Water sanitation and the rural electrification projects in Uganda have received a shot in the arm after the signing of three new financing treaties worth €51.7 million.
The deal with the French Embassy in Uganda was inked by the Minister of Finance Matia Kasaija, French Ambassador to Uganda Sophie Makame and the Director of the French Development Agency (AFD) in East Africa, Yves Boudot.
The total cost for the project amounts to €55.5 million, based on a soft loan of €42.9 million for the 1,500km medium voltage and 1,300km low voltage, as well as a €8.3 million grant secured through the EU-ITF (Infrastructure Trust Fund) to reduce the connection costs and support capacity building.
Two of the financing contracts are aimed at accelerating extension of rural electrification from the national grid to local communities, implemented by the Rural Electrification Agency. Regions to benefit from the project are Rwenzori, the mid-west and southwest and north-western areas of the country.
“This project is expected to significantly enhance the implementation of the Sustainable Energy For All initiative for which Uganda is a front-runner,” said Ambassador Makame.
Another €500,000, the third financing grant, will support feasibility studies and capacity building activities for the forthcoming extension of water distribution in Masaka and Mbarara, to be carried out through the National Water and Sewerage Corporation (NWSC).
