Uganda: Nation Gets U.S.$19 Million for Power

Photo: Isaiah Esipisu/IPS
The government has promised power shortage will be a thing of the past.

Kampala — The ministry of Energy through Uganda Energy Credit Capitalization Company (UECCC) has received a grant of up to Euro 13.1 million($19m) from Netherlands based Orio Infrastructure to finance small power projects.

According to Uganda's state minister for Energy Simon Du'Janga such projects will enable Uganda overcome the problem of power shortage.

He said that although the government has tried to connect most urban areas on the national grid, most parts have not yet accessed power and, it hinders economic development.

He was speaking at the launch of the power project named the Orio mini Hydro Power and Rural Electrification in Kampala recently.

"We are endowered with great number of rivers that can support power production but we have been focusing more on big projects that have not helped. The small projects shall do great change," said Du'Janga.

Under the plan, a cluster of 10 small hydropower plants with capacities to produce 1-1.5 MW will be installed alongside a transmission and distribution system.

This will increase the percentage of Uganda's rural population connected to the grid from less than 6% to 7.5%.

Mr. Roy Nyamutale Baguma the Manager Transaction Executive at UECCCC told East African Business Week that the project is aimed at solving the problem of poor access to power.

"This project if completed will see Ugandans totaling to 347,000 individuals getting connected to the national grid.

"We hope to connect at least 8000 Small and Medium Enterprises. This will create more jobs for localUgandans," said Baguma.

Uganda is one of the countries in Africa where majority of its people depend on fire wood as source of Energy. This has led the country to lose about 34.4 million tones of wood worth Ush 258.4 billion ($130 million).

Ads by Google

Copyright © 2013 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.

InFocus

Ugandan Govt Moves to Curb Power Shortage

The government has promised power shortage will be a thing of the past.

According to government, the addition of nine megawatts of electricity from Kabalega plant to the national grid will boost power production reducing shortage in the country. Read more »