Government is to borrow a total of 270 million Euros from the French Development Agency geared towards improving the health living standards in the areas of great Kampala Metropolitan and Mbarara -Masaka.
Government spokesperson Ofwono Opondo said the monies will be used in the regions to develop, up grade, expand water and sanitation infrastructure.
The money will be borrowed in two batches; 120 million Euros and 150 million Euros.
While delivering cabinet decisions at the media centre, government spokesperson Ofwono Opondo said this will not only help ensure sustainability of water supply and sanitation services but also provide for the rehabilitation and expansion of the existing systems.
The targeted areas include towns and corridors leading to Masaka, Lukaya, Kyamulimba, Kalizo, Kyotera Kazo, Kyazanga among others.
Opondo said the 150 milion Euros will cater for the Kampala- Lake Victoria water and sanitation II project.
The UMC boss sought to reassure the donors that new monitoring measures had been put in place to ensure the funds are not misused.
The African Trade Insurance Agency will insure the project.
These products cover among others investment risk insurance, trade credit insurance, surety bonds, breach of contract insurance for energy projects and political violence, terrorism and sabotage insurance.