Uganda and China have signed a concessional loan of about US $212.7 million to be used to connect 172,589 consumers in unserved sub-counties countrywide through the Accelerated Rural Electrification Programme.
Finance Minister Matia Kasaija signed on behalf of the Ugandan government while Chinese Ambassador to Uganda, Zheng Zhuqian signed on behalf of the Chinese government. Zhao Xiufen, Economic and Commercial Counsellor, Embassy of the People’s Republic of China witnessed the signing alongside Ugandan officials.
The money will be used to construct 3839 km of medium voltage networks and 5921 km of low voltage networks, install and commission 3403 distribution transfers as well as install and connect 168,335 single phase consumers and 4,254 three phase consumers.
“On behalf of the Republic of Uganda I want to extend our heartfelt gratitude for the continued beneficial and cordial bilateral cooperation between Uganda and the People’s Republic of China not only for the support we are signing today but also in other areas like Roads, Energy, Health, and Education,” said Minister Kasaija.
He said Uganda’s electricity rural network coverage is still quite low with only about 10.6 per cent in 2014. He said that under the Rural Electrification Strategy and Plan for the ten-year period of 2013-2022, government plans to increase the rural electrification access rate to 26 per cent by 2022 and to 51 per cent by 2030 to realize the universal electrification of 100 per cent in rural areas by 2040.
He said Government has also set-out to extend clean and modern electricity to all citizens by 2040. “To achieve this, it’s planned that at least 30 per cent of all citizens should have access to electricity by 2020. It’s my pleasure to inform you, your Excellency that this project will in no doubt enable Government attain the targeted milestone,” he said.
The minister appreciated China for the previous and ongoing technical and financial support to the Government of Uganda mainly in the Energy Sector such as the financing to Karuma and Isimba Hydropower projects as well as the associated transmission lines, the Kampala-Entebbe Airport Expressway and the upgrading and expansion of the Entebbe International Airport phase 1 project.