AFD funds energy projects to improve power reliability and increase access to electricity
On 14th August 2018, in Kasese District, the Ugandan Government commissioned some flagship energy projects for the rural West of the country and launched its Connections Policy. The Agence Française de Développement (AFD) is a key partner in this sector.
Indeed, thanks to two concessional loans of respectively 23 M USD and 42.9 M EUR to the Government of Uganda, AFD financed part of the Nkenda-Hoima transmission line and its associated substations as well as a broad rural electrification program in Western and Southern Uganda.
Besides, AFD is contributing to the Connections Policy, first by having taken part in the dialogue that led to the design of the Policy, and secondly by financing one of the pilot projects to subsidize connections, in accordance with this Policy.
The financing of such projects enables to cater for the energy needs of the populations in rural areas, in a comprehensive approach.
Upgrading power transmission and reliability for the West of the country
AFD has financed Nkenda and Hoima substations and part of the corresponding transmission line, thanks to a concessional loan of 23 M USD. The project is co-financed by the Norwegian Agency for Development Cooperation.
The Nkenda-Hoima line and associated substations are in agreement with Uganda’s overall energy policy to meet the energy needs of the population for social and economic development. The transmission line is intended to facilitate the evacuation of hydroelectricity generated in the area and will serve in the longer term to improve power supply, quality and reliability in western Uganda.
Improving access to energy for the Ugandan population
AFD has financed a wide program of rural electrification in Western and Southern Uganda covering 24 districts, including Kasese. The Agency provided a concessional loan of 42.9 M EUR to build about 3,000 km of new low voltage and medium voltage lines.
Additionally, AFD participated in the dialogue that led to the design of the Connections Policy launched by the Rural Electrification Agency. The purpose is to subsidize the connection costs under the condition that households take charge of their own wiring. The Agency supports furthermore this Connections Policy by implementing one of the pilot projects that intends to finance 65,000 new connections, thanks to a 7.1 M EUR grant delegated to AFD by the European Union.
The improvement of the rural areas electricity grid will result in a better economic development and a reduction of the inequalities between rural and urban areas: households, schools, health centers, markets and small businesses will get a subsidized connection to power that will improve livelihoods and wealth.
About the commissioning ceremony
The ceremony was held by H.E the Vice President of the Republic of Uganda, in the presence of the Minister of Energy and Mineral Development, the Ministers of State for Energy and for Agriculture, the Permanent Secretary for Energy, the Managing Director of Uganda Electricity Transmission Company Limited (UETCL), the Executive Director of the Rural Electrification Agency (REA), the Country Representative of AFD in Kampala, representatives from the Government of Uganda and from the Kingdom of Norway.
It was to launch, among others, the Nkenda-Hoima line and the Connections Policy.