By Julius Adi
Parliament’s Committee on the National Economy is scrutinizing a government proposal to borrow funds for the construction and equipping of two regional cancer centers in Mbale and Arua.
The loan request was presented to the committee by Hon. Henry Musasizi, Minister of State for Finance, Planning and Economic Development (General Duties), who led the Ministry of Finance team.
According to the Ministry’s submission, the government seeks to borrow EUR 9.4 million from Unicredit Bank Austria for the construction and equipping of the Mbale Oncology Center and USD 36.5 million from the Islamic Development Bank (IsDB) for the Arua Oncology Centre and radiotherapy equipment for Mbale. The government will also contribute USD 4.79 million to the project.
The funds are expected to support Construction and equipping of the Arua Oncology Center, including radiotherapy, chemotherapy, surgical and inpatient facilities ,Establishment of a radiotherapy unit at Mbale, fitted with advanced treatment equipment such as linear accelerators and brachytherapy machines.
Dr. Nickson Niyonzima, Head of Research and Training at the Uganda Cancer Institute (UCI), who led the technical team during the presentation, said the project is part of government’s broader efforts under the National Development Plans III and IV to decentralise cancer care.
“Our plan as the Cancer Institute is to ensure that 85% of the population that needs access to cancer care services is able to get it through the Uganda Cancer Institute,” Dr. Niyonzima explained. “By constructing regional centers in Arua and Mbale, we are bringing cancer care closer to the people. This will not only improve access but also increase survival from cancer.”
The Chairperson of the Committee on National Economy, John Bosco Ikojo, who also doubles as Bukedea County MP, welcomed the proposal but noted gaps in ministerial coordination during the scrutiny process.
“We needed a political head present in the committee meeting,” the chairperson said. “If questions are raised about this loan, the Minister of Health should be in position to respond. Nevertheless, members recognise the urgent need for regional cancer centres. Cancer cases are increasing every year, and these centers were needed yesterday, not today. As long as the loan terms are fair, the committee will advise Parliament accordingly.”
The Ministry of Finance emphasised in its brief that the project aims to alleviate Uganda’s growing cancer burden, improve access to oncology services in underserved regions, and strengthen cancer diagnosis and registration systems nationwide.
In his presentation to the committee, Minister Musasizi, noted that the EUR 9.4 million loan from Unicredit Bank Austria will run for 23 years, including a 75-month grace period, at an interest rate of 0.3% per annum. Additional charges include insurance, a 0.5% annual commitment fee on undisbursed amounts, and a 0.5% flat management fee.
The Islamic Development Bank financing is split into two facilities: USD 19.5 million under Istisna’a terms repayable over 25 years with a seven-year grace period, and USD 17 million under an installment sale arrangement with a 20-year maturity and a four-year grace period. The latter carries an interest rate linked to the 10-year SOFR Mid-swap rate plus applicable spreads that adjust with market conditions.
The Committee on National Economy will continue its scrutiny , after which the proposal will be tabled before Parliament for final debate and approval.
