Parliament Approves Shs151bn Loan for Mbarara Cancer Centre, Seeks Changes to Deal

Parliament has approved a €31.98 million (about Shs151.4 billion) loan from the French Government to construct and equip the Mbarara Regional Oncology Centre, but wants Government to renegotiate several conditions before signing the agreement.

Presenting the Committee on National Economy’s report on November 4, 2026, chairperson Jane Pacuto said the project would improve access to cancer treatment in western Uganda. However, she asked Government to address concerns over procurement, equipment maintenance and training.

One of the disputed conditions limits purchases from Ugandan and other foreign suppliers to 30 per cent of the loan, meaning most project supplies would have to come from France. Pacuto said this could shut out local businesses and undermine the Buy Uganda Build Uganda policy.

MPs also want longer warranties for medical equipment. The draft agreement provides two years of cover for advanced imaging machines and one year for general medical equipment. Parliament wants the warranty for CT and MRI scanners extended to three years.

The committee further recommended that the contractor, Tyllium, provide free repairs or replacements for equipment damaged by manufacturing or contractor faults. It also wants local biomedical engineers trained to operate and maintain the equipment, with the Uganda Cancer Institute taking responsibility for procuring it.

MPs also questioned why radiotherapy services had been excluded from the first phase, noting that about 60 per cent of cancer patients require radiation treatment. State Minister for Primary Health Care Dr Charles Ayume said the loan could not cover the service and Government would seek additional funding to provide it later.

During the debate, Solomon Silwany, MP for Bukooli County Central, questioned whether Parliament should assess the performance of previously borrowed funds before approving more loans. He cited the Lubowa Specialised Hospital and Kampala–Jinja Expressway projects.

Finance Minister Henry Musasizi defended the borrowing, saying regional cancer centres would bring screening, diagnosis and treatment closer to patients.

The project will cost €33.58 million, with the French loan covering €31.98 million and Government contributing €1.6 million. The proposed facility will have 138 beds across two floors and cover 8,272 square metres.