|Approval Date||05 Jul 2016|
|Signature Date||20 Oct 2016|
|Planned Completion Date||31 Oct 2023|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||23630|
The present operation consists of a supplementary loan of UA 5.840 million to the Republic of Uganda to bridge the financing gap for the Nile Equatorial Lakes Countries Power Interconnection Project. The increase in the cost of the project is mainly due to the unexpected depreciation of the loan currencies against the contract currencies, higher world prices for construction equipment and materials, and changes in project plans. It should be recalled that the original project consisted of the construction of 769 kilometers of 220 and 110 kV transmission lines and 17 transformers to interconnect the power grids of the Nile Equatorial Lakes countries, namely Burundi, Kenya, Uganda, Democratic Republic of Congo and Rwanda, in order to improve energy exchanges between these countries. The Ugandan section of the interconnection project is part of a regional NELSAP project that will address, in the short term, the electricity shortages in the region and, in the longer term, establish an integrated regional grid that will facilitate cross-border electricity trade and improve access to electricity in the Nile lakes countries. The project's success will be facilitated by the additional loan, which will enable it to meet its development objectives.
The NELSAP interconnection project consists of improving the rate of access to electricity for the populations of member countries and enhancing regional electricity trade by interconnecting their respective grids. In addition, implementation of the project will help reduce the price of electricity in the countries concerned, attract investment and enhance global competitiveness. The interconnection of the grids will also allow for the sharing of spare capacity and economies of scale, which will encourage the development of large-scale hydropower plants in the region.
The main beneficiaries of the project will be the people, local communities, enterprises and trading entities, private and governmental institutions in the five countries, which will have increased access to reliable and affordable electric energy for domestic, industrial and commercial use. This will have an immediate positive impact on the competitiveness of investments in the productive sectors of the economy. The countries themselves and their electricity companies will have energy that will contribute to achieving their national objectives of providing access by the people to electricity. Moreover, national development programmes in the areas of education, health, communication, administration, drinking water supply and sanitation will gain in efficiency resulting from the use of electric energy, especially in rural areas that do not have access to modern energy services.
African Development Fund
Nile Basin Initiative (NBI)
|Last Update||02 Oct 2022|
|Name||TINE Papa Daouda|
|0.6878 34.18237||Tororo Municipality|
|-0.5 30.6||Mbarara District|