The Project supports the National Water and Sewerage Corporation (NWSC) in the up-grading and rehabilitation of the existing water treatment, transmission and distribution systems, as well as the development of a new water system and water treatment plant East of Kampala. The total cost of these investments is estimated at EUR 222m. All loan and financing agreements, as well as the Common Project Terms Agreement were signed between the three financing partners and the Republic of Uganda in April 2011. The Rehabilitation and Water Production Capacity Optimization of Ggaba Water Treatment Complex as well as Minor Transmission Improvements have been substantially completed. Studies on Water Network Modelling and Master Planning have also been completed and provide the basis for the project as well as long-term investment planning. The feasibility Study on Water Supply and Sanitation in informal Settlements as well as for the water treatment plant east of Kampala has been delivered. All consulting contracts for design, supervision and conceptual design have been signed. It is expected that the works contracts for the drinking water treatment plant and transmission main will be signed during the first quarter of 2017.
The works contracts for the water and sanitation measures in the informal settlements are expected to be signed in the third quarter of 2017.
The EU-AITF is supporting this project with an interest rate subsidy of EUR 14m for subsidising AFD’s loan financing of EUR 75m for the project. The loan contributes to the financing of the up-grading and rehabilitation of the existing water treatment, transmission and distribution systems, as well as the development of a new water system and water treatment plant East of Kampala. These activities are in their implementation stage and are expected to be finalized by 2020.