KAMPALA
Parliament has given a green light to government to borrow $162million (about Shs580 billion) to finance the planned revamping of Uganda’s premier institution of higher learning, Makerere University.
The money is expected to come from Korea Export-Import Bank.
The loan in question was passed during plenary chaired by the Deputy Speaker of Parliament, Mr Thomas Tayebwa on December 16, in the Presence of Makerere University members of top management led by the Vice Chancellor, Prof Barnabas Nawangwe.
“We are going to proceed and process the loan,” Mr Tayebwa said during plenary.
Earlier in the day, the Minister for Higher Education, Mr John Chrysostom who represented Education Minister and First Lady, Janet Museveni appeared before the Parliamentary Committee on National Economy seeking approval of a proposal by government to borrow the funds in question.
“Honourable Chair and Members, the Ministry of Education and Sports, prays that this Committee approves the government’s proposal to borrow US$162 million from Korea Export-Import Bank, given its strategic importance and its potential to enhance productivity and national competitiveness through improved quality of (Science , Technology Engineering and Mathematics ( STEM) education,” Mr Muyingo said
He noted that the project in question aims to expand and modernise academic infrastructure, strengthen institutional capacity, particularly in STEM and health disciplines, to address rising enrolment, inadequate facilities and the need to improve teaching, learning and research outcomes.
The project will also see new facilities constructed at the College of Health Sciences for preclinical education and a new building for the School of Dentistry, fully equipped for dental technology, education and clinical practice.
“Specifically, the project includes construction of a science and technology centre with laboratories and innovations based in mechanical, electrical, civil and computer engineering, including incubation and startup facilities, upgrading laboratories and smart classrooms at the College of Computing and Information Sciences with advanced hardware, software and specialised research tools, construction and equipping of a new building to house the Department of Mechanical, Civil and Electrical Engineering at the College of Engineering, Design, Art and Technology,” he explained.
Mr Muyingo informed the legislators that the project in question had successfully undergone the public investment management appraisal process and was duly approved by cabinet.
The project is expected to be implemented over a period of 42 months, spanning financial year 2025-2026 to 2029-2030 at an estimated total cost Shs 700.26 billion, which is an equivalent of $204 million.
According to the minister, the financing of the project comprises a concessional loan from the Government of the Republic of Korea.
He affirmed that there will be also counterpart funding from the Government of Uganda amounting to $42 million to cover taxes, duties and project management costs that are not eligible for financing under the Economic Development Cooperation Fund (EDCF).
Mr Muyingo said the Ministry of Education will serve as the executing agency while Makerere University will be the implementing unit under the overall responsibility of the Vice-Chancellor.
He argued that enhanced investment in infrastructure, is very critical for Makerere University to sustain its commitment to quality education and to contribute meaningfully to national socio-economic transformation, as articulated in NDP IV and the Tenfold Growth Strategy.
Mr Hillary Lokwong, IK County MP in Kaboong District who said he was in support of the project but questioned the timing of the loan.
“I support the loan because it is very important for all of us but I don’t support the timing because we have been here for the last four years and you could not approach us and now you approach us at the last moment when we are in the critical time for campaigns ?” he questioned the team.
He also suggested that government should consider investing in primary and secondary schools that are currently ‘limping’
His suggestion was backed by Mr Joseph Gonzaga Ssewungu MP for Kalungu County West who acknowledged that public schools and universities equally need facial support to operate optimally.
‘”Why do we only borrow for Makerere when other universities are crying out for money? Universal Primary Education (UPE) schools are all condemned,” he said.
However, Mr Tayebwa informed Parliament that securing concessional loans to finance projects is not an easy process.
“I’m one of the people who went to Korea to lobby for support but to give us this kind is support wasn’t easy. All universities need support but we started with Makerere because it is a premier university that many other universities depend on,” he asserted.
He however, acknowledged that all universities need financial support and tasked Mr Muyingo to look into it.
Mr Muyingo said government has planned for every child right from birth to the end of education cycle.
He also revealed that government had constructed, renovated and expanded infrastructure in several schools and established more universities and technical institutions to improve service delivery in the education sector.
“Don’t be surprised when we present another loan request for other universities to be revamped,” Mr Muyingo asserted.
Mr Joel Ssenyonyi, the Leader of Opposition in Parliament advised that budgets must be planned and well apportioned to check Uganda’s debt burden.
“Our debt to GDP is now 51.3 percent. We are entering the red zone. We have to be careful about how we operate,” he said.
Prof Nawangwe told MPs that the population of Makerere University had increased from 5,000 students 30 years ago to the current 35,000 necessitating adjustments in the university infrastructure to cater for the needs of a growing student population.
“Everyone wants to study at Makerere. At one time, we had 50,000 students but we reduced the number gradually due to public outcry. Very many students still want to come to Makerere. The school of medicine used admit 100 students. They now have 3000 students so we need to create capacity,” he said.