Uganda: US$ 29 Million for Bujagali Power Interconnection Project

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Uganda: US$ 29 Million for Bujagali Power Interconnection Project

Tunis, 20 June 2007-  The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group on Wednesday in Tunis approved a loan of UA 19.21 million, equivalent to US$ 29 million, to finance the Bujagali Power Interconnection Project (BIP) in Uganda.

The objective of the project is to provide adequate transmission capacity for power supply from the Bujagali power station to one existing and future distribution companies in order to improve access to cheaper and more reliable electricity supply. The project is expected to contribute in meeting the country’s energy needs for social and economic development in an environmentally sustainable manner.


The BIP will have the following outputs:  

  • A 75-km of 220 kV double circuit transmission line from Bujagali substation to Kawanda substation;
  • A 15-km of 132 kV double circuit transmission line from Kawanda substation to the existing Mutundwe
  • An 8-km of 132 kV double circuit transmission line to Nalubaale substation;
  • A 5-km of 132 kV double circuit transmission line to link Bujagali substation to an existing line to Tororo substation;
  • A new 132 kV substation at Kawanda,
  • Extension of the 132 kV Mutundwe substation.

The main project beneficiaries include Power distribution utilities and households. Industrial and commercial electricity consumers connected to the national grid will benefit from improved reliability and lower cost of supply as a result of the project. These will include all existing as well as potential electricity clients of the distribution company, UMEME, which currently has about 300,000 customers, including an estimated 250,000 households that are connected to the grid and growing at about 20,000 every year. In addition, the project will deliver the energy required to supply some 280,000 new customers that are expected to be connected to the national electricity grid by 2012. Consumers in neighbouring Rwanda, Tanzania and Kenya who are interconnected with Uganda could also benefit from the improved supply and export potential of the system.

The total cost of the BIP is estimated at UA 50.13 million, equivalent to US$ 75.84 million.  The project will be financed by the ADF, the Japan Bank for International Cooperation (JBIC) and the Uganda Electricity Transmission Company Limited (UETCL) in proportions of 38.3%, 38.3% and 23.4% respectively.

The Bank Group's operations in Uganda started in 1968. To date, the cumulative commitment of the Group in the country amounts to UA 891.78 million or US$ 1.35 billion for 102 operations.

* 1 UA = 1.51 286 US$ = 2631.84 UGX as at 20/06/2007

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