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Parliament Approves $20 Million Loan to Rehabilitate Bugiri Hospital
Kampala, Uganda | 10th September 2025 — In a significant boost to Uganda’s health sector, Parliament has approved a $20 million (approximately UGX 76 billion) loan from the Arab Bank for Economic Development in Africa (BADEA) to rehabilitate, expand, and equip Bugiri General Hospital, a key health facility serving the eastern region of the country.
The loan, endorsed during a plenary sitting on Tuesday, is expected to transform the hospital into a modern regional referral center, enhancing medical services for an estimated 600,000 people across Bugiri, Namayingo, Bugweri, Mayuge, Iganga, Namutumba, and parts of Busia and Tororo districts.
A Lifeline for Healthcare in Eastern Uganda
The approval follows the presentation of a report by the National Economy Committee, led by Chairperson Hon. John Bosco Ikojo, who highlighted the hospital’s critical role in the region and the urgent need for infrastructure renewal.
According to the report, the loan will fund the comprehensive renovation of existing hospital buildings — including the female ward, pediatric ward, operating theatre, mortuary, and staff quarters — as well as the construction of new infrastructure to accommodate increasing patient numbers.
“This intervention will expand the hospital’s capacity and significantly improve healthcare delivery in the region. It also presents opportunities for job creation in the health sector and enhances access to essential services,” Hon. Ikojo said.
MP Basalirwa: ‘A Strategic and Interest-Free Loan’
The Member of Parliament for Bugiri Municipality, Hon. Asuman Basalirwa, who has long championed the cause for the hospital’s upgrade, welcomed the loan approval, citing it as a victory for the people of Bugiri and surrounding areas.
“I want to thank the Speaker of Parliament, Rt. Hon. Anita Annet Among, and my fellow legislators for standing with me — especially after several European countries cut aid to Uganda following the passing of the Anti-Homosexuality Act,” Basalirwa stated during the debate.
He explained that he had lobbied for the loan from the Arab Bank because of its alignment with Islamic banking principles, which do not require interest payments — making it a more sustainable financing option for Uganda.
“This is not just a health project; it’s about dignity and justice for our people. Bugiri Hospital is strategically located along the Jinja–Tororo highway, and its upgrade will ease access to health services, reduce referrals, and improve patient and staff welfare,” Basalirwa added.
Scope of Work and Project Implementation
The planned rehabilitation works include:
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Renovation of old infrastructure, including the maternity, pediatric, and surgical wards
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Expansion of outpatient and emergency services
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Upgrading medical equipment for diagnosis and treatment
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Construction and renovation of staff housing to attract and retain qualified personnel
The Ministry of Health will oversee the project implementation, with funds expected to be disbursed once all legal and administrative agreements are finalized.
A Step Toward Universal Health Coverage
The loan approval comes at a time when the government is prioritizing investment in health infrastructure as part of its commitment to achieving universal health coverage and improving health outcomes nationwide.
Bugiri General Hospital, which was constructed in the 1960s, has suffered decades of neglect, with outdated facilities, understaffing, and overcrowding becoming routine challenges.
Once completed, the hospital is expected to reduce the burden on referral hospitals in Jinja and Mbale, while improving maternal, child, and emergency healthcare services in the greater Busoga sub-region.
