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SH730BN MORE FOR QUESTIONABLE WATER PROJECT! Mps Approve New Loan As Probe Exposes Systematic Failures at UK’s Nexus Green Solar Powered Irrigation Project


By Our ReporterIt was supposed to be a game-changer.A massive government project worth hundreds of billions of shillings was launched with promises of transforming agriculture, boosting household incomes, fighting drought and bringing clean water closer to communities across Uganda.Instead, years later, the project has become a symbol of what critics describe as poor planning, weak supervision, wasteful spending and shocking failures in accountability.Now, despite a 2025 damning Auditor General’s report exposing serious weaknesses in the first phase, Parliament has approved yet another loan worth approximately Shs730 billion for the second phase of the Solar Powered Irrigation and Water Supply Systems Project, leaving many Ugandans asking one question: Who is being held accountable?The project is overseen by the Ministry of Water and Environment and implemented by UK-based contractor Nexus Green Ltd under financing largely backed by UK Export Finance.Parliament approved the borrowing request on Wednesday following a heated debate in which legislators questioned why government was seeking fresh debt before adequately explaining what went wrong in the first phase.The loan, amounting to €168.9 million (approximately Shs730 billion), will be secured from UK Export Finance and Citi Bank and becomes the first borrowing approved by the 12th Parliament.Several MPs openly expressed frustration that Parliament was being asked to approve such a huge loan under urgent circumstances despite longstanding concerns surrounding project implementation.Leader of the Opposition Joel Ssenyonyi said irrigation remains critical for Uganda’s agricultural future, especially as climate change and unpredictable weather continue to affect farmers. However, he insisted that accountability for the first phase should come before any fresh borrowing.His concerns are backed by alarming findings contained in the Auditor General’s report.The report reveals that by the end of Financial Year 2023/2024, the project had already received a staggering UGX 161.15 billion to roll out 252 irrigation schemes and 435 water supply systems across the country. The promise was huge.The results were not.Out of 687 planned schemes, only 122 projects had been completed by June 2024, representing just 18 percent of the target.In simple terms, more than 80 percent of the promised projects were still incomplete despite billions already having been spent.The Auditor General’s findings paint a picture of a project plagued by problems from the very beginning.The first warning sign emerged during feasibility studies.Out of 1,009 sites handed over to Nexus Green Ltd, a shocking 162 sites failed at the feasibility stage. These locations suffered from problems including inadequate water sources and land disputes — issues critics say should have been identified before the project ever began.As a result, government spent an additional Euro 320,344.98 conducting fresh feasibility studies after the original sites had to be abandoned.The problems did not end there.Another 58 schemes collapsed during the design stage, leading to the loss of an additional Euro 208,530 spent on designs that were never implemented.The Auditor General questioned why detailed designs were being prepared before feasibility assessments had been fully validated, describing it as a fundamental project management failure.The situation became even worse when planners eventually removed 141 schemes from the original project scope altogether.Of the 257 projects that eventually moved to construction, only 122 reached substantial completion.Even more astonishing, only 22 of those projects had actually been commissioned for use.This means infrastructure was built but never fully handed over.Solar panels were installed.Equipment was delivered.Yet communities remained unable to benefit from the systems.The report further exposes how land disputes crippled implementation.Seventeen approved schemes failed during construction, with fifteen collapsing after landowners withdrew consent.The Auditor General attributed the failures to inadequate sensitisation of beneficiaries regarding land requirements.The financial loss arising from those failed projects alone amounted to Euro 61,120.82.Inspectors also discovered disturbing conditions on the ground.Out of 43 completed schemes inspected, 14 were completely non-functional while 16 others were operational but not being used.In some areas, farmers expected seedlings to accompany irrigation systems, only to discover that seed distribution was never included in the project design.Elsewhere, vandalism had already begun.Solar panels, pumps and other equipment were reportedly being damaged due to prolonged inactivity and lack of proper security arrangements.The Auditor General also found that the Ministry of Water and Environment had failed to establish management structures necessary to sustain the infrastructure.Rural water committees had not been appointed.No clear arrangements existed for collection of user fees.No funding had been allocated for maintenance and operational costs.Even in urban areas, only eight out of twenty-two completed sites had been handed over to umbrella institutions responsible for managing them.As billions were being spent on infrastructure, questions remained over who would actually operate and maintain the facilities.The findings have intensified scrutiny on the ministry’s leadership, particularly over whether adequate oversight was exercised during implementation.Critics argue that failures in feasibility assessments, project supervision, consultant management and contractor oversight point to deeper weaknesses within the system.Many observers believe responsibility cannot simply disappear into technical reports while taxpayers continue carrying the burden of failed projects and growing public debt.Yet despite the concerns, government defended the request for additional funding.Finance Minister Henry Musasizi apologised for the delayed submission of the loan request and explained that government was racing against a deadline imposed by UK Export Finance.He warned that failure to secure parliamentary approval would have caused the financing offer to lapse.Vice President Jessica Alupo also urged legislators to support the project, arguing that irrigation remains vital for increasing agricultural productivity and boosting household incomes.The Ministry of Water and Environment has also rejected suggestions that the project has been a failure.In a statement issued by Senior Public Relations Officer Noel Muhangi, ministry officials insisted that hundreds of systems have already been successfully implemented and are serving communities.According to the ministry, 450 solar-powered irrigation and domestic water supply systems have been satisfactorily delivered by Nexus Green Ltd, with beneficiaries already accessing water services in various districts.Officials further argue that challenges such as land disputes, weather disruptions and logistical difficulties are common in large infrastructure projects and should not overshadow progress made.But for many Ugandans, the unanswered questions remain.How were unsuitable sites approved in the first place?Why were millions spent on designs that could never be implemented?Why are completed projects lying idle?Why are there no maintenance structures?And perhaps most importantly, why is government borrowing another Shs730 billion before fully addressing the failures highlighted by the Auditor General?With Parliament approving fresh billions for Phase Two, taxpayers can only hope that the mistakes of Phase One are not repeated.Because while loans may be approved in Kampala, it is ordinary Ugandans who ultimately pay the price, one watcher concluded.GOT A HOT STORY? EMAIL: redpeppertips@gmail.com WITH AS MUCH EVIDENCE AS POSSIBLE.SOURCE PROTECTION/CONFIDENTIALITY IS OUR NO.1 PRIORITY.About Post Author
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