Parliament has approved a government request to borrow up to €168.98 million (approximately Shs 710 billion) from UKEF and Citi Bank to finance Phase II of the Solar Powered Irrigation Systems Project aimed at boosting coffee production and mitigating the effects of climate change.
Presenting the proposal to Parliament, Finance Minister Henry Musasizi said the project will establish 427 solar-powered irrigation systems across the country to support coffee farmers and improve agricultural productivity.
“The proposed project will develop 427 irrigation systems across the country. The project is aimed at enhancing rural incomes through increased production and productivity arising from irrigated agriculture for coffee growing,” Musasizi said.
He said the project will cover 126 districts and is expected to increase coffee yields through improved access to water for irrigation.
Musasizi justified the borrowing by citing the growing impact of climate change on agricultural production, noting that prolonged dry spells continue to affect farmers across the country.
“The effects of climate change are continuing to escalate and the available water resources for agricultural production are constantly decreasing. Farmers are losing a lot of crops due to prolonged dry seasons and this in turn affects their livelihoods,” he said.
According to the minister, the project is expected to directly benefit about 2,562 households, representing approximately 11,785 people.
Musasizi told Parliament that the second phase builds on the success of Phase I, which has achieved more than 99 per cent physical completion, with 434 irrigation systems established nationwide.
“To date, Phase I of the project has achieved over 99 per cent physical completion with 434 systems developed across the country delivering verifiable economic benefits countrywide,” he said.
He added that the existing irrigation systems have improved water access and agricultural productivity for 206,465 households, benefiting a population of about 908,447 people.
The project will be implemented through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and will utilize existing extension service structures at parish, sub-county and district levels to support farmers.
Government says the investment is intended to strengthen climate resilience, increase coffee production and improve household incomes through irrigated agriculture.