Parliament has approved a government request to borrow up to €168.9 million (about 730 billion shillings) for the second phase of the Solar Powered Irrigation and Water Supply Systems Project.
The decision follows a heated debate in which legislators questioned accountability for the first phase and criticized the Executive for rushing the House into approving fresh borrowing.
The loan, to be secured from UK Export Finance (UKEF) and Citi Bank, was the first borrowing to be approved by the 12th Parliament.
Several MPs argue that Parliament was being asked to approve a major external loan without adequate scrutiny, particularly because key sectoral committees, including the Committee on National Economy that ordinarily reviews borrowing proposals, had not yet been constituted.
James Kakooza, the Older Persons MP, accuses the Ministry of Finance of repeatedly presenting loan requests at the last minute and warns against pressuring Parliament. Joel Ssenyonyi, the Leader of the Opposition says the opposition supports investments in irrigation and agricultural modernization, but insists that accountability for Phase One should come before approval of additional borrowing.
Oboth-Oboth, the Speaker says Parliament found itself in an unusual situation because the Committee on National Economy had not yet been established.
By URN
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