The Project supports the National Water and Sewerage Corporation (NWSC) in the up-grading and rehabilitation of the existing water treatment, transmission and distribution systems, as well as the development of a new water system and water treatment plant east of Kampala. The total cost of these investments is estimated at €212m. All loan and financing agreements, as well as the Common Project Terms Agreement were signed between the three financing partners and the Republic of Uganda in April 2011. A consultancy contract for design and supervision on Rehabilitation and Water Production Capacity Optimization of Ggaba Water Treatment Complex & Minor Transmission Improvements Short-term ‘Quick win and No regret' Measures was signed in June 2012 (EU-AITF funded). Feasibility studies on Water Network Modelling and Master Planning and on Water Supply and Sanitation in informal Settlements are currently being finalised.
The EU-AITF is supporting this project with two grant operations, a technical assistance of €8 000 000 for expert services to the National Water and Sewerage Corporation (NWSC) and an interest rate subsidy of €14 000 000 for subsidising AFD's loan financing of €75 000 000 for the project. The major services to be financed with the technical assistance grant include studies for planning, option development, project preparation and hydraulic analyses.