With an average of 75 kWh/year, Uganda has one of the lowest electricity consumption per inhabitant in Africa and a low access to electricity; the national electrification rate is estimated at 14% with the rural population having an even lower rate of less than 7%. Power shortage remains one of the greatest obstacles to the country’s economic growth.
The main objective of the project is to extend electricity from the national grid to local communities currently unable to access clean energy in order to spur improved economic and social development in a sustainable way. The project will therefore invest in infrastructure with a total Medium Voltage (MV) route length (33/11 kV) of about 1,500 km and a total proposed Low Voltage (LV) network (415/240 kV) of about 1,300 km with the necessary components of the system. To enhance the connection to this investment, the project will support the strategy of increasing access through the provision of funds for the purchase of connection materials for the Licensed Service Providers (SPs) through the Rural Energy Agency (REA). The total investment cost for the infrastructure project is about EUR 55.5m of which EUR 42.1m for the MV and LV grid extension costs and EUR 7.1m for the connection materials costs and technical assistance to REA.
The Technical Assistance grant (EUR 1.2m) will be used to finance the capacity building of the REA in order to enhance the quality of the implementation of the projects as well as sustainability of the investment.