Uganda, Germany signs $75 million power transmission deal
Uganda’s energy sector has received a boost following the inking of a $75 million deal with Germany that will see boost power transmission.
According to the State Minister for Planning Mr David Bahati, the agreement signed covers two projects that the government intends to work on in the energy sector.
These include Mbale-Bulambuli transmission line in Eastern Uganda constituting $45 million and Mbarara-Masaka transmission line in the western region which constitutes $40 million.
"These projects are in line with the government priorities and objectives, as laid out in the National Development Plan two. One of the objectives under the energy sector is to expand the electricity transmission grid network," Mr Bahati said.
"This will be done through building of transmission lines to evacuate power from generation plants. This is what the two projects are set to achieve," he added.
Delays in implementation of projects by the implementing agencies have had negative impact on the development programmes that government often comes up with.
Being mindful of the above, Mr Bahati said: "I want to urge the ministry of Energy and UETCL, who are to implement the projects, that by the time we conclude the financing agreements, all the preparatory works including compensation of people affected by the project would have been completed to ensure the projects take off," adding that they should ensure value for money.
Currently, the power coverage in Uganda is 20.5 per cent. Mr Bahati forecasts that the electricity coverage will be at 40 per cent in the next 40 years.
Although power tariff are high for both the domestic and industrial use in Uganda, Mr Bahati said after the completion of Karuma and Nsimbe dams, power tariffs will come down.
Currently, domestic consumers are paying about $0.20 per unit while commercial ones pay about $0.17
