations and expenditure.

Olalany informed MPs that the first USMID phase received US$150 million to support 14 municipalities and that an additional US$360 million was released to expand the programme’s scope.

Through USMID, the government constructed roads, markets and other infrastructure in selected municipalities and cities to improve urban service delivery.

MPs, however demanded details on the cost of constructing a kilometre of road, the implementation status of the different projects and the overall utilisation of the borrowed funds.

“We are asking how much you spent on the road in Entebbe and Ntungamo municipalities,” asked Hon. Nsegumire Kibedi (NRM, Mityana North).

Kibedi observed that roads constructed during the second phase of USMID appeared to be of a lower standard than those delivered under the first phase.

Hon. Cadet Benjamin (NRM, Bunyaruguru County) asked the ministry to explain the fate of incomplete USMID-funded roads whose contractors have filed lawsuits.

Gweri County MP, Hon. Herbert Edmund Ariko, also raised concern over the ministry’s failure to construct abattoirs and undertake the planned remodelling and beautification of mayors’ gardens.

MPs further sought clarification on when the government is expected to begin repaying the loan and how the obligation will affect public finances.

“These are loans, we borrowed money and we will need to start paying back, we therefore wish to know when government intends to begin paying the first installments,” said Oshabe.

The committee observed that proper accountability for the initial US$510 million was particularly important after the ministry revealed that the government had secured an additional US$540 million to accelerate urban service delivery.

The ministry officials were directed to return to the committee with accurate figures, supporting documentation and clear responses to the outstanding audit queries.

Distributed by APO Group on behalf of Parliament of the Republic of Uganda.