Ibrahim Kasita
10 November 2009
Kampala — UGANDA Electricity Transmission Company Limited (UETCL) has proposed a $100m (about sh188b) interconnection power project. The move is expected to lower the cost of electricity supplied from the various energy generation facilities.
The sub-stations and transmission lines include Kampala-Masaka-Mbarara and the Hoima Fort Portal-Nkenda-Mputa, Karuma- Olwiyo, Olwiyo-Packwach and Olwiyo-Adjumani.
The proposed transmission network is aimed at exploiting the comparative advantages in primary energy endowments. It is expected to facilitate efficient utilisation of existing generating resources and lowering the cost of supplies.
It is also expected to reduce supply risks through the provision of multiple links between system loads. Eriasi Kiyemba, the UETCL managing director, explained that there was need to finance and construct power supply lines in anticipation of increased power generation.
"We need to have power trade in the region and this needs to finance the energy infrastructure that will deliver power supply at low cost," he said. Kiyemba was meeting the World Bank Africa Energy Team, which is in the country on a supervision mission of the projects financed by the global development agency.
The $90m Energy for Rural Transformation, the $300m Power Sector Development and the $860m Bujagali Hydropower projects are some of the ventures being bankrolled by the agency. The energy for rural transformation project focuses on the provision of electricity and ICT services to rural areas to boost economic growth there.
The project will support the extension of electricity distribution network in the eastern and northern regions by financing the Soroti-Katakwi-Amuria 33KV line, the Ayer-Kamdini-Bobi and Ibanda-Kazo Rushere lines.
It will also support the installation of solar systems in schools, health centres and water pumping activities across the country.
It will also support the ICT investments in rural areas. The $300m power sector development project on the other hand is supporting interim generation requirements including the 50MW Mutundwe thermal plant.
Paul Baringanire, the World Bank power engineer, noted that their mission was to ensure that the financing is used only for the purposes intended.
"As a development agency, the bank has a fundamental interest in seeing that the projects it supports achieve their intended development impact," Baringanire said.
The mission supports the various beneficiary agencies in the start-up phase of the implementation of the projects.
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