Dr Chris Baryomunsi, Uganda’s Health MinisterBy Prisca WanyenyaParliament has raised questions over the UGX2 trillion loan the Ministry of Health is negotiating with the World Bank after it emerged that 50 new Health Centre IIIs will cost UGX549 billion – about UGX11 billion per facility – and 50 new Health Centre IVs will cost UGX902.2 billion, or about Shs18 billion each.The concerns were raised by Dickson Kateshumbwa (Sheema Municipality) and Patrick Nsamba (Kassanda North) during consideration of a statement on the Uganda Intergovernmental Fiscal Transfers (UgIFT) Health Infrastructure Programme presented by Health Minister Dr Chris Baryomunsi on September 2, 2026.Kateshumbwa, who said he has a background in cost accounting, warned that the figures appear over-budgeted.“The Minister presented figures, and as someone who did cost accounting, I looked at UGX549 billion for 50 Health Centre IIIs, that translates to around UGX11 billion per Health Centre III. I just hope that Honourable Minister, you check the numbers. Maybe we could do much more than the amount being budgeted,” he said.Nsamba, who was holding the portfolio for Leader of Opposition, compared the second phase with the first. Under UgIFT Phase One, which cost UGX765 billion, Government constructed 378 health facilities. Under Phase Two worth UGX2 trillion, Government plans to construct and rehabilitate only 200 facilities and build three regional blood banks.“You would expect that with an increment from UGX763 billion to Shs2 trillion, these health centres would multiply by three at minimum. The 373 health centres were constructed at an average of UGX2 billion,” Nsamba argued.“If you only took that decision to go back to UGX2 billion, you will cover about 275 health centres with the UGX450 billion budget. The budget of UGX902 billion to construct only 50 Health Centre IVs implies Shs18 billion per unit. Upgrade them with at least UGX4 billion, you will cover another 225 Health Centre IVs. On renovation, you have UGX464 billion to renovate 100 facilities. Let us use UGX1 billion and we renovate 464 facilities, then you will create impact,” he added.Dr Baryomunsi admitted the breakdown makes the costs look astronomical and promised to engage technocrats.“Your debate is not in vain. There are progressive ideas, like the idea that the costing seems to be astronomical. I must admit, I had not sat with the engineers to look at these costs, but I had also seen this concern. I take the idea in good faith, that we need to look at the costing and see whether we cannot do more facilities at a cheaper price, without compromising quality,” he said.Government is negotiating additional financing from the World Bank for UgIFT Phase Two. Besides the 100 new facilities, it proposes to establish three additional regional blood banks in Masaka, Kabale and Mbale at an estimated Shs47.25 billion, and expand digital systems including Electronic Medical Records (EMR) and biometric attendance.In Phase One, the World Bank provided about UGX453 billion for upgrading, construction and equipping, while Government provided about UGX270 billion for maintenance and medical supplies, totalling UGX765.4 billion.MPs also raised equity and functionality concerns.Herbert Ariko (Gweri County) decried lack of equity in ambulance distribution, saying none of Soroti’s constituencies received an ambulance.“Soroti district is suffering the syndrome of a parent giving birth to children and people focus on bringing up the children and leave the parent to wither away,” Ariko said.Betty Nambooze (Mukono Municipality) cited the 2025 Auditor General’s report, which found that out of 54 facilities inspected under UgIFT Phase One, only 22, or 41%, were actually operational.“By November 2025, 15 upgrades reported as completed had stalled, 26 new Health Centre IIIs have never been completed, delays estimated between 23 to 77 months, almost six years. Equipment delivered to incomplete buildings was looted, lab equipment was dumped and there were no health workers to use them,” Nambooze said.Rufina Chepkoitina (Amudat District) asked Government to prioritise Amudat, which has only one health centre, forcing patients to travel over 200km to Moroto Regional Referral Hospital. She said Pokot patients face a language barrier as they do not understand Karamojong spoken at Moroto.Peace Tibyeza (Jinja Woman MP) said Jinja referral hospital has only 18 functional beds and no operational X-ray machine.“The caesarean mothers are the only mothers admitted. Those who have normal delivery are always sleeping outside after giving birth,” she said.David Mulindwa (Busongora South) decried dilapidated structures in Kasese and crocodile attacks near health facilities, saying about 250 people have been killed by crocodiles since 2015. He urged the Ministry to consider topography, noting patients in hilly areas near Mt Rwenzori are carried on stretchers to hospitals.The post MPs Query UGX2Trn Health Loan: Why Does One Health Centre III Cost UGX11Bn? appeared first on Business Focus.