18 January 2016

Uganda: France to Support Energy Sector

The Ugandan government together with the French embassy in Uganda and the French Development Agency (AFD) have signed three new financing agreements totalling to 51.7 million euros.

These financing agreements were signed by the minister of Finance, Planning and Economic Development Matia Kasaija, and the French ambassador Sophie Makame, and the director of AFD in East Africa, Yves Boudot.

Two of the financing agreements are aimed at supporting rural electrification extension from the national grid to the local communities. The Rural Electrification Agency will implement the project in the regions of northwestern Uganda and Rwenzori territories, as well as the mid-west and southwest.

The total cost for the project amounts to 55.5 million euros, based on a soft loan (42.9 million euros) for the medium voltage (1,500km) and low voltage (1,300km), as well as a grant (8.3 million euros) through the EU-ITF (Infrastructure Trust Fund) to reduce the connection costs and support capacity building.

Government of Uganda will contribute up to 4.3 million euros to deal with land acquisition and compensation.

"This project is expected to significantly enhance the implementation of the Sustainable Energy For All (SE4ALL) initiative for which Uganda is a front-runner," said Makame.

Under SE4ALL project, Uganda, the European Union, France and Germany strengthened their partnership in a Joint Declaration signed in New York on May 20, 2015, underlying their mutual commitment towards the development of sustainable energy in Uganda.

The third financing agreement is a 500,000 euro grant to support some feasibility studies and capacity building activities, within the context of the forthcoming extension of water resources and water distribution in Masaka and Mbarara areas, under the NWSC company.


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