Electrical Workers installing electricity cables in one of the recent rural electrification projects in uganda

In the fight to wrap up rural electrification problems by the the Ugandan government, the Abu Dhabi Fund for Development (ADFD) has approved a Dh40 million ($10.8 million) concessionary loan for the development of a rural electrification project in Kalongo, Uganda, a media reported.

Mohammed Saif Al Suwaidi, director-general of ADFD, and Ajedra Gabriel Gadison Aridru, Uganda’s Minister of State for Finance Planning and Economic Development, signed the loan agreement at the ADFD headquarters in Abu Dhabi, UAE, reported Emirates news agency.

Aimed at electrifying homes, schools, healthcare centres, government offices and commercial, industrial and agricultural establishments, the project seeks to help the government achieve its objective of meeting the rural electricity demand that currently stands at less than seven percent to 26 per cent by 2022.

Set to benefit 20,634 consumers over the next 10 years, the rural electrification project is anticipated to improve the living standards of the rural population and minimise migration to cities around the country.

Al Suwaidi said: “The United Arab Emirates, through the Abu Dhabi Fund for Development, pursues an active policy of supporting sectors that can accelerate economic development across emerging countries. Among these sectors, energy is of great significance, given its crucial role in poverty eradication and inclusive development. At ADFD, we are committed to supporting the government of Uganda in fulfilling its development objectives through ensuring timely and adequate funding for strategically important projects.”

The 33kV rural electrification project involves civil and electrical works for the installation of a 139-kilometre transmission line, as well as 88 distribution stations and 415 volts’ distribution lines on a 167-kilometre stretch that will bring electricity to about 2,000 consumers. The project supports the development of small industries, workshops and agricultural units in rural Uganda, while curbing the over-exploitation of vegetation as a source of energy.

In turn, Aridru praised the UAE for its leading development efforts, and acknowledged the important role ADFD has played in advancing sustainable growth in key sectors in Uganda. He explained that this electrification project will go a long way in supporting the Ugandan government in achieving its development priorities.

ADFD’s engagement in the development of Uganda dates back to 1977. Since then, the fund has extended Dh79 million in loans and government grants towards the development of a number of projects that have positively transformed the livelihood of a sizable rural population and the local economy.

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Government is set to borrow US$91.5million from the International Development Association (IDA)of the World Bank to finance the Grid Expansion and Reinforcement Project.

The project is intended to increase availability and efficiency of bulk electricity supply in Gulu, Nebbi and Arua districts, which will help in the evacuation of power from new generation sites such as Karuma and Isimba hydro power stations.

Engineers fixing power lines in a rural area.

Government will also borrow an additional  US$ 11.32million (Kuwait Dinars 3.5m) from the Kuwait Fund for Arab Economic Development to finance the construction of the 33KV and 11KV distribution project in six districts of; Kiryandongo, Kibaale, Nebbi, Bushenyi, Kasese and Rukungiri.

This project aims to further extend the rural power line coverage by construction of a 285 km network in the six districts. The project is also aimed at facilitating the implementation of the rural electrification programme, to increase access and unlock suppressed demand.

“This project is in line with the country’s Vision 2040 and the National Development Plan, 2015/16 – 2019/2020 which identify with the promotion of sustainable economic growth and improving the living standards of the population in the rural areas, by providing access to electricity through extending the interconnected electricity grid,” said a source from the Ministry of Energy and Mineral development who preferred anonymity .

Legislators said that although generation, access and distribution of electricity were increasing, the cost of power and its installation remained prohibitive to the general population.

“We need to review the cost of power, considering that it’s of no benefit to have poles and power lines when the people cannot access and utilise the power,” said Hon. Helen Kahunde (Kiryandondo).

Hon. Nabilah Naggayi (Kampala) said that several consumers were willing to pay for power but were being frustrated by the UMEME, the service provider.

“It is very hard, expensive and difficult to access the Yaka pre-paid system. UMEME should not frustrate people who want to access this service,” she said.

Hon. Mbabali Muyanja (Bukoto South).

Hon. Mbabali Muyanja (Bukoto South) said a lot of power was being lost due to illegal connections, now standing at 38%. The MP recommended that power be connected to houses on credit.

The Committee on National Economy noted a mismatch in the electricity transmission and distribution infrastructure necessary to evacuate the power and make it accessible to consumers.

It recommended that government streamlines this mismatch between generation, transmission and distribution over the medium term in order to ensure that the medium target of 30 percent access to electricity is attained, but also ensure that all generated power is consumed.

The Committee also recommended that government considers acquiring a central corridor for infrastructure projects to accommodate power lines, water pipes, communication infrastructure and road reserves, so as to reduce on repeated compensation whenever projects are implemented.

The Committee called upon the government steps up efforts to increase power supply which will gradually help to reduce energy prices to about 7 US cents/kilowatt/hr by 2017.

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