NWSC Seeks Grundfos Partnership to Manufacture Pumps, Spare Parts in Uganda

In Summary

The water utility is seeking a partnership with Denmark’s Grundfos and Uganda’s National Enterprise Corporation to […]

The water utility is seeking a partnership with Denmark’s Grundfos and Uganda’s National Enterprise Corporation to manufacture pumps and spare parts locally. Managing Director Dr Silver Mugisha says the move would reduce import dependence and strengthen the country’s engineering capabilities.

 

The National Water and Sewerage Corporation (NWSC) is seeking a manufacturing partnership with Danish pump maker Grundfos to produce pumps and spare parts in Uganda, linking investment in water infrastructure to the country’s industrialisation and import-substitution agenda.

NWSC Managing Director Dr Eng Silver Mugisha made the proposal during a meeting with Grundfos executives on the sidelines of the International Water Association (IWA) World Water Congress and Exhibition in Glasgow, Scotland.

He proposed that Grundfos partner with the National Enterprise Corporation (NEC), the commercial arm of the Uganda People’s Defence Forces, to establish local production capacity for pump components and replacement parts.

“For sustainability, if I work with you, I should be able to get your parts locally and not endure long waits to get parts from abroad,” Mugisha said.

He said domestic manufacturing could shorten maintenance delays, reduce import costs and eventually supply water utilities across Africa.

Mugisha also asked Grundfos to study NWSC’s hydraulic systems and develop energy-efficient pumps suited to the utility and the wider East African market. The proposed cooperation would extend to local assembly, prepaid water meters and technical training for Ugandan engineers.

The initiative could create a domestic market for engineering and manufacturing services by linking the procurement needs of a major public utility to local production.

Grundfos officials said they would examine the proposal. They also outlined a financing approach under which investment in more efficient pumping equipment could be recovered from the resulting energy savings.

The company said it could develop intelligent pumping systems capable of automatically detecting faults and work with NWSC to reduce energy consumption, operating costs and non-revenue water.

The discussions come as water utilities face pressure to expand supply while controlling electricity, maintenance and infrastructure costs. NWSC says it does not earn revenue from more than a third of the water it pumps, the bulk of lost to leakages, non-metered connections and customer fraud.

Seeking cheaper infrastructure financing

In a separate meeting with the World Bank, Mugisha presented NWSC’s performance and audited financial statements as evidence of its creditworthiness, seeking lower-cost, long-term financing for infrastructure expansion, energy conservation, sanitation and the reduction of non-revenue water.

He said the Government was seeking to move away from expensive financing, arguing that lower borrowing costs would help the corporation expand services while containing project expenditure.

NWSC also proposed greater flexibility to undertake its own engineering designs, use community-based delivery models and engage affordable contractors.

World Bank officials said they would assess potential projects and indicated that financing through Ugandan banks could be considered, subject to due diligence. NWSC Deputy Managing Director for Finance and Corporate Strategy Francis Owot urged the institution to work through local lenders to help reduce financing costs.

Mugisha also sought support from the Gates Foundation for NWSC’s research and development programme, sanitation initiatives and the 50 Towns Water Supply Improvement Project. The discussions included developing the corporation’s research department into an incubator for water and sanitation solutions relevant to other African utilities.

The foundation pledged support for preparations for the IWA Water and Development Congress and Exhibition scheduled for Uganda in November 2027.

Related Posts