Uganda has signed a loan agreement with German Development Bank, KfW, of €15m (about sh51b) for the construction of a new 132 kW transmission line from Kampala to Entebbe.
General duties finance minister, Fred Jachan Omach, signed on behalf of Ugandan government while Udo Weber, the head of development cooperation at the German Embassy in Kampala signed on behalf of his government.
The signing ceremony took place at the finance ministry in Kampala on Thursday.
The loan will facilitate the construction of a new 132 kW transmission line from Kampala to Entebbe.
The project combines 35 km of 132 kV double circuit transmission line and the extension of the Mutundwe substation in Kampala as well as the construction of a new substation in Entebbe.
Construction of the new line is expected to commence in 2014.
UETCL managing director, Eriasi Kiyemba, said that a detailed feasibility study of the transmission line has already been concluded. He added that Parliament and Cabinet approved the plan.
"Combined with the concessional loan the overall projects costs of €21m (about sh71b) can be fully financed," said Weber.