Parliament approves sh70b loan for Bugiri Hospital upgrade

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Parliament has approved government’s request to borrow up to $20m (sh70b) from the Arab Bank for Economic Development in Africa (BADEA) to finance the rehabilitation, expansion and equipping of Bugiri General Hospital.

The loan was unanimously endorsed during the plenary sitting on Wednesday, September 10, 2025, with strong backing from Bugiri Municipality MP Asuman Basalirwa (JEEMA). Basalirwa said the project would directly address pressing community health needs and improve service delivery in the Busoga region.

Presenting the report of the committee on national economy, chairperson John Bosco Ikojo said the loan terms were highly concessional, with a 45% grant element, exceeding the IMF/World Bank recommended threshold of 35%.

He added that the long maturity period made the borrowing favourable and consistent with the Public Debt and Other Financial Liabilities Management Framework (FY 2023/24–2027/28), which prioritizes concessional financing for social and human capital projects.

“The expansion of Bugiri Hospital will not only improve health services but stimulate local economic growth by creating demand for ancillary services, jobs, and infrastructure,” Ikojo said.

Debt implications

The committee noted that Uganda’s total nominal public debt stood at $28.69 billion (sh105.6 trillion) by December 2024, up from $25.55 billion six months earlier.

The new loan will slightly add to this burden, with external debt already at $14.6 billion and domestic debt at $14.09 billion. Debt-to-GDP had risen from 46.8% in June 2024 to 52.1% by December 2024.

Committee recommendations

The committee urged government to; fast-track inclusion of the Bugiri Hospital project in the FY 2025/26 budget and medium-term plans, increase health sector funding to sustain project benefits beyond construction, renovate other dilapidated hospitals, such as Abim General Hospital, to prevent further collapse of infrastructure, address acute shortages of staff housing, which continue to undermine recruitment and retention of medical workers in rural areas.

They asked government to expedite the recruitment of health workers at Bugiri Hospital to reduce the doctor–patient ratio and invest in energy-efficient technologies such as solar systems and modern medical equipment to cut operational costs.

The committee emphasized the need for strong hospital leadership and management, warning that infrastructure upgrades without good governance would undermine service delivery. It recommended public outreach to ensure communities are informed about new services once the project is completed.

Hospital background

Bugiri General Hospital was built in 1970–71 with a 100-bed capacity. Today, it handles an average of 140 inpatients and 200 outpatients daily, serving a catchment population of 500,000–600,000 people from Bugiri and neighbouring districts, including Namayingo, Iganga, Bugweri, Namutumba, parts of Busia and Tororo.

Despite its importance, the hospital has gone over 50 years without major rehabilitation. It suffers from leaking roofs, broken fittings, collapsed water and sewage systems, overcrowded wards, lack of isolation units, obsolete equipment, and inadequate space for outpatient care, accident and emergency services, and staff accommodation.

The rehabilitation project, estimated at $23 million, will be financed through a $20 million loan from BADEA and a government counterpart contribution of $3 million. Works will include remodelling existing structures, building new extensions for specialized services, and equipping the hospital in line with the National Standard Designs for Health Facilities (2012).

According to the ministry of health, the project aims to strengthen the referral system in Busoga, reduce accident fatalities, and expand access to the Uganda National Minimum Health Care Package.